§ 160A-458.3. Downtown development projects. - North Carolina Statutes

§ 160A‑458.3. Downtown development projects.

(a)        In this section, "downtown development project"means a capital project in the city's central business district, as thatdistrict is defined by the city council, comprising one or more buildings andincluding both public and private facilities.  By way of illustration but notlimitation, such a project might include a single building comprising apublicly owned parking structure and publicly owned convention center and aprivately owned hotel or office building.

(b)        If the city council finds that it is likely to have asignificant effect on the revitalization of the central business district, thecity may acquire, construct, own, and operate or participate in theacquisition, construction, ownership, and operation of a downtown developmentproject or of specific facilities within such a project.  The city may enterinto binding contracts with one or more private developers with respect toacquiring, constructing, owning, or operating such a project.  Such a contractmay, among other provisions, specify the following:

(1)        The property interests of both the city and the developer ordevelopers in the project, provided that the property interests of the cityshall be limited to facilities for a public purpose;

(2)        The responsibilities of the city and the developer ordevelopers for construction of the project;

(3)        The responsibilities of the city and the developer ordevelopers with respect to financing the project.

Sucha contract may be entered into before the acquisition of any real propertynecessary to the project.

(c)        A downtown development project may be constructed onproperty acquired by the developer or developers, on property directly acquiredby the city, or on property acquired by the city while exercising the powers,duties, and responsibilities of a redevelopment commission pursuant to G.S.160A‑505 or G.S. 160A‑456.

(d)        In connection with a downtown development project, the citymay convey interests in property owned by it, including air rights over publicfacilities, as follows:

(1)        If the property was acquired while the city was exercisingthe powers, duties, and responsibilities of a redevelopment commission, thecity may convey property interests pursuant to the "Urban RedevelopmentLaw" or any local modification thereof.

(2)        If the property was acquired by the city directly, the citymay convey property interests pursuant to G.S. 160A‑457, and Article 12of Chapter 160A of the General Statutes does not apply to such dispositions.

(3)        In lieu of conveying the fee interest in air rights, thecity may convey a leasehold interest for a period not to exceed 99 years, usingthe procedures of subparagraphs (1) or (2) of this subsection, as applicable.

(e)        The contract between the city and the developer or developersmay provide that the developer or developers shall be responsible forconstruction of the entire downtown development project.  If so, the contractshall include such provisions as the city council deems sufficient to assurethat the public facility or facilities included in the project meet the needsof the city and are constructed at a reasonable price.  A project constructedpursuant to this paragraph is not subject to Article 8 of Chapter 143 of theGeneral Statutes, provided that city funds constitute no more than fiftypercent (50%) of the total costs of the downtown development project.  Federalfunds available for loan to private developers in connection with a downtowndevelopment project shall not be considered city funds for purposes of thissubsection.

(f)         Operation. – The city may contract for the operation of anypublic facility or facilities included in a downtown redevelopment project by aperson, partnership, firm or corporation, public or private.  Such a contractshall include provisions sufficient to assure that any such facility orfacilities are operated for the benefit of the citizens of the city.

(g)        Grant funds. – To assist in the financing of its share of adowntown development project, the city may apply for, accept and expend grantfunds from the federal or State governments. (1987, c. 619, s. 1.)