Spokane Municipal Code

Title 04 Administrative Agencies and Procedures

Chapter 04.25 Public Development Authority

Article I. General Provisions

Section 04.25.040 Limitation on Powers

1. The authority has no power of eminent domain nor power to levy taxes or special assessments.

2. The authority may not incur or create any liability that permits recourse by any party or member of the public to any assets, services, resources or credit of the City.

1. 1. All liabilities incurred by the authority shall be satisfied exclusively from the assets and credit of the authority.

1. 2. No creditor or other person may have any recourse to the assets, credit or services of the City on account of any debt, obligation, liability, act or omission of the authority.

3. Use of Funds.

1. 1. No funds, assets or property of the authority may be used for any partisan political activity or to further the election or defeat of any candidate for public office.

1. 2. No funds nor a substantial part of the activities of the authority may be used for publicity or educational purposes designed to support or defeat legislation pending before the Congress of the United States, or the Legislature of the State of Washington, or the city council.

1. 3. Notwithstanding subsections (1) and (2) of this section, funds may be used for representatives of the authority to communicate with members of Congress, state legislators and city council members concerning funding and other matters directly affecting the authority, so long as such activities:

1. 1. 1. do not constitute a substantial part of the authority’s activities; and

1. 1. 2. are not specifically limited in its charter.

4. All funds, assets and credit of the authority must be applied toward or expended upon services, projects and activities authorized by its charter. No part of the net earnings of the authority may inure to the benefit of, or be distributable as such to, its directors or officers or other private persons, except the authority is authorized and empowered to:

1. 1. compensate its officials and others performing services for the authority, including legal counsel, a reasonable amount for services rendered and reimburse reasonable expenses actually incurred in performing their duties;

1. 2. assist its officials, as members of a general class of persons to be assisted by an authority-approved project or activity, to the same extent as other members of the class as long as no special privilege or treatment accrues to such official by reason of status or position in the authority;

1. 3. defend and indemnify any current or former director or employee, and spouse and marital community thereof, against all costs, expenses, judgments and liabilities, including attorney’s fees, reasonably incurred by or imposed upon such director or employee in connection with or resulting from any claim, action or proceeding, civil or criminal, by reason of being or having been an official of the authority, or by reason of any action alleged to have been taken or omitted by him as such official, so long as the official was acting:

1. 1. 1. in good faith on behalf of the authority, and

1. 1. 2. within the scope of duties imposed or authorized by law;

1. 4. purchase insurance to protect and hold personally harmless any of its officials (including employees and agents) from any action, claim or proceeding instituted against the foregoing individuals arising out of the performance, in good faith, of duties for, or employment with, the authority and to hold these individuals harmless from any expense connected with the defense, settlement or monetary judgment from such action, claim or proceeding;

1. 5. sell assets for a consideration greater than their reasonable market value or acquisition cost, charge more for services that the expense of providing them, or otherwise secure an increment in a transaction, or carry out any other transaction or activity, as long as gain is not the principal object or purpose of the authority’s transaction or activity and the gain is applied to or expended upon services, projects and activities as aforesaid.

5. The authority may not issue shares of stock, pay dividends, make private distributions of assets, make loans to its directors or employees, or otherwise engage in business for private gain.

Date Passed: Monday, March 26, 2007

Effective Date: Sunday, May 6, 2007

Recodification ORD C33995 Section 1