CHAPTER 365

An Act to provide for the organization of a Parking Authority as a pub-
lic body and body politic and corporate by the city of Martinsville,
in the Commonwealth of Virginia; authorizing and empowering the
Authority to acquire, construct, reconstruct, equip, improve, extend,
enlarge, maintain, repair and operate off-street parking facilities;
providing for the issuance of revenue bonds of the Parking Author-
ity, payable solely from revenues, to pay all or any part of the cost
of such parking facilities; granting to the Authority power to ac-
quire necessary real and personal property; providing for the wm-
position and collection of rates, rentals, fees and charges for the use
of and for the services furnished by the parking facilities; author-
izing the issuance of revenue refunding bonds; exempting from tax-
ation and assessment such bonds and the parking facilities and the
income therefrom; and prescribing the powers and duties of the
Authority in connection with the foregoing and the rights and rem-
edies of the holders of any bonds issued under the provisions of
this act.

(S 60]

Approved April 2, 1968

Be it enacted by the General Assembly of Virginia:

1. § 1. Short Title—This Act shall be known and be cited as the
“Martinsville Parking Authority Act.”

§ 2. Declaration of Public Necessity.—It is hereby determined and
declared that the free circulation of traffic of all kinds through the streets
of the city of Martinsville in the Commonwealth is necessary to the health,
safety and general welfare of the public, whether residing in the munici-
pality or traveling to, through or from such municipality in the course
of lawful pursuits; that in recent years the greatly increased use by the
public of motor vehicles of all kinds has caused serious traffic congestion
in the streets of the municipality; that the parking of motor vehicles in
the streets has contributed to this congestion to such an extent as to
constitute at the present time a public nuisance; that such parking pre-
vents the free circulation of traffic in, through and from the municipality
and endangers the health, safety and welfare of the general public; that
this traffic congestion is not capable of being adequately abated except by
provisions for sufficient off-street parking facilities; that adequate off-
street parking facilities have not been heretofore provided; and that the
enactment of the provisions of this Act is hereby declared to be a public
necessity.

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

(a) The word “Authority” shall mean the Authority created under
the provisions of this act, or, if the Authority shall be abolished, the board,
body or commission succeeding to the principal functions thereof or to
whom the powers given by this act to the Authority shall be given by law.

(a-1) The word “bonds” or the words “revenue bonds” shall mean
revenue bonds, revenue refunding bonds or notes of the Authority issued
under the provisions of this act.

(b) The word “cost” as applied to parking facilities or to extensions
or additions thereto shall include the cost of construction or reconstruc-
tion, the cost of all labor, materials, machinery and equipment, the cost
of all the lands, property, rights, easements and interests acquired by
the Authority for such construction or reconstruction or the operation
thereof, the cost of demolishing or removing any buildings or structures
on land so acquired, including the cost of acquiring any lands to which
such buildings or structures may be moved, financing charges, interest
prior to and during construction, and, if deemed advisable by the Au-
thority, for one year after completion of construction, reasonable pro-
vision for working capital, cost of engineering and legal services, cost
of plans and specifications, surveys and estimates of cost and of revenues,
administrative expense and such other expenses as may be necessary
or incident to such construction or reconstruction, the financing thereof
and the placing of the parking facilities in operation. Any obligation or
expense incurred by the Authority or by the organizing municipality
prior to the issuance of bonds under the provisions of this act in con-
nection with any of the foregoing items of cost may be regarded as a
part of such cost.

(c) The words “governing body” shall mean the board, commis-
sion, council or other body by whatever name it may be known in which
the general legislative powers of the municipality are vested.

(d) The word “municipality” shall mean the city of Martinsville in
the Commonwealth of Virginia.

(e) The words “parking facilities” shall mean and shall include lots,
garages, parking terminals, or other facilities or structures for the off-
street parking of motor vehicles, open to public use for a fee, and may
also include, but without limiting the generality of the foregoing, terminal
facilities for trucks and busses, waiting rooms, lockers, and offices cater-
ing primarily to those using such parking facilities, and all facilities
appurtenant thereto and all property, rights, easements and interests
relating thereto which are deemed necessary for the construction or oper-
ation thereof; provided, however, the words “parking facilities’ shall
not mean or include the sale or dispensing of products used in or for the
servicing of motor vehicles.

§ 4. Creation of the Authority—(a) The governing body of the
municipality may by resolution signify its determination to organize an
Authority under the provisions of this Act. Such resolution may be
adopted only after a public hearing thereon, notice of which hearing shall
be given by publication at least once, not less than 10 days prior to the
date fixed for such hearing, in a newspaper having a general circulation
in the municipality. Such notice shall contain a brief statement of the
substance of the proposed resolution, shall set forth the proposed articles
of incorporation of the Authority and shall state the time and place of
the public hearing to be held thereon. Such municipality shall not be re-
quired to make any other publication of such resolution under the pro-
visions of any other law.

(b) Such resolution shall include articles of incorporation which shall
set forth:

(1) the name of the Authority ;

(2) a statement that such Authority is organized under this Act;

(3) the name of the organizing municipality; and

(4) the names and addresses of the first members of the Authority
appointed by the organizing municipality.

c) Passage of such resolution by the governing body shall consti-
tute the Authority a public body and a body politic and corporate of the
Commonwealth of Virginia.

§ 5. Membership of the Authority——The Authority organized under
the provisions of this Act shall consist of five members selected by the
governing body of the organizing municipality who shall serve for terms
expiring one, two, three, four, and five years, respectively, from the date
of appointment, the term of such member to be designated by said gov-
erning body. The succesor of each member of the Authority shall be
appointed for a term of five years but any person appointed to fill a
vacancy shall be appointed to serve only for the unexpired term and any
member of the Authority may be reappointed.

Each member of the Authority before entering upon his duties shall
take and subscribe an oath or affirmation to support the Constitution of
the United States and of the Commonwealth and to discharge faithfully
the duties of his office and a record of each such oath shall be filed with
the Secretary of the Authority.

The Authority shall select one of its members as Chairman and
another as Vice-Chairman and shall also select a Secretary and a Treas-
urer who may but need not be members of the Authority. The offices of
Secretary and Treasurer may be combined. The terms of office of the
Chairman, Vice-Chairman, Secretary and Treasurer shall be as pro-
vided in the by-laws of the Authority.

A majority of the members of the Authority shall constitute a quorum
and the affirmative vote of a majority of all of the members of the Au-
thority 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 of the duties of the
Authority. The members of the Authority shall serve without compen-
sation but shall be reimbursed for the amount of actual expenses incurred
by them in the performance of their duties.

§ 6. General Grant of Powers.—The Authority created hereunder
shall be deemed to be a public instrumentality exercising public and es-
sential governmental functions to provide for the public health and wel-
fare, and each such Authority is hereby authorized and empowered:

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

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

(c) to maintain an office at such place or places as it may designate;

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

(e) to construct, reconstruct, equip, improve, extend, enlarge, main-
tain, repair and operate parking facilities within the corporate limits of
the organizing municipality ;

(f) to issue revenue bonds of the Authority as hereinafter provided
to pay the cost of such construction, reconstruction, equipment, improve-
ment, extension or enlargement;

(g) to issue revenue refunding bonds of the Authority as herein-
after provided;
(h) to fix and revise from time to time and to charge and collect
rates, rentals, fees and other charges for the services and facilities fur-
nished by such parking facilities, and to establish and revise from time
to time regulations in respect to the use, operation and occupancy of such
parking facilities or part thereof;

(i) to acquire in the name of the Authority by gift, or purchase,
any lands or rights in lands and interest therein, and to acquire such per-
sonal property, as it may deem necessary in connection with the con-
struction, reconstruction, improvement, extension, enlargement or oper-
ation of any parking facilities;

(j) to lease all or any part of such parking facilities upon such terms
and conditions and for such term of years as it may deem advisable to
carry out the provisions of this Act; provided, however, that no enter-
prise involving the sale or dispensing of any product or commodity used
am or for the servicing of motor vehicles shall be conducted on any space

ereon;

(k) 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, including a trust agreement or trust agreements
securing any revenue bonds issued hereunder, and to employ such con-
sulting and other engineers, superintendents, managers, construction and
financial experts, accounts and attorneys and such employees and agents
as may, in the judgment of the Authority, be deemed necessary, and to
fix their compensation; provided, however, that all such expenses shall
be payable solely from funds made available under the provisions of
this Act;

(i) to do all acts and things necessary or convenient to carry out
the powers granted by this Act; and

(m) nothing in this Act shall be construed as authorizing the Au-
thority or any lessee to furnish or dispense at, or in connection with,
any parking lot or area authorized by this Act, any product or service
other than parking of vehicles.

§ 7. Revenue Bonds.—The Authority is hereby authorized to is-
sue at one time or from time to time, revenue bonds of the Authority
for the purpose of paying the cost of constructing, reconstructing, equip-
ping, improving, extending or enlarging any one or more parking facilities.
The bonds of each issue shall be dated, shall mature at such time or
times not exceeding forty years from their date or dates and shall bear
interest at such rate or rates not exceeding six per centum (6%) per
annum, as may be determined by the Authority, and may be made re-
deemable 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 de-
termine the form of the bonds, including any interest coupons to be
attached thereto, and the manner of execution of the bonds, and shall fix
the denomination er 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 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 of the other provisions 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 this Comomnwealth. The bonds may be issued in coupon or 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 Authority may sell such bonds in such manner, either at public or
private sale, and for such price, as it may determine to be for the best
interests of the Authority, but no such sale shall be made at a price so
low as to require the payment of interest on the money received there-
for at more than six per centum (6%) per annum, computed with rela-
tion 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 bonds prior to maturity.

The proceeds of the bonds of each issue shall be used solely for
the purpose for which such bonds shall have been authorized 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 such bonds, 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 authorizing resolution or in the trust agreement securing such bonds,
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 for the same purpose.

The resolution providing for the issuance of revenue bonds, and
any trust agreement securing such bonds, may also contain such limi-
tations upon the issuance of additional revenue bonds as the Authority
may deem proper, and such additional bonds shall be issued under such
restrictions and limitations as may be prescribed by such resolution or
trust agreement.

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 be destroyed or lost.

Bonds may be issued under the provisions of this act without ob-
taining the consent of any commission, board, bureau or agency of the
Commonwealth of Virginia or of any political subdivision, and with-
out any other proceedings or the happening of other conditions or things
than those proceedings, conditions or things which are specifically re-
quired by this act.

Revenue bonds issued under the provisions of this act shall not be
deemed to constitute a debt of the Commonwealth or of any munici-
pality or other political subdivision of the Commonwealth, or a pledge
of the faith and credit of the Commonwealth or of any municipality or
other political subdivision, but such bonds shall be payable solely from
the funds herein provided therefor and a statement to that effect shall
be recited on the face of the bonds.

§ 8. Revenues.—The Authority shall fix, and may revise from
time to time, rates, rentals, fees and other charges for the use of and
for the services and facilities furnished or to be furnished by any park-
ing facilities or parts thereof owned or operated by the Authority.
Such rates, rentals, fees and charges shall not be subject to supervision
or regulation by any bureau, board, commission or other agency of the
Commonwealth or of any political subdivision. Such rates, rentals, fees
and charges shall be fixed and revised so that the revenues of the
Authority, together with any other available funds, will be sufficient at
all times (a) to pay the cost of maintaining, repairing and operating
the parking facilities or parts thereof owned or operated by the Au-
thority, including reserves for such purposes, and (b) to pay the prin-
cipal of and the interest on all bonds issued by the Authority under the
provisions of this Act as the same shall become due and payable and to
provide reserves therefor. Notwithstanding any of the foregoing pro-
visions of this section, the Authority may enter into contracts relating to
use of the services and facilities of the parking facilities on such terms
as the Authority shall determine to be proper, which contracts shall
not be subject to revision except in accordance with their terms.

§ 9. Trust Agreement.—In the discretion of the Authority, each
or any issue of revenue bonds 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. The resolution authorizing the issuance of the
bonds or such trust agreement may pledge the revenues to be received.
In connection with the issuance of such bonds or in order to secure the
payment thereof, the Authority shall have power under such agree-
ment to mortgage all or any part of its property, real or personal, then
owned or thereafter acquired, to vest in the trustee thereunder the
right to foreclose such mortgage and to provide the terms and condi-
tions upon which such trustee or the holders of bonds or any proportion
thereof may exercise the right of foreclosure. 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 viola-
tion of law, including covenants setting forth the duties of the Authority
in relation to the construction, reconstruction, equipment, improvement,
maintenance, repair, operation and insurance of any parking facilities,
the fixing and revising of rates, rentals, fees and charges, and the custody,
safeguarding and application of all moneys, and for the employment of
consulting engineers in connection with such construction, reconstruc-
tion, improvement, maintenance and operation. It shall be lawful for any
bank or trust company incorporated under the laws of the Commonwealth
which may act as depositary 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. Such resolution or trust agreement may
set forth the rights and remedies of the bondholders and of the trustee,
if any, and may restrict the individual right of action by bondholders.
Such resolution or trust agrement may contain such other provisions
in addition to the foregoing as the Authority may deem reasonable and
proper for the security of the bondholders. Except as in this act other-
wise provided, the Authority may provide for the payment of the pro-
ceeds of the sale of the bonds and the revenues of any parking facilities or
part thereof to such officer, board of depositary as it may designate for
the custody thereof, and for the method of disbursements thereof, with
such safeguards and restrictions as it may determine. All expenses in-
curred in carrying out the provisions of such resolution or trust agree-
ment may be treated as a part of the cost of operation.

All pledges of revenues under the provisions of this act shall be
valid and binding from the time when such pledge is made. All such
revenues so pledged and thereafter received by the Authority shall im-
mediately be subject to the lien of such pledges without any physical
delivery thereof or further action, and the lien of such pledges 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.

§ 10. Trust Funds.—All moneys received pursuant to the author-
ity of this Act shall be deemed to be trust funds, to be held and applied
solely as provided in this Act. Any officer to whom, or bank, trust com-
pany or fiscal agent to which, such moneys shall be paid shall act as
trustee of such moneys and shall hold and apply the same for the pur-
poses thereof, subject to such regulations as this Act and the resolu-
tion authorizing the issuance of bonds or trust agreement securing such
bonds may provide.

§ 11. Remedies.—Any holder of revenue 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 the resolution authorizing the issuance
of such bonds or 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 Commonwealth or granted hereunder
or under such resolution or trust agreement, and may enforce and compel
the performance of all duties required by this Act or by such resolution
or trust agreement to be performed by the Authority or by any officer
thereof, including the fixing, charging and collecting of rates, rentals,
fees and charges for the use of or for the services and facilities furnished
by any parking facilities.

§ 12. Exemption from Taxation—As adequate off-street parking
facilities are essential to the health, safety and general welfare of the
public, and as the exercise of the powers conferred by this Act to effect
such purposes constitute the performance of essential municipal func-
tions, and as parking facilities constructed under the provisions of this
Act constitute the performance of essential municipal functions, and as
parking facilities constructed under the provisions of this Act constitute
public property and are used for municipal purposes, the Authority
shall not be required to pay any taxes or assessments upon any such
parking facilities or any part thereof, or upon the income therefrom,
and any 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 from taxation within the Commonwealth.

§ 18. Revenue Refunding Bonds.—The Authority is hereby au-
thorized to issue from time to time revenue refunding bonds for the
purpose of refunding any revenue bonds of the Authority then outstand-
ing, including the payment of any redemption premium thereon and any
interest accrued or to accrue to the date of redemption of such bonds.
The Authority is further authorized to issue from time to time revenue
bonds of the Authority for the combined purpose of (a) refunding
any revenue bonds or revenue refunding bonds of the Authority then
outstanding, including the payment of any redemption premium 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 constructing any
additional parking facilities or part thereof, or any improvements, ex-
tensions or enlargements of any parking facilities. The issuance of such
bonds, the maturities and other details thereof, the rights and remedies
of the holders thereof, and the rights, powers, privileges, duties and
obligations of the Authority with respect to the same, shall be governed
by the foregoing provisions of this Act in so far as the same may be
applicable.

§ 13-a. Competing Parking Facilities—So long as any bonds is-
sued under the provisions of this act are outstanding, the municipality
shall not construct, operate or maintain any parking facilities com-
peting with parking facilities of the Authority.

§ 14. Contributions.—The municipality is hereby authorized to make
contributions or advances to an Authority which it organizes under the
provisions of this Act from any available moneys for any purpose of the
Authority, including payment of principal and interest on its bonds. The
municipality is hereby further authorized to enter into agreements with the
Authority obligating the municipality to pay to the Authority any part
or all of the receipts from the operation of on-street parking meters and
making such covenants as may be deemed necessary or desirable to as-
sure the successful and profitable operation of the on-street parking
meters for so long as any bonds of the Authority remain outstanding.
15. Actions taken by Authority—Any action taken by the Au-
thority under the provisions of this Act may be authorized by resolution
at any regular or special meeting and each such resolution shall take
effect immediately and need not be published or posted.

§ 16. Additonal Method.—This Act shall be deemed to provide an
additional and alternative method for the doing of the things author-
ized hereby and shall be regarded as supplemental and additional to powers
conferred by other laws, and shall not be regarded as in derogation of or
as repealing any powers now existing under any other law, either gen-
eral, special or local; provided, however, that the issuance of revenue
bonds or revenue refunding bonds under the provisions of this Act need
not comply with the requirements of any other law applicable to the
issuance of bonds.

§ 17. Construction.—This act, being necessary for the welfare of
the Commonwealth and its inhabitants, shall be liberally construed to
effect the purpose thereof.

2. An emergency exists and this act is in force from its passage.