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_97
<br />
<br />April 26th, 1955.,
<br />
<br />in acquiring property for a colored cemetery ~ Dark, was ~dopted.
<br />
<br /> 55-107 - "You have each received a copy of the downtown redevelopment project #1 UR Vir-
<br />ginia 4-1" £rom the Portsmouth Redevelopment and Dousing Authority. The plan is eomptete and informative and re-
<br />quires ne comment from me. There are, however, in my opinion, Several questions that should be considered.
<br /> 1o Does the City need a Civic Center to be used exclusively for municipal purposes?
<br /> There appears ~o he ne.difference of opinion in acknowledging tlmt we do need such a center.
<br />
<br />2. Is the Civic Center properly located?
<br /> Two firms of outstanding engineers have recommended the ~ite selected and it has been approved by
<br />your Iocal Planning Commission.
<br />3. Should the City accept Federal Funds am s "grmnt~in-ai~' to help rid the City of slum areas and
<br />at the same time provide 2/3 ef the cesz of site ~cquisition?
<br /> Every taxpayer in the City of Portsmouth will be required te pay a share of these Federal fundM
<br />regardless of whether they are used within the City of Portsmou2h or in s~e other City and the City
<br />of Portsmouth should avail itself of the eppOr~i2y to derive same ~f the benefits.
<br />4. Can the City finance its share e£ the cost of site and b~ildingm?
<br /> The City has no deficit in its Sinkin~ ~o it is retiring bends at the rate of $550.,000.00 an -
<br />nually, of which $440,000.00 are GeneraI Impr~vemen~ bonds chargeahle under the IgT0 clmuse of the
<br />State Constitution as a bending limit. The tatal h~nded indebted~egs ~f t~e City is $10,881,500.00
<br />as of December ~I, 1954o The balance of our bond limit under the 18% clause as e~ July l, I~55 will
<br />be $4,405,220.00.
<br /> The City's per ~apita b~nded indebtedness e~mpared with other Virginia cities is as follows:
<br /> Net Debt- ex~lusive
<br /> City Tetml Debt of self-supporting bond~
<br />
<br />Portsmouth $129.08 $ 90.09
<br />Alexandria 236~89 236.89
<br />LYm~hburg 185.42 156.90
<br />Newport Hews 179~45 86.36
<br />Norfolk 177o56 113.36
<br />Richmond 175.87 113.44
<br />Ro~aoke 2MM.~4 105.50
<br />State Average all citie~ 171.38
<br />
<br /> If, in participating in the' site acquisition and clearance, the City should issue 25 year Serial
<br />bends, it wouid cost annually for the retirement of the bonds:
<br />
<br />$24,000.00
<br />
<br />Intere~z
<br />or a totaI of
<br />
<br /> 7,352.52
<br />~31~352.52
<br />
<br /> For the City to purchase the land and assuming again tha~ we issue 25 year mortal
<br />cost annually for ~he retirement of the bonds - $16,000.00
<br />
<br />it w~uld
<br />
<br />Interest 4,901.65
<br /> Total ~20~90I,$5
<br />
<br /> Estimated annual comt to the City of a building on the site assuming again that we issue 25
<br />year serial bomds:
<br />
<br />Retirement of Bonds $40,000.00
<br />Inter~s~ 12,254.20
<br /> ~' Total $52,254.20
<br />
<br /> The above calculations are made on the basis that the City's one-third share will be $600.000o00
<br />for acquisition a~d site and that the cost to the City of the lend~rlI! be $400,000~00.
<br /> We used the figure of $1,000,000.00 ~s the cos~ of a building. In my opinion, and in the opinion!
<br />of others with whom I have discussed the matter, this is a rather high estimate. The City can finance the pro
<br />jeer as well as ail foreseeable capital i~rprovemenats' sueh~ ~chool buildings and storm drainage. None of the
<br />above figures takes into coJl~ideratiol] the normal annual ~i~cre~e in m~sess~i ~alue~ of Real Estate within
<br />City of Portsmouth whieh during the Fast five years has averaged $3,~14,000.00 armually, or which would provide
<br />an additionaI bond margin Of $50g~5~0.00 ~n~ually nor has consideration been given to the saving~ that ~he City
<br />would realize from money that is now being spent for rental of buildings, ed~ition~I janitorial a~d messenger
<br />service as well am the maintenance of buildings,
<br /> A conservative estimate would be $1§,000o~0 annually.
<br /> tn addition to the above, the individual ~axpayem would be saved thousands of dollars aunualty
<br />by being able to transact all city business in one location°
<br /> I submit the attached resolution from the City Planning Commission which was adopted unanimou~ly
<br />and recommend that the City Council a~preve the project. I~ as City Manager, of Portsmouth, earnestly recom -
<br />mend its approval."
<br />
<br /> Motion of Mr, Bilisely that the recommendation of the City Mamager and the Planning Commie-
<br />not be approved, was ad~pted, an~ by the following vote:
<br />
<br />Ayes- Baker, Bilisoly~ LawrenCe, Smith, Sturteyant, Warren
<br />Nays - D~k~ Grimes, HawkS, Keward
<br />
<br /> 55-I08 - ~'I sub~lt the attached agreement be~we~a the Virginia Electric and Power Company and!
<br />the City of Portsmouth for the relocation of certain wires-and pol~s on the ~ouse pro~y and ~co~nd tha~
<br />t~ pro~r city offieials be authorized ~o sign t~s agr~nt.~ ~
<br />
<br /> Motion ef Mr. Bilisoly tha~ the proper'city officials be authorized to Si~ the agreement, ~
<br />was adoptS.
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