Minutes 08/12/1997 - Laserfiche WebLink

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-~ 90 AuqUst12,1997 Section 4. Filin.q of Reso ut on with Circuit Court. The City Attorney of the City shall file a copy of this resolution, certified by the City Clerk of the City to be a true copy thereof, with the Circuit Court of the City of Portsmouth, Virginia, in accordance with Section 15.1-227.9 of the Code of Virgima, 1950. Section 5. Effectiveness of Resolution. This resolution shall take effect from the date of is adoption." Ayes: Benn, Clemons, Griffin, Pitts, Robinett, Holley Nays: None Motion by Mr. Clemons, and seconded Dy Mr. Griffin, to authorize the City Manager to execute the necessary documents transferring the City's purchase rights in the Fairwood Homes project, Phases I and II only, to the Portsmouth Industrial Development Authority and to execute all necessary agreements and documents that pertain to the guarantee of the bonds to be issued Dy the Authority, and was adopted by the following vote: Ayes: Benn, Clemons, Griffin, Pitts, Robinett, Holley Nays: None 97-227- a. Adoption of a motion transferring $850,000 from the General Fund Contingency (Emergency) for the moral obligation bond payments to the Portsmouth Industrial Development Authority (PIDA) for the PortCentre project.. Adoption of a motion authorizing the City Manager to amend the agreement with the Portsmouth ndustrial Development Authority for the PortCentre project. Recommendation: - PortCentre project. Purpose and Need: Motion to transfer $850,000 from the General Fund Contingency (Emergency) for the moral obligation bond payments to the Portsmouth Industrial Development Authority (PIDA) for the PortCentre project. Motion authorizing the City Manager to amend the agreement with PIDA for the On February 11, 1997; the City Council approved a resolution pledging the "moral · obligation" of the City towards the PortCentre project in an amount not to exceed $750,000 in debt service payments, subject to annual appropriations by the Council. In addition, the Council agreed to support the project during the beginning years for operations and maintenance in the amount of $100,000. · At the present time the PIDA is going forward with the issuance of approximately $8.3 million in taxable bonds to support the construction of the project. Sale of the bonds, and the interest rate they will receive, will be strengthened by having the City's initial appropriation available for the project through this motion to transfer. · Some modifications to the original coordination agreement will need to be made between the City and the PIDA; however, the project continues to result in an estimated 300 new jobs and will also spur continued development in the PortCentre Commeme Park. Financial Impact: · The Portsmouth Industrial Development Authority (PIDA) will own the property and contract for the construction, operations and eventual sale of the building. · The ultimate sale of the property will provide the funding to retire the outstanding debt.