MISSISSIPPI LEGISLATURE
2006 Regular Session
To: Ways and Means
By: Representative Watson, Holland, Akins, Aldridge, Arinder, Bailey, Baker (74th), Baker (8th), Banks, Barnett, Beckett, Bentz, Blackmon, Bondurant, Bounds, Broomfield, Brown, Buck, Burnett, Calhoun, Carlton, Chism, Clark, Clarke, Cockerham, Coleman (29th), Coleman (65th), Compretta, Cummings, Davis, Dedeaux, Denny, Dickson, Eaton, Ellington, Ellis, Espy, Evans, Fillingane, Flaggs, Fleming, Franks, Fredericks, Frierson, Gadd, Gibbs, Guice, Gunn, Hamilton (109th), Hamilton (6th), Harrison, Hines, Holloway, Howell, Huddleston, Hudson, Ishee, Janus, Jennings, Johnson, Lane, Lott, Malone, Markham, Martinson, Masterson, Mayhall, Mayo, McBride, McCoy, Middleton, Miles, Mims, Moak, Montgomery, Morris, Moss, Myers, Nicholson, Norquist, Parker, Patterson, Peranich, Perkins, Read, Reed, Reeves, Reynolds, Robinson (63rd), Robinson (84th), Rogers (14th), Rogers (61st), Rotenberry, Scott, Shows, Simpson, Smith (27th), Smith (39th), Smith (59th), Snowden, Staples, Stevens, Straughter, Stringer, Sullivan, Thomas, Turner, Upshaw, Vince, Walley, Ward, Warren, Weathersby, Wells-Smith, Whittington, Woods, Young, Zuber, Formby
AN ACT TO AUTHORIZE THE MISSISSIPPI DEVELOPMENT AUTHORITY TO PROVIDE INTEREST-FREE NONRECOURSE LOANS TO THE JACKSON REDEVELOPMENT AUTHORITY; TO PROVIDE THAT THE JACKSON REDEVELOPMENT AUTHORITY MUST UTILIZE THE PROCEEDS OF SUCH LOANS TO PROVIDE ONE OR MORE LOANS TO THE PARTY OR PARTIES SELECTED TO REDEVELOP THE KING EDWARD HOTEL PROPERTIES TO FINANCE ENVIRONMENTAL REMEDIATION, ENGINEERING AND ARCHITECTURAL SERVICE, SELECTIVE DEMOLITION AND OTHER COSTS NECESSARY FOR THE PRE-DEVELOPMENT OR FOR THE DEMOLITION OF THE KING EDWARD HOTEL; TO PROVIDE THAT THE AGGREGATE AMOUNT OF ALL LOANS SHALL NOT EXCEED $2,000,000.00; TO PROVIDE THAT AS A CONDITION OF THE LOAN THE JACKSON REDEVELOPMENT AUTHORITY AND THE CITY OF JACKSON SHALL HAVE AGREED TO THE MAXIMUM EXTENT ALLOWABLE UNDER FEDERAL LAW AND GRANT AGREEMENTS TO PAY TO THE MISSISSIPPI DEVELOPMENT AUTHORITY PROCEEDS WHICH MAY BE AWARDED TO THE CITY OF JACKSON BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT UNDER THE BROWNSFIELD ECONOMIC DEVELOPMENT INITIATIVE (BEDI) GRANT PROGRAM OR SUCH OTHER FUNDING THAT MAY BE RECEIVED FROM THE UNITED STATES SPECIFICALLY FOR THE KING EDWARD HOTEL REDEVELOPMENT PROJECT; TO AUTHORIZE THE ISSUANCE OF $2,000,000.00 IN STATE GENERAL OBLIGATION BONDS TO PROVIDE FUNDS FOR SUCH LOANS; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) (a) The Mississippi Development Authority (MDA) is authorized to provide one or more interest-free nonrecourse loans to the Jackson Redevelopment Authority (JRA). The proceeds of the loan shall be utilized by the JRA to provide one or more loans to the party or parties selected to redevelop the King Edward Hotel properties to finance environmental remediation, engineering and architectural services, selective demolition and other costs necessary for the pre-development or for the demolition of the King Edward Hotel properties. The aggregate amount of all loans made under this section shall not exceed Two Million Dollars ($2,000,000.00).
(b) The JRA must submit an application to the MDA. The application must include a description of the purpose for which assistance is requested, the amount of assistance requested and any other information required by the MDA.
(c) Prior to entering into the loan with JRA, the MDA shall assess the proposal for the King Edward Hotel redevelopment project and the loan may be entered into only if the MDA determines adequate financing for the proposal is available and that the project is viable.
(d) As a condition of a loan to JRA under this section, JRA and the City of Jackson, Mississippi, shall have agreed to the maximum extent permitted by applicable federal law and regulations and grant agreements, that all proceeds which may be hereafter received by JRA or the City of Jackson from the United States Department of Housing and Urban Development under the Brownsfield Economic Development Initiative (BEDI) grant program for the King Edward Hotel redevelopment, or from the United States under other grants hereafter awarded and hereafter received specifically for the King Edward Hotel redevelopment project, will be paid to MDA until principal of such loan shall be paid in full. Such loan shall be repayable solely from such proceeds. Upon receipt of such proceeds or other payments from the City of Jackson or the JRA, the MDA shall forward the money to the State Treasurer who shall utilize the money to pay the principal of the bonds issued under this section.
(e) The MDA shall have all powers necessary to implement and administer the loan authorized under this section, and the MDA shall promulgate rules and regulations, in accordance with the Mississippi Administrative Procedures Law, necessary for the implementation of this section.
(2) There is created in the State Treasury a special fund to be designated as the "Jackson Redevelopment Authority Loan Fund," which shall consist of the proceeds of general obligation bonds authorized to be issued by this section. Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any investment earnings or interest earned on amounts in the fund shall be deposited to the credit of the fund. Monies in the fund shall be used by the MDA for the purposes described in this section.
(3) As used in subsections (3) through (18) of this section, the following words shall have the meanings ascribed herein unless the context clearly requires otherwise:
(a) "Accreted value" of any bonds means, as of any date of computation, an amount equal to the sum of (i) the stated initial value of such bond, plus (ii) the interest accrued thereon from the issue date to the date of computation at the rate, compounded semiannually, that is necessary to produce the approximate yield to maturity shown for bonds of the same maturity.
(b) "State" means the State of Mississippi.
(c) "Commission" means the State Bond Commission.
(4) (a) The Mississippi Development Authority, at one time, or from time to time, may declare by resolution the necessity for issuance of general obligation bonds of the State of Mississippi to provide funds for the loans authorized in this section. Upon the adoption of a resolution by the Mississippi Development Authority, declaring the necessity for the issuance of any part or all of the general obligation bonds authorized by this section, the Mississippi Development Authority shall deliver a certified copy of its resolution or resolutions to the commission. Upon receipt of such resolution, the commission, in its discretion, may act as the issuing agent, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The total amount of bonds issued under this section shall not exceed Two Million Dollars ($2,000,000.00). No bonds shall be issued under this section after July 1, 2009.
(b) The proceeds of bonds issued pursuant to this section shall be deposited into the Jackson Redevelopment Authority Loan Fund created pursuant to subsection (2) of this section. Any investment earnings on bonds issued pursuant to this section shall be used to pay debt service on bonds issued under this section, in accordance with the proceedings authorizing issuance of such bonds.
(5) The principal of and interest on the bonds authorized under this section shall be payable in the manner provided in this section. Such bonds shall bear such date or dates, be in such denomination or denominations, bear interest at such rate or rates (not to exceed the limits set forth in Section 75-17-101, Mississippi Code of 1972), be payable at such place or places within or without the State of Mississippi, shall mature absolutely at such time or times not to exceed twenty-five (25) years from date of issue, be redeemable before maturity at such time or times and upon such terms, with or without premium, shall bear such registration privileges, and shall be substantially in such form, all as shall be determined by resolution of the commission.
(6) The bonds authorized by this section shall be signed by the chairman of the commission, or by his facsimile signature, and the official seal of the commission shall be affixed thereto, attested by the secretary of the commission. The interest coupons, if any, to be attached to such bonds may be executed by the facsimile signatures of such officers. Whenever any such bonds shall have been signed by the officials designated to sign the bonds who were in office at the time of such signing but who may have ceased to be such officers before the sale and delivery of such bonds, or who may not have been in office on the date such bonds may bear, the signatures of such officers upon such bonds and coupons shall nevertheless be valid and sufficient for all purposes and have the same effect as if the person so officially signing such bonds had remained in office until their delivery to the purchaser, or had been in office on the date such bonds may bear. However, notwithstanding anything herein to the contrary, such bonds may be issued as provided in the Registered Bond Act of the State of Mississippi.
(7) All bonds and interest coupons issued under the provisions of this section have all the qualities and incidents of negotiable instruments under the provisions of the Uniform Commercial Code, and in exercising the powers granted by this section, the commission shall not be required to and need not comply with the provisions of the Uniform Commercial Code.
(8) The commission shall act as the issuing agent for the bonds authorized under this section, prescribe the form of the bonds, advertise for and accept bids, issue and sell the bonds so authorized to be sold, pay all fees and costs incurred in such issuance and sale, and do any and all other things necessary and advisable in connection with the issuance and sale of such bonds. The commission is authorized and empowered to pay the costs that are incident to the sale, issuance and delivery of the bonds authorized under this section from the proceeds derived from the sale of such bonds. The commission shall sell such bonds on sealed bids at public sale, and for such price as it may determine to be for the best interest of the State of Mississippi, but no such sale shall be made at a price less than par plus accrued interest to the date of delivery of the bonds to the purchaser. All interest accruing on such bonds so issued shall be payable semiannually or annually; however, the first interest payment may be for any period of not more than one (1) year.
Notice of the sale of any such bonds shall be published at least one (1) time, not less than ten (10) days before the date of sale, and shall be so published in one or more newspapers published or having a general circulation in the City of Jackson, Mississippi, and in one or more other newspapers or financial journals with a national circulation, to be selected by the commission.
The commission, when issuing any bonds under the authority of this section, may provide that bonds, at the option of the State of Mississippi, may be called in for payment and redemption at the call price named therein and accrued interest on such date or dates named therein.
(9) The bonds issued under the provisions of this section are general obligations of the State of Mississippi, and for the payment thereof the full faith and credit of the State of Mississippi is irrevocably pledged. If the funds appropriated by the Legislature are insufficient to pay the principal of and the interest on such bonds as they become due, then the deficiency shall be paid by the State Treasurer from any funds in the State Treasury not otherwise appropriated. All such bonds shall contain recitals on their faces substantially covering the provisions of this section.
(10) Upon the issuance and sale of bonds under the provisions of this section, the commission shall transfer the proceeds of any such sale or sales to the Jackson Redevelopment Authority Loan Fund created in subsection (2) of this section. The proceeds of such bonds shall be disbursed solely upon the order of the Mississippi Development Authority under such restrictions, if any, as may be contained in the resolution providing for the issuance of the bonds.
(11) The bonds authorized under this section may be issued without any other proceedings or the happening of any other conditions or things other than those proceedings, conditions and things which are specified or required by this section. Any resolution providing for the issuance of bonds under the provisions of this section shall become effective immediately upon its adoption by the commission, and any such resolution may be adopted at any regular or special meeting of the commission by a majority of its members.
(12) The bonds authorized under the authority of this section may be validated in the Chancery Court of the First Judicial District of Hinds County, Mississippi, in the manner and with the force and effect provided by Chapter 13, Title 31, Mississippi Code of 1972, for the validation of county, municipal, school district and other bonds. The notice to taxpayers required by such statutes shall be published in a newspaper published or having a general circulation in the City of Jackson, Mississippi.
(13) Any holder of bonds issued under the provisions of this section or of any of the interest coupons pertaining thereto may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce any and all rights granted under this section, or under such resolution, and may enforce and compel performance of all duties required by this section to be performed, in order to provide for the payment of bonds and interest thereon.
(14) All bonds issued under the provisions of this section shall be legal investments for trustees and other fiduciaries, and for savings banks, trust companies and insurance companies organized under the laws of the State of Mississippi, and such bonds shall be legal securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and political subdivisions for the purpose of securing the deposit of public funds.
(15) Bonds issued under the provisions of this section and income therefrom shall be exempt from all taxation in the State of Mississippi.
(16) The proceeds of the bonds issued under this section shall be used solely for the purposes therein provided, including the costs incident to the issuance and sale of such bonds.
(17) The State Treasurer is authorized, without further process of law, to certify to the Department of Finance and Administration the necessity for warrants, and the Department of Finance and Administration is authorized and directed to issue such warrants, in such amounts as may be necessary to pay when due the principal of, premium, if any, and interest on, or the accreted value of, all bonds issued under this section; and the State Treasurer shall forward the necessary amount to the designated place or places of payment of such bonds in ample time to discharge such bonds, or the interest thereon, on the due dates thereof.
(18) This section shall be deemed to be full and complete authority for the exercise of the powers therein granted, but this section shall not be deemed to repeal or to be in derogation of any existing law of this state.
SECTION 2. This act shall take effect and be in force from and after its passage.