CHAPTER 132

An Act to amend the Code of Virginia by adding a section numbered
15.1-511.1, so as to permit the governing bodies of counties to allocate
county funds or other county property to authorities created by such

county.
(H 331]
Approved March 10, 1966

Be it enacted by the General Assembly of Virginia:
l. That the Code of Virginia be amended by adding a section numbered
15.1-511.1, as follows:

_ § 15.1-511.1. The governing body of any county in this State may
give, lend or advance in any manner that to it may seem proper funds or
other county property, not otherwise specifically allocated or obligated, to
any authority created by such governing body pursuant to law.
An Act providing for the construction, maintenance, repair and opera
of an airport to serve the needs of the city of Chesapeake, incluc
all facilities incidental to such project; creating a political subdivi.
of the Commonwealth to be known as the Chesapeake Airport Aut!
tty and defining its powers and duties; granting to the Autho
power to acquire necessary real and personal property and to exer
the power of eminent domain; providing for financing the construc
of such project by the issuance of revenue bonds of the Author
payable solely from revenue of the Authority; authorizing the issua
of revenue refunding bonds; providing that no debt of the Comn
wealth or of any county, city, district or political subdivision the:
shall be incurred in the exercise of any of the powers granted by :
act; providing for the collection of revenues to pay such bonds
the interest thereon and the cost of maintenance, repair and opera
of such project; exempting from taxes and assessments such pro
and such bonds and the income therefrom; providing for the ex
tion of a trust agreement to secure the payment of such bonds w
out mortgaging or incumbering such project; and prescribing
powers and duties of the Authority in connection with the foregt
and the rights and remedies of the holders of bonds issued under
provisions of this act. tH S

Approved March 10, 1966

Be it enacted by the General Assembly of Virginia
1. § 1. Definitions .—As used in this act the folleving ‘pve and te
shall have the following meanings, unless the context shall indicate anot
or different meaning or intent:

(a) The word “Authority” shall mean the Chesapeake Airport Autl
ity hereinafter created or, if the Authority shall be abolished, the bo
body, commission or agency succeeding to the principal functions the
or upon whom the powers given by this act to the Authority shall be «
ferred by law.

(b) The word “project” shall mean an airport for general, comr
cial and private use constructed by the Authority under the provision.
this act, together with all necessary and convenient approaches, roads
streets used i in connection with such airport.

(c) The term “cost of the project” shall embrace the cost of const:
tion, landscaping and conservation, the cost of acquisition of all land, ris
of way, property, rights, easements and interests acquired by the Autl
ity for the construction and operation of the project, the cost of demol
ing or removing any buildings or structures on land so acquired, incluc
the cost of acquiring any land to which such buildings or structures |
be moved, the cost of all machinery and equipment, financing charges
terest prior to and during construction and, if deemed advisable by
Authority for a period not exceeding one year after completion of
struction, cost of traffic estimates and of engineering and legal serv:
plans, specifications, surveys, estimates of costs and of revenues, provi
for working capital and a reserve for interest, other expenses neces:
or incident to determining the feasibility or practicability of construc
the project, administrative expenses, and such other expenses as ma:
necessary or incident to the construction of the project, the financin;
such ig ingeee and the placing of the project in operation.

(d) The word “bonds” or the words “revenue bonds” shall n
revenue bonds or revenue refunding bonds of the Authority issued wu!
(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 ma property, rights, easements and interests authorized to be acquired

by

§ 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
. shall contain a statement on their face substantially to the foregoing

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 hereunder
beyond the extent to which moneys shall have been provided under the
provisions of this act.

§ 3, “Chesapeake Airport Authority”’.—There is hereby created and
constituted a political subdivision of the Commonwealth to be known as
the “Chesapeake Airport Authority”. The exercise by the Authority of
the powers conferred by this act in the construction, operation and main-
tenance of the project authorized by this act shall be deemed and held to
be the performance of an essential governmental function.

The Authority shall consist of seven members, all of whom shall be
appointed by the council of the city of Chesapeake. Four of the members
of the Authority first appointed shall continue in office for terms expiring
on June thirty, nineteen hundred sixty-nine, and three for terms expiring
on June thirty, nineteen hundred sixty-eight the term of each such mem-
ber to be designated by said council and to continue until his successor
shall be duly appointed and qualified. The successor of each such member

be appointed for a term of five 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 Authority

be subject to removal from office in like manner as are State,
county, town and district officers under the provisions of §§ 15.1-63 to
15.166, inclusive, of the Code of Virginia. The Authority shall annually
elect one of its members as chairman and another as vice chairman and

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

f 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.

Four members of the Authority shall constitute a quorum and the

five vote of four 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 al)
the duties of the Authority. an

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.

The members of the Authority shall be entitled to reimbursement for
their expenses incurred in attendance upon the meetings of the Authority
or while otherwise engaged in the discharge of their duties. Each member
shall also be paid the sum of twenty dollars per day for each day or por-
tion thereof during which he is engaged in the performance of his duties,
with the maximum payable to any one member in any one calendar year
of fifteen hundred dollars.

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

(a) to adopt bylaws 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;

(gz) to employ, in its discretion, consulting 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 enter upon any lands and premises for the purpose of making
such surveys, soundings, borings and examinations as the Authority may
deem necessary or convenient for its purposes, and such entry shall not
be deemed a trespass, nor shall an entry for such purposes be deemed
an entry under any condemnation proceedings; provided, however, the
Authority shall pay any actual damage resulting to such lands and prem-
ises fr! a result of such entry and activities as a part of the cost of the
project;

(i) 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
powers under this act; and

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

Acquisition of Property.—(a) The Authority is hereby author-
ized 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 as it may
deem necessary 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 the commissions of the Commonwealth, with
the approval of the Governor, and the city of Chesapeake, notwithstanding
any contrary provisions 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 the
exercise of the power of eminent domain limited to the definition of
“project” as set forth herein, any lands, property, rights, rights of way,
franchises, easements and other property, including public lands, parks,
playgrounds, reservations, highways or parkways, or parts thereof or
rights therein, of any person, copartnership, association, public service,
public utility or other corporation, or of the county, deemed necessary or
convenient for the construction or the efficient operation of the project or
necessary in the restoration, replacement or relocation of public or private
property damaged or destroyed, whenever a reasonable price cannot be
agreed upon or whenever the Authority cannot agree on the terms of pur-
chase or settlement with the owner or owners because of the incapacity
of such owner or owners or because of the inability to agree on the com-
pensation to be paid or other terms of settlement or purchase, or because
such owner or owners are nonresidents of the Commonwealth, or are
unknown, or are unable to convey valid title to such property. Such pro-
ceedings shall be in accordance with and subject to the provisions of any
and all laws of the Commonwealth applicable to the exercise of the power
of eminent domain in the name of the State Highway Commissioner and
subject to the provisions of § 25-233 of the Code of Virginia, 1950, as fully
as if the Authority were a corporation possessing the power of eminent
domain; provided, however, that title to any property condemned by the
Authority shall immediately vest in the Authority, and the Authority shall
be entitled to the immediate possession of such property upon the deposit
with the clerk of the court in which such condemnation proceedings are
originated, of the total amount of the appraised price of the property and
court costs and fees as provided by said laws, notwithstanding that any
of the parties to such proceedings shall appeal from any decision in such
condemnation proceedings. Whenever the Authority shall make such
deposit in connection with any condemnation proceeding, the making of
such deposit shall not preclude the Authority from appealing any decision
rendered in such proceedings. Upon the deposit with the clerk of the court
of the appraised price, any person or persons entitled thereto may, upon
petition to the court, be paid his or their pro rata share of 90% of such
appraagsed price. The acceptance of such payment shall not preclude such
persom or persons from appealing any decision rendered in such proceed-
ings. If the appraisement is greater or less than the amount finally deter-
mined by the decision in such proceeding or by an appeal, the amount of
the increase or decrease shall be paid by or refunded to the Authority.

The terms “appraised price” and “appraisement” as used in this
section mean the value determined by two competent real estate appraisers
appointed by the Authority for such purposes.

The acquisition of any such property by condemnation or by the
exercise of the power of eminent domain shall be and is hereby declared
to be a public use of such property.

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

(d) In any eminent domain proceedings the court having jurisdiction
of the suit, action or proceeding may make such orders as may be just
to the Authority and to the owners of the property to be condemned
and may require an undertaking or other security to secure such owners
against any loss or damage by reason of the failure of the Authority to
accept and pay for the property, or by reason of the taking of property
occupied by such owners, but neither such undertaking or security nor
any act or obligation of the Authority shall impose any liability upon the
Commonwealth or upon any county, or other political subdivision of the
Commonwealth.

(e) If the owner, lessee or occupier of any property to be condemned
or otherwise acquired shall refuse to remove his property therefrom or
give up possession thereof, the Authority may proceed to obtain possession
in any manner provided by law.

§ 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 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 bond and
the place or places of payment of principal and interest, which may be at
any bank or trust company within or without the Commonwealth. 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. Notwithstanding any other provision 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 provision may be made for the
registration of any coupon bonds as to principal alone and also as to both
principal and interest, for the reconversion into coupon bonds of any
bonds registered as to both principal and interest, and for the interchange
of registered and coupon bonds. The Authority 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 author-
izing 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

shal] 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

thoge 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 resolu-
tion 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 acqui-
sition of property and the construction, improvement, maintenance, repair,
operation and insurance of the project, the rates of toll or other charges
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 Commonwealth which may act as depositary of the pro-
ceeds 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 bond-
holders. In addition to the foregoing, any such trust agreement or reso-
lntion 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 resolu-
tion 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 tolls or other charges for the use of the project and
to contract with any person, partnership, association or corporation desir-
ing the use of any part thereof, including the right of way adjoining the
alrport for placing thereon telephone, telegraph, electric light or power

and to fix the terms, conditions, rents and rates of charges for such
use. Such tolls or other charges shall be so fixed and adjusted in respect
of the aggregate of tolls or other charges from the project as to provide
a fund sufficient with other revenues, if any, to pay (a) the cost of main-
taining, repairing and operating such project and (b) the principal of and

on such bonds as the same shall become due and payable, and to

create reserves for such purposes. The tolls and all other revenues derived
from the project, except such part thereof as may be necessary to pay
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 resolu-
Gon 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 pro-
vided. Such pledge shall be valid and binding from the time when the
ls made; the tolls and other revenues or other moneys 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 or 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 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.
§ 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 pro-
vided in this act. The Authority shall, in the resolution authorizing the
bonds or in the trust agreement securing such bonds, provide for the pay-
ment of the proceeds of the sale of the bonds and the revenues to be
received by 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 perform-
ance 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 or other charges.

§ 11. Exemption from Taxation.—The exercise of the powers
granted by this act shall be in all respects for the benefit of the inhab-
itants of the Commonwealth, for the increase of their commerce, and for
the promotion 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 advisable by the
Authority, for the additional purpose of constructing improvements, ex-
tensions 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 insofar as the same
may be applicable.

8 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 spe-
cial laws inconsistent with any provision of this act are hereby declared
to be inapplicable to the provisions of this act.