S.L. 1969-793

1969 SESSION

CHAPTER 793

SENATE BILL 433

AN ACT AMENDING CHAPTER 98, PUBLIC-LOCAL LAWS OF 1941 AS AMENDED BY CHAPTER 601, SESSION LAWS OF 1943, CHAPTER 137, SESSION LAWS OF 1945, AND CHAPTER 1198, SESSION LAWS OF 1957, RELATING TO THE ESTABLISHMENT AND POWERS OF THE GREENSBORO-HIGH POINT AIRPORT AUTHORITY.

The General Assembly of North Carolina do enact:

Section 1. That Chapter 98, Public-Local Laws of 1941, as amended by Chapter 601, Session Laws of 1943, Chapter 137, Session Laws of 1945, and Chapter 1198, Session Laws of 1957 be, and the same is hereby, amended as follows:

(a) That Section 2 of said Act, as amended, be, and the same is hereby, amended to read as follows:

Section 2. The Airport Authority shall consist of five (5) members of whom two (2) shall be resident voters of the City of High Point, two (2) shall be resident voters of the City of Greensboro, and one (1) from Guilford County at large. Upon the expiration of the terms of the present members of the Airport Authority in April, 1970, the City Council of the City of Greensboro shall appoint one member to the Airport Authority for a term of three (3) years and the City Council of the City of High Point shall appoint one member to the Airport Authority for a period of three (3) years. Thereafter, each of said City Councils shall appoint one member for a term of three (3) years upon the expiration of the term of the member appointed by it. Upon the expiration of the term of the present members of the Airport Authority in April, 1970, the Guilford County Board of Commissioners shall appoint the at-large member for a term of three (3) years and shall appoint the two other members, with one of said two members being appointed for a term of one year and the other for a term of two years. Thereafter, upon the expiration of the term of any member appointed by it, the Guilford County Board of Commissioners shall appoint all members to be appointed by it for terms of three (3) years each. Any vacancy occurring among the membership of the Airport Authority shall be filled by appointment of a member for the unexpired term thereof, such appointment to be made by the City Council or Board of Commissioners whose appointee creates such vacancy. Each of the members and their successors so appointed shall take and subscribe before the Clerk of the Superior Court of Guilford County, an oath of office and file the same with the Guilford County Board of Commissioners. All duly appointed members of the Airport Authority shall serve as such members until their respective successors have been duly appointed and sworn in the manner above set forth."

(b) That Section 3 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"Section 3. The members of the Airport Authority, for the purpose of doing business, shall constitute a Board of Directors, which may adopt suitable by-laws, not inconsistent with the provisions of this Act, for its management. The members of the Board shall receive no compensation per diem or otherwise, but shall be allowed and paid their actual traveling, lodging, and meal expenses incurred in transacting the business and at the instance of the said Airport Authority."

"(1) To purchase, acquire, establish, construct, own, control, lease, equip, improve, maintain, operate, and regulate airports or landing fields for the use of airplanes and other aircraft, and all facilities incidental to the operation of such airports or landing fields, within the limits of Guilford County; and for any of such purposes, to purchase, acquire, own, hold, lease and/or operate real or personal property."

"(1-a) To borrow money and to issue bonds or installment, demand, or other type promissory notes for the repayment of money borrowed and to secure the payment of any such bonds or notes by mortgages or deeds of trust upon any property held or to be held by it; provided, however, consent to such bond, note, mortgage, or deed of trust be granted by the Board of County Commissioners of Guilford County prior to the execution thereof by said Airport Authority."

"(1-b) To purchase real or personal property and to issue bonds, installment, demand, or other type notes in payment of part or all of the purchase price therefor, and to secure the payment of any such bonds or notes by purchase money mortgages, deeds of trust, or conditional sales contracts upon the property so purchased. All such security instruments shall expressly limit and confine the liability of the Airport Authority to the real or personal property so purchased constituting the collateral security in such mortgage, deed of trust, or conditional sale contract."

(d) That paragraph (3) of Section 4 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"(3) To charge and collect reasonable and adequate fees, royalties, rents, or other charges for the use of property owned, leased or otherwise controlled or operated by said Airport Authority or for services rendered in the operation thereof."

(e) That paragraph (4) of Section 4 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"(4) To make all reasonable rules and regulations as it deems necessary for the proper maintenance, use, operation, and control of any airport or airport facilities owned, leased, or controlled by said Airport Authority; to provide penalties for the violation of such rules and regulations; provided said rules and regulations and penalties be not in conflict with the laws of the State of North Carolina, and the rules and regulations of the Federal Aviation Administration."

(f) That paragraph (5) of Section 4 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"(5) To issue bonds, notes, or other securities for the purpose of providing funds for the acquisition, construction, reconstruction, improvement, betterment, or extension of airport facilities of the Airport Authority, or for the acquisition of property for such facilities. The Airport Authority is hereby further authorized to issue revenue refunding bonds, notes, or other securities for the purpose of refunding any bonds, notes, or other securities then outstanding which shall have been issued under the provisions of this Act or the Revenue Bond Act of 1938, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such bonds, notes, or other securities, and, if deemed advisable by the Board of Directors of the Airport Authority, to provide for the issuance of its revenue refunding bonds, notes, or other securities for the combined purpose of refunding any bonds, notes, or other securities then outstanding which shall have been issued by the Authority under the provisions of this Act or the Revenue Bond Act and financing in whole or in part the reconstruction, improvement, betterment, or extension of the undertaking or facility for which the bonds, notes, or other securities to be refunded shall have been issued, or the acquisition, construction, reconstruction, improvement, betterment, or extension of any undertaking or facility combined or to be combined with the undertaking or facility for which the bonds, notes, or other securities to be refunded shall have been issued. The issuance of such bonds, notes, or other securities, the maturities and other details thereof, and the rights, duties, and obligations of the Airport Authority in respect of the same, shall be governed by the provisions of this Act insofar as the same may be applicable. Such bonds, notes, or other securities shall be issued in such form and denomination, shall mature at such time or times not exceeding 50 years from their date or dates, may be made redeemable at such price or prices and under such terms and conditions, and shall bear interest at such rate or rates, not exceeding seven percent (7%) per annum, payable annually or semiannually, as the Board of Directors may determine by resolution. The Board of Directors shall also determine by resolution the form and manner of execution of any such bonds, notes, or other securities, including any interest coupons attached thereto; provided, however, that at least one manual signature must appear on every bond, note, or other security which signature may be the manual signature of the representative of the Local Government Commission to the certificate of the Commission on such bond, note, or other security.

No bonds, notes, or other securities issued by the Airport Authority under the provisions of this Act shall be obligations of the County of Guilford but no such bonds, notes, or other securities shall be issued without the approval of the Board of Commissioners for the County of Guilford.

The sale of any such bonds, notes, or other securities shall be made by and with the approval of the Local Government Commission. The Board of Commissioners for the County of Guilford shall not be required to approve any such sale.

Upon the request of the Board of Directors, any such bonds, notes, or other securities may be sold by the Local Government Commission in exchange for real property; provided, however, that the value of any such real property to be acquired by the Airport Authority shall have been either judicially determined or determined by at least two certified appraisals approved by the Board of Commissioners for the County of Guilford prior to such exchange and that the exchange shall have been approved by the Local Government Commission.

Upon the filing with the Local Government Commission of a resolution of the Board of Directors requesting that its bonds, notes, or securities issued pursuant to this Act be sold at private sale and without advertisement and upon the approval of such request by said Commission, such bonds, notes, or securities may be sold by said Commission at private sale and without advertisement to any purchaser or purchasers thereof, such sale to be for such price as said Commission shall determine to be for the best interests of the Airport Authority and as shall be approved by the Board of Directors, but no such sale shall be at a price so low as to require the payment of interest on the money received therefor at more than seven percent (7%) per annum computed with relation to the absolute maturity or maturities of the bonds, notes, or securities in accordance with standard tables of bond values, excluding, however, from such computation the amount of any premium to be paid on redemption of any such bonds, notes, or securities prior to maturity. The limitation set forth above on the interest rate or rates which bonds, notes, or other securities issued under this Act shall bear, shall not apply to any issue of bonds, notes, or other securities with respect to which any federal, state, or other public agency shall have agreed to make annual interest grants to the Airport Authority, and in calculating the amount of interest required to be paid on the money received for such bonds, notes, or other securities within the limitation stated in the next preceding sentence the total of such annual interest grants shall be deducted from the total amount of interest payable on such bonds, notes, or other securities.

The Airport Authority is hereby authorized and empowered to pledge to the payment of the principal of and the interest on any bonds, notes, or other securities all or any part of the revenues, rents, income, and tolls arising out of the use of or in connection with any airport property or any specific part of the airport property. Such bonds, notes, or other securities shall be issued upon such terms, covenants, and conditions as the Board of Directors may determine by resolution.

Bonds, notes, or other securities issued by the Airport Authority under this Act shall be exempt from all State, county, or municipal taxes or assessments, direct or indirect, general or special, and the interest paid on such bonds, notes, or other securities shall not be subject to taxation as income."

(g) That paragraph (9) of Section 4 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"(9) To deposit or invest and reinvest any of its funds as provided by G.S. 159-28.1, a part of the Local Government Act, as it may be amended from time to time, for the deposit or investment of unit funds."

(h) That paragraph (11) of Section 4 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"(11) To operate, own, lease, control, regulate, or grant to others the right to operate on any airport premises, restaurants, snack bars and vending machines, food and beverage dispensing outlets, rental car services, catering services, novelty shops, insurance sales, advertising media, merchandising outlets, motels, hotels, barber shops, automobile parking and storage facilities, automobile service stations, garage service facilities, motion picture shows, personal service establishments, and all other types of facilities as may be directly or indirectly related to the maintenance and furnishing to the public of a complete air terminal installation."

Sec. 2. That said Act, as amended, be, and it is hereby, further amended by inserting the following immediately after paragraph (11) of Section 4:

"(12) To possess the same exemptions in respect to payment of taxes and license fees as provided for municipal corporations by the laws of the State of North Carolina."

Sec. 3. That said Act, as amended, be, and it is hereby, further amended by inserting the following immediately after paragraph (12) of Section 4:

"Section 4(a). The Airport Authority is hereby declared to be a 'municipality' within the meaning of the Revenue Bond Act of 1938 having the power to issue revenue bonds for airport purposes under and pursuant to the provisions thereof. In addition to the power conferred upon the Airport Authority by the Revenue Bond Act to issue revenue refunding bonds for the purposes set forth in said Act, the Airport Authority is hereby authorized to issue revenue refunding bonds under the Revenue Bond Act for the purpose of refunding any revenue bonds then outstanding which shall have been issued under the provisions of the Revenue Bond Act or any bonds, notes, or other securities then outstanding which shall have been issued under the provisions of this Act, or any combination thereof, including the payment of any redemption premium thereon and any interest accrued or to be accrued to the date of redemption of such bonds, notes, or other securities, and, if deemed advisable by the Board of Directors, to provide for the issuance of revenue refunding bonds under the Revenue Bond Act for the combined purpose of (a) refunding any bonds then outstanding which shall have been issued under the provisions of the Revenue Bond Act or any bonds, notes, or other securities then outstanding which shall have been issued under the provisions of this Act, or any combination thereof, and (b) financing in whole or in part the reconstruction, improvement, betterment, or extension of the undertaking or facility for which the bonds, notes, or other securities to be refunded shall have been issued, or the acquisition, construction, reconstruction, improvement, betterment, or extension of any undertaking or facility combined or to be combined with the undertaking or facility for which the bonds, notes, or other securities to be refunded shall have been issued. The issuance of any such revenue refunding bonds by the Airport Authority under the provisions of the Revenue Bond Act shall be governed by the provisions of the Revenue Bond Act insofar as the same may be applicable. The powers contained in the Revenue Bond Act and hereby conferred on the Airport Authority shall be deemed to be in addition to and not in substitution for the powers conferred on the Airport Authority by this Act so that the Airport Authority may, at its option, proceed under the Revenue Bond Act without regard to any restrictions or limitations imposed by this Act or proceed under this Act without regard to any restrictions or limitations imposed by the Revenue Bond Act; provided, however, that in no event shall any bonds, notes, or other securities, including any revenue bonds issued under the Revenue Bond Act, be issued by the Airport Authority without the approval of the Board of Commissioners for the County of Guilford."

"Section 4(b). For the purpose of aiding the Airport Authority in the financing of improvements at the airport facilities of the Airport Authority, the County of Guilford is hereby authorized to issue Bonds, under and pursuant to The County Finance Act, for airport purposes as provided in Section 153-77 of said Act the same as if such bonds were to be issued to finance improvements at an airport owned and operated by the County of Guilford. The proceeds of the sale of any such bonds may be expended by the County of Guilford or by the Airport Authority as may be determined by the Board of Commissioners for the County of Guilford."

Sec. 4. That Section 5 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"Section 5. The Airport Authority is hereby authorized and empowered to acquire from the County of Guilford, the Cities of Greensboro and High Point, by agreement therewith, and such county and cities are hereby authorized and empowered to grant and convey, either by gift or for such consideration as it may be deemed wise, any real or personal property which it now owns or may hereafter be acquired, and which may be necessary for the construction, operation, and maintenance of any airport or facilities of same located in the County of Guilford."

Sec. 5. That Section 7 of said Act, as amended, be, and the same is hereby, amended to read as follows:

"Section 7. Private property needed by said Airport Authority for any airport, landing field, or facilities of same may be acquired by gift or devise, or may be acquired by private purchase or by the exercise of the power of eminent domain by the Airport Authority, pursuant to the provisions of Chapter Forty of the General Statutes of North Carolina, as amended. Avigation easements needed by the Airport Authority for any airport, landing field or facilities of same may likewise be acquired by gift, devise, or private purchase or by the exercise of the power of eminent domain by said Authority, pursuant to the provisions of Chapter Forty of the General Statutes of North Carolina."

Sec. 6. If any part or parts of this Act shall be held to be unconstitutional, such unconstitutionality shall not affect the validity of the remaining parts of this Act, and all laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 7. That this Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 11th day of June, 1969.