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A RESOLUTION OPPOSING ANY ACTION BY THE GENERAL ASSH~KLY THAT WOULD LIMIT THE VII~INIA PORT AUTHC~ITY FRC~ RENEGOTIATING LEASES ~HIC~ ARE WHEREAS, there exist long term leases at all facilities of the Virgir~a Pozt Authority (VPA) except Portsmouth Marine Terminals; and WHEREAS, under the Unification Agreement entered into between VPA, ~ City of Portsmouth, portsmoUth Port And Industrial Coalmission (PPIC), VPA assumed all obligations of the PPIC. ?~EREAS, at the t~e of the assumption of all obligations by ~PA under said Unification Agreement, there ey~sted a lease between (PPIC) and the PorhSmouth Terminals, Inc., the terminal operator; and ~EqEREAS, said lease provided that the terminal operator ~vould have ~he option of first refusal bo enter Ln%o negotiations with PPIC for extension of said lease for an additional ten (10) year term; ~ WHEREAS, the City of Portsmouth considers such option of first re- fusal to enter into negotiations to be a moral obligation of the VPA and may well be a legal obligation under said Unification Agre~uent; and W74RREAS, if VPA does not negotiate in good .faith the extension of said lease, VPA will have breached the Unification Agreement; and ~qEREAS, the current lease expires in December, 1979, the terminal operator has neither the financing capability nor incentive %o make in- vestments in capital improvements or equmpment; and WHEREAS, if a lease is not negotiated there is no incentive to market the port and enter into contracts with shipping lines. NOW, ~EREFORE, BE IT RESOLVED by the Council of the City of Ports- n~uth, Virginia, that the Council vehemently opposes any action on the part of the General Assembly of VirgiD~a which would cause ~PA to breach the temms and conditions set forth in the Unification Agreement between. VPA and the City of PortSmOUth. BE IT FURTHER RESOLVED that this Council opposes any action of the General Assembly which would limit the Virginia Port Authority frc~ entering into negotiations with the present terminal operator to extend the present lease for an additional ten (10) year term.