Permitting designated authority to borrow funds for preconstruction activities relating to Gallery Place sports arena.

(a) Permitting borrowing. —

(1) In general. — The designated authority may borrow funds through the issuance of revenue bonds, notes, or other obligations which are secured by revenues pledged in accordance with paragraph (2) of this subsection to finance, refinance, or reimburse the costs of arena preconstruction activities described in § 47-398.04 if the designated authority is granted the authority to borrow funds for such purposes by the District of Columbia government.

(2) Revenue required to secure borrowing. — The designated authority may borrow funds under paragraph (1) of this subsection to finance, refinance, or reimburse the costs of arena preconstruction activities described in § 47-398.04 only if such borrowing is secured (in whole or in part) by the pledge of revenues of the District of Columbia which are attributable to the sports arena tax imposed as a result of the enactment of D.C. Law 10-128 (as amended by the Arena Tax Amendment Act of 1994 (D.C. Act 10-315)) and which are transferred by the Mayor of the District of Columbia to the designated authority pursuant to § 47-2752(a-1)(3) .

(b) Treatment of debt created. — Any debt created pursuant to subsection (a) of this section shall not:

(1) Be considered general obligation debt of the District of Columbia for any purpose, including the limitation on the annual aggregate limit on debt of the District of Columbia under § 1-206.03(b) ;

(2) Constitute the lending the public credit for private undertakings for purposes of § 1-206.02(a)(2) ; or

(3) Be a pledge of or involve the full faith and credit of the District of Columbia.