Ch. 603

1995 LAWS OF MARYLAND

5. 6. 5. OCEAN CITY AND THE AUTHORITY WILL EACH OWN
A 50% LEASEHOLD INTEREST AS TENANTS IN COMMON IN THE IMPROVEMENTS
COMPRISING THE EXISTING OCEAN CITY CONVENTION CENTER AND THE OCEAN
CITY CONVENTION CENTER EXPANSION FOR THE DURATION OF ANY BONDS ISSUED
AS AUTHORIZED UNDER § 13-712(A)(1) OF THIS SUBTITLE, WITH NEITHER OCEAN
CITY NOR THE AUTHORITY ENTITLED TO SELL, ASSIGN, MORTGAGE, PLEDGE, OR
ENCUMBER THE OCEAN CITY CONVENTION CENTER FACILITY (OR ANY LEASEHOLD
INTEREST THEREIN) WITHOUT THE PRIOR CONSENT OF THE OTHER, EXCEPT FOR
LIENS IN FAVOR OF OCEAN CITY'S AND THE AUTHORITY'S RESPECTIVE
BONDHOLDERS;

(II)     A DEED, LEASE, OR WRITTEN AGREEMENT WITH OCEAN CITY
PERMITTING THE AUTHORITY TO SUPERVISE DESIGN, CONSTRUCT, AND EQUIP, OR
CONTRACT FOR THE DESIGN AND CONSTRUCTION OF, CONSTRUCTION, AND
EQUIPPING OF THE OCEAN CITY CONVENTION CENTER FACILITY EXPANSION, AND
TO PLEDGE THE OCEAN CITY CONVENTION CENTER FACILITY AND THE OCEAN CITY
CONVENTION CENTER SITE OR THE LEASEHOLD INTEREST THEREIN, AS SECURITY
FOR THE AUTHORITY'S BONDS; AND

(III)    A WRITTEN AGREEMENT WITH OCEAN CITY:

1.        WHEREBY OCEAN CITY AGREES TO CONSTRUCT IN A
GOOD AND WORKMANLIKE MANNER THE OCEAN CITY CONVENTION CENTER
EXPANSION IN ACCORDANCE WITH PLANS APPROVED BY THE AUTHORITY, TO
MARKET, PROMOTE, AND OPERATE THE OCEAN CITY CONVENTION CENTER
FACILITY IN A MANNER WHICH MAXIMIZES THE OCEAN CITY CONVENTION
CENTER'S ECONOMIC RETURN (WHICH SHALL NOT BE CONSTRUED TO REQUIRE
GAMBLING ACTIVITIES IN THE OCEAN CITY CONVENTION CENTER), AND TO
MAINTAIN AND REPAIR THE OCEAN CITY CONVENTION CENTER FACILITY SO AS TO
KEEP THE OCEAN CITY CONVENTION CENTER FACILITY IN FIRST CLASS OPERATING
CONDITION; AND

2.        THAT INCLUDES PROVISIONS THAT:

A.       PROTECT THE AUTHORITY'S AND OCEAN CITY'S
RESPECTIVE INVESTMENT IN THE OCEAN CITY CONVENTION CENTER FACILITY;

B.       REQUIRE THE AUTHORITY AND OCEAN CITY TO EACH
CONTRIBUTE TO OPERATING DEFICITS AND A CAPITAL IMPROVEMENT RESERVE
FUND, FOR THE PERIOD BEGINNING UPON THE COMPLETION OF THE EXPANDED
AND RENOVATED OCEAN CITY CONVENTION CENTER FACILITY AND CONTINUING
DURING THE PERIOD THAT THE AUTHORITY'S OCEAN CITY CONVENTION CENTER
FACILITY BONDS ARE OUTSTANDING, AS FOLLOWS:

I. THE AUTHORITY SHALL CONTRIBUTE TWO THIRDS AND
OCEAN CITY SHALL CONTRIBUTE ONE THIRD TO ANNUAL OPERATING DEFICITS;

II. THE AUTHORITY AND OCEAN CITY SHALL EACH
ANNUALLY CONTRIBUTE TO AN APPROPRIATE CAPITAL IMPROVEMENT RESERVE
FUND; AND

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