2016 Resolutions - Laserfiche WebLink

Home Browse Search

R-16-28 A RESOLUTION AUTHORIZING THE SETTLEMENT OF CLAIMS BY AND AGAINST SOUTH NORFOLK JORDAN BRIDGE, LLC. WHEREAS, on June 9, 2015 the City of Portsmouth filed a lawsuit against South Norfolk Jordan Bridge, LLC ("SNJB") in Portsmouth Circuit Court asserting a real estate tax lien against that portion of the South Norfolk Jordan Bridge (the "Bridge") located within the City's jurisdictional boundaries (the "Claim"); and WHEREAS, SNJB subsequently filed a counterclaim asserting, inter alia, that the Bridge is not subject to real estate taxation by the City because of SNJB's interpretation that § 15.2- 3105 removes the Bridge from the City's jurisdictional boundaries (the "Counterclaim"); and WHEREAS, as a result of extensive negotiations and with the assistance of the Commonwealth of Virginia, the parties have reached agreement in principle on a proposed settlement including the following terms: (1) Beginning January 1, 2017 SNJB will pay the City a fee equal to 3.5 cents per vehicle crossing the Bridge, which fee will increase to 5 cents in 2027 and will further increase with any subsequent increases in toll rates; and (2) In addition, SNJB will pay the City: (a) $105,000 by January 31, 2017; (b) $30,000 annually from January 2017-July 2027; and (c) not less than $223,000 and as much as $1,000,000 (depending on delinquent account recoveries) between the date of settlement and July 1, 2019; and (3) In addition, the Commonwealth of Virginia will provide the City an additional $1 million in transportation funding; and (4) In consideration of these payments, the City will not assert the right to tax the Bridge unless (a) the payments identified in (1)-(3) are not made to the City or (b) state law is clarified to confirm that the Bridge is taxable; and WHEREAS, the settlement is fair and reasonable given that it provides substantial revenue to the City and that the outcome of litigation is uncertain; NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that it hereby consents to the settlement, subject to all required Court approvals of the settlement agreement. BE IT FURTHER RESOLVED that the City Manager and/or the City Attorney, or their designees, be and hereby are authorized to execute a settlement agreement and Order to settle and resolve the Claim and Counterclaim, and to execute such additional documents as maybe deemed in the best interest of the City regarding this matter.