CHAPTER 579

An Act creating, subject to certain conditions, a political subdivision of the
Commonwealth to be known as the Peninsula Civic Recreation Center
Authority and defining its powers and duties; granting to the Author-
ity power to acquire necessary real and personal property; providing
for financing the construction of such project by the issuance of reve-
nue bonds of the Authority, payable solely from rents, rates and fees
and other revenues; authorizing the issuance of revenue refunding
bonds; providing that no debt of the Commonwealth or of any county,
city, district or political subdivision thereof shall be incurred in the
exercise of any of the powers granted by this Act; providing for the
collection of rents, rates and fees and other revenues to pay such
bonds and the interest thereon and the cost of maintenance, repair and
operation of such project; exempting from taxes and assessments such
project and such bonds and the income therefrom; providing for the
execution of a trust agreement to secure the payment of such bonds
without mortgaging or encumbering such project; and prescribing
the powers and duties of the Authority in connection with the fore-
going and the rights and remedies of the holders of bonds issued
under the provisions of this Act.

[H 710]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. § 1. Definitions.—As used in this Act the following words and term
shall have the following meanings, unless the context shall indicate another
or different meaning or intent:

(a) The word “Authority” shall mean the Peninsula Civic Recreation
Center Authority hereinafter created or, if the Authority shall be abol-
ished, the board, body, commission or agency succeeding to the principal
functions thereof or upon whom the powers given by this Act to the
Authority shall be conferred by law.

(b) The word “project” shall mean a civic recreation center con-
structed by the Authority under the provisions of this Act in either the
city of Newport News, Hampton, or Williamsburg, or the town of Poquo-
son, or the county of York or James City, together with all necessary and
convenient approaches, roads and streets used in connection with such
civic recreation center and such other facilities convenient and necessary
to such center.

(c) The term “cost of the project” shall embrace the cost of con-
struction, landscaping and conservation, the cost of acquisition of all land,
rights of way, property, rights, easements and interests acquired by the
Authority for the construction and operation of the project, the cost of
demolishing or removing any buildings or structures on land so acquired,
including the cost of acquiring any land to which such buildings or struc-
tures may be moved, the cost of all machinery and equipment, financing
charges, interest prior to and during construction and, if deemed advisable
by the Authority for a period not exceeding one year after completion
of construction, cost of administrative expenses, and such other expenses
as may be necessary or incident to the construction of the project, the
financing of such construction and the placing of the project in operation.

(d) The word “bonds” or the words “revenue bonds” shall mean
revenue bonds or revenue refunding bonds of the Authority issued under
the provisions of this Act.

(e) The word “owner” shall include all individuals, copartnerships,
associations or corporations and also municipalities, political subdivisions
and all public agencies and instrumentalities having any title or interest
in any property, rights, easements and interests authorized to be acquired
by this Act.

§ 2. Credit of Commonwealth and Political Subdivisions Not Pledged.
—Revenue bonds issued under the provisions of this Act shall not be
deemed to constitute a debt of the Commonwealth of Virginia or of any
county, city, district or political subdivision thereof, or a pledge of the
faith and credit of the Commonwealth or of any county, city, district or
political subdivision thereof, but such bonds shall be payable solely from
the funds herein provided therefor from tolls and revenues. The issuance
of revenue bonds under the provisions of this Act shall not directly or
indirectly or contingently obligate the Commonwealth or any county, city
or district therein or any political subdivision thereof to levy or to pledge
any form of taxation whatever therefor. All such revenue bonds shal!
contain a statement on their face substantially to the foregoing effect.

All expenses incurred in carrying out the provisions of this Act shall
be payable solely from funds provided under the provisions of this Act
and no liability or obligation shall be incurred by the Authority here-
under beyond the extent to which moneys shall have been provided under
the provisions of this Act.

§ 3. Peninsula Civic Recreation Center Authority—There may be
created, in the manner hereinafter set forth, a political subdivision of
the Commonwealth to be known as the “Peninsula Civic Recreation Center
Authority”. The exercise by the Authority of the powers conferred by
this Act in the construction, operation and maintenance of the project
authorized by this Act shall be deemed and held to be the performance of
an essential governmental function.

The Authority may be created by ordinance duly adopted by the
council of the city of Newport News, or together with the councils of the
cities of Hampton and Williamsburg or town of Poquoson, or the boarda
of supervisors of the counties of York and James City, or either of them,
if such councils or boards elect to join with the council of the city of New-
port News in the creation of such Authority.

The Authority shall consist of not less than three nor more than
seven members, all of whom shall be appointed by the governing bodies
of such political subdivisions as form the Authority or as otherwise pro-
vided herein. Each such subdivision shall be entitled to name one member
of the Authority. If an uneven number results, the members named by
the governing bodies may name a member at large. If the city of Newport
News alone creates the Authority, its council may name all the members.
The term of each member shall be for four years and to continue until his
successor shall be duly appointed and qualified. The successor of each such
member shall be appointed for a term of four years and until his successor
shall be duly appointed and qualified, except that any person appointed to
fill a vacancy shall serve only for the unexpired term. Any member of
the Authority shall be eligible for reappointment. Members of the Au-
thority shall be subject to removal from office in like manner as are State,
county, town and district officers under the provisions of §§ 15-500 to
15-5038, inclusive, of the Code of Virginia, 1950. The Authority shall an-
nually elect one of its members as chairman and another as vice chairman
and shall also elect annually a secretary-treasurer, who may or may not
be a member of the Authority.

The secretary-treasurer shall keep a record of the proceedings of the
Authority and shall be custodian of all books, documents and papers filed
with the Authority and of the minute book or journal of the Authority
and of its official seal. He shall have authority to cause copies to be made
of all minutes and other records and documents of the Authority and to
give certificates under the official seal of the Authority to the effect that
such copies are true copies, and all persons dealing with the Authority
may rely upon such certificates.

Three members of the Authority shall constitute a quorum and the
affirmative vote of three members shall be necessary for any action taken
by the Authority. No vacancy in the membership of the Authority shall
impair the right of a quorum to exercise all the rights and perform all
the duties of the Authority.

Before the issuance of any revenue bonds under the provisions of
this Act the secretary-treasurer of the Authority shall execute a surety
bond in the penal sum of fifty thousand dollars, 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 transact business in the
Commonwealth as surety and to be approved by the attorney general and
filed in the office of the Secretary of the Commonwealth.

§ 4. General Grant of Powers.—The Authority is hereby authorized
and empowered:

(a) to adopt by-laws for the regulation of its affairs and the conduct
of its business;

(b) to adopt an official seal and alter the same at pleasure;

(c) to determine the location of the project, to determine, in its dis-
cretion and without reference to any other provisions of any state law, the
design standards and the materials of construction, and to construct,
maintain, repair and operate the project;

(d) to issue revenue bonds of the Authority for any of its purposes,
payable solely from the tolls and revenues pledged for their payment, and
to refund its bonds, all as provided in this Act;

(e) to fix and revise from time to time and charge and collect tolls,
rates, fees, rentals and other charges for the use of the project;

(f) to acquire, hold and dispose of real and personal property in the
exercise of its powers and the performance of its duties under this Act;

(g) to employ, in its discretion, consulting architects and engineers,
attorneys, accountants, construction and financial experts, superintendents,
managers, and such other employees and agents as may be necessary in
its judgment, and to fix their compensation;

(h) to construct such auditoriums, arenas and marinas as in the
opinion of the Authority may increase the commerce and promote the
safety, health, welfare, convenience and prosperity of the people of the
Commonwealth ;

(1) to sue and be sued in its own name, plead and be impleaded;

(j) to make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and the execution of its pow-
ers under this Act; and

(k) to do all acts and things necessary or convenient to carry out
the powers expressly granted in this Act.

§ 5. Acquisition of Property.—(a) The Authority is hereby au-
thorized and empowered to acquire by purchase solely from funds provided
under the provisions of this Act, such lands, structures, property, rights,
rights of way, franchises, easements and other interests in lands, including
lands lying under water and riparian rights, as it may deem neces-
sary or convenient for the construction and operation of the project, upon
such terms and at such prices as may be considered by it to be reasonable
and can be agreed upon between it and the owner thereof.

All public agencies and commissions of the Commonwealth, with the
approval of the Governor, notwithstanding any contrary provision of law,
are hereby authorized and empowered to lease, lend, grant or convey to
the Authority at its request upon such terms and conditions as may be
mutually agreed upon, without the necessity for any advertisement, order
of court or other action or formality, any real property which may be
necessary or convenient to the effectuation of the authorized purposes of
the Authority, including public highways and other real property already
devoted to public use.

(b) The Authority is authorized and empowered to acquire by gift
from any local governing body, or any State or federal agency, or any
individual or corporation any lands, property, rights. rights of way, fran-
chises, easements and other property.

(c) Title to any property acquired by the Authority shall be taken
in the name of the Authority.

(d) The Commonwealth hereby consents to the use of any lands or
property owned by the Commonwealth, including lands lying under water,
which are deemed by the Authority to be necessary for the construction
or operation of the project.

(e) The several political subdivisions authorized to create the Au-
thority are authorized to issue bonds to provide funds for the use of the
Authority in the construction of the project and to make appropriations
and to provide funds for the operation of the Authority.

__ § 6. Revenue Bonds.—The Authority is hereby authorized to pro-
vide by resolution for the issuance, at one time or from time to time, of
revenue bonds of the Authority for the purpose of paying all or any part
of the cost of the project. The principal of and the interest on such bonds
shall be payable solely from the funds herein provided for such payment.
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 forty years from their date or dates, 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 and the
manner of execution 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 Common-
wealth. In case any officer whose signature or a facsimile of whose signa-
ture 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. Notwithstanding any other pro-
vision of this Act or any recitals in any bonds issued under the provisions
of this Act, all such bonds shall be deemed to be negotiable instruments
under the laws of the Commonwealth. The bonds may be issued in coupon
or in registered form, or both, as the Authority may determine, and pro-
vision may be made for the registration of any coupon bonds as to princi-
pal alone and also as to both principal and interest, for the reconversion
into coupon bonds of any bonds registered as to both principal and in-
terest, and for the interchange of registered and coupon bonds. The Au-
thority may sell such bonds in such manner, either at public or negotiated
sale, and for such price, as it may determine will best effect the purposes
of this Act.

The proceeds of the bonds shall be used solely for the payment of the
cost of the project, and shall be disbursed in such manner and under such
restrictions, if any, as the Authority may provide in the resolution au-
thorizing 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 pro-
ceeds 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 with-
out coupons, exchangeable for definitive bonds when such bonds shall have
been executed and are available for delivery. The Authority may also pro-
vide for the replacement of any bonds which shall become mutilated or
shall be destroyed or lost. Bonds may be issued under the provisions of
this Act without obtaining the consent of any department, division, com-

mission, board, bureau or agency of the Commonwealth, and without any

other proceedings or the happening of any other conditions or things than

those proceedings, conditions or things which are specifically required by
is Act.

§ 7. Trust Agreement.—In the discretion of the Authority any bonds
issued under the provisions of this Act may be secured by a trust agree-
ment 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 Commonwealth. Such trust agreement or the reso-
lution providing for the issuance of such bonds may pledge or assign the
tolls and other revenues to be received, but shall not convey or mortgage
the project or any part thereof. Such trust agreement or resolution pro-
viding 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 cove-
nants setting forth the duties of the Authority in relation to the acquisition
of property and the construction, improvement, maintenance, repair, oper-
ation and insurance of the project, the rates of toll to be charged, and the
custody, safeguarding and application of all moneys. It shall be lawful
for any bank or trust company incorporated under the laws of the Com-
monwealth 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 the 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.

§ 8. Revenues.—The Authority is hereby authorized to fix, revise,
charge and collect rents, rates and fees for the use of the project and the
different parts or sections thereof, and to contract with any person, part-
nership, association or corporation desiring the use of any part thereof,
and to fix the terms, conditions, rents and rates of charges for such use.
Such rents, rates and fees shall be so fixed and adjusted in respect of the
aggregate of income from the project as to provide a fund sufficient with
other revenues, if any, to pay (a) the cost of maintaining, repairing and
operating such project and (b) the principal of and interest on such bonds
as the same shall become due and payable, and to create reserves for such
purposes. Such rents, rates and fees shall not be subject to supervision or
regulation by any commission, board, bureau or agency of the Common-
wealth or of any municipality, county or other political subdivision of the
Commonwealth. The income and all other revenues derived from the
project, except such part thereof as may be necessary to pay such cost of
maintenance, repair and operation and to provide such reserves therefor
as may be provided for in the resolution authorizing the issuance of such
bonds or in the trust agreement securing the same, 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 payment of the principal of and the interest on such bonds as the same
shall become due, and the redemption price or the purchase price of 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 tolls and other
revenues or other moneys so pledged and thereafter received by the Au-
thority 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 moneys
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 trust agree-
ment. 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.

§ 9. Trust Funds.—All moneys received pursuant to the provisions
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 Authority shall, in the resolution authorizing the bonds
or in the trust agreement securing such bonds, provide for the payment
of the proceeds of the sale of the bonds and the revenues to be received
to a trustee, which shall be any trust company or bank having the powers
of a trust company within or without the Commonwealth, which shall act
as trustee of the funds, and hold and apply the same to the purposes of
this Act, subject to such regulations as this Act and such resolution or
trust agreement may provide. The trustee may invest and reinvest such
funds in such securities as may be provided in the resolution authorizing
the bonds or in the trust agreement securing such bonds.

§ 10. Remedies.—Any holder of bonds issued under the provisions
of this Act or of any of the coupons appertaining thereto, and the trustee
under any trust agreement, except to the extent the rights herein given.
may be restricted by such trust agreement, may either at law or in equity,
by suit, action, injunction, mandamus or other proceedings, protect and
enforce any and all rights under the laws of the Commonwealth or granted
by this Act 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 agreement or resolution to
be performed by the Authority or by any officer or agent thereof, includ-
ing the fixing, charging and collection of tolls.

§ 11. Exemption from Taxation.—The exercise of the powers granted
by this Act shall be in all respects for the benefit of the inhabitants of
the Commonwealth, for the increase of their commerce, and for the pro-
motion of their safety, health, welfare, convenience and prosperity, and
as the operation and maintenance of the project by the Authority will
constitute the performance of essential governmental functions, the Au-
thority shall not be required to pay any taxes or assessments upon the
project or any property acquired or used by the Authority under the pro-
visions of this Act or upon the income therefrom; and the bonds issued
under the provisions of this Act, their transfer and the income therefrom,
including any profit made on the sale thereof, shall at all times be free
and exempt from taxation by the Commonwealth and by any municipality,
county or other political subdivision thereof.

§ 12. Revenue Refunding Bonds.—The Authority is hereby author-
ized to provide by resolution for the issuance of its revenue refunding
bonds 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 ad-
visable by the Authority, for the additional purpose of constructing im-
provements, extensions or enlargements of the project. 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 in
so far as the same may be applicable.

§ 13. Act Liberally Construed.—This Act, being necessary for the
welfare of the Commonwealth and its inhabitants, shall be liberally con-
strued to effect the purposes thereof.

§ 14. Constitutional Construction.—The provisions of this Act are
severable and if any of its provisions shall be held unconstitutional by
any court of competent jurisdiction, the decision of such court shall not
affect or impair any of the remaining provisions of this Act. It is hereby
declared to be the legislative intent that this Act would have been adopted
had such unconstitutional provisions not been included therein.

§ 15. Inconsistent Laws Inapplicable-——All other general or special
laws inconsistent with any provision of this Act are hereby declared to
be inapplicable to the provisions of this Act.