AN ACT ESTABLISHING THE FRAMINGHAM ECONOMIC DEVELOPMENT CORPORATION IN THE CITY OF FRAMINGHAM
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
SECTION 1. Chapter 124 of the acts of 1995 is hereby amended by striking out all after the enacting clause and inserting in place thereof the following 30 sections:-
Section 1. There is hereby established in the city of Framingham the Framingham Economic Development Corporation. The corporation shall promote the economic revitalization of the city by exercising the powers and privileges under this act and as provided by law. The corporation shall be a public instrumentality separate from the city and shall not be considered an authority, board or committee of the city. The corporation shall have authority to carry out the provisions of this act and the corporation's exercise of the powers conferred by this act shall be considered the performance of essential public and governmental functions. The corporation shall acquire all the funds and assets and shall assume the contractual obligations of the Framingham Economic Development and Industrial Corporation established in chapter 124 of the acts of 1995.
Section 2. (a) It is hereby declared that:
(1) the city has unused, underused, substandard, undeveloped or underdeveloped areas that could be redeveloped or repurposed to improve the health, safety and welfare of the residents of the city;
(2) due to the inappropriate, derelict or underperforming current uses, such areas constitute an economic liability that substantially impedes the sound growth of the city and the economic wellbeing of the commonwealth;
(3) such areas decrease the value of private investments and threaten sources of public revenue;
(4) the existence of such areas makes people hesitant, unwilling or unable to do business in the city and discourages private investment;
(5) the menace of these areas cannot be remedied solely by the regulatory process in the exercise of the police powers and are unlikely to be reversed by ordinary operations or private enterprise without the assistance provided in this act;
(6) redevelopment of such areas is necessary to retain existing enterprises, attract new nonresidential, residential, commercial and mixed-use development and promote the sound and orderly growth of the city;
(7) to prevent a recurrence of the conditions that exist in such areas, any of the following shall be valid public uses and purposes that justify the exercise of powers by the corporation, any assistance given by the city or any other public body in connection with the corporation's actions or the expenditure of public money, improving sites in these areas for nonresidential, residential, commercial or mixed-use development or for necessary public facilities and improvements or the disposition of property for redevelopment incidental to the improvements;
(8) the acquisition, planning, clearance, development, rehabilitation or rebuilding of such areas for nonresidential, residential, commercial or mixed-use development or public facility purposes are public benefits for which public funds may be expended for the welfare of the city, the region and the commonwealth.
(b) The general court also finds that:
(1) obsolete, inefficient or inadequate public facilities and infrastructure threaten the city’s economy;
(2) the city cannot arrest the decline of, revitalize, stabilize or expand its economy or develop a sound, vibrant economic base without adequate public facilities and infrastructure to stimulate and support economic growth;
(3) the development, management and operation of public facilities in support of economic development is essential to the preservation and enhancement of the city's tax base and economy;
(4) a public corporation is necessary to address these and related public purposes; provided, however, that it is the corporation’s purpose to aid the city, other public agencies, private enterprises and non-profit organizations in the orderly development or redevelopment of unused, obsolete, underused or underdeveloped areas and in the development, operation and management of facilities and infrastructure necessary to support the economic vitality of the city;
(5) the purposes of the corporation shall be to create a suitable living environment and strengthen partnerships between all levels of government and non-profit and for-profit organizations in order to promote and support the city's well-being and promote equitable economic development in order to maximize social and economic opportunities available to the residents of the city; and
(6) the purposes of the corporation shall be to enhance the position, image and perception of the city as a desirable place to live, work, learn, play, visit and invest.
Section 3. As used in this act, the following terms shall have the following meanings:
“City”, the city of Framingham.
“Council”, the duly elected city council of the city of Framingham.
“Corporation”, the Framingham Economic Development Corporation established pursuant to this act.
“Cost of a project”, all costs, whether incurred before or after the issue of bonds or notes hereunder, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project, interest for up to 2 years after completion or estimated completion date of any project, planning, engineering and legal service, administrative expense, the funding of notes issued for capital purposes, such reserve for debt service or other capital or current expenses as may be required by a trust agreement or resolution securing notes or bonds and all other expenses incidental to the determination of the feasibility of any development project or to carrying out a development project or to placing the project in operation.
“Development plan”, a plan to redevelop or repurpose unused, underused, substandard, undeveloped or underdeveloped areas that could improve the health, safety and welfare of the residents of the city submitted annually by the corporation to the council and approved from time to time by the majority of the full council; provided, however, that the “development plan” shall guide the type, land use, general location, density and other requirements of a development project carried out by the corporation.
“Development project”, a project contemplated by its approved development plan: (i) to be undertaken in furtherance of the purposes of this act for acquisition or leasing by the corporation of land and improvements thereon and the development of the property so acquired; (ii) to be undertaken in furtherance of the purposes of this act for the rehabilitation or conservation of property or for the demolition, removal, rehabilitation or addition of improvements whenever necessary to carry out the purposes of this act; (iii) entailing the construction, improvement or rehabilitation of infrastructure, public facilities or both, in furtherance of the purposes of this act; or (iv) involving a combination of the foregoing types of projects; provided, however, that a “development project” may include improvements necessary for carrying out the objectives of the project, including site improvements, as well as for making any land or improvements acquired in the area of the project available for redevelopment or rehabilitation by private enterprise, including the sale, initial leasing or retention by the corporation for industrial, commercial, business, manufacturing, residential or mixed uses contemplated by a development plan; provided further, that a “development project” may include the construction by the corporation of any of the buildings, structures or other facilities for industrial, commercial, business, manufacturing, residential or mixed uses contemplated by a development plan and the repair, removal or rehabilitation by the corporation of any of the buildings, structures or other facilities that are to be repaired, moved or rehabilitated.
“Financial institution”, a banking corporation or institution, trust company, savings bank, cooperative bank, savings or loan association, insurance company or related corporate partnership, foundation or other institution engaged primarily in lending or investing funds.
“Mayor”, the duly elected mayor of the city of Framingham.
Section 4. The purposes of the corporation shall be to: (i) promote the objectives of section 2 and promote the common good and general welfare of the city; (ii) improve the living standards of the residents of the city by facilitating employment opportunities; (iii) support existing businesses and institutions located in the city by developing or facilitating the creation of infrastructure to benefit the circulation of employees, visitors and goods; and (iv) solicit, encourage and induce business and non-profit organizations and educational institutions to locate their organization in the city with an emphasis on securing and expanding the tax base or employment base of the city.
In furtherance of these purposes and in addition to the powers granted to the corporation by this act, except as may be restricted or limited by other provisions of this act, the corporation shall have the power to:
(i) sue and be sued in its own name, to plead and to be impleaded;
(ii) adopt by-laws and rules for the regulation of its affairs and the conduct of its business and to amend those by-laws and rules;
(iii) make and enter into any contracts and agreements necessary or incidental to the performance of its duties;
(iv) receive and accept from any federal agency, the commonwealth or any political subdivision thereof any grants, loans or advances for or in aid of a development project and to receive and accept contributions from any other source of money, property, labor or other things of value, to be held, used and applied for the purposes for which the grants, loans, advances and contributions may be made;
(v) invest any funds not required for immediate use or disbursement in certificates of deposit or in obligations of the government of the United States or in obligations guaranteed by the government of the United States and, subject to a specific vote of the corporation, to invest funds in any fashion in which municipal funds may be invested pursuant to chapter 44 of the General Laws;
(vi) own and manage real property;
(vii) make relocation payments to individuals and businesses displaced as a result of carrying out a development project under the act, in accordance with chapter 79A of the General Laws;
(viii) prepare or commission plans, designs, drawings, specifications and estimates of cost for the construction, reconstruction, development, redevelopment, rehabilitation, remodeling, alteration or repair of development projects and, from time to time, modify the plans, designs, drawings, specifications and estimates;
(ix) designate property for development projects, except that when the property is owned by the city, the designation and use shall be approved by the mayor and the council;
(x) purchase insurance against any loss in connection with its property or other assets and operations;
(xi) arrange or contract with the city for planning or opening or closing streets, roads, alleys or other places or for the furnishing of facilities or for the acquisition by the city of property or property rights or for the furnishing of property or services in connection with a development project;
(xii) manage or lease any development project, whether owned or leased by the corporation, and to enter into agreements with the commonwealth or the city or any agency or instrumentality thereof or with any person, firm, partnership or corporation, either public or private, for the purposes of causing any development project to be managed;
(xiii) establish subsidiary or affiliate legal entities to advance the purposes of this act;
(xiv) establish and collect fees for the use of any properties owned or leased by the corporation or for the provision of infrastructure, facilities, services and amenities;
(xv) act with respect to 1 or more development projects as a corporation organized under chapter 121A of the General Laws;
(xvi) borrow money for the purposes of aiding in the construction of equipment required by the commonwealth or the United States to abate air or water pollution;
(xvii) borrow money for the purpose of aiding the construction of public facilities, infrastructure or utilities necessary for economic development;
(xviii) apply to the federal government or to the commonwealth for housing or economic development assistance grants to carry out approved economic development projects, to receive and administer these grants, to contract with the commonwealth for financial assistance and to apply for and receive advances for the estimated costs of surveys and plans and administrative expenses in preparation for economic development projects, all to the same extent and subject to the same terms and conditions as an urban renewal agency pursuant to sections 53 to 57, inclusive, of chapter 121B of the General Laws;
(xix) employ consulting engineers, superintendents, managers and other employees, agents and consultants as may be necessary in its judgment and to fix their compensation;
(xx) accept, acquire other than by eminent domain, receive and hold by bequest, devise, grant, gift, purchase, exchange, lease, transfer, judicial order or decree or otherwise, for any of its objects and purposes, any property, both real and personal, from any source, including grants, loans or advances for or in aid of the corporation from any federal agency or the commonwealth or any political subdivision thereof;
(xxi) sell, convey, mortgage, lease, transfer, exchange or otherwise dispose of any property, both real and personal, that the objectives and purposes of the corporation may require, subject to any limitations as may be prescribed by law;
(xxii) borrow money and, from time to time, to make, accept, endorse, execute and issue bonds, debentures, promissory notes, bills of exchange and other obligations of the corporation for monies borrowed or in payment for property acquired or for any of the other purposes of the corporation and to secure the payment of these obligations by mortgage, pledge, deed, indenture, agreement or other instrument of trust or by lien upon, assignment of or agreement in regard to all or any part of the corporation's property, rights or privileges, whether now owned or later acquired;
(xxiii) make loans to any person, firm, corporation, joint stock company, association or trust located or doing business in the city, for the purpose of promoting and developing business activities;
(xxiv) acquire improved and unimproved real estate for the purposes of developing, demolishing, constructing or reconstructing commercial, industrial, residential, institutional or other establishments thereon or for developing, redeveloping or constructing public facilities or for the purpose of disposing of real estate to others for the development, redevelopment, demolition, construction, operation or management of commercial, industrial, residential, institutional or other establishments or for public facilities, as the objects and purposes of the corporation may require; provided, however, that nothing in this act shall grant the corporation the power of eminent domain;
(xxv) acquire, demolish, construct, reconstruct, alter, maintain, sell, convey, transfer, mortgage, pledge or otherwise dispose of commercial, industrial, residential or business establishments or other property as the objects and purposes of the corporation may require;
(xxvi) acquire, subscribe for, own, hold, sell, assign, transfer, mortgage, pledge or otherwise dispose of the bonds, debentures, notes or other securities and evidences of interest in or indebtedness of any person, firm, corporation, joint stock company, association or trust and, while the owner or holder thereof, exercise all the rights, powers and privileges of ownership;
(xxvii) cooperate with and avail itself of the facilities and programs of various federal or state governmental agencies; provided, however, that the corporation shall not apply for governmental funds in competition with any department, agency or instrumentality of the city without the express written consent of the mayor;
(xxviii) receive stocks, bonds, donations and gifts and to otherwise raise money for the above purposes;
(xxix) undertake economic development project planning or provide advisory services and technical assistance to carry out the corporation's purposes;
(xxx) assist the city in conducting marketing and promotions for the purpose of attracting and retaining employers; and
(xxxi) undertake all acts and things necessary or convenient to carry out the powers expressly granted in this act.
Section 5. There is hereby created a public body politic and corporate to be known as the Framingham Economic Development Corporation, which shall be a public instrumentality, consisting of 7 members appointed by the mayor and approved by the council pursuant to the city’s charter, at least 1 of whom shall be experienced in financial matters, 1 of whom shall be experienced in real estate, 1 of whom shall be experienced in municipal government, 2 of whom shall be experienced in industrial development and 2 of whom shall be appointed from the community at large. Unless otherwise appointed by the mayor and approved by the city council, all members of the corporation shall reside or be employed in the city. Each of the 7 members shall be sworn to the faithful performance of their official duties as a member of the corporation. A simple majority of the 7 members shall constitute a quorum for the transaction of any and all business of the corporation.
Of the members of the corporation first appointed, from the first day of July in the year of their appointment: (i) 2 shall be appointed to serve for 1 year; (ii) 2 shall be appointed to serve for 2 years; and (iii) 3 shall be appointed to serve for 3 years. Upon the expiration of such terms of office, the member’s successor, and any subsequent successor, shall be appointed for a term of 3 years. A member shall continue in office after the expiration of their term and until a successor is appointed and qualified. Any member of the corporation may be removed by the mayor for malfeasance, misfeasance or willful neglect of duty but only after reasonable notice and public hearing, unless that same person, in writing, expressly waives the right to be so heard.
Section 6. The corporation shall adopt a corporate seal for the corporation and designate the custodian thereof. The corporation shall cause at all times accurate accounts to be kept of all receipts and expenditures of the funds of the corporation and shall make a report annually to the city council, containing an abstract of such accounts and detailed information of all receipts and expenditures, including prices paid for property acquisition, contracts for construction of facilities and for the leasing thereof and such other detailed information as may be helpful. The corporation shall cause an audit of its books and accounts to be made biannually by certified public accountants and the cost thereof shall be treated as a current expense.
Except as otherwise provided in this act, the corporation shall have the full power to exercise care of its Property and the management of its business and affairs. The treasurer of the corporation shall give bond for the faithful performance of their duties with a surety company authorized to do business in the commonwealth as a surety in such sum as the corporation may determine, the premium of which shall be paid by the corporation.
Section 7. In addition to those powers set forth in section 4, the corporation shall have, in furtherance of its development plan, the power to:
(i) determine what areas within its jurisdiction constitute underutilized, underperforming, substandard or open blighted areas;
(ii) prepare and execute plans for the clearance, conservation and rehabilitation of congested, substandard or blighted open areas, including plans for carrying out voluntary repair and rehabilitation of buildings and improvements, plans for the enforcement of law, codes and regulations relating to the use of land and the use occupancy of buildings and improvements and plans for the demolition and removal of buildings;
(iii) clear and improve property acquired by it or the city;
(iv) prepare or cause to be prepared urban renewal plans, master or general plans, workable programs for development of the community, general neighborhood renewal plans, community renewal programs and any plans or studies required or assisted under state or federal law;
(v) engage in urban renewal or community development projects and enforce restrictions and controls contained in any approved urban renewal or community economic development plan or any covenant or agreement contained in any contract, deed or lease by the corporation; provided, however, that the Corporation shall not have title to or interest in the property to which such restrictions and controls may apply or to any neighboring property; provided further, that these powers are to be exercised only after chapter 121B of the General Laws have been complied with;
(vi) act as agent of the city or cooperate under the authority and direction of the city with the federal government in any clearance, industrial, relocation, urban renewal, rehabilitation, community development or other project that it is authorized to undertake by and within the city;
(vii) recommend to the city the acquiring of land through eminent domain subject to approval by the mayor and city council; provided, however, that such public taking shall only occur after a public hearing and shall be exercised in accordance with the provisions of chapter 79 or 80A of the General Laws if, after due deliberation, it is determined that the taking of such property is necessary for carrying out a redevelopment plan, as provided for under said chapter 121B or chapter 121C of the General Laws, or purchase, lease or acquire by gift, bequest or grant, any property, real or personal, or any interest therein, found by the corporation to be necessary or reasonably required for the purposes of the corporation and hold, sell, exchange, transfer, lease or assign such property to the corporation, the city or other person;
(viii) utilize the advantages available to the corporation to finance community development projects, including, but not limited to, functioning as a conduit or broker for private capital to finance various projects by taking advantage of tax exempt or other favorable status available to a public agency in administering private funds from any corporation, partnership or individual;
(ix) undertake and provide relocation projects as provided in chapter 121B of the General Laws;
(x) conduct investigations and disseminate information relative to housing and living conditions and other material issues deemed appropriate in connection with redevelopment activities;
(xi) undertake economic development project planning, provide advisory services and provide technical assistance as may be desirable to carry out the purposes of the corporation; and
(xii) provide, by resolution, for the issuance of revenue bonds of the corporation for the purposes of paying all or any part of the cost of a development projector projects; provided, however, that the principal and interest on the bonds shall be payable solely from the funds herein provided for the payment; provided further, that the bonds of each issue shall be dated, bear interest at the rates and mature at a time not exceeding 20 years from their date, as determined by the corporation, and may be redeemable before maturity, at the option of the corporation, at the price and under the terms and conditions fixed by the corporation before the issuance of the bonds; provided further, that the corporation shall determine the form of the bonds, including any interest coupons to be attached thereto, and the manner of execution of the bonds and shall fix the denomination of the bonds and the place of payment of principal and interest, which may be at any bank or trust company within the commonwealth; provided further, that in case any officer whose signature, or a facsimile thereof, shall appear on any bonds or coupons shall cease to be an officer before the delivery of the bonds, the signature or facsimile shall be valid and sufficient for all purposes as if that officer had remained in office until the delivery; provided further, that the bonds may be issued in coupon or registered form or both, as the corporation may determine, and provision may be made for the registration of any coupon bonds as to principal alone and as to both principal and interest; and provided further, that the corporation may sell the bonds in a manner and for a price, either at public or private sale, as it may determine to be for the best interests of the corporation.
The proceeds of the bonds shall be used solely for the payment of the cost of a development project and shall be disbursed in a manner and under such restrictions, if any, as the corporation may provide.
Before the preparation of definitive bonds, the corporation may, under like restrictions, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the bonds have been executed and are available for delivery. The corporation may also provide for the replacement of any bonds that become mutilated or are destroyed or lost. Revenue bonds may be issued under this act subject only to those proceedings, conditions or things which are specifically required by this act. The corporation may provide, by resolution, for the issuance of revenue refunding bonds of the corporation for the purpose of refunding any revenue bonds then outstanding and issued under this act, including the payment of any redemption premium thereon on any interest accrued or to accrue to the date of redemption of the bonds and, if deemed advisable by the corporation, for the additional purpose of construction or reconstruction and extensions or improvements of the development project. The issue of the bonds, the maturities and other details thereof, the rights of the holders thereof and the duties of the corporation relative thereto shall be governed by this act as applicable.
Section 8. Revenue and revenue refunding bonds issued under this act, unless otherwise authorized by law, shall not constitute a debt of the commonwealth or the city or a pledge of the full faith and credit of the commonwealth or the city, but the bonds shall be payable solely from the funds herein provided from revenues generated by the corporation. If the corporation or the city or commonwealth is not obliged to pay the revenue or revenue refunding bonds, all the revenue and revenue refunding bonds shall contain on the face thereof a statement to the effect that neither the corporation nor the commonwealth nor the city shall be obliged to pay the same or the interest thereon except from revenues and that neither the full faith and credit nor taxing power of the commonwealth or the city is pledged to the payment on the bonds. All revenue and revenue refunding bonds issued under this act shall have all the qualities and incidents of negotiable instruments as defined in section 3-104 of article 3 of chapter 106 of the General Laws.
Section 9. In the discretion of the corporation, revenue bonds or revenue refunding bonds may be secured by a trust agreement by and between the corporation and a corporate trustee, which may be any trust company or bank having the powers of a trust company within the commonwealth. The trust agreement may pledge or assign the revenues to be received but shall not convey or mortgage any development project or part thereof. Either the resolution providing for the issuance of bonds or the trust agreement may contain provisions for protecting and enforcing the rights and remedies of the bondholders, including, but not limited to, provisions defining defaults and providing for remedies in the event thereof, which may include the acceleration of maturities, and covenants setting forth the duties of and limitations on the corporation in relation to the acquisition, construction, improvement, enlargement, alteration, equipping, furnishing, maintenance, operation, repair, insurance and disposition of property, the custody, safeguarding, investment and application of moneys, the use of any surplus bond or note proceeds and the establishment of reserves. The resolution or trust agreement may also contain covenants by the corporation related to the:
(i) establishment, revision and collection of rents and charges for services of facilities furnished or supplied by the corporation that provide revenues sufficient with other revenues of the development project, if any, to pay: (A) the cost of maintaining, repairing and operating the development project and of making renewals and replacements in connection therewith; (B) the principal of and interest on the revenue bonds as they become due and payable; (C) payments in lieu of taxes, betterments and special assessments; and (D) reserves for such purposes;
(ii) purpose for which the proceeds of the sale of the bonds will be applied and the use and disposition thereof;
(iii) use and disposition of the gross revenues of the corporation from the development project, any additions thereto and extensions and improvements thereof, including the creation and maintenance of funds for working capital and for renewals and replacements to the development project;
(iv) amount, if any, of additional revenue bonds payable from the revenues of the development project and the limitations, terms and conditions on which the additional revenue bonds may be issued; and
(v) operation, maintenance, management, accounting and auditing of the development project and of the income and revenues of the corporation.
Section 10. Any bank or trust company incorporated under the laws of the commonwealth may act as depository of the proceeds of the bonds or of revenues and furnish indemnifying bonds or pledge securities as required by the corporation. The trust agreement may set forth the rights and remedies of the bondholders and of the trustees and may restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing bonds and debentures of corporations. The trust agreement may contain other provisions as the corporation considers reasonable and proper for the security of the bondholders. All expenses incurred in carrying out the trust agreement may be treated as a part of the cost of the operation of the development project. The pledge by any trust agreement or resolution shall be valid and binding from the time when the pledge is made. Revenue or other money so pledged and held or later received by the corporation shall immediately be subject to the lien of the pledge without any physical delivery thereof or further act. The lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the corporation, irrespective of whether the parties have notice thereof.
Neither the resolution nor any trust agreement by which pledge it is created need be filed or recorded except in the records of the corporation and no filing need be made under chapter 106 of the General Laws.
Section 11. Revenue bonds and revenue refunding bonds issued under this act are hereby made securities in which all public officers and public bodies of the commonwealth and its political subdivisions, all insurance companies, trust companies in their commercial departments and within the limits set by section 6 of chapter 167E of the General Laws, banking associations, investment companies, executors, trustees and other fiduciaries and all other persons who are now or may hereafter be authorized to invest in bonds or other obligations of a similar nature may properly and legally invest funds, including capital in their control and belonging to them and the bonds are hereby made obligations, which may properly and legally be made eligible for the investment of savings deposits and income thereof in the manner provided by section 2 of chapter 167F of the General Laws. The bonds are hereby made securities, which may properly and legally be deposited with and received by any state or municipal officer or any agency or political subdivision of the commonwealth for any purpose for which the deposit of bonds or other obligations of the commonwealth is now or may hereafter be authorized by law.
Section 12. To provide funds for the general purposes of the corporation, including working capital, the corporation may, from time to time, issue debentures, which, unless otherwise authorized by law, shall not constitute a debt of the commonwealth or the city or a pledge of the full faith and credit of the commonwealth or the city and shall be subordinated to all other obligations of the corporation and shall be payable at the time and in installments, if any, as the corporation shall determine but solely out of the net assets of the corporation and the holders thereof shall be entitled to interest thereon but only out of the net earnings of the corporation and in no event at a rate higher than the rate specified therein. The debentures may be secured by a trust agreement by and between the corporation and a corporate trustee, which shall be a trust company or bank located within the commonwealth having the powers of a trust company. The trust agreement shall contain provisions for protecting and enforcing the rights and remedies of the debenture holder. Any bank or trust company incorporated under the laws of the commonwealth that may act as a depository under the trust agreement may furnish indemnifying bonds or pledge securities as required by the corporation. The trust agreement shall set forth the rights and remedies of the debenture holders and of the trustee and may restrict individual right of action by debenture holders. The trust agreement may contain such other provisions as the corporation may consider reasonable and proper for the security of the debenture holders. All expenses incurred in carrying out the trust agreement may be treated as an item of current expense.
Debentures may be issued under this act without obtaining the consent of any department, division, office, commission, board, bureau or agency of the commonwealth or the city and without any other proceedings or any other condition or thing other than those proceedings or conditions that are required under this act.
Section 13. Any holder of bonds or debentures issued under this act, or of any coupons appertaining thereto, and the trustee, except to the extent the rights herein given may be restricted by the trust agreement, may, either at law or in equity, by suit, action, mandamus or other proceeding, protect and enforce all rights under the laws of the commonwealth or granted hereunder or under the trust agreement and may enforce and compel the performance of all duties required by this actor by the trust agreement to be performed by the corporation or by any officer thereof.
Section 14. The corporation shall not deposit any of its funds in a banking institution unless such institution has been designated as a depository by a vote of a majority of the members present at an authorized meeting of the corporation exclusive of any member who is an officer or director of the depository so designated. The corporation shall not receive money on deposit.
Section 15. While any bonds issued by the corporation remain outstanding, the powers, duties and existence of the corporation shall not be diminished or impaired in any way that will adversely affect the interests and rights of the holders of the bonds.
Section 16. The corporation shall be liable in contract and in tort in the same manner as a municipal corporation. The members, employees, officers and agents of the corporation shall be liable in contracts and tort in the same manner as municipal employees under the General Laws. The corporation shall indemnify the members, officers, employees and agents of the corporation under sections 9 and 13 of chapter 258 of the General Laws as public employees. The property or funds of the corporation shall not be subject to attachment or to levy and sale on execution but if the corporation refuses to pay a judgment entered against it in any court of competent jurisdiction, the superior court may direct the treasurer of the corporation to pay the judgment.
Section 17. Real estate owned by the corporation shall not be subject to liens under chapter 254 of the General Laws but sections 28 and 29 of chapter 149 of the General Laws shall be applicable to any construction work by the corporation.
Section 18. For the purposes of any contract to sell, lease or acquire real property, the corporation shall be a public or quasi-public economic development agency and such real property transactions shall not be subject to section 16 of chapter 30B of the General Laws.
Section 19. The corporation shall file annual reports with the state secretary and the city council. These annual reports shall also be published in a newspaper of general circulation in the city within 60 days after the close of the corporation's fiscal year. The state secretary shall make copies of such reports available to the commissioner of insurance and the commissioner of banks and the corporation shall also furnish such other information as may, from time to time, be required by the state secretary.
Section 20. The corporation shall not participate or intervene in any political campaign on behalf of any candidate for public office or publish or distribute any statements with respect thereto.
Section 21. The corporation shall not be subject to chapter 63 of the General Laws nor shall the corporation be liable for any taxes based upon or measured by income. The securities and evidence of indebtedness issued by the Corporation shall be free from taxation by the commonwealth.
Section 22. The corporation is hereby designated as a community-based development organization for the purposes of carrying out community or economic development projects with federal financial assistance.
Section 23. The corporation shall carry out programs and projects in conformance with the zoning ordinances and all other local ordinances and regulations of the city.
Section 24. The city may take actions in aid of the corporation in connection with a development project under the provisions of section 23 of chapter 121B of the General Laws.
Section 25. Notwithstanding any general or special law to the contrary, the city, acting by vote of the city council and upon terms and conditions as determined by the mayor or a board or officer to whom such authority is delegated by the city council or the city’s charter, may convey, by sale or gift, real property owned or controlled by city, or any interest in such property, to the corporation in aid of the public purposes of the corporation. The city may lease for a term not to exceed 40 years any land or land with improvements owned or controlled by the city upon terms and conditions as the mayor shall determine for public purposes consistent with this act. All leases shall provide that the corporation shall not encumber property owned by the city, or the corporation's leasehold interest therein, without approval of the city council.
Notwithstanding any general or special law to the contrary, the corporation shall establish a maintenance reserve fund from any lease revenues obtained from development projects carried out on publicly owned property sufficient to meet the expenses of maintaining the projects in a fully operational state, including, but not limited to, routine and non-routine maintenance and the maintenance of any and all improvements. All leases shall also provide that the lease shall terminate in the event that the corporation ceases to use the land for public purposes consistent with this act.
Section 26. In order to carry out the purposes of this act and exercise the powers of the corporation, the city may raise and appropriate or borrow in aid of the corporation such sums as may be necessary to make a loan or grant to the corporation. The city shall not incur any financial obligation as a result of any action by the corporation without a two-thirds vote of the city council.
Section 27. The city may raise and appropriate or borrow funds for the purpose of granting or loaning funds to the corporation to aid the corporation in carrying out any of its public purposes, including, but not limited to, defraying all or part of the development, acquisition and operating costs of any development project and for the purpose of acquiring land to convey or lease to the corporation for any development project. Indebtedness of the city authorized and issued under this section shall be payable within 40 years from its original date of issue and shall be exempt from the limit of indebtedness prescribed in section 10 of chapter 44 of the General Laws; provided, however, that the total amount of indebtedness of the city outstanding at any one time under this section and under clauses (1), (2) and (4) of section 20 of chapter 121B of the General Laws shall not exceed 5 per cent of the city's equalized valuation as defined in section 1 of said chapter 44, notwithstanding section 21 of said chapter 121B.
Section 28. Notwithstanding the provisions of section 17 of chapter 44 of the General Laws to the contrary, the city may issue temporary notes for a period not to exceed 10 years in anticipation of money to be derived from the sale of serial bonds or notes authorized by the city under this section and the city may refund notes from time to time by issuing other temporary notes. The period from the date of issue of the original notes to the date of maturity of the refunding notes shall not exceed 10 years and the city shall not be required to use revenue funds of the city to pay any portion of the principal amount of any such notes or refunding notes that are refunded. Except as otherwise provided in this section, indebtedness authorized and incurred by the city under this section shall be subject to said chapter 44.
Section 29. The corporation may, upon the affirmative vote of 5 out of 7 of its members, petition for its dissolution by order of the supreme judicial court or superior court in the manner provided in section 11A of chapter 180 of the General Laws.
Section 30. If the corporation shall fail to commence operations within 5 years after the effective date of this act, the provisions of this act shall cease to be effective.
SECTION 2. This act shall take effect upon its passage.
Approved, December 1, 2022.