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At a reg~larmeetlng of the City Council, held July 25th, 1939, at 7:00
<br />there were present: .
<br />
<br />John P. Letgh, Leslie T. Fox, George L. Grimes, James N. Howard,
<br />W. R. Faxtchins, Frank D. Lawrence, C. E. Warren, H. Earl Weise-
<br />man, Pearle&. Wilson, and the City Manager.
<br />
<br />Ninutes of regular meeting held July 13~h', were read and ~oproved.
<br />
<br /> The City Manager stated that W. A. Smith, Administrator,
<br />ministration, informed him that the W.P.A. forces in the City would have
<br />he would keep ~he Council informed of any development in the matter.
<br />
<br />Works Progress Ad-
<br />to be reduced, but
<br />
<br />Report of the Accounting Department for month of June, was received and or -
<br />
<br />dered filed.
<br />
<br /> The following motion by Mr. Hutchins, laid on table at last meeting,
<br />taken Lp and read:
<br />
<br />#Motion of Mr. Hutchins that the City appropriate $10,O00. for
<br />advertising purposes, provided it can be done legally, either
<br />through some agency of the Oity or through the ferries."
<br />
<br />was
<br />
<br />Mr. Lawrence offered the following substitute for Mr. Hutchins' motion:
<br />
<br />"Notion of Mr. Lawrence that an appropriation of $10,0OO. be
<br />made for advertising purposes, te be turned over to the new
<br />hotel corpcratlon for the purpose of advertising the City,
<br />provided the new hotel be named 'Hotel Portsmouth~, to enable
<br />the City to receive adver~ising benefits thereby."
<br />
<br />The following report of the City Attorney was read:
<br />
<br /> "In comuection with the resolution passed at your last meeting, concerning
<br />an appropriation of $10,OOO., I desire to report as follows:
<br /> Section 185 of the State Constitution prhhiblts the City from giving money
<br />to a hotel corporation er from purmb~slng its stock. THis section, so far as the same re -
<br />lares to cities, provides as follows:
<br />
<br /> 'Neither the credit of the State, nor of any county, city
<br />or towm, shall be, direetiy or indirectly, under any device or
<br />pretense whatsoever, granted to or in aid cf any person, aeso-
<br />elation, or corporation, nor shall the State, or ~uYcounty,
<br />city or town subscribe ~o or become interested Lu the stock
<br />or obligations of any comfy, association, or corporation,
<br />for the purpose of aiding in the construction or maintenance
<br />of lts work.'
<br />
<br /> T~e City can not relieve a hotelcorporation of taxes. Section 189 of the
<br />State Constitution provides:
<br />
<br /> tThe general asSemDly may, by general law, authorize the gov-
<br />erning bodies of cities, towns and counties to exempt manufactur-
<br />Lug establishments and works of inter, al improvement from local
<br />taxation for a period not exceeding five years, as an inducement
<br />to ~heir location,t
<br />
<br /> A hotel is not a manufacturing establishment or work of internal improve -
<br />merit, as generally defined.
<br />
<br /> As to the expenditure of money for advertising purposes, Section 3078-0 ef
<br />· he Code of Vi~ginla, provides that ~he City Oounoit shall have power in their discretinn to
<br />expend not exceeding one per cent Of their annual revenues from all sources in advertising
<br />and giving publicity to their resources and advantages. Money scent for advertising should
<br />be used only in giving publicity to t~he resources and advantages-of the City."
<br />
<br /> Notion to place Mr. Lawrence's motion on its first reading, was adopted,
<br />and by the following vote:
<br />
<br />Ayes: Leigh, Fox, Grimes, Howard, Eutm~ns, Lawrence,
<br /> Warren, Weiseman, Wilson
<br />
<br />Nays: None
<br />
<br />On motion
<br />
<br />adjourned.
<br />
<br />01erk
<br />
<br />
<br />
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