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August 12, 1997 <br /> <br />Ayes: Benn, Clemons, Griffin, Pitts, Robinett, Holley <br />Nays: None <br /> <br />97-226- a. <br /> <br />Adoption of a resolution authorizing the issuance of seven million <br />dollars ($7,000,000) of general obligation debt in the form of a <br />guarantee of revenue bonds to be issued by the Portsmouth <br />Industrial Development Authority (PIDA) for the purchase of <br />Phases I and II of Fairwood Homes. <br /> <br />Adoption of a motion authorizing the City Manager to execute the <br />necessary documents transferring the City's purchase rights in <br />the Fairwood Homes project, Phases I and II only, to the <br />Portsmouth Industrial Development Authority and to execute all <br />necessary agreements and documents that pertain to the <br />guarantee of the bonds to be issued by the Authority. <br /> <br />Recommendation: <br /> <br />Adoption of a resolution authorizing the issuance of seven million dollars <br />($7,000,000) of general obligations of the City in the form of a guarantee of <br />revenue bonds to be issued by the Portsmouth Industrial Development Authority <br />for the purchase of Phases and II of Fairwood Homes. <br /> <br />A motion authorizing the City Manager to execute the necessary documents <br />transferring the City's purchase rights in the Fairwood Homes Project, Phases 1 <br />and I only, to the PIDA and to execute all necessary agreements and documents <br />that pertain to the guarantee of the bonds to be issued by the Authority. <br /> <br />Purpose and Need: <br /> <br />A Public Hearing pertaining to the issuance of the General Obligation Guarantee <br />has been advertised in accordance with the law and is scheduled to take place at <br />your August 12, 1997 meeting. <br /> <br />· The PIDA will issue the bonds initially on a tax-free basis. The guarantee from the <br /> City will permit the bonds to command the lowest possible interest rate. <br /> <br />The PIDA will purchase the property and will hold title to the land for resale. This <br />will eliminate the steps necessary for the City Council to take to transfer the <br />property to the PIDA when investors are available. <br /> <br />Financial Impact: <br /> <br />· The guarantee by the City of the PIDA Bonds will constitute a General Obligation <br /> by the City and will be calculated into the overall bonded indebtedness. <br /> <br />· Payments for dSbt"§ervice will come from the sale of the property, and may need <br /> to be appropriated in part in future operating budgets. <br /> <br />· The debt will be issued by the Authority ~n conjunction with the PortCentre issue. <br /> <br /> Motion by Mr. Clemons, and seconded by Mr. Robinett, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br /> "A RESOLUTION AUTHORIZING THE ISSUANCE OF SEVEN MILLION <br />DOLLARS ($7,000,000) PRINCIPAL AMOUNT OF GENERAL OBLIGATIONS OF <br />THE CITY OF PORTSMOUTH, VIRGINIA, IN THE FORM OF A GENERAL <br />OBLIGATION GUARANTEE OF REVENUE BONDS TO BE ISSUED BY THE <br />INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH <br />FOR THE PURPOSE OF PROVIDING FUNDS TO PAY THE COST OF THE <br />ACQUISITION OF LAND TO ELIMINATE BLIGHT AND STIMULATE ECONOMIC <br />DEVELOPMENT IN THE CiTY AND TO BE HELD BY SUCH AUTHORITY FOR <br />DEVELOPMENT FOR COMMERCIAL AND LIGHT INDUSTRIAL PURPOSES. <br /> <br /> <br />