Title
AN ACT CONCERNING THE ISSUANCE AND SALE OF SPECIAL OBLIGATION BONDS For the purpose of providing that special obligation bonds may be issued from time to time under the provisions of this Act, Section 10-269 of the Prince George's County Code, as amended, and Sections 21-501 through 21-516, inclusive, and Section 21-523 of the Local Government Article of the Annotated Code of Maryland, as amended (collectively, the "Special Taxing District Act"), and CR-28-2013 adopted by the County Council of Prince George's County, Maryland (the "Formation Resolution"), in an amount not to exceed the aggregate principal amount of Three Million Dollars ($3,000,000) in order for Prince George's County (the "County") to finance the construction of certain infrastructure improvements, including the CSX Crossing, as more particularly described herein and to pay certain costs of issuing such bonds; making certain findings and determinations, among others, concerning the benefit and purpose of such special obligation bonds; providing for the levy of a Real Property Special Tax and a Special Hotel Rental Tax (each as defined below), and the allocation of such special taxes with respect to the special taxing district to be paid over to the Special Taxing District Fund (as defined in the Formation Resolution); providing that special obligation bonds authorized to be issued hereby shall be payable from the Real Property Special Tax and the Special Hotel Rental Tax to be levied and deposited in the Special Taxing District Fund and that the special obligation bonds shall not constitute a general obligation debt of the County or a pledge of the County's full faith and credit or taxing power other than the special tax; authorizing the County Executive of the County to specify, prescribe, determine, provide for, approve certain details, forms, documents or procedures in connection with such special obligation bonds issued hereunder and any other matters necessary, or desirable in connection with the authorization, issuance, sale, delivery, security and payment of such special obligation bonds; authorizing the County Executive to take certain other actions, to execute documents and to make certain commitments on behalf of the County in connection with the issuance, sale and delivery of such special obligation bonds; authorizing the execution and delivery of such special obligation bonds and such other documents as may be necessary, or desirable to effectuate the financing of the infrastructure improvements and the issuance, sale and delivery of such special obligation bonds; and generally providing for, and determining various matters in connection with, the issuance, sale, delivery, security and payment of such special obligation bonds.
Background
This bill approves the issuance and sale of special obligation bonds in the aggregate principal amount of $3,000,000 in order to finance planned infrastructure improvements within the Calvert Tract Special Taxing District. The Calvert Tract Special Taxing District was established and approved by the Council by the adoption of CR-28-2013. The district is located in the Town of Riverdale Park and the proposed legislation will support the construction of infrastructure required for the development a $250 million mixed use project in this community. The bonds will finance a portion of the cost of public improvements in the special taxing district consisting of a new bridge and associated roadwork improvements over the existing CSX railroad tracks.
This bill authorizes a levy of a real property special tax and a special hotel rental tax on properties in the special taxing district. The proposed real property special tax will be imposed upon all real property in the taxing district, except properties specifically exempted by law. The proposed special hotel rental tax of five percent (5%) will be levied on the gross amount of monies paid to the owners or operators of hotels located in the district. These funds will be pledged to satisfy the debt service payments for the special obligation bonds.