25 LC 61 0029
Senate Bill 78
By: Senators Watson of the 1st, Mallow of the 2nd, Hickman of the 4th and Dixon of the
45th
AS PASSED
A BILL TO BE ENTITLED
AN ACT
To create the City of Tybee Island Building and Public Facilities Authority; to provide that
1
the authority is a body corporate and politic and an instrumentality of the State of Georgia;2
to authorize the authority to acquire, construct, equip, maintain, and operate certain projects,3
including buildings and facilities for use by the City of Tybee Island for its governmental,4
proprietary, and administrative functions; to provide for members of the authority and their5
terms, organization, and reimbursement; to provide for vacancies; to provide for definitions;6
to confer powers and impose duties on the authority; to provide for limitations to the7
authority; to authorize the authority to enter into contracts and leases pertaining to uses of8
such facilities, which contracts and leases may obligate the lessees to make payment for the9
use of the facilities for the term thereof and to pledge for that purpose money derived from10
taxation; to provide that no debt of the City of Tybee Island or the State of Georgia shall be11
incurred by the exercise of any of the powers granted; to authorize the issuance of revenue12
bonds of the authority payable from the revenues, rents, and earnings and other functions of13
the authority; to authorize the collecting and pledging of such revenues, rents, and earnings14
for the payment of such bonds; to authorize the adoption of resolutions and the execution of15
trust agreements and indentures to secure the payment of such bonds and to define the rights16
of the holders of such bonds; to provide for a sinking fund; to make the bonds of the17
authority exempt from taxation; to authorize the issuance of refunding bonds; to provide for18
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the validation of such bonds and to fix the venue for jurisdiction of actions relating to any
19
provision of this Act; to provide for immunity and exemption from liability for torts and20
negligence; to provide that the property of the authority shall not be subject to levy and sale;21
to provide that certain moneys are trust funds; to provide that this Act shall be liberally22
construed; to define the scope of the authority's operation; to provide for disposition of23
property upon dissolution of the authority; to provide for severability; to provide for a short24
title; to provide for related matters; to repeal conflicting laws; and for other purposes.25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:26
SECTION 1.27
Short title.28
This Act shall be known and may be cited as the "City of Tybee Island Building and Public29
Facilities Authority Act."30
SECTION 2.31
City of Tybee Island Building and Public Facilities Authority.32
There is created a public body corporate and politic to be known as the City of Tybee Island33
Building and Public Facilities Authority, which shall be an instrumentality and a public34
corporation of the State of Georgia, the purpose of which shall be to acquire, construct,35
equip, maintain, and operate certain projects for use by the City of Tybee Island for its36
governmental, proprietary, public, and administrative functions. The authority shall not be37
a state institution or a department or agency of the state, but shall be an instrumentality of the38
state, a mere creation of the state, being a distinct corporate entity and exempt from the39
provisions of Article 2 of Chapter 17 of Title 50 of the O.C.G.A., the "Georgia State40
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Financing and Investment Commission Act." The authority shall have its principal office in
41
the City of Tybee Island, and its legal situs or residence for the purposes of this Act shall be42
the City of Tybee Island.43
SECTION 3.44
Membership.45
The authority shall consist of five members who shall be eligible to succeed themselves and46
who shall be appointed by the City Council of the City of Tybee Island. No more than two47
members of the authority may be members of said city council. Any member of the authority48
who is a member of said city council shall serve for a term of office concurrent with such49
person's term of office as a member of said city council. Each member of the authority who50
is not a member of said city council shall serve for a term of office of three years, except that51
the initial terms of office of those members first appointed to the authority shall be specified52
at the time of appointment to be one, two, and, if no such member is a member of the city53
council, three years. After such initial terms, those members who are not members of said54
city council shall serve for terms of office of three years each. Members of the authority55
shall serve for the terms of office so specified and until the appointment and qualification of56
their respective successors. Vacancies on the authority shall be filled by said city council for57
the remainder of the unexpired term and until the appointment and qualification of a58
successor. Immediately after their appointment, the members of the authority shall enter59
upon their duties. The authority shall elect one of its members as chairperson and one as vice60
chairperson. The secretary-treasurer of the authority shall be appointed by the authority and61
need not be a member of the authority. Two members of the authority shall constitute a62
quorum and no vacancy on the authority shall impair the right of the quorum to exercise all63
the rights and perform all the duties of the authority and, in every instance, a majority vote64
of a quorum shall authorize any legal act of the authority, including all things necessary to65
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authorize and issue revenue bonds. The members of the authority shall receive no
66
compensation for their services but may be reimbursed by the authority for the actual67
expenses necessarily incurred in the performance of their duties. The authority shall make68
rules and regulations for its own government and shall have perpetual existence.69
SECTION 4.70
Definitions.71
As used in this Act, the following words and terms shall have the following meanings unless72
a different meaning clearly appears from the context:73
(1) "Authority" shall mean the City of Tybee Island Building and Public Facilities74
Authority created by this Act.75
(2) "Project" shall mean and include real and personal property acquired or held by the76
authority, including all land, buildings, structures, sanitary and surface water sewers, and77
other public property determined by the authority to be desirable for the efficient78
operation of any department, board, office, commission, or agency of the City of Tybee79
Island, or of the State of Georgia, in the performance of its governmental, proprietary,80
and administrative functions.81
(3) "Cost of project" shall include the cost of lands, buildings, improvements, machinery,82
equipment, property, easements, rights, franchises, material, labor, services acquired or83
contracted for, plans and specification, and financing charges; construction costs; interest84
prior to and during construction; architectural, accounting, engineering, inspection,85
administrative, fiscal, and legal expenses; expenses incident to determining the feasibility86
or practicability of the project; and expenses incident to the acquiring, constructing,87
equipping, and operating of any project or any part thereof and to the placing of the same88
in operation.89
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(4) "Revenue bonds" shall mean revenue bonds issued under the provisions of Article 3
90
of Chapter 82 of Title 36 of the O.C.G.A., the "Revenue Bond Law," or under the91
provisions of this Act. The obligations authorized under this Act may be issued by the92
authority in the manner authorized under the Revenue Bond Law.93
SECTION 5.94
Powers.95
The authority shall have all the powers necessary or convenient to carry out and effectuate96
the purposes and provisions of this Act, including, but without limiting the generality of the97
foregoing, the power:98
(1) To sue and be sued;99
(2) To adopt and alter a corporate seal;100
(3) To make and execute with public and private persons and corporations contracts,101
trusts, leases, rental agreements, and other instruments relating to its projects and in102
furtherance of the purposes of the authority, including contracts for the constructing,103
renting, and leasing of its projects for the use of any county or municipality in this state;104
(4) To acquire in its own name by purchase on such terms and conditions and in such105
manner as it may deem proper or by gift, grant, lease, or otherwise, real and personal106
property necessary or convenient for its corporate purposes, or rights and easements107
therein, and to use the same so long as its corporate existence shall continue and to lease108
or make contracts with respect to the use of or disposition of the same in any manner it109
deems to the best advantage of the authority. Title to any such property shall be held by110
the authority exclusively for the benefit of the public.111
(5) To improve, extend, add to, reconstruct, renovate, or remodel any project or part112
thereof already acquired;113
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(6) To pledge or assign any revenues, income, rent, charges, and fees received by the
114
authority;115
(7) To appoint and select agents, engineers, architects, attorneys, fiscal agents,116
accountants, and employees and to provide for their compensation and duties;117
(8) To construct, reconstruct, acquire, own, alter, repair, remodel, maintain, extend,118
improve, operate, manage, and equip projects located on land owned or leased by the119
authority;120
(9) To receive, accept, and use any contributions, loans, or grants by persons, firms, or121
corporations, including the State of Georgia and the United States of America, and any122
other contributions;123
(10) To pay all or part of the costs of any project from the proceeds of revenue bonds of124
the authority or from other lawful sources available to it;125
(11) To prescribe rules and regulations for the operation of and to exercise police powers126
over the projects managed or operated by the authority;127
(12) To accept, receive, and administer gifts, grants, loans and devises of money,128
material, and property of any kind, including loans and grants from the State of Georgia129
or the United States of America or any agency or instrumentality thereof, upon such130
terms and conditions as the State of Georgia or the United States of America or such131
agency or instrumentality may impose;132
(13) To sell, lease, exchange, transfer, assign, pledge, mortgage, dispose of, grant in133
trust, or grant options for any real or personal property or interest therein in furtherance134
of the purposes of the authority;135
(14) As security for repayment of authority obligations, to pledge, mortgage, convey,136
assign, hypothecate, or otherwise encumber any property, real or personal, of such137
authority and to execute any trust agreement, indenture, or security agreement containing138
any provisions not in conflict with law, which trust agreement, indenture, or security139
agreement may provide for foreclosure or forced sale of any property of the authority140
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upon default, on such obligations, either in payment of principal or interest or in the
141
performance of any term or condition, as are contained in such agreement or indenture;142
(15) To borrow money for any of its corporate purposes, to issue revenue bonds payable143
solely from funds pledged for that purpose, and to provide for the payment of the same144
and for the rights of the holders thereof;145
(16) To exercise all powers usually possessed by private corporations performing similar146
functions which are not in conflict with the Constitution and laws of this state; and147
(17) Pursuant to proper resolution of the authority, to issue revenue bonds payable from148
the rents and revenues of the authority and its projects, which bonds may be issued in149
either fully negotiable coupon form, in which event they shall have all the qualities and150
incidents of negotiable instruments under the laws of the State of Georgia, or which151
bonds may be issued in whole or in part in nonnegotiable fully registered form without152
coupons, payable to a designated payee or to the registered assigns of the payee with such153
conversion privileges as the authority may provide, for the purpose of paying all or any154
part of the cost associated with the projects authorized by the authority, including the cost155
of constructing, reconstructing, equipping, extending, adding to, or improving such156
projects or for the purpose of refunding, as provided in this Act, any such bonds of the157
authority theretofore issued. If the proceeds of the bonds of any issue shall exceed the158
amount required for the purpose for which such bonds were issued, the surplus shall be159
paid into the fund provided for the payment of principal and interest on such bonds. All160
such revenue bonds shall be issued and validated under and in accordance with the161
procedures of Article 3 of Chapter 82 of Title 36 of the O.C.G.A., the Revenue Bond162
Law, and in accordance with all terms and provisions thereof not in conflict with this Act,163
and in accordance with Code Section 50-17-1 of the O.C.G.A., relating to use of164
facsimile signatures on public securities, and, as security for the payment of any revenue165
bonds so authorized, any rents and revenue of the authority may be pledged and assigned. 166
Such bonds shall be declared to be issued for an essential public and governmental167
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purpose, and such bonds and all income therefrom shall be exempt from all taxation
168
within the State of Georgia. For the purpose of the exemption from taxation of such169
bonds and the income therefrom, the authority shall be deemed to be a political170
subdivision of the State of Georgia.171
SECTION 6.172
Credit not pledged and debt not created by bonds.173
Revenue bonds issued under the provisions of this Act shall not constitute a debt or a pledge174
of the faith and credit of the State of Georgia or the City of Tybee Island, but such bonds175
shall be payable from the rentals, revenue, earnings, and funds of the authority as provided176
in the resolution or trust agreement or indenture authorizing the issuance and securing the177
payment of such bonds. The issuance of such bonds shall not directly, indirectly, or178
contingently obligate the state or said city to levy or pledge any form of taxation for the179
payment thereof. No holder of any bond or receiver or trustee in connection therewith shall180
have the right to enforce the payment thereof against any property of the state or of said city,181
nor shall any such bond constitute a charge, lien, or encumbrance, legal or equitable, upon182
any such property. All such bonds shall contain on their face a recital setting forth183
substantially the foregoing provisions of this section.184
SECTION 7.185
Trust agreement.186
In the discretion of the authority, any issue of revenue bonds may be secured by an187
agreement or indenture made by the authority with a corporate trustee, which may be any188
trust company or bank having the powers of a trust company within or without the State of189
Georgia. Such trust agreement or indenture may pledge and assign rents, fees, charges,190
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revenues, and earnings to be received by the authority. The resolution providing for the
191
issuance of revenue bonds and such trust agreement or indenture may contain provisions for192
protecting and enforcing the rights and remedies of the bondholders, including the right of193
appointment of a receiver upon default of the payment of any principal or interest obligation194
and the right of any receiver or trustee to enforce collection of any rents, fees, charges, or195
revenues for use of the project or projects necessary to pay all costs of operation and all196
reserves provided for, all principal and interest on all bonds of the issue, all costs of197
collection, and all other costs reasonably necessary to accomplish the collection of such sums198
in the event of any default of the authority. Such resolution and such trust agreement or199
indenture may include covenants setting forth the duties of the authority in relation to the200
acquisition of property for and the construction of the project and to the custody,201
safeguarding, and application of all funds and covenants providing for the operation,202
maintenance, repair, and insurance of the project or projects and may contain provisions203
concerning the conditions, if any, upon which additional revenue bonds may be issued. Such204
trust agreement or indenture may set forth the rights and remedies of the bondholders and of205
the trustee and may restrict the individual right of action of bondholders as is customary in206
securing bonds and debentures of corporations and may contain such other provisions as the207
authority may deem reasonable and proper for the security of the bondholders. All expenses208
incurred in carrying out such trust may be treated as a part of the cost of maintenance,209
operation, and repair of the project affected by such trust.210
SECTION 8.211
Refunding bonds.212
The authority is authorized to provide by resolution for the issuance of revenue bonds of the213
authority for the purpose of calling, refunding, or refinancing any revenue bonds issued214
under the provisions of this Act and then outstanding and to include in the amount of such215
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refunding bonds all interest and any call premiums that may be required for the redemption
216
and refunding of such outstanding bonds.217
SECTION 9.218
Venue of actions, jurisdiction.219
Any action to protect or enforce any rights under the provisions of this Act or any action220
against the authority brought in the courts of the State of Georgia shall be brought in the221
Superior Court of Chatham County, Georgia, and any action pertaining to validation of any222
bonds issued under the provisions of this Act shall be brought in said court, which shall have223
exclusive, original jurisdiction of such actions.224
SECTION 10.225
Revenue bond validation.226
The petition for validation of all revenue bonds of the authority shall be brought against the227
authority, and any contracting party whose obligation is pledged as security for the payment228
of the bonds sought to be validated, as defendants, and the defendants shall be required to229
show cause, if any exists, why such contract or contracts and the terms and conditions thereof230
shall not be adjudicated to be in all respects valid and binding upon such contracting parties.231
It shall be incumbent upon such defendants to defend against adjudication of the validity and232
binding effect of such contract or contracts or be forever bound thereby. Notice of such233
proceedings shall be included in the notice of the validation hearing required to be issued and234
published by the clerk of the Superior Court of Chatham County in which court such235
validation proceedings shall be initiated.236
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SECTION 11.
237
Interest of bondholders protected.238
While any of the bonds issued by the authority remain outstanding, the powers, duties, or239
existence of the authority or of its officers, employees, or agents shall not be diminished,240
impaired, or affected in any manner that will affect adversely the interest and rights of the241
holders of such bonds. The provisions of this Act shall be for the benefit of the authority and242
the holders of any such bonds and, upon the issuance of bonds under the provisions of this243
Act, shall constitute a contract with the holders of such bonds.244
SECTION 12.245
Revenues, earnings, rents, and charges; use.246
(a) For the purpose of earning sufficient revenue to make possible the financing of the247
construction of the project or projects of the authority with revenue bonds, the authority is248
authorized and empowered to fix, revise, and collect rents, fees, and charges on each project249
which it shall cause to be acquired or constructed. Such rents, fees, or charges to be paid for250
the use of such project or projects shall be so fixed and adjusted so as to provide a fund251
sufficient with other revenue, if any, of such project or projects or of the authority:252
(1) To pay the cost of operating, maintaining, and repairing the project or projects,253
including reserves for insurance and extraordinary repairs and other reserves required by254
the resolution or trust agreement or indenture pertaining to such bonds and the issuance255
thereof, unless such cost shall be otherwise provided for;256
(2) To pay the principal of and interest on such revenue bonds as the same shall become257
due, including call premiums, if any, the proceeds of which shall have been or shall be258
used to pay the cost of such project or projects;259
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(3) To comply with any sinking fund requirements contained in the resolution or trust
260
agreement or indenture pertaining to the issuance of and security for such bonds;261
(4) To perform fully all provisions of such resolution or trust agreement or indenture262
relating to the issuance of or security for such bonds to the payment of which such rent263
is pledged;264
(5) To accumulate any excess income which may be required by the purchasers of such265
bonds or may be dictated by the requirements of such resolution or trust agreement or266
indenture, or which may be required for achieving ready marketability of and low interest267
rates on such bonds; and268
(6) To pay any expenses in connection with such bond issue or of such project,269
including, but not limited to, trustees', attorney's, and fiscal agents' fees.270
(b) Such rent shall be payable at such intervals as may be agreed upon and set forth in the271
rental contract or lease providing therefor, and any such contract or lease may provide for the272
commencement of rent payments to the authority prior to the completion of the project by273
the authority and may provide for the payment of rent during such times as such project may274
be partially or wholly untenantable.275
(c) Such rental contract or lease may obligate the tenants or lessees to operate, maintain, and276
keep in good repair, including complete reconstruction, if necessary, the rented or leased277
premises and projects, regardless of the cause of the necessity of such maintenance, repair,278
or reconstruction.279
(d) Such rental contract or lease may obligate the tenants or lessees to indemnify and save280
harmless the authority from any and all damage to persons and property occurring on or by281
reason of the leased property or improvements thereon and to undertake, at the expense of282
the tenants or lessees, the defense of any action brought against the authority by reason of283
injury or damages to persons or property occurring on or by reason of the leased premises.284
(e) In the event of any failure or refusal on the part of the tenants or lessees to perform285
punctually any covenant or obligation contained in any such rental contract or lease, the286
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authority may enforce performance by any legal or equitable process against the tenants or
287
lessees.288
(f) The authority shall be permitted to assign any rent payable to it, pursuant to such rental289
contract or lease, to a trustee or paying agent as may be required by the terms of the290
resolution or trust agreement or indenture relating to the issuance of and security for such291
bonds.292
(g) The use and disposition of the authority's revenue shall be subject to the provisions of293
the resolution authorizing the issuance of such bonds or of the trust agreement or indenture,294
if any, securing the same.295
SECTION 13.296
Sinking fund.297
The revenue, rents, and earnings derived from any particular project or projects and any and298
all revenue, rents, and earnings received by the authority, regardless of whether such299
revenue, rents, and earnings were produced by a particular project for which bonds have been300
issued, unless otherwise pledged, may be pledged by the authority to payment of the301
principal of and interest on revenue bonds of the authority as may be provided in any302
resolution authorizing the issuance of such bonds or in any trust instrument pertaining to such303
bonds, and such funds so pledged, from whatever source received, may include funds304
received from one or more or all sources and may be set aside at regular intervals into305
sinking funds for which provision may be made in any such resolution or trust instrument306
and which may be pledged to and charged with the payment of the interest upon such307
revenue bonds as such interest shall become due, the principal of the bonds as the same shall308
mature, the necessary charges of any trustee or paying agent for paying such principal and309
interest, and any premium upon bonds retired by call or purchase, and the use and disposition310
of any sinking fund may be subject to such regulation as may be provided for in the311
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resolution authorizing the issuance of the bonds or in the trust instrument securing the
312
payment of the same.313
SECTION 14.314
Taxation status.315
The exercise of the powers conferred upon the authority under this Act shall constitute an316
essential governmental function for a public purpose, and to the maximum extent permitted317
by general law, the authority shall be required to pay no taxes or assessments upon any of the318
property acquired by it or under its jurisdiction, control, possession, or supervision or upon319
its activities in the operation and maintenance of property acquired by it or of buildings320
erected or acquired by it or any fees, rents, or other charges for the use of such property or321
buildings or other income received by the authority. This section shall not include an322
exemption from sales and use tax on property purchased by or for the use of the authority.323
SECTION 15.324
Immunity from tort actions.325
The authority shall have the same immunity and exemption from liability for torts and326
negligence as the City of Tybee Island, and the officers, agents, and employees of the327
authority, when in performance of work of the authority, shall have the same immunity and328
exemption from liability for torts and negligence as officers, agents, and employees of the329
City of Tybee Island. The authority may be sued the same as private corporations on any330
contractual obligation of the authority.331
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SECTION 16.
332
Property not subject to levy and sale.333
The property of the authority shall not be subject to levy and sale under legal process.334
SECTION 17.335
Trust funds.336
All funds received pursuant to the authority of Section 12 of this Act, whether as proceeds337
from the sale of revenue bonds or as revenue, rents, fees, charges, or other earnings or as338
grants, gifts, or other contributions, shall be deemed to be trust funds to be held and applied339
by the authority, solely as provided in this Act. The bondholders entitled to receive the340
benefits of such funds shall have a lien on all such funds until the same are applied as341
provided for in any such resolution or trust instrument of the authority.342
SECTION 18.343
Construction.344
This Act and any other law enacted with reference to the authority shall be liberally345
construed for the accomplishment of the purposes of the authority.346
SECTION 19.347
Scope of operations.348
The projects of the authority's operation shall be located in the territory embraced within the349
jurisdictional limits of the City of Tybee Island as the same now or may hereafter exist.350
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SECTION 20.
351
Conveyance of property upon dissolution.352
Should the authority for any reason be dissolved after full payment of all bonded353
indebtedness incurred under this Act, both as to principal and interest, title to all property of354
any kind and nature, real and personal, held by the authority at the time of such dissolution355
shall be conveyed to the City of Tybee Island, or title to any such property may be conveyed356
prior to such dissolution in accordance with provisions which may be made therefor in any357
resolution or trust instrument relating to such property, subject to any liens, leases, or other358
encumbrances outstanding against or in respect to said property at the time of such359
conveyance.360
SECTION 21.361
Severability; effect of partial invalidity of Act.362
Should any sentence, clause, phrase, or part of this Act be declared for any reason to be363
unconstitutional or invalid, the same shall not affect such remainder of this Act or any part364
hereof, other than the part so held to be invalid, but the remaining provisions of this Act shall365
remain in full force and effect, and it is the express intention of this Act to enact each366
provision of this Act independently of any other provision hereof.367
SECTION 22.368
General repealer.369
All laws and parts of laws in conflict with this Act are repealed.370
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