Minutes 05/25/1999 - Laserfiche WebLink

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May 25, 1999 (j) The use permit shall not be transferable. 4. REVOCATION OF PERMIT: Violation of any of the above conditions may serve as grounds for revocation of the use permit by the City Council." Ayes: Benn, Griffin, Moody, Whitehurst, Holley Nays: None - City Manager's Report - 99 - 122 -Adoption of a resolution establishing Portsmouth Public Schools as a Qualified Zone Academy for purposes of issuing bonds under the federal Tax program. Recommendation: · Adoption of a resolution authorizing the issuance and sale of Qualified Zone Academy Bonds (QZABs). Adoption of this resolution is necessary in order for the City and Schools to apply for an allocation by the State of interest free bonds for school construction. Purpose and Need: · The Federal Taxpayer Relief Act of 1997 added Section 1397E of the Internal Revenue Code to authorize a new type of debt instrument known as a qualified zone academy bond (QZAB). These are taxable bonds issued by a state or local government to be used to improve certain eligible public schools. · An eligible school is one in which 35% or more of the school population qualifies for free or reduced lunch. · In lieu of receiving interest payments, a holder of a QZAB receives a federal income tax credit for each year the QZAB is outstanding. · These bonds will be "interest free" to the City. · The City of Portsmouth has received an allocation from the Commonwealth in the amount of $4,650,764 to issue QZABs. The Schools must complete an application package by June 15, 1999 that includes the following: · A detailed description of the proposed project(s) to be funded; · Authorizing resolutions approving the project and financing plan from both the local school board and local governing body; · A signed assurance by the City Manager and Division Superintendent that 95% or more of the funds will be directly used for the project. · A letter of intent from a selected lending institution outlining the terms of the bonds should the application be accepted, and · A signed commitment from a private entity(ies) for qualified contributions with a present value (as of the bond issue date) of not less than 10% of the proceeds of the bond issue. · It is the intent of the School System to use these bonds to fund projects proposed in the school facilities plan, once adopted. · If approved by the State, these bonds would be issued no later than December.