Chapter 14.32

CONVENTION CENTER FACILITIES DISTRICT FINANCING PROCEDURE

Parts:

• 1 Purpose and Construction

• 2 Definitions

• 3 Authorized Expenditures - Establishment of Funds

The purpose and intent of this chapter is to establish a procedure for financing certain public capital facilities through the establishment of convention center facilities districts, the levy of special taxes within such districts and the issuance of bonds secured by such special taxes or to be paid from the proceeds of such special taxes. (Ord. 28387.)

Proceedings for the formation of a convention center facilities district or districts for the purposes set forth in Section 14.32.300 may be conducted pursuant to this chapter whether or not provided in any state law.

(Ord. 28387.)

• A. This chapter is not, in any way, exclusive. B. The procedures provided in this chapter are alternative to any other procedure provided in this Code or under state law.

  • C. The resolution of intention in any proceedings under any state law or other provision of the Municipal Code may provide that such provisions are supplemented by this chapter.

  • (Ord. 28387.)

• 4 Formation

• 5 Collection of the Special Tax

• 6 Bonds

• 7 Miscellaneous Provisions

Part 1

PURPOSE AND CONSTRUCTION

Sections:

14.32.020 Special tax proceedings.

14.32.030 Nonexclusivity.

This chapter is to be liberally construed. (Ord. 28387.)

• A. The Mello-Roos Community Facilities Act of 1982 (Chapter 2.5, commencing with Section 53311, of Part 1 of Division 2 of Title 5 of the Government Code, as in effect on the effective date of this ordinance) (the "Act"), is incorporated in and made a part of this chapter.

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SAN JOSÉ CODE

§ 14.32.050

• B. Except as otherwise provided by this chapter, the mode and manner for making improvements, for levying and collecting special taxes and for issuing bonds shall be as prescribed in the Act.

upon which a hotel is located, except that if the fee owner of the real property is a government entity, these terms mean the lessee of the government entity.

• (Ord. 28387.)

• (Ord. 28387.)

Part 2

DEFINITIONS

Sections:

14.32.230 Landowner, owner of land or property owner.

"Operator" has the meaning set forth in Section 4.72.020.E of Chapter 4.72 of this Code. (Ord. 28387.)

"Rent" has the meaning set forth in Section 4.72.020.G of Chapter 4.72 of this Code. (Ord. 28387.)

Part 3

AUTHORIZED EXPENDITURES - ESTABLISHMENT OF FUNDS

The definitions set forth in this part shall govern the application and interpretation of this chapter.

(Ord. 28387.)

"Hotel" has the meaning set forth in Section 4.72.020.C of Chapter 4.72 of this Code. Hotel shall not be deemed to include any residential use. (Ord. 28387.)

"Convention center facility" means any building, improvement to real property, equipment or personal property (in each case having an expected useful life of five years or longer) that comprises any portion of the existing convention center and any expansion, construction, reconstruction, rehabilitation, replacement or upgrade thereto. (Ord. 28387.)

"Landowner," "owner of land" and "property owner" all mean the owner of the real property

Sections:

• 14.32.310 Convention center facility district revenue fund; deposit of proceeds.

• 14.32.320 Convention center facility district capital fund; source and use of moneys.

• A. Any special tax imposed pursuant to this Chapter may finance the acquisition, construction, reconstruction, replacement, rehabilitation, upgrade and maintenance of any Convention Center Facility.

• B. Revenues from any special tax imposed under this Chapter may be spent on the following: debt service; lease payments; cost of issuance of securities issued for the purpose of financing or refinancing Convention Center Facilities; administrative costs of the District; prepayment of such securities; direct costs of acquisition, design and construction of Con-

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PUBLIC WORKS AND IMPROVEMENTS

§ 14.32.430

vention Center Facilities; ongoing capital repairs and maintenance of Convention Center Facilities.

• C. The proceeds of any special tax imposed pursuant to this Chapter shall be expended on the purposes set forth in this Section and shall be deposited in the special funds as set forth below.

• (Ords. 28387, 30069.)

The proceeds of any special tax imposed under this Chapter shall be deposited in a special fund to be known as the "Convention Center Facility District Revenue Fund." Interest which accrues from moneys in the Convention Center Facility District Revenue Fund shall be credited to this fund. (Ord. 30069.)

• A. There is hereby created and established the "Convention Center Facility District Capital Fund."

• B. There shall be deposited into this fund moneys transferred from the Convention Center Facility District Revenue Fund or from any other funds which may be expended on the capital purposes set forth in Section 14.32.300. Moneys deposited into this fund from the Convention Center Facility District Revenue Fund may be transferred back into the Convention Center Facility District Revenue Fund. Moneys in the Convention Center Facility District Capital Fund shall be expended on the capital purposes set forth in Section 14.32.300.

• C. Interest which accrues from moneys in the Convention Center Facility District Capital Fund shall be credited to this fund.

• (Ord. 30069.)

Part 4

FORMATION

Sections:

All hearings called for under the Act shall apply to this chapter, except that they may be continued from time to time without further notice, but shall be completed within one (1) year of the original hearing date.

(Ord. 28387.)

Any special tax imposed pursuant to this chapter shall be imposed on the property owner for the use of property as a hotel, and shall be apportioned as a percentage of rent charged by the hotel for the occupancy (as defined in Section 4.72.020.D of Chapter 4.72 of this Code) of the hotel rooms. (Ord. 28387.)

All protest procedures set forth in the Act shall apply to this chapter, except that the protests shall be weighted based on number of hotel rooms instead of area of land.

(Ord. 28387.)

All election procedures set forth in the Act shall apply to this chapter, except that the votes shall be weighted based on number of hotel rooms each property owner controls at the time the election is called instead of acreage of real property. (Ord. 28387.)

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§ 14.32.500

Part 5

COLLECTION OF THE SPECIAL TAX

Section:

The provisions of Section 53312.7 of the Government Code, concerning the adoption of local goals and policies, shall be permissive and not mandatory in connection with any proceedings taken, special tax levied or bonds issued pursuant to this chapter.

(Ord. 28387.)

All special taxes imposed pursuant to this chapter shall be due and remitted with the operator's payment of the transient occupancy tax as set forth in Section 4.72.080 of Chapter 4.72 of this Code. In the event that the property owner is not the operator, the property owner shall cause the operator to remit the special taxes imposed pursuant to this chapter with the operator's payment of the transient occupancy tax. (Ord. 28387.)

Part 6

Section 53359.5(b)(c) of the Government Code requiring the submission of reports to the California Debt and Investment Advisory Commission is not applicable to this chapter. (Ord. 28387.)

Any proceedings taken, special tax levied or bonds issued pursuant to this chapter shall not be held invalid for failure to comply with the provisions of this chapter provided such failure is not a constitutional defect. (Ord. 28387.)

BONDS

Any savings achieved through the issuance of refunding bonds may be used in any manner that is consistent with the purposes for which the special tax was imposed. (Ord. 28387.)

Part 7

MISCELLANEOUS PROVISIONS

Sections:

In the event of any conflict between the provisions of this chapter or other provisions of the Municipal Code and the provisions of the Act, this chapter shall govern.

(Ord. 28387.)