§ 13-6. Determining need for agreement.

(a) In general.

For each hotel development project in which the City participates or has a financial interest, the City shall determine whether the City has a proprietary interest in the project.

(b) Governing criteria.

The City is deemed to have a proprietary interest in a hotel development project if the City determines that:

(1) through a lease of real property that is owned by the City and used for the project, the City receives ongoing revenue, excluding government fees, tax revenue, assessment revenue, or similar fees and revenues, except for tax revenue under the circumstances specified in items (2) and (3) of this subsection;

(2) ongoing revenues from the project, including incremental tax revenues generated by the project, are used to repay loans provided by the City to assist the development of the project;

(3) ongoing revenues from the project, including incremental tax revenues generated by the project, are used to pay debt service on bonds provided by the City to assist the development of the project;

(4) the City has significant assets at risk because it has agreed to underwrite or guarantee the development of the project or loans related to the project; or

(5) the City has a significant ongoing economic and nonregulatory interest that is at risk in the project's financial success and is likely to be adversely affected by labor-management conflict, except that no interest is considered "economic and nonregulatory" if it arises from the exercise of regulatory or police powers, such as taxation (except as set forth in items (2) and (3) of this subsection), zoning, or the issuance of permits or licenses.