Termination of Comprehensive Agreement by Public Entity—remedies
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The responsible public entity may terminate a comprehensive agreement for a qualifying transportation facility:
If a material default, as defined in the comprehensive agreement, in the performance of the eligible private entity's duties under the comprehensive agreement or under the service contract, if any, has occurred and is continuing;
If development, redevelopment, or operation of the qualifying transportation facility has not begun by the date established by the responsible public entity as such date has been extended;
For failure to provide reasonably adequate service and facilities at reasonable and uniform user fees as provided by this chapter; or
For failure to comply with any order of a court of record.
Prior to any termination of a comprehensive agreement, the responsible public entity shall give written notice to the eligible private entity and any person providing financing for the qualifying transportation facility, including any trustee or agent for any person providing financing. The eligible private entity and the persons providing financing for the qualifying transportation facility shall be entitled to a reasonable time period to cure the event that could lead to termination of the comprehensive agreement.
Upon the termination of the comprehensive agreement, the responsible public entity may exercise any or all of the following remedies:
The responsible public entity may elect to take over the transportation facility and in such case it shall succeed to all of the right, title, and interest in such transportation facility, subject to any liens on revenues previously granted by the eligible private entity to any person providing financing therefor and subject to subsection (d). Any liens on the real estate and tangible property comprising the transportation facility or facilities shall be deemed to be extinguished and shall be released on request if the responsible public entity takes over the qualifying transportation facility pursuant to this subsection (c);
Any responsible public entity having the power of condemnation under applicable eminent domain law may exercise such power of condemnation to acquire the qualifying transportation facility. Nothing in this chapter shall be construed to limit the exercise of the power of condemnation by eminent domain by any responsible public entity against a qualifying transportation facility after termination of the comprehensive agreement. Any person that has provided financing for the qualifying transportation facility, and the eligible private entity, to the extent of the person's capital investment, may be entitled to certain compensation as set forth in the comprehensive agreement; or
The responsible public entity may exercise all other rights and remedies which may be available to it at law or in equity.
In the event the responsible public entity elects to take over a qualifying transportation facility pursuant to subdivision (c)(1), the responsible public entity may develop, redevelop, or operate the transportation facility, impose user fees for the use of the transportation facility, and comply with any service contracts as if it were the eligible private entity. Any revenues that are subject to a lien shall be collected for the benefit of, and paid to, secured parties, as their interests may appear, to the extent necessary to satisfy the eligible private entity's obligations to secured parties, including the maintenance of reserves, and such liens shall be correspondingly reduced and, when paid off, released. Before applying such payments to or for the benefit of secured parties, the responsible public entity may use revenues to pay current development, redevelopment, and operation costs of the transportation facility, including compensation to the responsible public entity for its services in operating and maintaining the qualifying transportation facility. Remaining revenues, if any, after all such payments have been made shall be paid to the eligible private entity over the time period that the comprehensive agreement would have been in effect had it not been terminated. The right to receive such payment, if any, shall be considered just compensation for the transportation facility or facilities.
The full faith and credit and unlimited taxing power of the responsible public entity shall not be pledged to secure any financing of the eligible private entity by the election to take over the qualifying transportation facility. Assumption of development, redevelopment, or operation of the qualifying transportation facility shall not obligate the responsible public entity to pay any obligation of the eligible private entity from sources other than revenues.