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1994 SESSION

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HB 1294 Haymarket Transportation Program.

Introduced by: Harry J. Parrish | all patrons    ...    notes | add to my profiles

SUMMARY:

Bond issue. Authorizes $49.1 million of 9(d) debt for the Haymarket Transportation Program, the transportation improvements related to the Disney's America project. It is anticipated the bonds will be 20-year bonds when proposed would have had a level debt service of $3.8 million annually. State sales and use tax collections within the Disney's America theme park will pay the debt service; however, beginning in the first full calendar year of operation of Disney's America, Disney's America guarantees sales and use tax receipts of $3.8 million annually for the life of the bonds. If less than $3.8 million is collected from the state sales and use tax within Disney's America theme park, Disney will make up the difference by paying such amount to the Haymarket Transportation Program Fund. To account for sales tax paid on all construction material, etc., used in the construction of Disney's America, Disney's America will receive a credit for such debt service equal to two years of debt service which can be used anytime during the first five years of operation of the park. After such period of time, any such unused credit shall expire. After such five year period, if state sales and use tax collections within the confines of Disney's America is less than $3.8 million, Disney can use excess collections for the next three years, with no interest, to offset such shortfall.

Prior to financing this bond issue, the following must occur: (i) rezoning of an area of at least 2,000 acres which includes a theme park for a project which proffers a capital investment of at least $400 million (ii) Walt Disney Company must maintain a net worth of at least $1 billion. If net worth drops below such amount, a surety bond is required; and (iii) the guarantee for the $3.8 million continues to be between the Commonwealth and the corporate parent (Walt Disney Company).

The $10.4 million for signage (in the four years during the 1994-96 and 1996-98 bienniums) shall be paid from the following: (i) Prince William County's secondary road funds; (ii) payment agreement between Prince William County and the Commonwealth Transportation Board; (iii) excess bond proceeds, if any; and (iv) Northern Virginia Transportation District road funds.

Walt Disney Company will provide land at no cost for a state built and operated visitors center located at the main gate to Disney's America. There is guaranteed access to the public at no charge. The Commonwealth shall provide dedicated workforce training of $600,000 annually, subject to appropriation, and will be made available for fiscal years 1997-98, 1998-99, and 1999-2000, and participation in statewide programs thereafter. A cooperative advertising program of $13 million, subject to appropriation, shall be established for the 1996-98 biennium with a 50/50 match, to be administered by the Virginia Department of Economic Development, Division of Tourism. An industry-wide cooperative advertising program shall be available under House Bill No. 1291 of the 1994 Session. The written agreement between the Commonwealth and the Walt Disney Company shall be signed by the Auditor of Public Accounts and the terms of such agreement shall be reported to the Speaker of the House, the President Pro Tempore of the Senate, and the three money committee chairmen prior to execution.


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