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| Home > Statutes > Usa Arizona |
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USA Statutes : arizona
Title : Cities and Towns
Chapter : CONVENTION CENTERS
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9-601 ARIZONA convention center developmentfund; purpose
The ARIZONA convention center development fund is established to encourage and
enable eligible cities under section 9-604 to develop and expand municipally operated
major convention center facilities designed to serve large conventions and trade shows
attended primarily by residents of other states and to encourage the tourism and visitor
industries in this state. 9-602 Fund operation
A. The ARIZONA convention center development fund consists of monies deposited
pursuant to sections 42-5029 and 42-5030.
B. The state treasurer shall administer the fund. The state treasurer shall invest
and divest monies in the fund as provided by section 35-313 as needed to facilitate
distributions from the fund, and monies earned from investment shall be credited to the
fund.
C. On or before August 1 of each year, the state treasurer shall distribute the
amounts computed in subsection D of this section to each eligible city that has filed a
certificate of completion of construction pursuant to section 9-622 for each eligible
project under section 9-605.
D. The amount to be distributed pursuant to subsection C of this section shall be
computed by dividing the total cost of the eligible project not funded from municipal
sources as identified in the certificate of completion of construction filed pursuant to
section 9-622 by three hundred million and multiplying the quotient by the following
amounts:
1. In the first fiscal year, five million dollars.
2. In the second fiscal year, ten million dollars.
3. In the third fiscal year, fifteen million dollars.
4. In the fourth fiscal year, twenty million dollars.
5. In the fifth fiscal year and each of the next thirty fiscal years, the amount
distributed in the preceding fiscal year plus five hundred thousand dollars, except that
the amount distributed shall not exceed thirty million dollars in any fiscal year.
E. If sufficient distributions have been made to provide for all of the uses of the
fund monies pursuant to section 9-603 for an eligible project, the chief financial
officer of the eligible city shall certify to the state treasurer that no additional
distributions are required for the project, and on receiving the certification the state
treasurer shall make no further distributions to the city for that project.
F. After the distributions required by subsection C of this section, any monies
remaining in the fund on receipt of the certification of satisfaction of annual
obligations pursuant to section 9-623, or on the first Monday in August if a certificate
of completion of construction has not been previously filed pursuant to section 9-622,
shall be transferred to the state general fund. 9-603 Use of fund monies
A. The monies in the ARIZONA convention center development fund shall be used only
for the purposes specified in this chapter.
B. The state treasurer shall disburse monies from the fund as provided in section
9-602. Any amounts remaining in the fund after the distributions made pursuant to section
9-602, subsection C shall be held in reserve for the purposes of the distributions until
the certificate of satisfaction of annual obligations is received by the state treasurer
or until the first Monday in August if a certificate of completion of construction has
not been previously filed pursuant to section 9-622.
C. A city that receives monies distributed from the fund:
1. Shall segregate and separately account for the monies and shall not commingle
the monies from the fund with monies from any other source. Those monies shall be
designated as a special fund of the eligible city, separate from the city's general fund.
Any amount not immediately used to meet scheduled payments or current expenses shall
remain in the special fund, shall not be transferred to the city's general fund and shall
be used only for the permitted purposes in the future.
2. May use monies from the fund only for the following purposes in connection with
an eligible project under section 9-605:
(a) The design, development, construction and related costs for a convention center
and related development.
(b) Financing costs and any other costs incurred in connection with any financings
undertaken to facilitate the accomplishment of the uses of the monies in the fund as
provided in this section.
(c) Funding financial reserves created in connection with any financings undertaken
to facilitate the accomplishment of the uses of the monies in the fund as provided in
this section.
(d) Reimbursement of any amounts plus interest advanced by an eligible city but for
which the eligible city does not have ultimate responsibility to pay any portion of
financing or related costs incurred in connection with any financings undertaken to
facilitate the accomplishment of the other uses of the monies in the fund as provided in
this section.
(e) Any other costs necessary to effectuate the uses and purposes specified in this
article.
D. Amounts distributed from the fund are in addition to any other amounts
distributed to eligible cities pursuant to any other law.
9-604 Eligible cities
To be eligible to receive distributions from the ARIZONA convention center
development fund a municipality must:
1. Be a charter city.
2. Have a population of more than:
(a) One million persons according to the most recent United States decennial census
at the time of the distribution.
(b) Five hundred fifty thousand persons according to the most recent United States
decennial census, or a special census conducted pursuant to section 42-5033, at the time
of the initial distribution.
3. Operate a convention center facility with at least two hundred thousand square
feet of exhibition space that was constructed with monies from municipal sources. 9-605 Eligible projects
A. An eligible city may not spend monies from the ARIZONA convention center
development fund for uses other than those permitted by section 9-603 and only in
connection with an eligible convention center development project.
B. A project is eligible only if:
1. The voters of the eligible city have approved the project and any required
financing for the project.
2. Specifically identified municipal sources have been dedicated to provide funding
for at least one-half of the total project cost.
3. The total cost of the project does not exceed six hundred million dollars.
C. In the case of an eligible city described in section 9-604, paragraph 2,
subdivision (b), a project is eligible under this section only if:
1. The joint legislative budget committee has conducted a financial analysis of the
proposed project that indicates that the project will result in an increase in state
general fund revenues greater than the amounts of distributions pursuant to section 9-602
in connection with the project.
2. The total cost of the project does not exceed sixty million dollars. 9-621 Authority to receive and spenddistributions
In addition to any other powers conferred by law, an eligible city described in
section 9-604 may receive and spend distributions from the ARIZONA convention center
development fund pursuant to this chapter. 9-622 Certification of completion ofconstruction
A. When construction or expansion of an eligible convention center development
project is complete, the chief financial officer of the city shall certify the completion
to the state treasurer and transmit a copy of the certification to the auditor general.
B. As a part of the certification, the chief financial officer of the city shall:
1. Notify the state treasurer if the city has entered into any agreements that
require future scheduled payments and the amounts of any such payments.
2. Certify to the state treasurer that a project meets all of the eligibility
requirements of section 9-605 before any distributions for the project from the ARIZONA
convention center development fund to the city.
3. Certify to the state treasurer the total cost of the eligible project and the
part of the total cost to be funded from municipal sources. 9-623 Certification of satisfaction of annualobligations
A. In any year that a scheduled payment is due as stated in the certification of
completion of construction from monies in the special fund established by the eligible
city for receipt of distributions from the ARIZONA convention center development fund, on
receiving distributions from the ARIZONA convention center development fund, the chief
financial officer shall deposit into the appropriate account a sufficient amount from
those distributions to make any scheduled payments or deposits for the current fiscal
year.
B. The chief financial officer shall certify to the state treasurer the
satisfaction of the annual obligations on depositing into the appropriate funds or
accounts sufficient monies to make any scheduled paymEnts or deposits for the current
fiscal year. 9-624 Request for state lease purchase
A. The chief financial officer may file a notice with the director of the
department of administration requesting this state to undertake lease purchase financing
in connection with an eligible project pursuant to section 41-791.04. The notice shall
include a detailed description of the part of the eligible project that the state is
requested to lease purchase.
B. The department of administration shall promptly respond to the proposal in the
manner prescribed by section 41-791.04.
C. If a notice is filed and the lease purchase financing is completed pursuant to
this section, no distributions shall be made by the state treasurer pursuant to section
9-602 to the eligible city for the eligible project. 9-625 Tax exemption
An eligible city is regarded as performing a governmental function in carrying out
the purposes of this chapter and the eligible project is considered to be municipal
property for the purposes of article IX, section 2, Constitution of ARIZONA. 9-626 Construction progress reports; auditorgeneral performance measures
A. The eligible city shall report progress on the development of any eligible
project to the joint committee on capital review twice annually during construction of
the eligible project.
B. Within five years after the filing of the certificate of completion of
construction of an eligible project pursuant to section 9-622, and after consultation
with the eligible city, the auditor general shall conduct or contract for an economic and
fiscal impact analysis of the eligible project in its fifth year of operation following
the filing of the certificate of completion of construction. At a minimum, the analysis
shall:
1. Estimate the effects of direct, indirect and induced economic activity in this
state associated with:
(a) Regional and national conventions and trade shows held at the site of the
eligible project, the total amount of state general fund revenues derived from that
economic activity and the estimated average annual attendance at those events assuming:
(i) The eligible project had not been completed.
(ii) The eligible project has been completed.
(b) The construction of the eligible project and the total amount of state general
fund revenues derived from the construction activity.
2. Compute the total cumulative amount of distributions pursuant to section 9-602
for the first through fifth years following the filing of the certificate of completion
of construction for the eligible project pursuant to section 9-622 and from the first
through each subsequent fifth year.
3. Compute the net cumulative distributions for the eligible project by subtracting
the amount determined pursuant to paragraph 1, subdivision (b) of this subsection from
either the amounts determined pursuant to paragraph 2 of this subsection or, if
applicable, the amount of state monies paid under a lease purchase agreement pursuant to
section 41-791.04.
4. Based on the analysis conducted pursuant to this subsection, estimate the
minimum required attendance at the eligible project for the fifth year following the
filing of the certificate of completion of construction of an eligible project pursuant
to section 9-622 and each year thereafter. The estimates shall be computed as follows:
(a) Divide the total state general fund revenues estimated pursuant to paragraph 1,
subdivision (a), item (ii) of this subsection by the attendance estimated pursuant to
paragraph 1, subdivision (a), item (ii) of this subsection.
(b) Divide the net cumulative distribution amounts for the fifth year following the
filing of the certificate of completion of construction of an eligible project pursuant
to section 9-622 and each year thereafter computed pursuant to paragraph 3 of this
subsection by the quotient computed pursuant to subdivision (a) of this paragraph.
(c) Add the average annual attendance estimated pursuant to paragraph 1,
subdivision (a), item (i) of this subsection to each of the quotients determined pursuant
to subdivision (b) of this paragraph. The resulting sums are the minimum required
attendance amounts for each year.
C. Beginning in the fifth calendar year following the filing of the certificate of
completion of construction of an eligible project pursuant to section 9-622 and each year
thereafter, the auditor general shall:
1. Estimate the average annual attendance at regional and national conventions and
trade shows held at the site of the eligible project using any appropriate method to
estimate the attendance. The eligible city shall cooperate with and assist the auditor
general in developing the estimates.
2. Compute the ratio of the cumulative sum of the estimated attendance amounts
developed pursuant to paragraph 1 of this subsection for all years through the current
year to the cumulative sum of the minimum required attendance amounts for those years
computed pursuant to subsection B, paragraph 4, subdivision (c) of this section.
3. Notify the president of the senate, the speaker of the house of representatives
and the governor of:
(a) The minimum required attendance amounts for those years computed pursuant to
subsection B, paragraph 4, subdivision (c) of this section.
(b) The attendance estimate developed pursuant to paragraph 1 of this subsection.
(c) The ratio computed pursuant to paragraph 2 of this subsection.
D. Except as provided in paragraph 4 of this subsection, if the ratio computed
pursuant to subsection C, paragraph 2 of this section is less than one:
1. The auditor general shall compute the difference between the estimated state
general fund revenues and the net cumulative distributions by multiplying the net
cumulative distributions computed pursuant to subsection B, paragraph 3 of this section
by the difference between the ratio computed pursuant to subsection C, paragraph 2 of
this section and one.
2. The auditor general shall notify the state treasurer of:
(a) The ratio computed pursuant to subsection C, paragraph 2 of this section.
(b) The difference computed pursuant to paragraph 1 of this subsection.
3. At the time of the next regularly scheduled distribution, the state treasurer
shall withhold from the amount that would otherwise be distributed to the eligible city
from the local transportation assistance fund pursuant to section 28-8102 an amount equal
to the amount stated in the notice received pursuant to paragraph 2 of this subsection.
If the amount available for distribution is less than the amount to be withheld, the
state treasurer shall continue withholding from subsequent distributions until the full
amount stated in the notice has been withheld.
4. The eligible city may request and the auditor general shall conduct or contract
for a complete economic and fiscal impact analysis of the eligible project. If an
analysis is requested:
(a) The auditor general shall not notify the state treasurer pursuant to paragraph
2 of this subsection, and the state treasurer shall not withhold pursuant to paragraph 3
of this subsection, pending completion of the analysis.
(b) The analysis shall be similar to the analysis described in subsection B of this
section, except that the analysis shall examine the operations of the eligible project in
the year for which the ratio is less than one.
(c) The analysis, at a minimum, shall estimate the total cumulative incremental
revenues to the state general fund resulting from the completion of the eligible project
including the revenues resulting from the construction activity associated with the
completion of the eligible project.
(d) And the analysis demonstrates that the total cumulative incremental revenues to
the state general fund exceed the total cumulative amount of distributions pursuant to
section 9-602 as computed in subsection B, paragraph 3 of this section, the auditor
general shall not notify the state treasurer pursuant to paragraph 2 of this subsection
and the state treasurer shall not withhold pursuant to paragraph 3 of this subsection.
(e) And the analysis demonstrates that the total cumulative incremental revenues to
the state general fund are less than the total cumulative amount of distributions
pursuant to section 9-602 as computed in subsection B, paragraph 3 of this section:
(i) The auditor general shall subtract the amount of the total cumulative
incremental revenues to the state general fund from the amount of the total cumulative
distributions.
(ii) The auditor general shall notify the state treasurer of the difference
computed pursuant to item (i) of this subdivision.
(iii) At the time of the next regularly scheduled distribution, the state treasurer
shall withhold from the amount that would otherwise be distributed to the eligible city
from the local transportation assistance fund pursuant to section 28-8102 an amount equal
to the amount stated in the notice received pursuant to item (ii) of this subdivision.
If the amount available for distribution is less than the amount to be withheld, the
state treasurer shall continue withholding from subsequent distributions until the full
amount stated in the notice has been withheld.
E. The eligible city shall reimburse the auditor general for any costs incurred in
complying with the requirements of this section.
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