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Charter Cities Act, 1738

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Charter Cities Act, 1738
Long title An Act to establish a framework for the creation of charter cities as special economic zones to promote sustainable urban development across the Federation; among other things.
Bill Number XXX
Introduced by Deputy Isabella Montero (FCP)
Session of Cortes Federales 9th Cortes Federales
Dates
Bill Status Introduced
Date introduced 1738 AN
Last updated 1738 AN
Other legislation
Amendments None

The Charter Cities Act of 1738 establishes a framework for the federal government to commission and develop new planned cities across the Federation of Nouvelle Alexandrie. These cities will serve as special economic zones designed to accelerate sustainable urban development and economic growth in each region through public-private partnerships and targeted federal investment.

The Act provides for the establishment of one new charter city in each of the Federation's regions over a five-year period, with special economic zone status lasting for ten years followed by a five-year phase-out period. The legislation includes provisions for federal funding support to regional and local governments for implementation, while encouraging public-private partnerships and establishing a bond program to finance development.

Background

The Charter Cities initiative emerged from growing recognition of the need to promote balanced economic development across all regions of the Federation. While major metropolitan areas like Punta Santiago, Parap, and Cárdenas have seen significant growth, many regions still lack urban centers capable of serving as economic and innovation hubs. Additionally, rapid urbanization has created challenges around sustainable development and affordable housing in existing cities.

The concept builds on successful examples of special economic zones and planned cities both within Nouvelle Alexandrie and internationally. It aims to create modern, sustainable urban centers that can drive regional economic growth while avoiding common pitfalls of rapid, unplanned urbanization. The initiative particularly emphasizes environmental sustainability, mixed-use development, and integration with regional economic strengths.

The Act draws on extensive consultation with regional governments, urban planning experts, economists, and private sector stakeholders. It incorporates lessons learned from previous development initiatives while introducing innovative financing mechanisms and governance structures.

Key Provisions

  • Establishes 12 new planned cities across Nouvelle Alexandrie's regions as special economic zones, each spanning 2,000-5,000 hectares;
  • Creates the Federal Charter Cities Commission for oversight and Regional Charter City Authorities for local implementation;
  • Mandates specific land use: 35% residential, 25% commercial/industrial, 15% innovation zones, 20% green spaces, 5% cultural facilities;
  • Provides 15-year economic incentives including 50% corporate tax reduction and authorizes development bonds up to 5% of GDP;
  • Requires 25% affordable housing and prohibits displacement of more than 1,000 existing residents per city;
  • Establishes the Charter Cities Development Fund with minimum federal investment of 0.5% of GDP;
  • Mandates environmental standards including carbon neutrality targets and social requirements including community benefit agreements;
  • Sets population density requirements (25-300 persons/hectare) and minimum infrastructure corridors;
  • Implements a four-phase, five-year development timeline launching four cities per phase;
  • Requires comprehensive environmental and social impact assessments with regular public performance monitoring.

Legislative History

Stage Date Chamber Action Votes (Y-N-A) Details
1 1738 AN Federal Assembly Introduction - Introduced by Deputy Montero

Bill as submitted to the "Hopper" of the Federal Assembly, 1738 AN

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CHARTER CITIES ACT, 1738

THE READING OF A BILL TO ESTABLISH A FRAMEWORK FOR THE CREATION OF CHARTER CITIES AS SPECIAL ECONOMIC ZONES TO PROMOTE SUSTAINABLE URBAN DEVELOPMENT ACROSS THE FEDERATION; AMONG OTHER PURPOSES.

Presented by Deputy Isabella Montero (FCP)

Ordered, by the Cortes Federales of Nouvelle Alexandrie, to be Printed, 1738 AN.

BE IT ENACTED by the King's Most Excellent Majesty, by and with the advice and consent of the Cortes Federales, in this present session assembled, and by the authority of the same, as follows:-

PART I: PRELIMINARY PROVISIONS

Article 1: Short Title

  1. This Act may be cited as the "Charter Cities Act, 1738."

Article 2: Definitions

  1. For the purposes of this Act:
    1. "Charter city" means a new planned urban development established under this Act;
    2. "Commission" means the Federal Charter Cities Commission;
    3. "Development period" means the initial 10-year period of special economic zone status;
    4. "Phase-out period" means the 5-year period following the development period;
    5. "Region" means any of the administrative regions of the Federation;
    6. "Master Developer" means the primary entity responsible for the planning, construction, and initial operation of a charter city;
    7. "Innovation Zone" means designated areas within charter cities for research, development, and technology companies;
    8. "Social Impact Assessment" means the mandatory evaluation of effects on local communities before and during development;
    9. "Regional Economic Integration Plan" means the framework for connecting charter cities to their regional economies;
    10. "Development Bond" means financial instruments issued under Article 8 of this Act;
    11. "Smart City Infrastructure" means integrated digital and technological systems for urban management;
    12. "Green Infrastructure" means environmentally sustainable infrastructure systems.

Article 3: Objectives

  1. The objectives of this Act are to:
    1. Promote balanced economic development across the Federation;
    2. Create sustainable urban centers in each region;
    3. Attract private investment and foster innovation;
    4. Generate employment opportunities;
    5. Support regional economic specialization;
    6. Demonstrate best practices in urban planning and development;
    7. Foster technological innovation and digital transformation;
    8. Ensure equitable development and social inclusion;
    9. Promote regional economic integration;
    10. Establish best practices in sustainable urban development.

PART II: ESTABLISHMENT OF CHARTER CITIES

Article 4: Authorization

  1. The Federal Government, in close consultation with regional governments, is hereby authorized to establish charter cities within the Federation, subject to the following conditions:
    1. One charter city shall be established in each Region of the Federation;
    2. Each charter city shall be developed over a five-year period according to the timeline established in Article 16;
    3. Charter cities shall be established on land designated by regional governments, which must:
      1. Be free from legal encumbrances and disputes;
      2. Have direct access to major transportation networks;
      3. Be located within 100 kilometers of an existing major urban center;
      4. Not displace more than 1,000 existing residents;
      5. Not include protected environmental zones or cultural heritage sites.
    4. Each proposed charter city must receive approval from:
      1. The Federal Charter Cities Commission;
      2. The relevant Regional Government;
      3. The Council of State;
      4. The relevant Regional Environmental Protection Authority;
      5. The relevant regional and local authorities where applicable.
  2. Each charter city shall:
    1. Comprise a minimum area of 2,000 hectares and maximum of 5,000 hectares;
    2. Reserve land allocation as follows:
      1. 35% for residential development;
      2. 25% for commercial and industrial activities;
      3. 15% for innovation and technology zones;
      4. 20% for green spaces, recreation, and public facilities;
      5. 5% for cultural and community facilities.
    3. Maintain development density requirements of:
      1. High density: 150-300 persons per hectare in central zones;
      2. Medium density: 75-150 persons per hectare in mixed-use zones;
      3. Low density: 25-75 persons per hectare in peripheral zones.
    4. Establish infrastructure corridors of:
      1. 50-meter minimum width for major arterial roads;
      2. 30-meter minimum width for utility corridors;
      3. 100-meter minimum width for green corridors.
  3. The selection of locations for charter cities shall require:
    1. Comprehensive feasibility studies addressing:
      1. Economic viability over a 30-year period;
      2. Population growth projections;
      3. Infrastructure capacity requirements;
      4. Resource sustainability assessments;
      5. Regional economic impact analysis.
    2. Environmental impact assessments covering:
      1. Air and water quality impacts;
      2. Biodiversity preservation;
      3. Climate change resilience;
      4. Waste management capacity;
      5. Energy efficiency standards.
    3. Social impact assessments evaluating:
      1. Community displacement and compensation;
      2. Cultural heritage preservation;
      3. Public service accessibility;
      4. Social cohesion measures;
      5. Employment generation potential.
    4. Infrastructure capability analyses for:
      1. Transportation networks;
      2. Water and sanitation systems;
      3. Power generation and distribution;
      4. Telecommunications infrastructure;
      5. Smart city technology integration.
    5. Regional economic integration plans detailing:
      1. Supply chain connectivity;
      2. Labor market integration;
      3. Educational institution linkages;
      4. Healthcare system coordination;
      5. Emergency service cooperation.
  4. The Commission shall establish detailed regulations within 90 days regarding:
    1. Site selection criteria and evaluation methods;
    2. Development phasing requirements;
    3. Infrastructure standards and specifications;
    4. Environmental performance metrics;
    5. Social inclusion indicators.

Article 5: Federal Charter Cities Commission

  1. There is hereby established the Federal Charter Cities Commission.
  2. The Commission shall consist of:
    1. One Chairperson appointed by the Council of State;
    2. One Deputy Chairperson appointed by the Council of State;
    3. One representative from each Region;
    4. The Secretary of State or their designee;
    5. The Secretary of the Treasury or their designee;
    6. The Secretary of Civil Works and Transportation or their designee;
    7. Five independent experts in:
      1. Urban planning;
      2. Environmental sustainability;
      3. Economic development;
      4. Technology and innovation;
      5. Social development.
  3. The Commission shall meet at least monthly, shall have the power to establish its own rules of procedure, and shall maintain permanent offices in Cárdenas, including:
    1. Report quarterly to the Cortes Federales;
    2. Publish annual performance reports.
  4. The Commission's responsibilities include:
    1. Reviewing and approving charter city proposals;
    2. Establishing development standards and guidelines;
    3. Monitoring implementation and compliance;
    4. Coordinating between federal and regional authorities;
    5. Providing technical assistance to regional governments;
    6. Overseeing the Charter Cities Development Fund;
    7. Evaluating environmental and social impacts;
    8. Ensuring transparency and accountability;
    9. Managing dispute resolution processes.

Article 6: Regional Implementation

  1. Each Regional Government shall:
    1. Establish a Regional Charter City Authority within 180 days of this Act's passage;
    2. Designate suitable land for charter city development;
    3. Provide necessary infrastructure connections;
    4. Ensure coordination with local authorities;
    5. Submit quarterly progress reports to the Commission.
  2. Regional Charter City Authorities shall:
    1. Consist of:
      1. One Director appointed by the Regional Governor;
      2. One Deputy Director for Operations;
      3. One Deputy Director for Planning;
      4. One Deputy Director for Community Relations;
      5. Technical and administrative staff as needed.
    2. Be responsible for:
      1. Implementing Commission guidelines;
      2. Managing local development processes;
      3. Coordinating with private sector partners;
      4. Monitoring compliance with standards;
      5. Engaging with local communities;
      6. Reporting to the Commission.
  3. Each Regional Charter City Authority shall prepare:
    1. A comprehensive development plan;
    2. An environmental protection strategy;
    3. A social integration program;
    4. An economic development roadmap;
    5. A technology implementation plan.

PART III: ECONOMIC FRAMEWORK

Article 7: Special Economic Zone Status

  1. Charter cities shall receive special economic zone status including:
    1. Tax Benefits:
      1. 50% reduction in corporate income tax for the first five years;
      2. 25% reduction for the following five years;
      3. Full exemption from property tax during construction;
      4. Reduced import duties on capital equipment.
    2. Regulatory Benefits:
      1. Expedited business registration processes;
      2. Streamlined permitting procedures;
      3. Simplified customs procedures;
      4. Special labor regulations.
    3. Innovation Incentives:
      1. R&D tax credits up to 150% of qualifying expenses;
      2. Patent box regime for new innovations;
      3. Technology transfer incentives;
      4. Innovation partnership frameworks.
  2. Requirements for maintaining special economic zone status:
    1. Meeting annual investment targets;
    2. Achieving employment goals;
    3. Complying with environmental standards;
    4. Maintaining transparency requirements;
    5. Submitting quarterly performance reports.

Article 8: Charter City Development Bonds

  1. The Federal Government is authorized to issue Charter City Development Bonds:
    1. Total issuance not to exceed:
      1. 5% of GDP for the entire program;
      2. 1% of GDP for any single charter city.
    2. Bond types shall include:
      1. General obligation bonds;
      2. Revenue bonds;
      3. Green bonds for environmental projects;
      4. Infrastructure bonds;
      5. Innovation bonds.
  2. Bond terms shall include:
    1. Maturities ranging from 5 to 30 years;
    2. Competitive market interest rates;
    3. Semi-annual interest payments;
    4. Options for early redemption;
    5. Public and private placement options.
  3. Use of proceeds shall be restricted to:
    1. Infrastructure development;
    2. Public facilities construction;
    3. Environmental protection measures;
    4. Technology implementation;
    5. Social infrastructure.

Article 9: Public-Private Partnerships

  1. The Commission shall establish frameworks for:
    1. Infrastructure partnerships;
    2. Service delivery partnerships;
    3. Technology partnerships;
    4. Research and development partnerships;
    5. Social infrastructure partnerships.
  2. All partnerships shall require:
    1. Competitive bidding processes;
    2. Performance bonds;
    3. Regular auditing;
    4. Public interest protections;
    5. Community benefits agreements.
  3. Partnership agreements must include:
    1. Clear risk allocation frameworks;
    2. Performance metrics and standards;
    3. Dispute resolution procedures;
    4. Exit provisions;
    5. Technology transfer requirements.

PART IV: FUNDING AND SUPPORT

Article 10: Charter Cities Development Fund

  1. There is hereby established the Charter Cities Development Fund.
  2. The Fund shall receive:
    1. Annual federal appropriations;
    2. Bond proceeds;
    3. Development partner contributions;
    4. Private sector investments;
    5. Revenue sharing proceeds.
  3. The Fund shall be used for:
    1. Infrastructure development;
    2. Environmental protection;
    3. Social programs;
    4. Technology implementation;
    5. Capacity building.
  4. Fund governance shall include:
    1. An independent board of directors;
    2. Professional fund management;
    3. Regular external audits;
    4. Public reporting requirements;
    5. Performance monitoring systems.

Article 11: Federal Support

  1. The Federal Government shall provide:
    1. Initial capital investment of not less than 0.5% of GDP;
    2. Technical assistance programs;
    3. Infrastructure connections to national networks;
    4. Regulatory support and coordination;
    5. Administrative guidance.
  2. Support shall be conditional on:
    1. Meeting development milestones;
    2. Maintaining environmental standards;
    3. Achieving social inclusion goals;
    4. Implementing transparency measures;
    5. Demonstrating financial sustainability.

Article 12: Regional Support Requirements

  1. Regional governments shall provide:
    1. Land for development;
    2. Local infrastructure connections;
    3. Administrative support;
    4. Community engagement programs;
    5. Environmental protection measures.
  2. Regional support shall include:
    1. Integration with regional development plans;
    2. Protection of existing communities;
    3. Environmental compliance measures;
    4. Social inclusion programs;
    5. Economic sustainability initiatives.

PART V: DEVELOPMENT STANDARDS

Article 13: Urban Planning Requirements

  1. Charter cities shall be designed according to:
    1. Mixed-use development principles;
    2. Transit-oriented development standards;
    3. Smart city technologies;
    4. Sustainable infrastructure requirements;
    5. Social inclusion guidelines.
  2. Required elements include:
    1. Minimum 30% public and green spaces;
    2. Integrated transportation systems;
    3. Distributed utility networks;
    4. Community facilities;
    5. Cultural preservation areas.

Article 14: Environmental Standards

  1. Charter cities shall implement:
    1. Carbon neutrality targets;
    2. Circular economy principles;
    3. Biodiversity protection measures;
    4. Climate adaptation strategies;
    5. Renewable energy requirements.
  2. Environmental programs shall include:
    1. Waste reduction and recycling;
    2. Water conservation measures;
    3. Air quality monitoring;
    4. Ecosystem protection;
    5. Green building standards.

Article 15: Social Infrastructure

  1. Each charter city shall provide:
    1. Affordable housing comprising 25% of residential units;
    2. Public education facilities;
    3. Healthcare services;
    4. Community centers;
    5. Cultural facilities.
  2. Social programs shall ensure:
    1. Local employment opportunities;
    2. Skills training programs;
    3. Community engagement;
    4. Cultural preservation;
    5. Social services access.

PART VI: IMPLEMENTATION, CLOSING PROVISIONS

Article 16: Timeline

  1. Implementation shall proceed in phases:
    1. Phase 1 (Years 1-2):
      1. Commission establishment;
      2. Regulation development;
      3. Site selection;
      4. Initial planning.
    2. Phase 2 (Years 2-3):
      1. First wave development (4 cities);
      2. Infrastructure construction;
      3. Initial operations;
    3. Phase 3 (Years 3-4):
      1. Second wave development (4 cities);
      2. Continued expansion;
      3. Operations optimization.
    4. Phase 4 (Years 4-5):
      1. Final wave development (4 cities);
      2. Network completion;
      3. Full operations.

Article 17: Monitoring and Evaluation

  1. The Commission shall establish:
    1. Independent audit requirements;
    2. Citizen oversight committees;
    3. Public performance dashboards;
    4. Whistleblower protection;
    5. Impact assessment frameworks.
  2. Evaluations shall cover:
    1. Economic performance;
    2. Environmental compliance;
    3. Social impacts;
    4. Infrastructure development;
    5. Financial sustainability.

Article 18: Commencement and Application

  1. This Bill shall apply to all of the Federation of Nouvelle Alexandrie.
  2. This Bill shall not become law unless it has been given Royal Assent.
  3. This Bill shall be published and made publicly available.
  4. In the event any provision or part of this Bill is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Bill, will be inoperative.
  5. The Council of State shall issue implementing rules within 90 days, establish required bodies within 180 days, begin operations within 270 days, and accept proposals within 365 days of the full constitutional passage of this Act.
  6. If any provision of this Act is found to be invalid or unenforceable, only that particular provision or part so found, and not the entire Act, will be inoperative.

Cost and Funding

The Charter Cities Act mandates a minimum initial federal investment of 0.5% of Nouvelle Alexandrie's GDP, which at NAX€ 34.9 trillion (1737 AN) amounts to NAX€ 174.5 billion in base funding. The total program cost represents approximately 9% of Nouvelle Alexandrie's 1738 AN GDP, to be spent over a five-year period, averaging 1.8% of GDP per year in implementation costs. This makes it one of the largest infrastructure and development programs in the Federation's history.

Direct Federal Investment

  • Initial capital investment (0.5% GDP): NAX€ 174.5 billion
  • Charter Cities Development Fund: NAX€ 52.35 billion (estimated annual allocation)
  • Infrastructure connection funding: NAX€ 87.25 billion (estimated)

Bond Authority

The Act authorizes bond issuance with the following caps:

  • Total program cap (5% GDP): NAX€ 1.745 trillion;
  • Per-city cap (1% GDP): NAX€ 349 billion;
  • Environmental projects (0.5% GDP): NAX€ 174.5 billion.

Estimated Costs per Charter City

Average costs per charter city are estimated at:

  • Land acquisition and preparation: NAX€ 25-35 billion;
  • Basic infrastructure: NAX€ 45-60 billion;
  • Public facilities: NAX€ 30-40 billion;
  • Smart city systems: NAX€ 15-20 billion;
  • Environmental systems: NAX€ 20-25 billion;

Total per city: NAX€ 135-180 billion

Total Program Cost

For all 12 charter cities over the five-year implementation period:

  • Direct federal investment: NAX€ 174.5 billion
  • Bond financing: NAX€ 1.745 trillion (maximum)
  • Regional government contributions: NAX€ 349 billion (estimated)
  • Private sector investment: NAX€ 872.5 billion (projected)

Total program cost: NAX€ 3.141 trillion

Economic Impact

The program is projected to generate:

  • 2.5 million direct jobs
  • NAX€ 2.5 trillion in economic activity over 10 years
  • 15% increase in regional GDP where charter cities are located
  • NAX€ 349 billion in annual tax revenue once fully operational
  • 12 new innovation hubs supporting technology sector growth

Funding Sources

Source Amount (NAX€) Percentage
Federal Direct Investment 174.5 billion 5.6%
Bond Financing 1.745 trillion 55.6%
Regional Governments 349 billion 11.1%
Private Sector 872.5 billion 27.7%
Total 3.141 trillion 100%

See also

References

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