CHAPTER 104

An Act to amend Chapter 211 of the Acts of Assembly of 1962, approved
March 9, 1962, which effectuated the consolidation of the city of South
Norfolk ‘and Norfolk County into a city which later became the city
of Chesapeake, by adding a chapter numbered 20.1 containing
§§ 20.1:01 through 20.1:17, establishing the Chesapeake Port and In-
dustrial Authority.

[H 94]

Approved February 26, 1964

Be it enacted by the General Assembly of Virginia:
1. That Chapter 211 of the Acts of Assembly of 1962, approved March 9,
1962, be amended by adding a chapter numbered 20.1, containing §§ 20.1 :01
through 20.1:17 as follows:
Chapter 20.1

§ 20.1:01. There is hereby created in the city of Chesapeake a po-
litical subdivision of the Commonwealth, with such public and corporate
powers as are hereinafter set forth, to be known as the “Chesapeake Port
and Industrial Authority”. Such Authority may sue and be sued, plead and
be impleaded, and shall have the power and authority to contract and be
contracted with and to exercise and discharge all the powers and duties
imposed and conferred upon it as hereinafter provided.

§ 20.1:02. (a) Such Authority shall be governed by a board of five
commissioners, who shall be known as port commissioners, and who shall
be appointed by the Council of the city of Chesapeake, and who shall be
residents of the city of Chesapeake at the time of their appointment and
during the term of their office. All of the powers and duties conferred
upon 3 such Authority shall be exercised through said board of commis-
sion

“(b) Of the five members first appointed, one shall be appointed for
a term of two years, two for a term of three years, and two for a term of
four years from the date of their appointment. Thereafter they shall be
appointed for terms of four years. Any vacancy shall be filled by appoint-
ment by the Council for the unexpired term. Each commissioner shall
continue, however, to hold office until his successor has been appointed and
qualified. Each commissioner before entering upon the duties of his office,
shall take and subscribe the oath provided by the Chesapeake Charter of
nineteen hundred sixty-two for city officers, and a certificate of the same
shall be filed with the city clerk.
(c) Immediately after their appointment such commissioners shall
enter upon the performance of their duties. Said commissioners shall an-
nually elect one of its members as chairman and another as vice-chairman,
and shall also elect annually a secretary and a treasurer, each of whom may
or may not be one of the said commissioners. The positions of secretary
and treasurer may be held by the same person. Three commissioners shall
constitute a quorum for the transaction of business. The board of commis-
sioners shall make rules and regulations for its own government and
procedure, shall hold at least one regular meeting each month and may
hold such special meetings as it may deem necessary.

(d) The commissioners shall receive no salaries but shall be entitled
to reimbursement for necessary traveling and other expenses incurred
while engaged in the performance of their duties.

(e) Any of said commissioners may be removed from office by the
Council of the city of Chesapeake for malfeasance, misfeasance, incompe-
tency or gross neglect of official duty, but a commissioner may be removed
only after he shall have been given a copy of the charges against him at
least ten days prior to the hearing thereon before the Council and had an
opportunity to be heard in person by counsel. In event of the removal of
any commissioner a record of the proceedings, together with the charges
and findings thereon, shall be filed in the office of the city clerk.

§ 20.1:03. Such Authority shall have the following powers:

(a) To adopt and use a corporate seal, and to alter the same at its
pleasure.

(b) To acquire, hold and dispose of such personal property as may be
necessary for its purposes.

(c) To acquire by purchase or lease, on such terms and conditions,
and in such manner as it may deem proper, except by condemnation, or by
gift, such real property or such rights, easements or estates therein, as
may be necessary for its purposes, and to sell, lease and dispose of the
same, or any portion thereof or interest therein, whenever it shall become
expedient to do so.

(d) To acquire, lease, construct or maintain and operate landings,
wharves, docks and piers, commodity elevators, and the approaches to and
appurtenances thereof, tracks, spurs, crossings, switchings, terminals,
warehouses and terminal facilities of every kind and description necessary
or useful in the transportation and storage of goods, wares and merchan-
dise, to perform any and all services at said facilities in connection with
the receipt, delivery, shipment and transfer in transit, weighing, marking,
tagging, ventilating, fumigating, refrigerating, icing, storing and han-
dling of goods, ‘wares and merchandise, to prescribe and collect charges
from vessels coming into or using any landings, wharves, docks, piers, and
commodity elevators operated and maintained by said Authority and from
persons using any of the other facilities of the Authority, and to lease any
and all of such facilities or any concessions properly incident thereto to
any person, firm or corporation for the maintenance and operation of any
and all of such facilities on such terms and conditions as it may deem
proper.

(e) To acquire, purchase, construct, lease, operate, maintain and
undertake, when and as authorized by the Council of the city of Chesapeake
by formal ordinance, any wholesale market facility for merchants, dealers
and farmers engaged in the marketing of perishable farm produce, fruits,
vegetables, poultry, eggs, horticultural products, dairy products, meats,
seafood, dry groceries, frozen foods and in the operation of freezing and
prepackaging plants and in the furnishing of baskets and containers for
farm produce and other articles handled at said market, to make charges
for the use thereof with such facility being classed as a public utility within
the meaning of this act.
(f) To acquire, purchase, construct, lease, operate, maintain and
undertake any passenger bus, railroad passenger or airline passenger
terminal facility and to make charges for the use thereof.

Before the powers set forth in this paragraph are exercised by the
Authority prior approval of the Council shall be first obtained.

(gz) To acquire, for the purpose of encouraging major industry and
manufacturing, real property and to construct thereon any structures, in-
cluding all equipment, appurtenances and accessories necessary or appro-
priate for such uses and purposes, and to sell or lease the same, or any
part thereof, for industrial or manufacturing uses and purposes. The
authority granted in this paragraph shall not be exercised in any case
where the aggregate cost of land and structures for any single project is
less than $150,000.

(h) To maintain and operate any airport and air navigational facil-
ities now or hereafter owned by the city of Chesapeake with the same
powers and authority thereover in the operation and maintenance thereof
that said city may have, subject, however, to the provisions of § 20.1:04.

(i) To make capital improvements on any airport and air navigational
facility now or hereafter owned by the city of Chesapeake and transferred
to said Authority to operate and maintain, ‘with the same powers to issue
its bonds therefor as it has for its other purposes, subject to the approval
of the Council of the city of Chesapeake.

(j) To foster and stimulate the commerce of the Port of Chesapeake
and the shipment of freight through such port and to investigate and
handle matters pertaining to all transportation rate structures affecting
the commerce of the port.

(k) To establish, acquire, lease, maintain and operate, within the
corporate limits of the city, a public transportation system, when and as
authorized by the Council of the city of Chesapeake.

To extend the operation and maintenance of such transportation
system in territory adjoining the city of Chesapeake when and as author-
ized so to do by the governing body of the political subdivision in which
extended and as otherwise provided by law.

(1) To establish, acquire, lease, maintain and operate such other
public utilities as may be required of said Authority by the Council of the
city of Chesapeake and as may be otherwise authorized by law.

(m) To acquire any or all places which are used or are to be used
for the parking or storage of vehicles by the public and which, upon the
effective date of this act, are owned by the city of Chesapeake or the
Chesapeake Redevelopment and Housing Authority or, whether or not so
owned, are situated within the boundaries of the redevelopment projects
of the Chesapeake Redevelopment and Housing Authority; to operate and
maintain such places; to authorize or permit others to use, operate or
maintain such places upon such terms and conditions as it may prescribe;
to charge or authorize the charging of compensation for the parking or
storage of vehicles at or in such places; and to accept from others dona-
fions of money or other property, or the right to use such property, to
aid, in whole or in part, in the acquisition, maintenance and operation of
such places. Before the powers set forth in this paragraph are exercised
o»y the Authority prior approval of the Council shall be first obtained.

The power of the Authority to operate facilities for the parking or
storage of vehicles by the public is limited to the places acquired under
his paragraph.

(n) To fix and charge tolls, fees and other charges for the use of, or
‘or services rendered by, any of the facilities it is authorized hereunder
© maintain and operate.

(o) To appoint and employ such officers, agents and employees as
nay be necessary to carry out the purposes of said Authority, to fix their
compensation and to prescribe their duties.

(p) To do all other acts and things which may be reasonably neces-
sary and convenient to carry out the purposes and powers given herein.

The powers conferred upon the Authority by this section except the
powers conferred by clauses (h), (i), (j), and (k) of this section shall be
exercised solely within the corporate limits of the city of Chesapeake;
provided further that rentals and charges for any and all facilities con-
structed and/or operated pursuant to clauses (f) and (g) shall, as near
as possible, be at commercial rates for like facilities or services, and
include a sum equivalent to real estate and tangible personal property
taxes at current rates on such property, which sum shall be paid to the
city treasurer annually.

Whenever in this act approval of the Council of the city of Chesa-
peake is required to enable the Chesapeake Port and Industrial Authority
to exercise any power herein granted it, such approval shall be only by a
formal ordinance.

§ 20.1:04. The Council of the city of Chesapeake is hereby author-
ized and empowered to transfer to said Authority the operation and main-
tenance of such of the above facilities as are now or may be hereafter
owned by the city of Chesapeake, on such terms and conditions as said
Council may prescribe. Nothing herein contained shall be construed as
authorizing such Authority to maintain and operate such facilities now
or hereafter owned by the city of Chesapeake unless and until the opera-
tion thereof has been transferred by said Council.

§ 20.1:05. The city of Chesapeake is authorized and empowered to
make such appropriations and to provide such funds for the operation of
the said Authority as its Council may deem proper.

§ 20.1:06. The Authority, with the consent of the Council, shall have
the power to issue bonds from time to time in its discretion, for any of its
corporate purposes, including the payment or retirement of bonds pre-
viously issued by it. The Authority may issue such types of bonds as it
may determine, including (without limiting the generality of the fore-
going) bonds payable, both as to principal and interest; (a) from its rev-
enues generally; (b) exclusively from the income and revenues of a par-
ticular “facility”; which term shall mean a particular building or structure
or particular buildings or structures including all equipment, appurte-
nances and accessories necessary or appropriate for the operation of such
facility; or (c) exclusively from the income and revenues of certain desig-
nated facilities whether or not they are financed in whole or in part from
the proceeds of such bonds. Any such bonds may be additionally secured
by a pledge of any grant or contributions from the federal government,
Commonwealth of Virginia or city of Chesapeake, or a pledge of any
income or revenues of the Authority, or a mortgage of any particular
facility or facilities or other property of the Authority.

Except as to provisions of subsection (g) of § 20.1:03 the power to
issue bonds shall not be exercised prior to July one, nineteen hundred
sixty-six.

§ 20.1:07. Neither the commissioners of the Authority nor any
person executing the bonds shall be liable personally on the bonds by
reason of the issuance thereof. The bonds and other obligations of the
Authority (and such bonds and obligations shall so state on their face)
shall not be a debt of the Commonwealth or any political subdivision
thereof and neither the Commonwealth nor any political subdivision there-
of nor the city of Chesapeake shall be liable thereon, nor in any event.
shall such bonds or obligations be payable out of any funds or properties
other than those of the Authority. The bonds shall not constitute an indebt.
edness within the meaning of any debt limitation or restriction. Bonds of
the Authority are declared to be issued for an essential public and gov.
ernmental purpose and to be public instrumentalities.

§ 20.1:08. Bonds of the Authority shall be authorized by resolutions
adopted by the board of commissioners and may be issued in one or more
series and shall bear such date or dates, mature at such time or times,
bear interest at such rate or rates, not exceeding six per centum (6%)
per annum, be in such denomination or denominations, be in such form,
either coupon or registered, carry such conversion or registration priv-
ileges, have such rank or priority, be executed in such manner, be payable
in such medium of payment, at such place or places, and be subject to
such terms of redemption (with or without premium) as such resolution
or its trust indenture or mortgage may provide. The bonds may be sold
at public or private sale.

20.1:09. In case any of the commissioners or officers of the Author-
ity whose signatures appear on any bonds or coupons shall cease to be
such commissioners or officers before the delivery of such bonds, such
signatures shall, nevertheless, be valid and sufficient for all purposes, the
same as if such commissioners or officers had remained in office until such
delivery. Any provision of any law to the contrary notwithstanding, any
bonds issued pursuant to this act shall be fully negotiable within the
ene. and for all the purposes of Chapter 10 of Title 6 of the Code of

irginia

= 20.1:10. In order to secure the payment of such bonds or other
obligations the Authority shall have power by provision or provisions
included in any resolution authorizing such bonds or in any indenture
made to secure their payment:

(a) To pledge all or any part of its gross or net rents, fees or rev-
enues to which its right then exists or may thereafter come into existence.

(b) To mortgage all or any part of its real or personal property,
then owned or thereafter acquired.

(c) To covenant against pledging all or any part of its rents, fees
and revenues, or against mortgaging all or any part of its real or per-
sonal property, to which its right or title then exists or may thereafter
come into existence or against permitting or suffering any lien on such
revenues or property; to covenant with respect to limitations on its right
to sell, lease or otherwise dispose of any facility or any part thereof; and
to covenant as to what other, or additional debts or obligations may be
incurred by it.

(d) To covenant as to the bonds to be issued and as to the issuance
of such bonds in escrow or otherwise, and as to the use and disposition
of the proceeds thereof; to provide for the replacement of lost, destroyed
or mutilated bonds; to covenant against extending the time for the pay-
ment of its bonds or interest thereon; and to redeem the bonds, and to
covenant for their redemption and to provide the terms and conditions

ereof.

(e) To covenant as to the rents and fees to be charged in the opera-
ion of a facility or facilities, the amount to be raised each year or other
period of time by rents, fees and other revenues, and as to the use and
lisposition to be made thereof; to create or to authorize the creation of
special funds for moneys held for construction or operating costs, debt
service, reserves, or other purposes, and to covenant, as to the use and
lisposition of the moneys held in such funds.

(f) To prescribe the procedure, if any, by which the terms of any
ontract with bondholders may be amended or abrogated, the amount of
yonds the holders of which must consent thereto and the manner in which
uch consent may be given.

(g) To covenant as to the use of any or all of its real or personal
roperty; and to covenant as to the maintenance of its real and personal
yroperty, the replacement thereof, the insurance to be carried thereon and
the use and disposition of insurance moneys.

(h) To covenant as to the rights, liabilities, powers and duties aris-
ing upon the breach by it of any covenant, condition, or obligations; and to
covenant and prescribe as to events of default and terms and conditions
upon which any or all of its bonds or obligations shall become or may be
declared due before maturity, and as to the terms and conditions upon
which such declaration and its consequences may be waived.

(i) To vest in a trustee or trustees or the holders of bonds or any
proportion of them the right to enforce the payment of the bonds or any
covenant securing or relating to the bonds; to vest in a trustee or trustees
the right, in the event of a default by said Authority, to take possession
and use, operate and manage any facility or part thereof, and to collect
the rents and revenues arising therefrom and to dispose of such moneys
in accordance with the agreement of the Authority with said trustee; to
provide for the powers and duties of a trustee or trustees or the holders
of bonds or any proportion of them who may enforce any covenant or
rights securing or relating to the bonds.

(j) To exercise all or any part or combination of the powers herein
granted; to make covenants other than and in addition to the covenants
herein expressly authorized, of like or different character; to make such
covenants and to do any and all such acts and things as may be necessary
or convenient or desirable in order to secure its bonds, or in the absolute
discretion of said Authority, as will tend to make the bonds more market-
able notwithstanding that such covenants, acts or things may not be
enumerated herein.

Before any of the powers set forth in paragraphs lettered (a), (b)
and (c) of this section are exercised by the Authority prior approval of
the Council shall be first obtained.

§ 20.1:11. An obligee of the Authority shall have the right in addi-
tion to all other rights which may be conferred on such obligee, subject
only to any contractual restrictions binding upon such obligee;

(a) By mandamus, suit, action or proceeding at law or in equity to
compel the Authority and the commissioners, officers, agents or employees
thereof to perform each and every term, provision and covenant contained
in any contract of the Authority with or for the benefit of such obligee,
and to require the carrying out of any or all such covenants and agree-
ments of the Authority and the fulfillment of all duties imposed upon the
Authority by this chapter.

(b) By suit, action or proceedings in equity, to enjoin any acts or
things which may be unlawful, or the violation of any of the rights of
such obligee of the Authority.

§ 20.1:12. The Authority established under this chapter shall fix
and revise from time to time the rents, fees and other charges to be paid
by persons for the use of the various facilities of the Authority and for
any other service furnished or provided by the Authority. Such rents, fees
and charges shall be fixed so as to provide at least sufficient funds to pay
the cost of maintaining, repairing and operating such facilities and the
principal and interest of any bonds issued by the Authority or other debts
contracted as the same shall become due and payable. A reserve may be
accumulated and maintained out of the revenues of such Authority for
extraordinary repairs and expenses and for such other purposes as may
be provided in any resolution authorizing a bond issue or in any trust
indenture securing such bonds. Subject to such provisions and restrictions
as may be set forth in the resolution or in the trust indenture authorizing
or securing any of the bonds or other obligations issued hereunder, such
Authority shall have exclusive control of the revenues derived from any
facility or facilities operated and controlled by it and the right to use
such revenues in the exercise of its powers and duties set forth in this
chapter. No individual, firm, association or corporation shall receive any
profit or dividend from the revenues, earnings or other funds or assets
of such Authority other than for debts contracted, for services rendered
for materials and supplies furnished and for other value actually received
by the Authority.

§ 20.1:13. In addition to the other powers conferred by this act,
such Authority shall have the power to borrow money and to accept con-
tributions, grants and other financial assistance from the federal govern-
ment and other agencies and agency or instrumentality thereof for or in
aid of the construction and equipment of its facilities or the retirement
or refunding of its bonds. To these ends such Authority shall have the
power to comply with such conditions and to execute such mortgages,
trust indentures and agreements as may be necessary, convenient or
desirable and not in conflict with any provision of the Chesapeake Charter
of nineteen hundred sixty-two.

20.1:14. Nothing contained in any of the foregoing sections,
§§ 20.1:01 to 20.1:13, inclusive, shall be deemed to authorize the Authority
to occupy or use any land, streets, buildings, structures or other property
of any kind, owned or used by the city of Chesapeake, or any public
improvement or facility maintained by the city for the use of its inhab-
itants, without first obtaining the consent of the Council of said city.

§ 20.1:15. The powers granted and the duties imposed in §§ 20.1:01
to 20.1:13, inclusive, shall be construed to be independent and severable.
If any one or more sections, subsections, sentences, parts or application of
§§ 20.1:01 to 20.1:13, inclusive, shall be adjudged invalid, such judgment
shall not affect, impair or invalidate the remaining provisions or other
applications thereof, but shall be confined in its operation to the specific
provisions or applications so held invalid.

§ 20.1:16. The powers conferred by §§ 20.1:01 to 20.1:138, inclusive
shall be in addition to and not in substitution for any powers ' conferred
on the city of Chesapeake or its Council by any other laws.

§ 20.1:17. For the purpose of information only, the annual budget
of the Authority, in the same detail as the annual budgets of the depart-
ments of the city of Chesapeake, shall be included as an appendix to and
printed with the annual budget of the city.