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Aoril 27th. 1959.
<br />
<br />were present:
<br />
<br />At a called meeting of the City Council, held at 4:30 P.M., on April 27th, 1959, there
<br />
<br />B.W. Baker, A.C. Bartlett, W.R. Breedlove, R.B. Seward, R. Irvine Smith,
<br />George R. Walker, H. E. Weiseman, A.P. Johnson,Jr., City Manager, and
<br />J.S. Livesay, City Attorney.
<br />
<br />The following call for the meeting was read:
<br />
<br /> "Please attend a special meeting of the City Council, in the Council Chamber, at 4:30
<br />P.M., on Monday, April 27th, 1959, to consider the counter proposal of the Elizabeth River Tunnel Commission.
<br />This cancels the call issued for a special meeting on Wednesday of this week. By.Order of the President."
<br />
<br />The Clerk read the following:
<br />
<br />59-109 - '~ORANDA ON TI{E INDEBTEDI~E~ SSES DUE BY THE ELIZABETH RIVER TUiTN]~,
<br /> DISTRICT TO THE COUNTY OF NORFOLK AND THE CITIES OF NORFOLK AND PORTSMOUTH
<br />
<br />HISTORY OF DEBTS
<br />
<br /> PRINCIPAL BOND ISSUE- The Elizabeth River Tunnel Commission was created by Chapter 130 of the
<br />Acts of the General Assembly of Virginia ~n 1942, and pursuant thereto heretofore issued its Revenue Bonds for
<br />$23,000,000.00, with interest at 3% payable semi-annually, the finsl maturity date of this issue being February
<br />1, 1980.
<br /> FIRST JUNIOR INDEBTEDNESS - The Commission was also authorized in Section 8 of the aforesaid Act:
<br />
<br /> 'To proYide (a) means of protection to the City of Portsmouth and to the County of Norfolk against
<br />diminution or loss of income to said city or county, resulting from the construction of a tunnel or bridge, and
<br />....... to compensatethe said city and county for any diminution of revenue doe to the existence of the project.
<br />
<br />Pursuant ~o this authority, the Commission's minutes of February 10, 1950, record:
<br />
<br /> 'Dr. Brooks then brought to the attention of the Commission the matter of compensation To the City
<br /> of Portsmouth and the County'of Norfolk in accordance with prior discussion among members of the Commission. On
<br /> motion of Thcs. P. Thompson, seconded by J.D. W cod, the following resolution was unanimously adopted:
<br /> WREREAS, an Act of the Virginia Legislature in 1942, as expressed in Chapter 130, provides 'An
<br /> Act Creating the Elizabeth River Tunnel District, and
<br /> W~EP~EAS, said Bill in Section 8 provides means of protection to the City of Portsmouth and to the
<br /> County of Norfolk against diminution or loss of income to said City and County, resulting from the construction
<br /> of a tunnel or bridge, and
<br /> WMRREAS, it is the consensus of opinion of the Commission of said District that there will b e a
<br /> substantial loss in the income of the City of Portsmouth and the Counry of Norfolk resulting from the construc-
<br /> tion of such a tunnel or bridge,
<br /> NOW. THEREFORE, BE IT RESOLVED, that said Commission award theCity of Portsmouth Two Million
<br />($2,000,000.00) Dollars, without interest, and the County of Norfolk Two ~illion ($2,000,000.00 Dollars, without
<br /> interest, under the.terms and conditions as set forth in the Act of the 1942 Legisla~c~l~e: creating the COmmis -
<br /> sion, and
<br /> BE IT RESOLVED, that the Attorney for the Commission in conjuncti~ with attorneys for the City of
<br /> Portsmouth and the County of Norfolk, draw a contract covering such award. The City or County may make separate
<br /> acceptances as to their particular award, and
<br /> BE IT FURTHER RESOLVED, should further loss be sustained by the City of Portsmouth and the County
<br /> of Norfolk by agreement with the Commission ~o cease ~o operate the Ferries, then the said Commission may make
<br /> further awards under3.the_terms and conditions as ~rovided in Chapter 130, Acts of Assembly of 1942,.and
<br /> BE I.T FURTI~R RESOLVED, that should the Commission at any time deem it best ~o refund the present
<br /> bond issue, then the award_or awards made to the City of Portsmouth and the County of Norfolk shall be subordi-
<br /> nated to'such refunding or refinancing or,said bonds, and
<br /> BE IT FINALLY RESOLVED, that the Chairman of said Commission is hereby authorized and empowered
<br /> and directed to execute, such contrao~ or contracts, on behalf of the Commission, and to have his signature attest~
<br /> t~hereto by the Secretary, with the~seal of the Commission thereto affixed.'
<br />
<br /> In keepisg with the above, resolution, under date o£ Mayl, 1950,the Elizabeth River Tunnel Distri~
<br />contracted~respectively with the County of Norfolk and City of Portsmouth to pay each $2,000,000.00 upon the
<br />full and final payment of its above-mentioned $23,000,000.00 primary bond Issue. These two obligations were of
<br />equal dignity and were robe paid prorata without interesm cna of the net revenues.of the Commission after said
<br />primary bond issue had been retired. These contracts contain certain provis~ons for refinancing, ~ut did not
<br />contemplate refinancingfor the purpose of building a second tunnel. Each said contract did provide:
<br />
<br /> 'FIFTH: By mutnal agreement the parties hereto may anticipate the discharge of this agreement
<br /> by ascertaining, paying and receiving the then present value of the future payments provided
<br /> for kerein.'
<br />
<br />A subsequent Act of the General Assembly, i.e., Chapter 285 of the Acts of 1956, provides that
<br />the Commission is authorized and empowered in connection with financing of a second tunnel as now contemplated:
<br /> '(b) to issue revenue bonds of the Elizabeth River Tunnel District. for the combined purpose of
<br /> (i) refunding the outstanding revenue bonds--- etc.--- and (iii) making any payments to the
<br /> County of Norfolk and the cities of Norfolk and Portsmouth which may be agreed upon by~ the
<br /> Commission and said County and said Cities to extinguish in whole or in part the obligations
<br /> of the District under the existing contracts with said County and said Cities;'
<br />
<br /> SECOI D JTJNIOR INDEBTEDNESS - At the same meeting at which the resolution which established
<br />the $4,000,000.00 of indebtedness above=mentioned was adopted, there was also adopted a further resolution
<br />which is largely self=exptanatory'j The minutes of said meeting rglating to this subject read as follows:
<br />
<br /> 'The members of the Commission then informally disoussedthe matter of possible compensation
<br />to the_%ei~$ies of'Norfolk and Portsmouth relative to the loss of ta~Lable values by reason of the purchase
<br />
<br />
<br />
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