Minutes 01/09/1996 - Laserfiche WebLink

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336: JanUary 9~ 1996 The Authority's Bond, Which is being refunded with a new bond issuance, results in the interest rate on the Bond being reduced from 8 1/4% to 8% per annum, decreasing the outstanding principal and monthly payment, as well as the final maturity date of the Bond. Even though the City is not liable on this bond, approval by the City of a change such as this to a PRHA bond is legally required. The requested change will have no adverse financial impact on the City. I, therefore, recommend adoption of a resolution to approve the execution and delivery by Portsmouth Redevelopment and Housing Authority of a Modification Agreement with respect to the Authority's $875,000 1980 Office and Commercial Facilities Revenue Bond." Moti'on.'by Mr. Griffin, and seconded by Mr. Hawks, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION EXPRESSING THE APPROVAL OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA, OF THE EXECUTION AND DELIVERY BY THE PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY OF A MODIFICATION AGREEMENT RELATING TO ITS $875,000.00 1980 OFFICE AND COMMERCIAL FACILITIES REVENUE BOND (HISTORIC TOWNE SQUARE COMPANY, A LIMITED PARTNERSHIP). WHEREAS, the Portsmouth Redevelopment and Housing Authority (the "Authority") issued its $875,000.00 1980 Office and Commercial Facilities Revenue Bond (Historic Tow-ne Square Company, a limited partnership) (the "Bond") for the benefit of the Authority and Historic Tow-ne Square Company, a limited partnership (the "Company"); and WHEREAS, the Bond is still outstanding and Life Savings Bank is or will be the owner thereof (the "Holder"); and WHEREAS, the Company, certain guarantors of the Bond (the "Guarantors") and the Holder have agreed to amend the interest rate and other payment terms on the Bond effective as of the January 1, 1996 payment date; and WHEREAS, to effectuate the amendment of the Bond, the Authority has been requested to authorize the execution and delivery of a Modification Agreement dated as of December 1, 1995, between the Authority, the Holder, the Company and the Guarantors (the "Agreement"}; and WHEREAS, the Authority has duly held a public hearing with respect to the modification of the Bond and there has been presented to this meeting the form of the Agreement; and WHEREAS, Kaufman & Canoles ("Bond Counsel") intends to give an opinion that the requested execution and delivery of the Agreement will not adversely affect the tax-exempt status of interest on the Bond for federal and Commonwealth of Virginia income tax purposes;and WHEREAS, the Authority has requested that this Council approve the execution and delivery of the Agreement by the Authority~ NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: