Delaware General Assembly




Be it enacted by the Senate and House of Representatives of the State of Delaware in General Assembly met:

Section 1. SHORT TITLE:--This Act shall be known and may be cited as the "Parking Authority Law."

Section 2. FINDINGS AND DECLARATION OF POLICY:--It is hereby determined and declared as a matter of Legislative finding:

(a) That residential decentralization in incorporated cities has been accompanied by an ever increasing trend in the number of persons entering the business sections by private automobile as compared with other modes of transportation;

(b) That the free circulation of traffic of all kinds through the streets of cities is necessary to the health, safety and general welfare of the public whether residing in the city or traveling to, through or from the city, in the course of lawful pursuits;

(c) That the greatly increased use by the public of motor vehicles of all kinds has caused serious traffic congestion on the streets of cities;

(d) That the parking of motor vehicles on the streets has contributed to this congestion to such an extent as to interfere seriously with the primary use of such streets for the movement of traffic;

(e) That such parking prevents the free circulation of traffic in, through, and from the city, impedes rapid and effective fighting of fires and the disposition of police forces in the district and endangers the health, safety and welfare of the general public;

(f) That such parking threatens irreparable loss in valuations of property in the city which can no longer be readily reached by vehicular traffic;

(g) That this parking crisis, which threatens the welfare of the community, can be reduced by providing sufficient off-street parking facilities properly located in the several residential, commercial and industrial areas of the city;

(h) That the establishment of a parking authority will promote the public safety, convenience and welfare;

() That it is intended that the authority cooperate with all existing parking facilities so that private enterprise and government may mutually provide adequate parking services for the convenience of the public;

Therefore, it is hereby declared to be the policy of the State of Delaware to promote the safety and welfare of the inhabitants thereof by the creation in incorporated cities of bodies corporate and politic to be known as "Parking Authorities" which shall exist and operate for the purposes contained in this Act. Such purposes are hereby declared to be public uses for which public money may be spent and private property may be acquired by the exercise of the power of eminent domain.

Section 3. DEFINITIONS:--The following terms whenever used or referred to in this Act shall have the following meanings, except in those instances where the context clearly indicates otherwise:

(a) The term "Authority" shall mean a body politic and corporate created pursuant to this Act;

(b) The term "Board" shall mean the governing body of the Authority;

(c) The term "Bonds" shall mean and include the notes, bonds and other evidence of indebtedness, or obligations, which the Authority is authorized to issue pursuant to Section 5 of this Act;

(d) The term "Construction" shall mean and include acquisition and construction, and the term "to construct" shall mean and include to acquire and to construct, all in such manner as may be deemed desirable;

(e) The term "Municipality" shall mean any County, incorporated City or incorporated Town of the State of Delaware;

() The term "Federal Agency" shall mean and include the United States of America, the President of the United States of America, and any department or corporation agency or instrumentality heretofore, or hereafter created, designated or established by the United States of America;

(a) The term "Improvement" shall mean and include extension, enlargement and improvement, and the term "to improve" shall mean and include to extend to, enlarge and to improve, all in such manner as may be deemed desirable;

(b) The term "Persons" shall mean and include natural persons;

(i) The term "Project" shall mean any structure, facility or undertaking which the Authority is authorized to acquire, construct, improve, maintain or operate under the provisions of this Act;

(j) The term "City" shall mean incorporated City or Town;

(k) The term "Facility" or "Facilities" shall mean lot or lots, buildings and structures, above, at or below the surface of the earth, including equipment, entrances, exits, fencing and all other accessories necessary or desirable for the safety and convenience of the parking of vehicles.


(a) Whenever the City Council or other governing body of a City shall desire to organize an Authority, under the provisions of this Act, it shall adopt an ordinance signifying their intention to do so.

In the event that such ordinance sets forth the proposed articles of incorporation in full it shall not be required, any law to the contrary notwithstanding, in publishing such ordinance, under the provisions of existing law, to publish such proposed articles of incorporation in full, but it shall be sufficient compliance with such law in such publication to set forth briefly the substances of such proposed articles of incorporation refer to the provisions of this Act. Thereafter the City Council shall cause a notice of such ordinance to be published at least one time in a newspaper published and of general circulation in the County in which such Authority is to be organized. Said notice shall contain a brief statement of the substance of said' ordinance, including the substance of such articles, making reference to this Act, and shall state that on a day certain, not less than three days after publication of said notice, articles of incorporation of the proposed Authority will be filed with the Secretary of State of the State of Delaware.

(b) On or before the day specified in said notice the City Council shall file with the Secretary of State articles of incorporation together with proof of publication of the notice as aforesaid. Said articles of incorporation shall set forth:

(1) The name of the Authority;

(2) A statement that such Authority is formed under the provisions of this Act;

(3) The name of the City, together with the names and addresses of its council members;

(4) The names, addresses and term of office of the first members of the board of said Authority.

All of which matter shall be determined in accordance with the provisions of this Act. Said articles of incorporation shall be executed by the incorporating city by its proper officer and under its municipal seal.

(c) If the Secretary of State finds that the articles of incorporation conform to law he shall forthwith, but not prior to the day specified in the aforesaid notice, endorse his approval thereon, and when all proper fees and charges have been paid shall file the articles and issue a certificate of incorporation to which shall be attached a copy of the approved articles. Upon the issuance of such certificate of incorporation by the Secretary of State, the corporate existence of said Authority shall begin when such certificate has been recorded in the office for the recording of deeds in the County where the principal office of the Authority is to be located. Said certificate of incorporation shall be conclusive evidence of the fact that such Authority has been incorporated, but proceedings may be instituted by the State to dissolve any Authority which shall have been formed without substantial compliance with the provisions of this Section.

(d) When the Authority has been organized and its officers elected, the secretary shall certify to the Secretary of State the names and addresses of its officers, as well as the principal office of the Authority. Any change in the location of the principal office shall likewise be certified to the Secretary of State within ten (10) days after such change.


(a) The Authority, incorporated under this Act, shall constitute a public body corporate and politic, exercising public powers of the State as an agency thereof, and shall be known as the Parking Authority of the City, but shall in no way be deemed to be an instrumentality of the City or engaged in the performance of a municipal function. The Authority shall be for the purpose of conducting the necessary research activity, to maintain current data leading to efficient operation of off-street parking facilities, for the fulfillment of public needs in relation to parking, establishing a permanent coordinated system of parking facilities, planning, designing, locating, acquiring, holding, constructing, improving, maintaining and operating, owning, leasing, either in the capacity of lessor or lessee, land and facilities to be devoted to the parking of vehicles of any kind; provided, however, that the Authority shall not have the power to engage in the sale of gasoline, the sale of automobile accessories, automobile repair and service or any other garage service and shall not engage in the sale of any commodity of trade or commerce.

The Authority shall have power to lease portions of the first floor of the parking facilities for commercial use where, in the opinion of the Authority, such leasing is desirable and feasible in order to assist in defraying the expenses of the Authority. Such leases shall be granted on a fair competitive basis.

(b) Every Authority is hereby granted and shall have and may exercise all powers necessary or convenient for the carrying out of the aforesaid purposes including, but without limiting the generality of the foregoing, the following rights or powers:

(1) To have existence for a term of fifty years as a corporation;

(2) To sue and be sued, implead and be impleaded, complain and defend in all courts;

(3) To adopt, use and alter at will a corporate seal;

(4) To acquire, purchase, hold, lease as lessee, and use any franchise, property, real, personal, or mixed, tangible or intangible, or any interest therein, necessary or desirable for carrying out the purpose of the Authority and to sell, lease as lessor, transfer and dispose of any property or interest therein at any time required by it;

(5) To acquire by purchase, lease or otherwise, and to construct, improve, maintain, repair and operate projects;

(6) To make by-laws for the management and regulation of its affairs;

(7) To appoint officers, agents, employees and servants; to prescribe their duties and to fix their compensation;

(8) To fix, alter, charge and collect rates and other charges for its facilities at reasonable rates to be determined exclusively by it, subject to appeal as hereinafter provided, for the purposes of providing for the payment of the expenses of the Authority, the construction, improvement, repair, maintenance and operation of its facilities and properties, the payment of the principal of and interest on its obligations, and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any such obligations or with the City. Any person questioning the reasonableness of any rate fixed by the Authority may bring suit against the Authority in the Superior Court of the County wherein the project is located. The Superior Court shall have exclusive jurisdiction to determine the reasonableness of rates and other charges fixed, altered, charged or collected by the Authority. Appeals may be taken to the Supreme Court within thirty days after the Superior Court has rendered a final decision;

(9) To borrow money, make and issue negotiable notes, bonds, refunding bonds, and other evidences of indebtedness or obligations of the Authority; said bonds to have a maturity date not longer than forty years from the date of issue, except that no refunding bonds shall have a maturity date longer than the life of the Authority; and to secure the payment of such bonds or any part thereof by pledge, or deed of trust of all, or any of its revenues and receipts, and to make such agreements with the purchasers or holders of such bonds, or with others in connection with any such bonds, whether issued or to be issued, as the Authority shall deem advisable, and in general to provide for the security for said bonds and the rights of the holders thereof;

(10) To make contracts of every name and nature, and to execute all instruments necessary or convenient for the carrying on of its business;

(11) Without limitation of the foregoing to borrow money and accept grants from, and to enter into contracts, leases or other transactions with, any Federal Agency, State of Delaware, Municipality, Corporation or Authority;

(12) To have the power of eminent domain;

(13) To pledge, hypothecate or otherwise encumber all or any of the revenues or receipts of the Authority, as security for all or any of the obligations of the Authority;

(14) To do all acts and things necessary for the promotion of its business and the general welfare of the Authority to carry out the powers granted to it by this Act or any other Acts;

(15) To enter into contracts with the State of Delaware, Municipalities, Corporations or Authorities for the use of any project of the Authority and fixing the amount to be paid therefor;

(16) To enter into contracts of group insurance for the benefit of its employees, and to set up a retirement or pension fund for such employees, similar to that existing in the municipality where the principal office of the project is located.

(c) The Authority, shall have no power at any time, or in any manner, to pledge the credit or taxing power of the State of Delaware or any political subdivision, nor shall any of its obligations be deemed to be obligations of the State of Delaware, or of any of its political subdivisions, nor shall the State of Delaware or any political subdivision thereof be liable for the payment of principal or of interest on such obligations.

(d) In addition to the provisions in this Act provided for the financing of the costs of acquiring lands and premises and for the construction and improvement of parking projects, said Parking Authority may by resolution, as hereinafter provided, establish a benefit district. One benefit district may be designated for the condemnation of lands for one or several parking stations. The Parking Authority shall determine the percentage of the costs of condemnation which shall be assessable to such benefit district; provided, that not more than eighty per cent of such costs shall be assessable to such benefit district or benefit districts.

(2) After a benefit district has been established, no further proceedings shall be taken unless there is filed with the Secretary of the Parking Authority within sixty days of the passage of the resolution creating the benefit district a petition requesting the establishment of such public parking station or stations. Such petition shall be signed by the resident owners of real estate owning not less than fifty-one per cent of the front feet of the real estate fronting or abutting upon any street included within the limits of the benefit district. In determining the sufficiency of the petition, lands owned by the City, County, State or United States or by non-resident owners of real estate within the benefit district shall not be counted in the aggregate of lands within such benefit district. After any petition has been signed by an owner of land in the benefit district, the change of ownership of said land shall not affect the petition. In any case where the owners of lands within the benefit district are tenants in common, each cotenant shall be considered a landowner to the extent of his undivided interest in said land. The owner of a life estate shall also be deemed a landowner for the purpose of this Act. Guardians of minors or insane persons may petition for their wards when authorized by the proper court so to do. Resident owner land, as defined herein, shall be any landowner residing in the City and owning land in the benefit district. No suit shall be maintained in any court to enjoin or in any way contest the establishment of such parking stations or the establishment of a benefit district unless said suit be instituted and summons served within thirty days from and after the date of the filing of such petition with the Secretary of the Parking Authority.

(3) Whenever the Parking Authority shall have acquired lands for public parking stations and shall have declared and ordered that not more than eighty per cent of the cost of establishing or improving public parking stations, as herein provided, will be paid by the levy of special assessments upon real estate situate in any one or more benefit districts, it shall cause to be made by some competent person an estimate, under oath, of the cost thereof, which estimate shall be filed with the Secretary of the Parking Authority. The assessment against the benefit district shall be apportioned among the various lots, tracts, pieces and parcels of land within the benefit district in accordance with the special benefits accruing thereto, this apportionment of benefit assessments to be made by three disinterested property owners appointed by the Mayor of the City or if such City has no Mayor, by its chief executive officer within thirty days after the filing of the estimate of the cost of said improvement with the Secretary of the Parking Authority. As soon as the amount chargeable against each piece of property is ascertained, the Parking Authority of such City shall by resolution levy such amount against this said real estate in the benefit district, which resolution shall be published once in a newspaper of general circulation in such City. No suit to question the validity of the proceedings of the Parking Authority shall be commenced after thirty days from the awarding of a contract for such improvements and until the expiration of said thirty days the contractor shall not be required to commence work under his contract. If no suit shall be filed within such thirty days then all proceedings theretofore had shall be held to be regular, sufficient and valid.

(4) The cost of condemnation and improvement of such public parking stations may be levied and assessed in not to exceed ten installments, with interest on the whole amount remaining due and unpaid each year at a rate of interest not exceeding five per cent per annum. Any owner of land within the benefit district may, within thirty days after the assessment resolution is passed, pay the entire amount assessed against said land. Authority is given the Parking Authority of such City to assess, levy and collect the cost of condemnation and improvement of such public parking stations as is assessed against the privately owned property in the benefit district. Said assessment shall constitute a lien from the date the same is assessed by resolution, as hereinabove provided, against the respective premises against which the same is levied, in the same manner as City taxes on real estate are constituted a lien, and shall be collectible in the manner provided for the collection of taxes assessed against the real estate of the City of Wilmington by monition process, as provided in Chapter 143, Vol. 36, Laws of Delaware.


(a) The bonds of any Authority hereinabove referred to and authorized to be issued shall be authorized by resolution of the board thereof, and shall be of such series; bear such date or dates, mature at such time or times not exceeding forty years from their respective dates; bear interest at such rate or rates, not exceeding six per cent per annum payable semi-annually; be in such denominations; be in such form, either coupon or fully registered, without coupons; carry such registration, exchangeability and interchangeability privileges; be payable in such medium or payment and at such place or places; be subject to such terms of redemption, not exceeding one hundred five per cent of the principal amount thereof; and be entitled to such priorities in the revenues or receipts of such Authority, as such resolution or resolutions may provide. The bonds shall be signed by such officers as the Authority shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the Authority, all as may be prescribed in such resolution or resolutions. Any such bonds may be issued and delivered notwithstanding that one or more of the officers signing such bonds, or the treasurer whose facsimile signature shall be upon the coupon, or any officer thereof shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered.

Said bonds may be sold at public or private sale for such price or prices as the Authority shall determine; provided, that the interest cost to maturity of the money received for any issue of said bonds shall not exceed six per centum per annum. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of such bonds and may contain such terms and conditions as the Authority may determine.

(b) Any resolution or resolutions authorizing any bonds may contain provisions which shall be part of the contract with the holders thereof as to (1) pledging the full faith and credit of the Authority for such obligations or restricting, the same to all or any of the revenues of the Authority, from all or any projects or properties; (2) the construction, improvement, operation, extension, enlargement, maintenance and repair of the project, and the duties of the Authority with reference thereto; (3) the terms and provisions of the bonds; (4) limitations on the purposes to which the proceeds of the bonds then, or thereafter to be issued, or of any loan or grant by the United States, may be applied; (5) the rate of tolls and other charges for use of the facilities of, or for the services rendered by the Authority; (6) the setting aside of reserves or sinking funds and the regulation and disposition thereof; (7) limitations on the issuance of additional bonds;

(8)the terms and provisions of any deed of trust or indenture securing the bonds, or under which the same may be issued, and

(9)any other additional agreements with the holders of the bonds.

(c) Any Authority may enter into any deeds of trust indentures, or other agreements, with any bank or trust company or other person or persons in the United States having power to enter into the same, including any Federal agency, as security for such bonds, and may assign and pledge all or any of the revenues or receipts of the Authority thereunder. Such deed of trust, indenture, or other agreement, may contain such provisions as may be customary in such instruments, or as the Authority may authorize, including provisions as to (1) the construction, improvement, operation, maintenance and repair of any project and the duties of the Authority with reference thereto; (2) the application of funds and the safeguarding of funds on hand or on deposit; (3) the rights and remedies of said trustee and holders of the bonds which may include restrictions upon the individual right of action of such bondholder, and (4) the terms and provisions of the bonds or the resolutions authorizing the issuance of the same.

Said bonds shall have all the qualities of negotiable instruments under the law merchant and the negotiable instruments law of the State of Delaware.


(a) The rights and the remedies herein conferred upon or granted to the bondholders shall be in addition to, and not in limitation of, any rights and remedies lawfully granted to such bondholders by the resolution or resolutions providing for the issuance of bonds, or by any deed of trust, indenture or other agreement under which the same may be issued. In the event that the Authority shall default in the payment of principal of, or interest on any of the bonds, after the said principal or interest shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of thirty days, or in the event that the Authority shall fail or refuse to comply with the provisions of this Act, or shall default in any agreement made with the holders of the bonds, the holders of twenty-five per centum in aggregate principal amount of the bonds then outstanding by instrument or instruments filed in the office of the recorder of deeds of the County, and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the bondholders for 'the purpose herein provided.

(b) Such trustee, and any trustee under any deed of trust, indenture or other agreement, may and upon written request of the holders of twenty-five per centum, or such other percentages as may be specified in any deed of trust, indenture or other agreement aforesaid, in principal amount of the bonds then outstanding, shall in his or its own name:

(1) By mandamus, or other suit, action or proceeding at law or in equity, enforce all rights of the bondholders, including the right to require the Authority to collect rates, rentals or other charges adequate to carry out any agreement as to or pledge of the revenues or receipts of the Authority, and to require the Authority to carry out any other agreements with, or for the benefit of the bondholders, and to perform its and their duties under this Act;

(2) Bring suit upon the bonds;

(3) By action or suit in equity require the Authority to account as if it were the trustee of an express trust for the bondholders;

(4) By action or suit in equity enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders;

(5) By notice in writing to the Authority declare all bonds due and payable, and if all defaults shall be made good, then with the consent of the holders of twenty-five per centum or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid, of the principal amount of the bonds then outstanding, to annul such declaration and its consequences.

(c) The Court of Chancery in and for the County wherein the Authority is located shall have jurisdiction of any suit, action or proceedings by the trustee on behalf of the bondholders. Any trustee when appointed, as aforesaid, or acting under a deed of trust, indenture or other agreement, and whether or not all bonds have been declared due and payable, shall be entitled as of right to the appointment of a receiver, who may enter and take possession of the facilities of the Authority or any part or parts thereof, the revenues or receipts from which are, or may be, applicable to the payment of the bonds so in default, and operate and maintain the same, and collect and receive all rentals and other revenues thereafter arising therefrom, in the same manner as the Authority or the board might do, and shall deposit all such moneys in a separate account and apply the same in such manner as the court shall direct. In any suit, action or proceeding by the trustee the fees, counsel fees and expenses of the trustee, and of the receiver, if any, and all costs and disbursements allowed by the court shall be a first charge on any revenues and receipts derived from the facilities of the Authority, the revenues or receipts from which are or may be applicable to the payment of the bonds so in default. Said trustee shall in addition to the foregoing have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein, or incident to the general representation of the bondholders in the enforcement and protection of their rights.

(d) Nothing in this Section, or any other Section of this Act, shall authorize any receiver appointed pursuant to this Act for the purpose of operating and maintaining any facilities of the Authority to sell, assign, mortgage or otherwise dispose of, any of the assets of whatever kind and character belonging to the Authority. It is the intention of this Act to limit the powers of such receiver to the operation and maintenance of the facilities of the Authority as the court shall direct; and no holder of bonds of the Authority, nor any trustee shall ever have the right in any suit, action or proceedings at law or in equity to compel a receiver, nor shall any receiver ever be authorized, or any court be empowered to direct the receiver to sell, assign, mortgage or otherwise dispose of, any assets of whatever kind or character belonging to the Authority.

Section 8. GOVERNING BODY:--

(a) The powers of each Authority shall be exercised by a board composed of five members, all of whom shall be residents of the City creating the Authority. The Mayor of the City or if such City or Town has no Mayor, its chief executive officer, shall appoint the members of the board, one of whom shall serve for one year, one for two years, one for three years, one for four years, and one for five years from the first day of July in the year in which such Authority is created as herein provided. Thereafter the said Mayor shall not sooner than sixty days, nor later than thirty days prior to July first in each year in which a vacancy occurs, appoint a member of the board for a term of five years to succeed the member whose term expires on the first day of July next succeeding. Vacancies for unexpired terms that occur more than sixty days before the end of a term shall be promptly filled by appointment by the Mayor. All such appointments shall be subject to the confirmation of the City Council or other governing body of the City. Any member of said board may be removed for cause by the Mayor, or if such City or Town has no Mayor, by its chief executive officer, with the concurrence of two-thirds of all the members of the council, or other governing body of said City or Town, and the person against whom such charges are made shall be given a reasonable opportunity to make his defense.

(b) Members shall hold office until their successors have been appointed and may succeed themselves. A member shall receive no compensation for his services, but shall be entitled to the necessary expenses, including traveling expenses, incurred in the discharge of his duties.

(c) The members of the board shall select from among themselves a chairman, a vice-chairman, and such other officers as the board may determine. The board may employ a secretary, an executive director, its own counsel and legal staff, and such technical experts and such other agents and employees permanent or temporary as it may require, and may determine the qualifications and fix the compensation of such persons. Three members of the board shall constitute a quorum for its meetings. Members of the board shall not be liable personally on the bonds or other obligations of the Authority, and the rights of creditors shall be solely against such Authority. The board may delegate to one or more of its agents or employees such of its powers as it shall deem necessary to carry out the purposes of this Act, subject always to the supervision and control of the board. The board shall have full authority to manage the properties and business of the Authority and to prescribe, amend and repeal by-laws, rules and regulations governing the manner in which the business of the Authority may be conducted, and the powers granted to it may be exercised and embodied.


The Authority shall have the power to acquire by purchase or eminent domain proceedings either the fee or such rights, title, interest or easement in such lands, as the Authority may deem necessary for any of the purposes mentioned in this Act; provided, however, that no property devoted to a public use, nor any property of a public service company, property used for burial purposes, places of public worship, nor property which at the effective date of this Act is used as a facility or facilities for the parking of motor vehicles, so long as said property is continuously so used, and so long as the operation of the said facility complies with parking and traffic ordinances of the City shall be taken under the right of eminent domain. The right of eminent domain shall be exercised by the Authority in the manner provided by law for the exercise of such right by the Highway Department of the State of Delaware.

The right of eminent domain herein conferred by this Section may be exercised only within the City.

Court proceedings necessary to acquire property or property rights, for purposes of this Act, shall take precedence over all causes not involving the public interest in all courts to the end that the provision of parking facilities be expedited.

Section 10. MONEYS OF THE AUTHORITY:--All moneys of any Authority, from whatever source derived, shall be paid to the treasurer of the Authority. Said moneys shall be deposited, in the first instance by the treasurer in one or more banks or trust companies, in one or more special accounts. The moneys in said accounts shall be paid out on the warrant or other order of the chairman of the Authority, or of such other person or persons as the Authority may authorize to execute such warrants or orders. Every Authority shall have at least an annual examination of its books, accounts and records by a certified public accountant. A copy of such audit shall be delivered to the City creating the Authority. A concise financial statement shall be published annually at least once in a newspaper of general circulation in the City where the principal office of the Authority is located. If such publication is not made by the Authority the City shall publish such statement at the expense of the Authority. If the Authority fails to make such an audit then the auditor or accountant designated by the City is hereby authorized and empowered, from time to time, to examine at the expense of the Authority, the accounts and books of the Authority, including its receipts, disbursements, contracts, leases, sinking funds, investments and any other matters relating to its finances, operation and affairs.

The Attorney General of the State of Delaware shall have the right to examine the books, accounts and records of any Authority.


(a) All construction, reconstruction, repairs or work of any nature made by any Authority, where the entire cost, value or amount of such construction, reconstruction, repairs or work including labor and materials, shall exceed Five Hundred Dollars ($500.00), except reconstruction, repairs or work done by employees of said Authority, or by labor supplied under agreement with any Federal or State agency with supplies and materials purchased as hereinafter provided, shall be done only under contract or contracts to be entered into by the Authority with the lowest and best bidder, upon proper terms, after due public notice has been given, asking for competitive bids as hereinafter provided. No contract shall be entered into for construction or improvement or repair of any project, or portion thereof, unless, the contractor shall give an undertaking with a sufficient surety or sureties, approved by the Authority, and in an amount fixed by the Authority for the faithful performance of the contract. All such contracts shall provide, among other things, that the person or corporation entering into such contract with the Authority will pay for all materials furnished and services rendered for the performance of the contract, and that any person or corporation furnishing such materials or rendering such services may maintain an action to recover for the same against the obligor in the undertaking, as though such person or corporation was named therein, provided the action is brought within one year after the time the cause of action accrued. Nothing in this Section shall be construed to limit the power of the Authority to construct, repair or improve any project or portion thereof, or any addition, betterment, or extension thereto directed by the officers, agents and employees of the Authority or otherwise than by contract.

(b) All supplies and materials costing Five Hundred Dollars ($500.00) or more shall be purchased only after due advertisement as hereinafter provided. Authority shall accept the lowest bid or bids, kind, quality and material being equal, but the Authority shall have the right to reject any or all bids or select a single item from any bid. The provisions as to bidding shall not apply to the purchase of patented and manufactured products offered for sale in a noncompetitive market, or solely by a manufacturer's authorized dealer.

(c) The terms, advertisement or due public notice, where-ever used in this Section shall mean a notice published at least ten (10) days before the award of any contract in a newspaper of general circulation published in a municipality where the Authority has its principal office, and if no newspaper is published therein, then by publication in a newspaper of general circulation in County where the Authority has its principal office.

(d) No member of the Authority or officer or employee thereof shall either directly or indirectly be a party to, or be in any manner interested in, any contract or agreement with the Authority for any matter, cause or thing whatsoever by reason whereof any liability or indebtedness shall in any way be created against such Authority. If any contract or agreement shall be made in violation of the provisions of this Section the same shall be null and void and no action shall be maintained thereon against such Authority.

(e) Subject to the foregoing provisions any Authority may, but without intending by this provision to limit any powers of such Authority, enter into and carry out such contracts or establish or comply with such rules and regulations concerning labor and materials and other related matters in connection with any project or portion thereof as the Authority may deem desirable, or as may be requested by any Federal agency that may assist in the financing of such project or any part thereof; provided, however, that the provisions of this Section shall not apply to any case in which the Authority has taken over by transfer or assignment any contract authorized to be assigned to it under the provisions of Section Sixteen of this Act, nor to any contract in connection with the construction of any project which the Authority may have had transferred to it by any person or private corporation.

Section 12. USE OF PROJECTS:--The use of the facilities of the Authority and the operation of its business shall be subject to the rules and regulations from time to time adopted by the Authority; provided, however, that the Authority shall not be authorized to do anything which will impair the security of the holders of the obligations of the Authority, or violate any agreements with them or for their benefits.

Section 13. LIMITATION OF POWERS:--The State of Delaware does hereby pledge to and agree with any person, firm or corporation, or Federal agency subscribing to, or acquiring the bonds to be issued by the Authority for the construction, extension, improvement, or enlargement of any project or part thereof, that the State will not limit or alter the rights hereby vested in the Authority until all bonds at any time issued, together with the interest thereon, are fully met and discharged. The State of Delaware does further pledge to, and agree with, the United States and any other Federal agency, that in the event that any Federal agency shall construct or contribute any funds for the construction, extension, improvement or enlargement of any project, or any portion thereof, the State will not alter or limit the rights and powers of the Authority in any manner which would be inconsistent with the continued maintenance and operation of the project or the improvement thereof, or which would be inconsistent with the due performance of any agreements between the Authority and any such Federal agency, and the Authority shall continue to have and may exercise all powers herein granted, so long as the same shall be necessary or desirable, for the carrying out of the purposes of this Act, and the purposes of the United States in the construction or improvement or enlargement of the project or such portion thereof.

Section 14. TERMINATION OF AUTHORITY: -- When any Authority shall have finally paid and discharged all bonds, which together with the interest due thereon shall have been secured by a pledge of any of the revenues or receipts of a project, it may, subject to any agreements concerning the operation or disposition of such projects, convey such project to the City creating the Authority. When any Authority shall have finally paid and discharged all bonds issued and outstanding and the interest due thereon, and settled all other claims which may be outstanding against it, it may convey all its property to the City and terminate its existence. A certificate requesting termination of the existence of the Authority shall be filed in the office of the Secretary of State. If the certificate is approved by the City creating the Authority by its ordinance or ordinances, the said Secretary shall note the termination of existence on the record of incorporation and return the certificate with his approval shown thereon to the Board, which shall cause the same to be recorded in the office of the Recorder of Deeds of the County. Thereupon the property of said Authority shall pass to the City and the Authority shall cease to exist.

Section 15. EXEMPTION FROM TAXATION, AND PAYMENTS IN LIEU OF TAXES:--The effectuation of the authorized purposes of the Authorities created under this Act shall and will be in all respects for the benefit of the residents of incorporated cities for the increase of their commerce and prosperity, since such Authorities will be performing essential governmental functions and for the improvement of their health, safety and living conditions, and, in effectuating such purposes, such Authorities shall not be required to pay any taxes or assessments upon any property acquired or used by them for such purposes; provided, however, that in lieu of such taxes or special assessments an Authority may agree to make payments to the City or the County or any political subdivision. The bonds issued by any Authority, their transfer and the income therefrom, including any profits made on the sale thereof, shall at all times be free from taxation within the State of Delaware.


(a) Any municipality or owner is hereby authorized to sell, lease, lend, grant or convey to any Authority any project, or any part or parts thereof, or any interest in real or personal property which may be used by the Authority in the construction, improvement, maintenance or operation of any project. Any municipality is also authorized to transfer, assign and set over to any Authority any contracts which may have been awarded by said municipality for the construction of projects not begun, or if begun not completed. The territory being served by any project, or the territory within which such project is authorized to render service at the time of the acquisition of such project by an Authority, shall constitute the area in which such Authority shall be authorized to render service.

(b) The Authority shall first report to and advise the City by which it was created of the agreement to acquire, including all its terms and conditions.

The proposed action of the Authority, and the proposed agreement to acquire, shall be approved by the City Council. Such approval shall be by two-thirds vote of all of the members of the Council.

(c) This Section without reference to any other law shall be deemed complete for the acquisition by agreement of projects as defined in this Act located wholly within or partially without the City causing such Authority to be incorporated, any provisions of other laws to the contrary notwithstanding, and no proceedings or other action shall be required except as herein prescribed.

Section 17. CONSTITUTIONAL CONSTRUCTION:--The provisions of this Act shall be severable and if any of the provisions thereof shall be held to be unconstitutional such decision shall not affect the validity of any of the remaining provisions of this Act. It is hereby declared as the legislative intent that this Act would have been adopted had such unconstitutional provision not been included therein.

Section 18. All Acts or parts of Acts inconsistent with the provisions of this Act are hereby repealed.

Approved June 21, 1951.