!Creation Date: 09/15/22> <!Author: Arizona Legislative Council> <!Typist: dbupdate>
5-807. Constructing and operating multipurpose facility
A. The authority shall construct, finance, furnish, maintain, improve, operate, market and promote the use of a multipurpose facility and do all things necessary or convenient to accomplish those purposes. One or more site hosts shall provide the land, infrastructure and parking facilities associated with the multipurpose facility. The authority shall own the multipurpose facility, subject only to liens and other security interests of record. The authority may own or lease the land on which the multipurpose facility is located.
B. The executive director shall:
1. Recommend to the board for its approval a contractor and architect, unless the architect will be employed directly by the contractor.
2. Work with the users, contractor and architect to prepare a design for the multipurpose facility and submit the design to the board for its approval.
3. Prepare the construction budget and schedule for the multipurpose facility and submit them to the board for its approval.
4. Prepare the annual operating budget for the multipurpose facility and submit it to the board for its approval.
5. Negotiate use agreements with parties that will use the multipurpose facility on a regular basis, including parties that will make a contribution toward the construction of the facility, and submit the agreements to the board for its final action. Any such agreement that grants naming or other advertising rights must include a provision requiring the multipurpose facility name and other advertising to comply with community decency standards.
6. Negotiate agreements with the contractor and architect, unless the architect will be employed directly by the contractor, and submit the agreements to the board for its final action.
7. Review construction change order requests and submit them to the board with recommendations for final action.
8. Arrange for capital and operating financing, as needed, and submit the transactions to the board for its final action.
9. Analyze and recommend to the board potential sites for the multipurpose facility proposed at any time before September 13, 2002 by a site host.
10. Negotiate agreements with site hosts, including intergovernmental agreements pursuant to title 11, chapter 7, article 3 if a site host is a public agency, as defined in section 11-951, concerning the land, infrastructure and parking to be provided by the site host and submit the agreements to the board for its final action. All agreements must:
(a) Provide that the site host shall indemnify and hold harmless the authority and this state from any liability to the extent resulting from the negligent or intentional acts or omissions of the site host, its representatives and agents or employees resulting from any access ways provided by the site host and reasonably used by the public for ingress and egress to the land, infrastructure and parking facilities provided by the site host for use in connection with the multipurpose facility.
(b) Require any site host to maintain insurance or an adequate self-insurance plan for any liability of the site host, with a waiver of sovereign immunity if necessary.
11. In consultation with the users of the multipurpose facility, negotiate a contract with a management firm to operate, promote and market the multipurpose facility and submit the contract to the board for its final action.
12. In consultation with the users of the multipurpose facility, negotiate contracts with concessionaires and other providers for food, beverage and other services at the multipurpose facility and submit the contracts to the board for its final action.
13. Take other actions that are necessary to ensure that the multipurpose facility is constructed according to the schedule and budget approved by the board.
C. Title 34 applies to the authority, except that regardless of the funding source for design and construction of facilities and structures and notwithstanding title 41, chapter 23, the authority may establish alternative systems and procedures, including the use of the design-build method of construction and the use of qualifications-based selection of contractors with experience in stadium design or construction, by either direct selection or by public competition, to expedite the design and construction of any of its facilities or structures or any facilities or structures leased to it or used by it pursuant to an intergovernmental agreement. For purposes of this subsection:
1. "Design-build" means a process of entering into and managing a contract between the authority and another party in which the other party agrees to both design and build any structure, facility or other items specified in the contract.
2. "Qualifications-based selection" means a process of entering into and managing a contract between the authority and another party in which the other party is selected by the authority on the basis of the party's qualifications and experience in designing or constructing facilities, structures or other items similar to those the authority is authorized to construct or lease.
D. The plans and specifications for the multipurpose facility are subject to review and approval by the board. The board shall inspect and approve construction of the facility, if it conforms to the plans and specifications and applicable engineering standards. Throughout the life of the multipurpose facility, the board is responsible and shall monitor and take action as necessary to ensure the appropriate maintenance and operation of the facility.
E. To assure that a site host has the financial capability to perform its obligations under any agreements with the authority, before entering into an agreement with any site host, the authority shall either:
1. Cause a review of the financial books and records of the site host by an independent certified public accountant selected by the authority who shall prepare for the authority, and attest to, a report setting forth the results of that review.
2. Provide in the agreement with the site host another method for assuring the payment of the obligations of the site host. The alternative methods for assuring payment may include:
(a) Deposits in a construction trust account in an amount equal to the site host's estimated obligations to the authority.
(b) Posting a bond in an amount equal to the site host's estimated obligations to the authority.
(c) Providing the authority with a letter of credit in an amount equal to the site host's estimated obligations to the authority.
(d) Other similar financial assurance.
F. The authority shall provide in any agreements between the authority and a site host that is an Indian tribe:
1. A waiver of sovereign immunity to allow the enforcement by the authority of the agreements entered into between the authority and the Indian tribe.
2. A consent to the jurisdiction of state and federal courts by the Indian tribe.
3. A waiver of the right to require the authority to exhaust tribal remedies before bringing an action in state or federal courts.
4. That state and federal law will govern the interpretation of any agreements entered into between the authority and the Indian tribe.
5. An agreement that the Indian tribe will levy, collect and pay to the authority a charge or other imposition equivalent to the taxes provided in section 5-840 for any hotel located within a development area to be defined by agreement between the authority and the Indian tribe around the multipurpose facility.
6. An agreement that the Indian tribe will provide for an annual disclosure of gross proceeds of sales or gross income as determined for purposes of a tax base under the transient lodging transaction privilege tax classification under section 42-5070 and contributions made to the authority equal to the taxes as provided by section 5-840.