Delaware General Assembly

AN ACT TO AMEND CHAPTER 148, VOLUME 72, LAWS OF DELAWARE, AS AMENDED, THE CHARTER OF THE CITY OF MILFORD, TO PROVIDE FOR MUNICIPAL TAX INCREMENT FINANCING AND TO PROVIDE FOR MUNICIPAL SPECIAL DEVELOPMENT DISTRICTS AND TO PROVIDE FOR AN EXCEPTION TO COMPETITIVE BIDDING FOR CERTAIN CONTRACTS IN CONNECTION WITH MUNICIPAL TAX INCREMENT FINANCING AND MUNICIPAL DEVELOPMENT DISTRICTS AND TO PROVIDE FOR CERTAIN MATTERS RELATING TO COLLECTION AND LEVY OF SPECIAL AD VALOREM TAXES, SPECIAL TAXES, AND AD VALOREM TAXES IN CONNECTION WITH SUCH MUNICIPAL TAX INCREMENT FINANCING AND MUNICIPAL DEVELOPMENT DISTRICTS AND TO INCREASE THE CONTRACT AMOUNT NOT SUBJECT TO COMPETITIVE BIDDING.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE (Two-thirds of all members elected to each house thereof concurring therein):

“ARTICLE XIA. TAX INCREMENT FINANCING AND SPECIAL DEVELOPMENT DISTRICTS

11A.01- Tax Increment Financing and Special Development Districts

In addition to all other powers the City of Milford may have, and notwithstanding any limitation of law, the City of Milford shall have all powers and may undertake all actions for the purposes set forth in, and in accordance with, Title 22 of the Delaware Code, Chapter 17, relating to the Municipal Tax Increment Financing Act and Chapter 18 relating to Special Development Districts.

11A.02. Bonds are non-recourse to the City of Milford and shall only be paid from Tax Increment Financing and Special Development District [hereinafter ‘TIF’ and ‘SDD’ respectively] assessments permitted by Chapters 17 and 18 of Title 22 of the Delaware Code.

Bonds are non-recourse to property owners who purchase subject to a TIF or SDD. Property owners who purchase subject to a TIF or SDD shall only be responsible for TIF or SDD obligations determined by the individual assessment of their property.”

Section 2. Notwithstanding anything to the contrary contained in Section 1801(2)(a) of Title 22 of the Delaware Code, the lands, structures, real or personal property, rights, rights-of-way, franchises, easements and interests financed pursuant to the Municipal Tax Increment Financing section or the Special Development Districts section of Article XIA of Chapter 148, Volume 72, Laws of Delaware, as amended, may be acquired for a public purpose by the City of Milford, or the State of Delaware or any agency or instrumentality thereof, or any County, local political subdivision, instrumentality, agency, body politic, utility district or similar entity within the State of Delaware. Further, notwithstanding anything to the contrary contained in Section 1801(2)(b) of Title 22 of the Delaware Code, the machinery and equipment financed pursuant to the Municipal Tax Increment Financing section or the Special Development Districts section of Article XIA of Chapter 148, Volume 72, Laws of Delaware, as amended, may include the machinery and equipment needed to expand or enhance services provided by the City of Milford, or the State of Delaware or any agency or instrumentality thereof, or any County, local political subdivision, instrumentality, agency, body politic, utility district or similar entity within the State of Delaware, to a TIF District or a special development district created pursuant to Article XIA of Chapter 148, Volume 72, Laws of Delaware.

Section 3. Amend Chapter 148, Volume 72, Laws of Delaware, as amended, by redesignating provisions of Section 2.01 as follows: 2.01(b)(a) to 2.01(b)(1); 2.01(b)(b) to 2.01(b)(2); 2.01(b)(b)(1) to 2.01(b)(3); 2.01(b)(b)(2) to 2.01(c); renumbering 2.01(b) (b)(3) to 2.01(d); 2.01(c) to 2.01(e); 2.01(d) to 2.01(f).

Section 4. Amend Section 2.01, Chapter 148, Volume 72, Laws of Delaware, as amended, by adding thereto the following:

“(g) Notwithstanding any of the provisions of this Section 2.01 and without complying with the competitive bidding procedures described herein, the City of Milford may enter into any contract necessary or desired in connection with a TIF District or a special development district created or designated by the City of Milford pursuant to Article XIA of this Charter except a contract in which the City of Milford is directly contracting for the procurement of the labor or material for public improvements for the benefit of such district, provided that the foregoing exception shall not apply to development or similar type contracts between the City of Milford and an owner of real property in such district when the contract is generally for the transfer by the owner to the City of Milford of the work performed and the cost of labor or material provided by such owner for the benefit of such district.”.

Section 5. Amend newly redesignated Section 2.01 (b) (3) Chapter 148, Volume 72, Laws of Delaware, as amended, by striking the figure “$10,000.00” as it appears therein and substituting in lieu thereof “Thirty Thousand Dollars ($30,000)”.

Section 6. Amend Chapter 148, Volume 72, Laws of Delaware, as amended, by adding a paragraph at the end of Section 10.11 to read as follows:

“(p) The provisions of this Section 10.11, other than the provisions of subsection (b) of this Section 10.11, shall apply to all special ad valorem taxes and special taxes levied by the City of Milford pursuant to Article XIA of this Charter, provided that all references in this Section 10.11 to a tax list shall, for all purposes relating to such special ad valorem taxes and special taxes, be deemed to refer to the tax list showing the amounts of special ad valorem taxes or special taxes levied against the real property within a special development district.”.

Section 7. If any provision of this Act or the application thereof to any person at circumstance is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provision or applications, and to that end the provisions of this Act are declared severable.

Approved March 25, 2008