NORTH CAROLINA GENERAL ASSEMBLY
1967 SESSION

CHAPTER 1051
SENATE BILL 581

AN ACT CREATING A STATE OF NORTH CAROLINA STADIUM AUTHORITY; TO DEFINE AND PROVIDE ITS PURPOSES AND DUTIES; TO AUTHORIZE IT TO ISSUE SELF-LIQUIDATING REVENUE BONDS TO FINANCE THE ACQUISITION, CONSTRUCTION, EQUIPMENT, MAINTENANCE AND OPERATION OF ITS FACILITIES; AND TO AUTHORIZE STATE AND LOCAL FINANCIAL CONTRIBUTIONS TO SUCH AUTHORITY.

The General Assembly of North Carolina do enact:

Section 1.  There is hereby created a body corporate and politic to be known as the North Carolina Stadium Authority (hereinafter called the "Authority"). The Authority is hereby constituted a public agency, and the exercise by the Authority of the powers conferred by this Act shall be deemed and held to be the performance of a governmental function and in furtherance of a public purpose.
Sec. 2.  As used in this Act, unless the context clearly indicates another or different meaning or intent:
(A)	"Stadium" shall mean a permanent structure, with or without a permanent or removable roof or covering, of a type that will afford accommodations for large numbers of spectators and enclosing, partially or totally, an area suitable or adaptable for holding athletic contests, theatrical events, musical concerts, religious assemblies, military drills and exhibitions, expositions, conventions, and similar or related events tending to promote the education, recreation, or pleasure of the general public.
(B)	"Project" shall be deemed to mean and include the acquisition, construction, equipping, maintenance and operation of a stadium and the usual facilities related thereto, including but not limited to field houses, dressing rooms, parking areas, eating and refreshment facilities, club houses, and accommodations for press, radio, and television personnel and equipment.
Sec. 3.  Through the Authority hereinabove created the State of North Carolina may promote, acquire, develop, construct, equip, maintain, and operate (a) (one or more) stadium (s) at one or more locations selected by the Authority, for the accomplishment of the following purposes:
(A)	To promote and develop the educational and cultural interests of the people of this State;
(B)	To provide for the health, comfort, pleasure, and amusement of the people of this State;
(C)	To stimulate and encourage the improvement of agricultural and industrial skills, techniques, and practices;
(D)	To further advance the economic and commercial interests of the people of this State by attracting tourists and other visitors to the State.
Sec. 4.  The Authority shall consist of seven members appointed by the Governor. Members shall be appointed for four-year terms and shall be eligible for reappointment. Any vacancy occurring in the membership of the Authority, for any cause whatsoever, shall be filled by appointment by the Governor for the unexpired term. Any member may be removed by the Governor for misfeasance, malfeasance, or willful neglect of duty, but only after reasonable notice and a public hearing, unless the same are in writing expressly waived.
Sec. 5.  Each appointed member of the Authority shall, before entering upon his duties, take an oath to administer the duties of his office faithfully and impartially, and a record of each such oath shall be filed in the office of the Secretary of State. Before the issuance of any stadium revenue bonds under this Act, each member of the Authority shall execute a surety bond in the penal sum of twenty-five thousand dollars ($25,000.00) and the secretary-treasurer shall execute a surety bond in the sum of fifty thousand dollars ($50,000.00), each such surety bond to be conditioned upon the faithful performance of the duties of his office, to be executed by a surety company authorized to do business in the State, and to be approved by the Attorney General and filed in the office of the Secretary of State.
Sec. 6.  The Authority shall elect one of its members as chairman and another as vice chairman and shall also elect a secretary-treasurer, who need not be a member of the Authority. Said officers shall serve for one-year terms and shall be eligible for re-election. The Authority shall adopt such rules and regulations not inconsistent herewith as it may deem necessary for the proper discharge of its duties. The chairman may appoint such committees as may be authorized by the Authority's rules and regulations. The Authority shall meet regularly at such times and places as may be specified in its rules and regulations, and special meetings may be called pursuant to such rules. A majority of the members shall constitute a quorum for the transaction of business. All meetings of the Authority shall be open to the public.
Sec. 7.  (The members of the Authority shall not be entitled to compensation for their services but shall be reimbursed for their necessary expenses incurred in the performance of their duties in accordance with the provisions of Sections 138-5 and 138-7 of the General Statutes of North Carolina.)
Sec. 8.  In furtherance of the purposes of this Act, the Authority is hereby:
(A)	Granted the powers of a body corporate, including the power to sue and be sued, to make contracts, and to adopt and use a common seal and to alter the same as may be deemed expedient;
(B)	Authorized and empowered to accept, obtain options upon, rent, lease, buy, own, acquire, mortgage, otherwise encumber, sell, exchange, transfer, assign, or otherwise dispose of such property, real or personal, as it may deem necessary and proper to carry out the purposes and provisions of this Act;
(C)	Authorized and empowered to acquire, develop, construct, maintain, equip, and operate one or more projects as defined herein;
(D)	Granted the power to appoint and employ and dismiss, in its discretion or in the discretion of its duly designated supervisor, such employees as it or its designated supervisor may select, and to fix and pay compensation for their services;
(E)	Authorized to contract for such architectural, engineering, legal, and other professional services as it may deem necessary;
(F)	Granted the power to establish and maintain an office or offices for the transaction of its business at such place or places as in its opinion shall be necessary or advisable in carrying out the purposes of this Act;
(G)	Authorized and empowered to pay all necessary costs and expenses involved in and incident to the formation and organization of the Authority and incident to the administration and operation thereof, and to pay all other costs and expenses reasonably necessary or expedient in carrying out and accomplishing the purposes of this Act, within the limits of funds available to the Authority;
(H)	Granted the power to adopt, alter or repeal its own bylaws, rules, and regulations governing the manner in which its business may be transacted and the powers granted to it may be enjoyed, and the power to provide for the appointment of such committees as it may deem necessary or expedient;
(I)	Authorized, with the approval of the Governor, to enter into and carry out contracts with the State or Federal Government or any department or agency thereof under which said government, department, or agency grants or loans money, materials, property of any kind, services, or technical assistance to the Authority;
(J)	Authorized to accept and expend or otherwise utilize such funds, materials, property of any kind, services, or technical assistance as may be granted by the State or Federal Government or any department or agency thereof; and agree to and comply with any reasonable conditions which are imposed upon such grants;
(K)	Authorized, with the approval of the Governor, to enter into and carry out contracts with any city or county in the State of North Carolina under which said city or county agrees to furnish for compensation or to grant money, materials, property of any kind, services, or technical assistance to the Authority;
(L)	Authorized to accept and expend or otherwise utilize such funds, materials, property of any kind, services, or technical assistance as may be granted by any city or county; and to agree to and comply with any reasonable conditions which are imposed upon such grants;
(M)	Authorized to accept and expend or otherwise utilize any gifts, grants, bequests, or devises of money, materials, property of any kind, services, or technical assistance which may be made to the Authority by any private organization or agency or individual;
(N)	Authorized, in accordance with the provisions of this Act, to borrow money for any of its corporate purposes and to execute evidence of such indebtedness and to secure the same and to issue negotiable revenue bonds payable solely from funds pledged for that purpose, and to provide for the payment of the same and for the rights of the holders thereof;
(O)	Authorized to establish rules and regulations and fix rates, fees, and other charges for the use of all or any portion of any project which it may construct and operate or for admission to any event, show, exhibition, contest, etc., held therein;
(P)	Authorized and empowered to do any and all other acts and things authorized or required to be done by this Act, whether or not included in the general powers mentioned in this Section, and to do any and all other acts and things necessary or convenient to accomplish the purposes set forth in this Act.
Sec. 9.  The Authority shall not have the power of eminent domain.
Sec. 10.  The Authority is hereby authorized to provide by resolution, at one time or from time to time, for the issuance of negotiable revenue bonds of the Authority for the purpose of paying all or any part of the cost of any one or more projects. The principal of and interest on such bonds shall be payable solely from such part of the revenues derived from the operation of all or any part of the properties and facilities of the Authority as may be specified in the resolution for their issuance. The bonds of each issue shall be dated, shall bear interest at such rate or rates not exceeding six per centum (6%) per annum, shall mature at such time or times not exceeding 40 years from their date or dates of issuance, as may be determined by the Authority, and may be made redeemable before maturity, at the option of the Authority, at such price or prices and under such terms and conditions as may be fixed by the Authority prior to the issuance of the bonds. The Authority shall determine the form of the bonds, including any interest coupons to be attached thereto and shall fix the denomination or denominations of the bonds and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the State. The bonds shall be signed by the chairman of the Authority or shall bear his facsimile signature, and the official seal of the Authority shall be impressed thereon and attested by the secretary-treasurer of the Authority, and any coupons attached thereto shall bear the facsimile signature of the chairman of the Authority. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or coupons shall cease to be such officer before the delivery of such bonds, such signature or such facsimile shall nevertheless be valid and sufficient for all purposes the same as if he had remained in office until such delivery. All bonds issued under the provisions of this Act shall have and are hereby declared to have all the qualities and incidents of negotiable instruments under the negotiable instruments law of the State. The bonds may be issued in coupon or in registered form, or both, as the Authority may determine, and provision may be made for the registration of any coupon bonds as to principal alone and also as to both principal and interest, and for the reconversion into coupon bonds of any bonds registered as to both principal and interest.
The proceeds of the bonds of each issue shall be used solely for the payment of the cost of the project or projects for which such bonds shall have been issued, and shall be disbursed in such manner and under such restrictions, if any, as the Authority may provide in the resolution authorizing the issuance of such bonds or in the trust agreement hereinafter mentioned securing the same. If the proceeds of the bonds of any issue, by error of estimates or otherwise, shall be less than such cost, additional bonds may in like manner be issued to provide the amount of such deficit, and, unless otherwise provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same, shall be deemed to be of the same issue and shall be entitled to payment from the same fund without preference or priority of the bonds first issued. If the proceeds of the bonds of any issue shall exceed such cost, the surplus shall be deposited to the credit of the sinking fund for such bonds.
Prior to the preparation of definitive bonds the Authority may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when such bonds shall have been executed and are available for delivery. The Authority may also provide for the replacement of any bonds which shall become mutilated or shall be destroyed or lost.
All revenue bonds issued under the provisions of this Act shall be approved and sold by the Local Government Commission in the same manner as municipal bonds are approved and sold by the Local Government Commission, except that the notice of the proposed sale shall be published at least once at least 10 days before the date fixed for the receipt of bids in a newspaper having general circulation in the City of Raleigh and, in the discretion of the Commission, in some other newspaper of general circulation published in the State and in a journal published in New York City devoted primarily to the subject of municipal bonds. If no bid is received, upon such published notice, which is a legal bid and legally acceptable under such notice, the bonds may be sold at private sale at any time within 30 days after the date set for receiving bids given in such notice.
The Local Government Commission may sell revenue bonds issued under the provisions of this Act at less than par and accrued interest, but no such sale shall be made at a price so low as to require the payment of interest on the money received therefor at more than six per centum (6%) per annum, computed with relation to the absolute maturity or maturities of the bonds in accordance with standard tables of bond values, excluding, however, from such computation the amount of any premium to be paid on redemption of any such bonds prior to maturity.
Sec. 11.  In the discretion of the Authority, any bonds issued under the provisions of this Act may be secured by a trust agreement by and between the Authority and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the State. Such trust agreement or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received by the Authority, including the proceeds derived from the sale, from time to time, of any surplus property of the Authority, both real and personal. Such trust agreement or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Authority in relation to the acquisition of property and the construction, improvement, maintenance, repair, operation, and insurance of the project or projects in connection with which such bonds shall have been authorized, and the custody, safeguarding, and application of all monies. It shall be lawful for any bank or trust company incorporated under the laws of the State which may act as depository of the proceeds of bonds or of revenues to furnish such indemnifying bonds or to pledge such securities as may be required by the Authority. Any such trust agreement may set forth the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the Authority may deem reasonable and proper for the security of bondholders. All expenses incurred in carrying out the provisions of such trust agreement or resolution may be treated as a part of the cost of the operation of the project or projects for which the bonds were issued.
Sec. 12.  The revenues and earnings of the Authority, regardless of whether or not they were produced by the particular project for which bonds have been issued, and any monies derived from the sale of any real or personal property of the Authority, except such part thereof as (a) may be necessary to pay the costs of maintenance, repair, and operation of any project (or projects) and to provide such reserves therefor as may be provided in the resolution authorizing the issuance of such bonds or in the trust agreement securing the same or (b) may have already been pledged or allocated otherwise, shall be set aside at such regular intervals as may be provided in such resolution or such trust agreement in a sinking fund which is hereby pledged to and charged with the payments of (a) the interest upon such revenue bonds as such interest shall fall due, (b) the principal of the bonds as the same shall fall due, (c) the necessary charges of paying agent or agents for paying principal and interest, and (d) any premium upon bonds retired by call or purchase as therein provided. Such pledge shall be valid and binding from the time when the pledge is made; the revenues or other money so pledged and thereafter received by the Authority shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Authority, irrespective of whether such parties have notice thereof. Neither the resolution nor any trust agreement by which a pledge is created need be filed or recorded except in the records of the Authority. The use and disposition of money to the credit of such sinking fund shall be subject to the provisions of the resolution authorizing the issuance of such bonds or of such agreement. Except as may otherwise be provided in such resolution or such trust agreement, such sinking fund shall be a fund for all such bonds without distinction or priority of one over another.
Sec. 13.  All monies received pursuant to the Authority of this Act, whether as proceeds from the sale of bonds or as revenues, shall be deemed to be trust funds to be held and applied solely as provided in this Act. The resolution authorizing the issuance of any bonds or the trust agreement securing such bonds shall provide that any officer with whom, or any bank or trust company with which, such monies shall be deposited shall act as trustee of such monies and shall hold and apply the same for the purposes hereof, subject to such regulations as this Act and such resolutions or trust agreement shall provide.
Sec. 14.  Any holder of bonds issued under the provisions of this Act or any of the coupons appertaining thereto, and the trustee under any trust agreement, except to the extent that the rights herein given may be restricted by such trust agreement, may, either at law or in equity, by suit, action, mandamus, or other proceeding, protect and enforce any and all rights under the laws of the State or granted hereunder or under such trust agreement or the resolution authorizing the issuance of such bonds, and may enforce and compel the performance of all duties required by this Act or by such trust agreement or resolution to be performed by the Authority or by any officer thereof.
Sec. 15.  The Authority is hereby authorized to provide by resolution for the issuance of negotiable revenue refunding bonds of the Authority for the purpose of refunding any bonds then outstanding which shall have been issued under the provisions of this Act, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, and, if deemed advisable by the Authority, for the additional purpose of constructing improvements, extensions, or enlargements of the projects in connection with which the bonds to be refunded shall have been issued. The Authority is further authorized to provide by resolution for the issuance of its revenue bonds for the combined purpose of (a) refunding any bonds then outstanding which shall have been issued under the provisions of this Act, including the payment of any redemption premiums thereon and any interest accrued or to accrue to the date of redemption of such bonds, and (b) paying all or any part of the cost of any additional project or projects. The issuance of such bonds, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Authority in respect of the same, shall be governed by the provisions of this Act insofar as the same may be applicable.
Sec. 16.  Revenue bonds issued under the provisions of this Act, the income therefrom, and any gain realized from the sale thereof shall at all times be free from taxation by the State of North Carolina or any city or county or other political subdivision thereof.
Sec. 17.  Revenue bonds issued by the Authority under the provisions of this Act shall not be deemed to constitute a debt or obligation, of the State of North Carolina or any of its departments, institutions, agencies, or commissions, or of any city or county or other political subdivision of the State. The issuance of such revenue bonds shall not directly or indirectly or contingently obligate the State or any city or county or other political subdivision thereof to levy or pledge any form of taxation whatever therefor or to make any appropriation for their payment, and all such bonds shall contain recitals on their face setting forth substantially the foregoing provisions of this Section.
Sec. 18.  With the approval of the Governor and Council of State, the Department of Administration or any other department or agency of the State of North Carolina may dedicate, sell, lend or lease property to the Authority at its request, upon such terms and conditions as the proper authorities of such department or agency may deem reasonable and fair.
Sec. 19.  With the approval of the Governor, any department or agency of the State of North Carolina may agree to furnish to the Authority any services or assistance which it has general authority to render, upon such terms and conditions as the proper authorities of such department or agency and the Authority may deem reasonable and fair.
Sec. 20.  Whenever the governing board of any city or county of the State of North Carolina makes a finding that such political subdivision and its citizens will be specially benefited by the construction and operation of a particular project of the Authority, such governing board may enter into a contract with the Authority under which it agrees to grant specified services, land, materials, facilities, or monies to the Authority pursuant to the authorizations set forth below.
Sec. 21.  Regardless of whether or not it enters into a contract as provided in Section 20 hereof, the governing board of any city, county, or other political subdivision of the State may cooperate and assist in the planning, undertaking, or carrying out of a project of the Authority by taking any of the following actions, upon such terms, with or without consideration, as it may determine:
(A)	Dedicate, sell, convey, lend, lease, grant, or otherwise transfer to the Authority at its request, all or any part of its interest in any real property (including easements or other rights and privileges) which may be necessary or convenient to the effectuation of the authorized purposes of the Authority;
(B)	Provide and construct for the benefit of the project specific facilities such as utilities systems, parking facilities, sewer and drainage facilities, parks, playgrounds and other recreational facilities, or any other works which it has statutory authority to undertake in the area;
(C)	Furnish, dedicate, close, vacate, pave, install, grade, regrade, plan, or replan streets, roads, sidewalks, ways, or other places which it has statutory authority to provide in the area;
(D)	Plan or replan, zone or rezone the area within which the project is located, in accordance with its statutory powers;
(E)	Cause administrative and other services to be furnished to the Authority of the character which the board is otherwise empowered to undertake or furnish for the same or other purposes;
(F)	Incur the entire expense, or any part thereof, of any public improvements made by such board in exercising the powers granted by this Section;
(G)	Do any and all other things within the scope of its powers necessary or convenient to aid and cooperate in the planning, undertaking, and carrying out of a project of the Authority.
Any sale, conveyance, or agreement provided for in this Section may be made without public notice, advertisement or public bidding, and there shall be no necessity for an order of court or other action or formality different from the regular and normal actions of the board.
Sec. 22.  Regardless of whether or not it enters into a contract as provided in Section 20 hereof, the governing board of any city or county of the State may cooperate and assist in the planning, undertaking, or carrying out of a project of the Authority by appropriating funds to the Authority to be used for purposes specified by said governing board. To obtain funds for such purposes, the governing board may, in the manner provided herein, levy taxes and issue and sell its bonds. Any such expenditures shall constitute expenditures for a special purpose in addition to any allowed by the Constitution.
Sec. 23.  No governing board of any city or county may levy any tax or issue any bonds for the purposes specified in Section 22 until such levy or issuance of bonds shall have been approved by a majority vote of the qualified registered voters who shall vote thereon at a special election held by the city or county. Said election shall be upon one or both of the following issues:
(A)	Whether to levy an annual tax of not less than one cent (l¢) and not more than ten cents (10¢) on each one hundred dollars ($100.00) of assessed valuation of the taxable property within such political subdivision for assistance in providing, maintaining, and operating a stadium project;
(B)	Whether to issue bonds of the political subdivision in an amount specified and to levy a tax for the payment of the same, for assistance in providing, maintaining, and operating a stadium project.
Any municipal bond issuance and election relating thereto shall be in accordance with the provisions of Article 28 of Chapter 160 of the General Statutes of North Carolina. Any county bond issuance and election relating thereto shall be in accordance with the provisions of Article 9 of Chapter 153 of the General Statutes. Any election on the levy of a tax shall be conducted as near as may be in accordance with the provisions of said Articles.
Sec. 24.  All funds of the Authority shall be deposited in a bank or banks to be designated by the Authority. Funds of the Authority shall be paid out only upon warrants signed by the secretary-treasurer of the Authority and countersigned by the chairman or the acting chairman of the Authority. No warrant shall be drawn or issued disbursing any funds of the Authority except for the purposes authorized by this Act and only when the account or expenditure for which the warrant is to be given in payment has been audited and approved by the board. Any and all net revenues or earnings not necessary or desirable for the operation of the business of the Authority or the retirement of its bonds shall be held subject to the further action of the General Assembly. The Authority may invest surplus funds in State, Federal or other bonds and securities as are approved by law for legal investments for any State agency.
Sec. 25.  The premiums on the surety bonds provided for in Section 5 hereof shall be paid as a necessary expense of the Authority.
Sec. 26.  On or before the thirtieth day of July in each year the Authority shall make an annual report of its activities for the preceding fiscal year to the Governor. Each such report shall set forth a complete operating and financial statement covering its operations during the year, including the sources from which funds were received and a detailed statement of all expenditures made during the year. The Authority shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants, and the cost thereof may be treated as part of the cost of construction or operation of the project. The Authority shall prepare an annual proposed budget prior to the beginning of each fiscal year.
Sec. 27.  It is intended that the provisions of this Act shall be liberally construed to accomplish the purposes provided for herein, and where strict construction would result in the defeat of the accomplishment of any of the acts herein authorized and a liberal construction would permit or assist in the accomplishment thereof, the liberal construction shall be applied.
Sec. 28.  If any Section, subsection, paragraph, subparagraph, sentence, clause, or phrase of this Act is for any reason held to be unconstitutional or otherwise invalid, such decision shall not affect the validity of the remainder of the Act.
Sec. 29.  All laws and clauses of laws in conflict herewith are hereby repealed to the extent of such conflict. Chapter 917 of the Session Laws of 1959 is hereby specifically repealed and replaced by this Act.
Sec. 30.  This Act shall become effective upon its ratification.
In the General Assembly read three times and ratified, this the 3rd day of July, 1967.