§266-19.5  Private financing of harbor
improvements.  (a)  Notwithstanding any law to the contrary, the department
of transportation may enter into a capital advancement contract with a private
party for any public improvement to or construction of a state harbor,
commercial harbor, roadstead, or other waterfront improvement belonging to or
controlled by the State, if the director of transportation determines that a
capital advancement contract promotes the best interest of the State by finding
that:



(1)  Private development is likely to be less costly
than any other type of contract;



(2)  Private development provides needed public
improvements on a significantly more timely basis; or



(3)  Public financing for the public improvements is
not available on a timely basis.



(b)  A capital advancement contract under
subsection (a) may be financed by legislative appropriation to reimburse the
private party or by credit against the private party's future rental or tariff
payments to the State; provided that the terms of the contract shall ensure
that the State benefits financially from the arrangement and that public use of
the facility is maintained; provided further that capital advancement contracts
under this section shall not be general obligations of the State for which the
full faith and credit of the department is pledged and the legislature shall
have no obligation to appropriate funds to reimburse a private party to a
capital advancement contract.



(c)  A capital advancement contract under
subsection (a) shall be subject to the requirements of chapters 103 and 103D
and be subject to the approval of the department of transportation; provided
that all related transactions shall be subject to state audit.



(d)  The department of transportation may
execute capital advancement contracts pursuant to subsection (a) with a total
contract value of $2,000,000 or less without legislative approval.  If the
total value of a capital advancement contract pursuant to subsection (a) is
greater than $2,000,000 then the department of transportation shall obtain
legislative approval in the form of the adoption of a concurrent resolution
affirming the purpose, project, and contract issuance prior to executing the
capital advancement contract.  The total aggregate value of all capital
advancement contracts entered into by the department pursuant to this section
shall not exceed $5,000,000 in any calendar year.



(e)  For the purposes of this section:



"Capital advancement contract" means
an agreement between the department of transportation and a private party
whereby the private party agrees to furnish capital, labor, or materials for a
public improvement to or construction of a state harbor, commercial harbor,
roadstead, or other waterfront improvement belonging to or controlled by the
State and in return for which the private party may be reimbursed in a manner
to be determined by the department.



"Total value" includes any contract
extension, project redesign, add-ons, or any other occurrence, act, or material
cost that may increase the cost of the contracted project. [L 2001, c 285, §3;
am L 2002, c 16, §11]



 



Cross References



 



  Private financing of small boat harbor improvements, see
§200-19.