CHAPTER 625

AN ACT TO AMEND CHAPTER 5, TITLE 22, DELAWARE CODE, RELATING TO PARKING AUTHORITIES.

Be it enacted by the General Assembly of the State of Delaware:

Section 1. § 505 (a),Title 22, Delaware Code, is amended by striking the words and figure "not exceeding 6 per cent per annum" where they appear on lines 5 and 6 thereof.

Section 2. § 505 (a), Title 22, Delaware Code, is further amended by striking the second sentence in its entirety from the second subparagraph thereof.

Section 3. § 505 (b), Title 22, Delaware Code, is amended by inserting in the fourth line thereof the words "or of the municipality" after the word "Authority" and before the word "for".

Section 4. § 508, Title 22, Delaware Code, is amended by striking the last paragraph thereof and inserting in lieu thereof a new paragraph to read as follows:

Any Municipality establishing an Authority under this chapter may, under such terms and conditions as it may deem appropriate, provide for and pay to such Authority such sum or sums of money necessary to acquire in whole or in part the lands upon which such Authority may undertake to erect a parking facility as herein provided and/or such sum or sums of money necessary to acquire or construct in whole or in part a parking facility for facilities as herein provided; or such sum or sums of money necessary to pay operating expenses of the Authority and debt service on outstanding bonds of the Authority and/or to make payments into a reserve fund for the payment of the principal of and interest on indebtedness of the Authority as may be provided by any resolution of the Authority authorizing the issuance of its revenue bonds or by any trust indenture securing its revenue bonds. The Municipality for the purpose of providing such sum or sums of money may issue its general obligation bonds secured by the faith and credit of the Municipality payable from unlimited ad valorem taxes on all of the real estate in the Municipality subject to taxation or levy ad valorem taxes on real estate subject to taxation, unlimited as to rate or amount. In addition to the issuance of its general obligation bonds and levy of taxes as provided above, a Municipality may guarantee bonds of the Authority issued pursuant to Section 505 of this chapter by pledging its full faith and credit to the payment of the principal of and interest on such revenue bonds. The aggregate amount of general obligation bonds issued by a municipality under this provision and the indebtedness so guaranteed and taxes levied shall be in addition to and not within the limitations of any existing statutory debt or tax limitation of the Municipality. Any agreement by the Municipality to guarantee the revenue bonds of the Authority or to maintain a reserve fund or to pay debt service or operating expenses of the Authority may be made a part of any contract with holders of revenue bonds of the Authority and may be pledged by the Authority to the payment of such revenue bonds. The enforcement or performance of such guaranty may include resort to the power of the Municipality to tax real estate subject to taxation with no limit as to rate or amount or to any other monies of the Municipality available for such purpose.

Section 5. § 510, Title 22, Delaware Code, is amended by adding immediately following Section 510 (e) thereof a new subsection as follows:

(f) The provisions of subsection (a) of this section shall not apply to the construction of parking facilities intended to serve and be an integral part of, a redevelopment project, in any municipality where the municipality, or its redevelopment agency has designated or selected a developer who is responsible for the over-all development of said project including parking facilities. In such case, the Authority may negotiate with said developer for the construction and design of public parking facilities on such terms and conditions as the Authority may deem justified and in the public interest.

Approved June 30, 1970.