Minutes 02/11/1997 - Laserfiche WebLink

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February 11; 1997 ,OZ 9 Purpose and Need: ~ · The approval of this Coordination Agreement:will facilitate the devel6pment of a 100,000 square foot building on a ten (10) acre site in PortCentre Commerce Park by A/H PortCentre Associates, EEC, The proposed building will be a mix of class A office space and "flex/tech" space both of which are in great demand in Portsmouth and throughout the Hampton Roads region and CommOnwealth of Virginia. The project will result in an estimated $8 million investment, an estimated 300 new jobs, and $110,000 in new; annua real estate tax revenue to the City. The project will also spur continued development in PortCentre Commerce Park. Financial Impact: The Portsmouth Industrial Development Authority (PIDA) will lease the facility from the developer for a maximum of 30 years under a master lease agreement. The Coordination Agreement will fund any amount PIDA may be required to fund under the master lease agreement. PIDA's annual rent under the master lease agreement will be equal to the sum of the debt service, plus the sum of ail operating expenses, minus all subtenant rents collected. · The maximum annual rent will not exceed $850,000. · The Coordination Agreement is not considered part of the City's overall debt. The Coordination Agreement does not affect the City's bond rating. Steven Lynch, 200 High Street, provided information on the potential development. Motion by Mr. Benn, and seconded by Mr. Martin, to adopt the following resolution, and Was adopted by the following vote: "A RESOLUTION AUTHORIZING EXECUTION OF A COORDINATION AGREEMENT WITH THE PORTSMOUTH iNDUSTRIAL DEVELOPMENT AUTHORITY FOR CONSTRUCTION OFAN OFFICE BUILDING IN PORTCENTRE COMMERCE PARK. WHEREAS, the Portsmouth Industrial Development Authority ("the IDA") has entered into an Agreement and a Master Lease with NH PortCentre Associates, LL.C. for construction of an office building in PortCentre Commerce Park in the City of Portsmouth; and WHEREAS, the IDA has found and determined that it is in the public interest and consistent with the statutory purposes set forth for industrial development authorities of the Commonwealth of Virginia by Virginia Code {}15.1-1375 that this office building be properly constructed and managed in the manner contemplated; and the 1DA has further found and determined that the office building will promote industry and develop trade by inducing commercial enterprises to locate in or remain in this Commonwealth; and the IDA has further found and determined that the exercise of its powers for this project will promote the general safety, health, welfare, convenience, and prosperity; and VVHEREAS, City Council accepts these findings and representations of the IDA; and WHEREAS, in order to obtain financing for construction of this office building, it is necessary that the City of Portsmouth provide a moral obligation to back the financial commitment made by the IDA in the Master Lease, with said moral obligation being more specifically set forth in the Coordination Agreement between the IDA and the City which is attached hereto; and