Title
AN ACT CONCERNING THE PLEDGE OF THE TAX INCREMENT FROM THE SUITLAND-NAYLOR ROAD DEVELOPMENT DISTRICT for the purpose of pledging the Tax Increment from the Suitland-Naylor Road Development District (the "Development District") established pursuant to Sections 12-201 through 12-213, inclusive, of the Economic Development Article of the Annotated Code of Maryland, as amended (the “Tax Increment Financing Act”) and CR-94-2014 of the County Council of Prince George’s County, Maryland (the “Formation Resolution”) as security for revenue bonds (the "Bonds") to be issued by the Revenue Authority of Prince George's County (the "Revenue Authority") under Sections 21A-101 through 21A-307 of the Prince George's County Code (the "County Code"), the proceeds of which will be used by the Revenue Authority and/or the Redevelopment Authority of Prince George's County (the "Redevelopment Authority") for purposes of acquiring and assembling land and improvements, paying entitlement fees, financing working capital and financing improvements related to the Development District, including, but not limited to, financing the costs of roads, streets, water and sewer utilities, and financing other costs and improvements permitted to be undertaken by the Revenue Authority and/or the Redevelopment Authority, in each case for the development of various properties within the Development District into mixed-use projects which may include a performing arts center with a theatre, a town center, retail, residential, office and other commercial development, along with financing costs of issuance, underwriter's discount, and the funding of reserves for the Bonds; approving the inclusion in the Revenue Authority's Capital Improvement Program of the foregoing project and the undertaking thereof by the Revenue Authority, including the deposit of funds by the Revenue Authority into a reserve fund for the Bonds, in each case as required under Section 21A-119 of the Prince George’s County Code; making certain findings and determinations, among others, concerning the public benefit and purpose of the pledging of such Tax Increment as security for the Bonds and the undertaking of the foregoing project by the Revenue Authority; providing for the delivery of a contribution agreement (the "Contribution Agreement") whereby the County will agree to contribute the Tax Increment to the Revenue Authority to pay debt service, including any early redemptions, on the Bonds (and administrative expenses with respect to the Development District); and authorizing the County Executive of the County to approve certain details, forms, documents or procedures in connection with the pledge of the Tax Increment and the Bonds to be issued by the Revenue Authority and any other matters necessary or desirable in connection with the pledge of the Tax Increment and the authorization, issuance, delivery and payment of such Bonds consistent with the provisions of this Act.
Background
This legislation authorizes the pledge of the tax increment from the Suitland-Naylor Road Development District and Tax Increment Fund. The pledged tax increment will serve as a security for revenue bonds to be issued by the Revenue Authority of Prince George's County. The proceeds from the bonds will be used by the Revenue Authority and/or the Redevelopment Authority of Prince George's County for the purposes of property acquisitions, public improvements, paying entitlement fees, financing working capital, and other improvements in the Suitland-Naylor Development District. Pursuant to CR-94-2014, the Suitland-Naylor Road Development District and Tax Increment Fund was established and approved by the County Council.
The aggregate principal amount of the revenue bond to be issued by the Revenue Authority is Twenty-Eight Million Dollars ($28,000,000). Any bonds authorized under this legislation shall be payable solely from real property taxes deposited in the Tax Increment Fund and pledged to the Revenue Authority. The bonds will not constitute a general obligation debt, a pledge of the County’s full faith and credit nor taxing power other than the taxes representing the levy on the tax increment. The enactment of this legislation is vital to the County’s redevelopment efforts in an established community.