* WARNING: THIS IS AN UNOFFICIAL, INTRODUCTORY COPY OF THE BILL.
THE OFFICIAL COPY CONSIDERED BY THE CITY COUNCIL IS THE FIRST READER COPY.
INTRODUCTORY*
CITY OF BALTIMORE
COUNCIL BILL
Introduced by: The Council President
At the request of: The Administration (Bureau of the Budget and Management Research)
A BILL ENTITLED
AN ORDINANCE concerning
Title
Supplementary Mondawmin Mall Tax Increment Financing Capital Appropriation - Department of Housing and Community Development - $15,000,000
FOR the purpose of providing a Supplementary Mondawmin Mall Tax Increment Financing Capital Appropriation in the amount of $15,000,000 to the Department of Housing and Community Development (Account #9910-600-359), to provide funds for financing or refinancing the development of infrastructure improvements relating to the redevelopment of the Mondawmin Mall in the City of Baltimore; and providing for a special effective date.
Body
BY authority of
Article VI - Board of Estimates
Section 8(b)(1) and (c)
Baltimore City Charter
(1996 Edition)
Recitals
This Ordinance provides for the supplementary appropriation of the proceeds (the "Bond Proceeds") of certain tax increment financing bonds (the "Bonds") to be issued for the purpose of financing or refinancing the development of infrastructure improvements relating to the redevelopment of the Mondawmin Mall (the "Mall") in the City of Baltimore. The Bonds shall be issued pursuant to a trust agreement (the "Indenture") by and between the City and a trustee for the Bonds (the "Trustee"), or a materially similar document. Pursuant to Article VII, Section 21 of the Baltimore City Charter, the Board of Finance (the "Board") is authorized to "determine all matters pertaining to the issuance and sale of certificates of indebtedness," which includes the Bonds. As approved by the Board, the Indenture shall provide that the Bond Proceeds shall be used only for the purposes of financing or refinancing the development of infrastructure improvements relating to the redevelopment of the Mall.
As further approved by the Board, the Bond Proceeds shall be disbursed pursuant to a funding agreement (the "Funding Agreement"), by and between the owners of the Mall and the Mayor and City Council of Baltimore, acting by and through the Department of Finance. The Funding Agreement shall be approved by the Board of Estimates and shall evidence the agreement of the City to disburse the funds, subject to certain conditions as provided for in the agreement and in the documents relating to the Bonds (the "Bond Documents").
The Bond Proceeds are in excess of those relied upon by the Board of Estimates in determining the tax levy required to balance the budget for Fiscal Year 2007. The Indenture provides that upon the sale of the Bonds, the Bond Proceeds will be held by the Trustee in trust for the holders of the Bonds and subject to the above-referenced limitations of the Indenture and other Bond Documents. Therefore, the Bond Proceeds do not represent revenue that would ever be relied upon by the Board of Estimates to determine the tax levy required to balance the Ordinance of Estimates for Fiscal Year 2007 or for any other year in which the Bond proceeds might be disbursed.
Therefore, to the extent required by law, the Board of Estimates on October 25, 2006, has recommended that the City Council of Baltimore approve this Supplementary Mondawmin Mall Tax Increment Financing Capital Appropriation for the purpose of financing or refinancing the development of infrastructure improvements relating to the redevelopment of the Mall, and has authorized the execution of any documents necessary to effectuate the disbursement of Bond Proceeds to the extent that such documents are not otherwise related to the issuance and sale of the certificates of indebtedness.
SECTION 1. BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF BALTIMORE, That to the extent required by law, an amount not to exceed $15,000,000 shall be made available to the Department of Housing and Community Development (Account #9910-600-359) as a Supplementary Mondawmin Mall Tax Increment Financing Capital Appropriation for Fiscal Year 2007, to provide for financing or refinancing the development of infrastructure improvements relating to the redevelopment of the Mondawmin Mall in the City of Baltimore. The source of revenue for this appropriation shall be the proceeds of certain tax increment financing bonds (the "Bond Proceeds"), and the source of revenue is in excess of the amount from this source that was relied on by the Board of Estimates in determining the tax levy required to balance the budget for Fiscal Year 2007. The Bond Proceeds, subject to the Bond Documents as approved by the Board of Finance, are to be made available for disbursement through a funding agreement executed by the Mayor and City Council of Baltimore, acting by and through the Department of Finance, and such other parties as may be necessary.
SECTION 2. AND BE IT FURTHER ORDAINED, That this Ordinance takes effect on the date it is enacted.
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