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June 25,~ 1996
<br />
<br />96-222 Letter from the City Manager recommending adoption
<br />of a resolution to approve refunding of $5.3 million in
<br />housing revenue bonds for Churchland Forest Apartments, off
<br />Towne Point Road.
<br />
<br /> "In 1985, the Portsmouth Redevelopment and Housing
<br />Authority (PRF~A), with the approval of City Council, issued
<br />housing revenue bonds in the amount of $6.2 million to
<br />purchase and refurbish Churchland Forest Apartments, located
<br />off Towne Point Road. The apartment owners now desire to
<br />refund the bonds.
<br />
<br /> The a~nount of the refunding will be $5.3 million, and
<br />the average maturity of the bonds will be extended over the
<br />original ~ssue. PP~HA has held a public hearing and has
<br />authorized the refunding. The approval of the City is
<br />required for the bonds to be issued. Neither the full faith
<br />and credit nor the moral obligation of the City is pledged in
<br />support of the bonds.
<br />
<br /> I, therefore, recommend approval of this resolution
<br />approving the refunding of these bonds."
<br />
<br /> Motion by Mr. Robinett, and seconded by Mr. Martin,
<br />adopt the following resolution, and was adopted by the
<br />following vote:
<br />
<br />to
<br />
<br /> "A RESOLUTION EXPRESSING THE APPROVAL OF THE COUNCIL OF
<br />THE CITY OF PORTSMOUTH, VIRGINIA, OF THE EXERCISE BY THE
<br />PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY OF POWERS
<br />CONFERRED ON IT BY THE VIRGINIA HOUSING AUTHORITIES LAW,
<br />TITLE 36, CHAPTER 1, CODE OF VIRGINIA OF 1950, AS AMENDED, IN
<br />CONNECTION WITH THE ISSUANCE FOR JANUARY 16TH ASSOCIATES,
<br />L.C., A VIRGINIA LIMITED LIABILITY COMPANY, OF NOT TO EXCEED
<br />$5,300,000 PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY
<br />1996 HOUSING REVENUE REFUNDING BONDS (JANUARY 16TH ASSOCIATES
<br />L.C. PROJECT), REFUNDING THE OUTSTANDING PRINCIPAL BALANCE OF
<br />THE PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY'S 1985
<br />HOUSING REVENI/E BOND (JANUARY 16TH ASSOCIATES), ORIGINALLY
<br />ISSUED TO FINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING
<br />OF CHURCHLAND FOREST APARTMENTS, A 184-UNIT HOUSING PROJECT
<br />WITH ITS OFFICE AT 2G WOODMILL CT., PORTSMOUTH, VIRGINIA.
<br />
<br /> WHEREAS, the Virginia Housing Authorities Law, Chapter
<br />1, Title 36 of the Code of Virginia of 1950, as amended (the
<br />"Act"), authorizes the creation of the Portsmouth
<br />Redevelopment and Housing Authority (the "Authority"), and
<br />the Act empowers the Authority to assist January 16th
<br />Associates, L.C., a Virginia limited partnership (the
<br />"Applicant"), in refunding the outstanding principal balance
<br />of the Authority's $6,200,000 Housing Revenue Bond (January
<br />16th Associates) (the "Bond to be Refunded"), originally
<br />issued to finance the acquisition, construction and equipping
<br />of Churchland Forest Apartments, a 184-unit housing project
<br />with its rental office at 20 Woodmill Court, in the City of
<br />Portsmouth (the "Project"), and thereby extending the average
<br />maturity date of the bonds; and
<br />
<br /> WHEREAS, the Applicant, which owns the Project, has its
<br />present principal place of business at 4455 South Boulevard,
<br />Suite 250, Virginia Beach, Virginia 23452; and
<br />
<br /> WHEREAS, when the average maturity date of a refunding
<br />issue of private activity bonds will be later than the
<br />average maturity date of the original issue of bonds, Section
<br />147(f) of the Internal Revenue Code of 1986, as amended (the
<br />"Code")~ requires the Authority to hold a public hearing to
<br />consider the issuance of such bonds, and the subsequent
<br />approval by this Council of the Authority's proposed issuance
<br />of such refunding issue of private activity bonds, in order
<br />for the interest on such bonds to qualify for exemption from
<br />the imposition of federal income tax; and
<br />
<br />
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