Ch. 4

1992 LAWS OF MARYLAND

agreement relating to payment in lieu of taxes, and prior to
authorization to construct the golf course, the Board of Public
Works must be satisfied that the hotel/conference center will be
built. During negotiations on the documents, the leadership of the
budget committees and the Director of the Department of Fiscal
Services shall be apprised, on a periodic basis, of the status of the
major components.

Further provided, in the event of the sale of the project and
assignment of the ground lease, the MICRF Loan documents shall
include a provision requiring the prepayment in full of the MICRF
Loan (and only if), after taking into consideration the net sales
proceeds (as defined in the Memorandum of Understanding and
assuming a full repayment of the MICRF Loan), the lessee will
receive a sum which will generate an internal rate of return of at
least 45% on the total project costs calculated in accordance with
standard internal rate of return procedures on an annual basis with
appropriate "rounding" adjustments.

Further, it is the intent of the legislature that commencing on the
date that the MICRF Loan is paid in full, any revenues collected
from the surcharges and participation rent shall be deposited into
the General Fund. Should the tenant sell the ground lease, any
State revenues generated from the sale shall be deposited into the
General Fund.

Further provided, that all construction and development costs shall
be verified and systematic on-site inspections performed by the
appropriate State agency or private contractor pursuant to policies
adopted by the Board of Public Works.

Further provided that unless there are documented commitments
of the equity and debt financing to construct the hotel/conference
center by September 1, 1991, the $7,200,000 shall not be expended
and the authorization shall be cancelled.

Further provided that no more than $3,500,000 of the equity
commitment may be provided by Allegany County and the State
will not reimburse the county for any part of any equity
commitment made by the county.

FURTHER PROVIDED THAT IF THE BOARD OF PUBLIC
WORKS HAS NOT APPROVED THE CONSTRUCTION OF
THE GOLF COURSE AS PROVIDED ABOVE BY
SEPTEMBER 1, 1992, THE $7,200,000 SHALL NOT BE
EXPENDED AND THE AUTHORIZATION SHALL BE
CANCELLED.....................................................................................            7,200,000

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