Sec. 8-241. - Title.

(a)

Article VIII, sections 8-241 through 8-255, shall be known as the Wilmington Special Development District Ordinance.

(b)

Definitions. In this article, the following terms have the meanings indicated unless the context clearly indicates a different meaning or intent.

Act means the Special Development District Act, 22 Del. C., ch. 18.

Bonds or bond means a special obligation bond, revenue bond, note, or other similar instrument issued by any municipality in accordance with this section.

County or county means New Castle County.

Cost includes the cost of:

(1)

Construction, reconstruction, and renovation, and acquisition of all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interests acquired or to be acquired by the city for a public purpose;

(2)

All machinery and equipment including machinery and equipment needed to expand or enhance city services to the special development districts created pursuant to this article;

(3)

Financing charges and interest prior to and during construction, and, if deemed advisable by the city, for a limited period after completion of the construction, interest and reserves for principal and interest, including costs of municipal bond insurance and any other type of financial guaranty, liquidity support, and costs of issuance;

(4)

Extensions, enlargements, additions and improvements;

(5)

Architectural, engineering, financial and legal services;

(6)

Plans, specifications, studies, surveys and estimates of costs and of revenues;

(7)

Administrative expenses necessary or incident to determining to proceed with the infrastructure improvements; and

(8)

Other expenses as may be necessary or incident to the construction, acquisition, financing and operation of the infrastructure improvements including administrative expenses charged to collect and/or administer the tax revenues.

Municipality or municipality means the City of Wilmington, having a population in excess of 50,000 people.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-242. - Special taxes authorized; purpose; requirements and restrictions; rules and regulations; findings.

(a)

Subject to the provisions of this section, and for the purpose stated in subsection (b) of this section, the city may:

(1)

Create one or more special development districts;

(2)

Levy ad valorem or special taxes; and

(3)

Issue bonds and other obligations.

(b)

The purpose of the authority granted under subsection (a) of this section is to provide financing, refinancing, or reimbursement for:

(1)

The cost of the design, construction, establishment, extension, alteration, or acquisition of adequate storm drainage systems, sewers, water systems, roads, bridges, culverts, tunnels, streets, sidewalks, lighting, parking, parks and recreation facilities, libraries, schools, transit facilities, solid waste facilities, and other infrastructure improvements as necessary, whether situated within the special development district or outside the special development district if the infrastructure improvement provides service or benefit to the property within the special development district, for the development and utilization of the land, each with respect to any defined geographic area, within the city; and

(2)

To pay costs associated with tax increment financing undertaken with respect to TIF districts pursuant to 22 Del. C. ch. 17.

(c)

Subject to review and approval by the administrative board, the office of economic development ("OED") shall be and is hereby authorized to promulgate such rules, regulations, procedures and forms necessary to implement the provisions of this article, particularly those aspects related to the applicant's form of application, OED application review, and recommendations to the mayor and council. The said OED shall be and is hereby authorized and required to make such findings that it deems appropriate as part of its review of each application.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-243. - Issuance and sale of bonds; section self-executing.

(a)

In addition to other powers the city may have, and notwithstanding the provisions of any other public local law, or public general law, or the City Charter, the city may borrow money by issuing and selling bonds for the purposes stated in section 8-242(b) if a request to the city is made by both:

(1)

The owners of at least two-thirds of the assessed valuation of the real property located within the special development district; and

(2)

At least two-thirds of the owners of the acreage located within the special development district, provided that:

a.

Multiple owners of a single parcel are treated as a single owner; and

b.

A single owner of multiple parcels is treated as one owner.

(b)

This section is self-executing and does not require the city to enact legislation or, if applicable, to amend its Charter to exercise the powers granted under this article pursuant to 22 Del. C. ch. 18.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-244. - Bond payable from special fund; complementary powers of governing body; proceeds.

(a)

Bonds shall be payable from the special fund required under section 8-245 of this article.

(b)

If the city issues bonds under this section, the city may also:

(1)

Establish sinking funds;

(2)

Establish debt service reserve funds;

(3)

Pledge other assets and revenues towards the payments of the principal, premium, if any, and interest; or

(4)

Provide for municipal bond insurance or any other type of credit enhancement or liquidity support of the bonds.

(c)

All proceeds received from any bonds issued and sold shall be applied solely to pay costs, including:

(1)

Costs of design, construction, establishment, extension, alteration, or acquisition of infrastructure improvements;

(2)

Costs of issuing bonds;

(3)

Payment of the principal and interest on loans, including developer loans, money advances, or any indebtedness for any of the purposes stated in section 8-242 of this article, including the refunding of bonds previously issued under this article;

(4)

Funding of a debt service reserve fund or payment of interest prior to, during, or for a limited period of time after construction; and

(5)

Purposes described in 22 Del. C § 1802 and section 8-242 of this chapter.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-245. - Conditions precedent to issuance of bonds.

(a)

Before issuing bonds, pursuant to this article, the city council shall:

(1)

Designate by resolution an area or areas as a special development district;

(2)

Subject to subsection (b) of this section, adopt a resolution creating a special fund with respect to the special development district; and

(3)

Provide for the levy of an ad valorem or special tax on all real property within the special development district at a rate or amount designed to provide adequate revenues to pay the principal of, interest on, and redemption premium, if any, on the bonds, to replenish any debt service reserve fund, and for any other purpose related to the ongoing expenses of or security, including debt service coverage requirements, for the bonds. Ad valorem taxes shall be levied in the same manner, upon the same assessments, for the same period or periods, and as of the same date or dates of finality as are now or may hereafter be prescribed for general ad valorem real property tax purposes within the district, and shall be discontinued when all of the bonds have been paid in full. Special taxes shall be levied pursuant to section 8-253 of this article.

(b)

The resolution creating a special fund under paragraph (a)(2) of this section shall:

(1)

Pledge to the special fund the proceeds of the ad valorem or special tax to be levied as provided under paragraph (a)(3) of this section; and

(2)

Require that the proceeds from the tax be paid into the special fund.

(c)

Approval of application. If the office of economic development ("OED") shall make the findings required by section 8-242, the OED shall approve the application and shall transmit evidence of its approval to the mayor. If the mayor shall concur in the OED's approval of the application, the mayor shall notify the OED in writing of such occurrence and shall transmit such application and other documents, together with any additional recommendations, to council so that a project ordinance may be introduced.

(d)

Interjurisdiction special obligation bond. An interjurisdiction special obligation bond issue shall have obtained, prior to its issuance, by one or more credit-rating agencies, a credit rating qualifying it as a non-speculative issue.

(e)

Project ordinance. Prior to the issuance of any bonds under this article, the council shall adopt a project ordinance approving the project and approving or modifying the findings previously transmitted pursuant to this article, authorizing the issuance of the bonds, stating the aggregate principal amount thereof and stating that the bonds are special obligations of the city and do not pledge the credit or taxing power thereof, but are payable solely from the revenues specified in section 8-244. Such project ordinance or, if council shall deem it appropriate, a subsequent resolution or resolutions of the city's bond committee, shall also specify the form, terms and provisions of the bonds to be issued, and the manner of sale, which may be public or private, and the terms upon which or the prices for which the bonds are to be sold or exchanged. In addition, prior to the issuance of any bonds under this article, any and all fees proposed to be earned by the city shall be identified and designated to a special fund in the office of economic development. Any and all allocations from the fund shall be approved by resolution of council. Any fees that are proposed to be earned from housing bonds shall be specifically designated to the department of licenses and inspections and shall be used for vacant properties. No fees that may be earned by the issuance of the bond shall be waived without approval of council by resolution. Prior to the issuance of bonds, the applicant must provide certification of the proposed assessment to the city director of finance, in a form satisfactory to the department of finance.

(f)

In connection with any project to be financed by bonds, the council may, after approval of the department, with the recommendation of the mayor and prior to the adoption of the project ordinance required by this section, adopt a resolution indicating the city's intent to issue bonds under this article, which resolution shall act as the inducement resolution required for purposes of section 103 of the Internal Revenue Code.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-246. - When no bonds outstanding.

When no bonds are outstanding with respect to a special development district:

(1)

The special development district shall be terminated; and

(2)

Any moneys remaining in the special fund on the date of termination of the special development district shall be paid to the general fund of the city.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-247. - Adoption of ordinance to implement authority.

(a)

Special development district ordinance. In order to implement the authority conferred upon it by this article to issue bonds, the city council shall adopt an ordinance that:

(1)

Specifies and describes the proposed undertaking and states that it has complied with section 8-245 of this article;

(2)

Specifies the maximum principal amount of bonds to be issued;

(3)

Specifies the maximum rate or rates of interest for the bonds; and

(4)

Agrees to a covenant to levy upon all real property within the special development district, ad valorem taxes or special taxes in rate and amount at least sufficient in each year in which any of the bonds are outstanding to provide for the payment of the principal of, premium, if any, and the interest on the bonds.

(b)

Additional provisions. The ordinance (i) may itself specify and prescribe, (ii) may authorize the bond committee, by resolution, or (iii) may authorize the mayor, by executive order, to specify any of the following as deemed appropriate to effect the financing of the proposed undertaking:

(1)

the actual principal amount of the bonds to be issued;

(2)

The actual rate or rates of interest for the bonds;

(3)

The manner in which and the terms upon which the bonds are to be sold;

(4)

The manner in which and the times and places that the interest on the bonds is to be paid;

(5)

The time or times that the bonds may be executed, issued and delivered.

(6)

The form and tenor of the bonds and the denominations in which the bonds may be issued;

(7)

The manner in which and the times and places that the principal of the bonds is to be paid, within the limitations set forth in this section;

(8)

Provisions pursuant to which any or all of the bonds may be called for redemption prior to their stated maturity dates;

(9)

Any other provisions not inconsistent with this section as shall be determined by the city council to be necessary or desirable to effect the financing of the proposed undertaking; and

(10)

The hiring of such professionals as may be deemed necessary to assist with the city's review of any and all aspects of the special development district financing.

(c)

(1)

No referendum; request of landowners. An ordinance authorizing the bonds required under this section, an ordinance, resolution, or executive order passed or adopted in furtherance of the required ordinance, the bonds, the designation of a special development district, or the levy of a special ad valorem tax or special tax may not be subject to any referendum by reason of any other state or local law.

(2)

The ordinance authorizing the bonds required under this subsection, any ordinance, resolution, or executive order passed or adopted in furtherance of the required ordinance, the bonds, the designation of a special development district, or the levy of a special ad valorem tax or special tax shall be subject to the request of the landowners as specified under section 8-243(a) of this article.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-248. - Taxation of bonds.

The principal amount of the bonds, the interest payable on the bonds their transfer and any income derived from the transfer, including any profit made in the sale or transfer of the bonds, shall be exempt from taxation by the state and by the counties and the city.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-249. - Bond form; signatures; maturity; manner of sale.

(a)

All bonds shall be in fully registered form. Each of the bonds shall be deemed to be a security as defined in 6 Del. C. § 8-102, whether or not it is either one of a class or series or by its terms is divisible into a class or series of instruments.

(b)

All bonds shall be signed manually or in facsimile by the mayor, and the seal of the city shall be affixed to the bonds and attested by the city clerk. If any officer whose signature or countersignature appears on the bonds ceases to be such officer before delivery of the bonds, the officer's signature or countersignature shall nevertheless be valid and sufficient for all purposes the same as if the officer had remained in office until delivery.

(c)

All bonds shall mature not later than 30 years from their date of issuance.

(d)

All bonds shall be sold in the manner, either at public or private sale, and upon the terms, as the city deems best. Any contract for the acquisition of property may provide that payment shall be made in bonds.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-250. - Bonds issued are securities.

Bonds issued under this article are securities in which all public officers and public bodies of the state and its political subdivisions, all insurance companies, state banks and trust companies, national banking associations, savings banks, savings and loan associations, investment companies, executors, administrators, trustees and other fiduciaries may properly and legally invest funds, including capital in their control or belonging to them.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-251. - Powers granted are supplemental to other laws.

The powers granted under this article shall be regarded as supplemental and additional to powers conferred by other laws, and may not be regarded as in derogation of any powers now existing.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-252. - Construction of article.

This article, being necessary for the welfare of the city and its residents, shall be liberally construed to effect the purpose of this article.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-253. - Special taxes on real property as alternative to ad valorem taxes.

(a)

As an alternative to levying ad valorem taxes under this article, the city council may levy special taxes on real property in a special development district to cover the costs of infrastructure improvements.

(b)

In determining the basis for and amount of the tax, the cost of an improvement may be calculated and levied:

(1)

Equally per front foot, lot, parcel, dwelling unit, or square foot;

(2)

According to the value of the property as determined by the city, with or without regard to improvements on the property; or

(3)

In any other reasonable manner that results in fairly allocating the cost of the infrastructure improvements.

(c)

The city council may provide by ordinance for:

(1)

A maximum amount to be assessed with respect to any parcel of real property located within a special development district;

(2)

A tax year or other date after which no further special taxes under this section shall be levied or collected on a parcel; and

(3)

The circumstances under which the special tax levied against any parcel may be increased, if at all, as a consequence of delinquency or default by the owner of that parcel or any other parcel within the special development district.

(d)

The city council by ordinance may establish procedures allowing for the prepayment of special taxes under this section.

(e)

Special taxes levied under this subsection shall be collected and secured in the same manner as general ad valorem real property taxes unless otherwise provided in the ordinance and shall be subject to the same penalties and the same procedure, sale, and lien priority in case of delinquency as is provided for general ad valorem real property taxes.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-254. - Bonds not to constitute general obligation debt.

Bonds issued under this article are a special obligation of the city and may not constitute a general obligation debt of the city, or a pledge of the city's full faith and credit or taxing power.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)

Sec. 8-255. - Special development district consistency with certified comprehensive plan.

The use of lands in a Special Development district shall be certified by the planning director as being consistent with the requirements of the comprehensive plan for the area as certified pursuant to 29 Del. C. § 9103(f), with the requirements of the City Charter, and with the requirements of the city's zoning code, including any required variances and special exceptions.

(Ord. No. 03-063(sub 1), § 2, 10-16-03)