§ 13-2. Findings and declarations.

(a) City's risks and liabilities.

In the course of managing real property that it owns or otherwise in carrying out its functions in the public interest, the City participates in developments, as a property owner, lessor, proprietor, lender, or guarantor, facing similar risks and liabilities as those faced by other business entities that participate in these ventures.

(b) Proprietary interest requires prudent management.

In these situations, the City:

(i) has an ongoing proprietary interest in the developments and a direct interest in their financial performance; and

(ii) must make prudent management decisions, similar to any private business entity, to ensure efficient management of its business concerns and to maximize benefits and minimize risks.

(1) One risk is the possibility of labor-management conflict.

(2) A major potential outcome of labor-management conflict is economic action by labor organizations against employers. Experience of municipal and other investors demonstrates, for example, that organizing drives under formal and adversarial union certification processes often deteriorate into protracted and acrimonious labor-management conflict.

(3) Labor-management conflict can:

(i) result in construction delays, work stoppages, picketing, strikes, consumer boycotts, and other forms of adverse economic pressure; and

(ii) adversely affect the City's financial or other proprietary business interest by causing delay in the completion of a project, by reducing the revenues or increasing the costs of the project, and by generating negative publicity.

(d) Risks heightened in hotel industry.

(1) These risks are heightened in the hotel industry, because this industry is so closely related to tourism, which is a linchpin of the City's economy.

(2) Labor-management conflict in hotel development projects in which the City is an economic participant can jeopardize the operation of related tourist and commercial facilities, as well as the City's national reputation as a tourist and convention destination.

(e) Reducing risk through labor peace agreement.

One way of reducing the risk to the City's proprietary interests is to require, as a condition of the City's investment or other economic participation in a hotel development project, that employers participating in the project seek agreements with labor organizations in which the labor organizations agree to forbear from adverse economic action against the employers' operations.