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<br />
<br /> At a joint Public Hearing meeting of the City Council, Planning Commission and Portsmouth
<br />Redevelopment ~nd Housing Authority-w~a$ ~eld in the Council Chamber on February 9, 19769
<br />there were present:
<br />
<br />City Council
<br />
<br />Richard J. Davis, Jac~ P. Barnes,
<br />James W. Holley, Edward L'. Oast,
<br />R. T. Williams, City Manager, C.
<br />Tayloe, Jr., City Attorney.
<br />
<br />~, Saunders Early, Jr., Archie Elliott, Jr.,
<br />Jr., Robert W. Wentz, Jr.
<br />H. McGinnis, Assistant City Manager, Gordon B.
<br />
<br />Planning Commission
<br />Mrs. Zelma Rivin, Chairman, E. G. Corp~ew, Jr., Russell F. Gallette, Vincent Skeeter,
<br />Beverly P. Veal, Mrs. Susan Stewart, ~x~Of~i.¢i~rs. Eva Teig, Ex-Officio,
<br />J. Brewer Moore, Director of Planning.
<br />
<br /> Portsmouth Redevelopment & Housing _~uthority
<br /> Dr. E. A. Barham, Jr., Chairman, Herbert K. Bangel, James R. Gray~ George Minor, Jr.,
<br /> Vernon E. Wimbrough, D. Barton Frye, Jr., Executive Director.
<br /> A letter received from Vice Mayor Robert W. Wentz, Jr., was presented. There being
<br />no objections, the following letter and statement to be made a part of the minutes:
<br /> "In the past the members of the City Council have demonstrated a clear undertstanding of
<br />my position as president of the Eastern Division of the Virginia Federal Savings and Loan
<br />Association and as president of ~ts wholly-owned subsidiary, the First Service Corporation of
<br />Virginia as the activities of these financial institutions relate to housing and urban renewal
<br />activities ~ithin the city of Ro~m~uth. Specifically, you are aware of a long financing and
<br />continuing commitment to the construction and financing of new low - and moderate ~c~e
<br />housing units in the Mount Hermon area, and of my conscious effort t~ abstain from matters
<br />which have come before this Council involving Mount Hermon.
<br />
<br /> Attached is a statement which further clarifies and defines my position and relationship
<br />with the Virginia Federal and I will, of course, be willing to provide the Council, ~r any
<br />member, any additional information that may §e censidered pertinent.
<br />
<br /> The February 9, 1976 public hearing and meeting of the Council has before it matters
<br />concerning not only Mount Hermon, but other areas of the city which the Council has determined
<br />it wishes to bend its best efforts to rebuild and improve. The Virginia Federal or the First
<br />Service Corporation of Virginia does not at this time have any interest of proposals relating
<br />to these areas, other than Mount Hermon. However, be~amse the resources of Virginia Federal
<br />could possibly be useful to the City of Portsmouth in the provision of low - and moderate
<br />income housing at a time when such resources are restricted by existing economic conditions,
<br />t would ~ no way wish to disqualify Virginia Federal from future involvement by participating
<br />in the discussion or voting on these matters.
<br />
<br /> It is therefore respectfully requested that I be excused from discussion or voting on
<br /> these matters, and further that this request, the Council's response, and a copy of the at-
<br /> tached statement be made part of the permanent record. ~S/Robert W. Wentz, Jr., Vice Mayer"
<br />
<br /> Statement
<br />
<br /> "The Firginia Federal Savings and Loan Association is a mutually organized thrift and
<br />home Finahcing institution chartered under the laws of the United States Government. Under
<br />the mutual arrangement, the association is owned by those persons who choose to place their
<br />savings with the association, and who share equally in the association's profits, after re-
<br />quired and adequate provisions for reserves, in proportion to the amount of their savings.
<br />As president of the a~sociation I receive compensation ~or my role in its management. Other
<br />than an appreved retirement plan, there is no preferred compensatory arrangement in the form
<br />of preferred stock, profit sharing, deferred mncome, bonus or any arrangmentsi~hich would
<br />~ccrue to my personal benefit, or to that of any member of my family.
<br /> By philosgphical definition, a mutual savings and loan association is a "quasi public"
<br />institution, through which the collective savings of the people in a community are used to pro=
<br />vide a means of home ownership within the community. The providing of home ownership at l~w
<br />and moderate income levels within urban renewal areas is authorized and specially encouraged
<br />by federal regulatory authorities governing the operations of the association.
<br /> The First Service Corporation is chartered under the laws of the state of Virginia, and
<br /> is governed by the rules and regulations of the Federal Savings and Loan System. It is /
<br />established as a vehicle to among other things permit the construction, ownership and renovation
<br />of housing by the association.
<br /> The Service Corporation is wholly owned by the Virginia Federal. Any profits, after taxes
<br /> are either retained by the corporation, or transferred to the association. The conduct of the
<br /> affairs of the Service Corporation is a collateral duty as an officer of the association for
<br /> which I receive no compensation in any forum.
<br />
<br /> It is my understanding that financial institutions are specially excluded from the pro-
<br /> visions of Virginia Conflicts of Interest Act. Not withstanding that exclusion, however, it
<br /> is my sincere belief that because of the mutual character of the association and my position
<br /> in it~as explained, no conflict of interest exists. I do believe that (1) a full public ex-
<br /> planation is in order, and (2) that abstaining from discussion or voting on directly related
<br /> matters is dictated by prudent judgment.
<br />
<br />
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