Minutes 10/29/2002 - Laserfiche WebLink

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October 29, 2002 Purpose and Need: · On November 13, 2001, the City Council adopted a resolution authorizing the issuance of a $7,500,000 parking note to finance the purchase of the Middle Street Parking Garage from the developer, GEM Portsmouth Parking, L.L.C. · The preferred source of funding for the garage is parking revenue bonds. Parking revenue bonds would not count toward the City's debt obligation. · The City has recently selected a parking consultant to assist in the development of long-range parking strategy and a strategic financial plan to support the creation of a "true" parking revenue system. This work is just beginning with an anticipated completion date of April 2003. · The original note, that was issued to provide interim financing until such time as permanent bonds are issued, matures on November 30, 2002; therefore, it is necessary to extend the note in order for the work of the consultant to be completed. · The parking note will be extended until November 30, 2003 with the ability to prepay the note at any time. The note will be paid off upon issuance of the permanent bonds. Financial Impact: · Short-term interest rates are at historic lows. The note is currently held by SunTrust Bank with an interest rate of 2.03%. SunTrust has agreed to extend the note at a new interest rate of 3%. · An amount has been budgeted in the Parking Authority's 2003 budget sufficient to cover debt service on the note. Motion by Mr. Pitts, and seconded by Mr. Benn, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION AUTHORIZING AN AMENDMENT TO A $7,500,000 GENERAL OBLIGATION PARKING NOTE THAT WAS PREVIOUSLY AUTHORIZED BY THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA. WHEREAS, on November 28, 2001, the City of Portsmouth, Virginia (the "City") issued its $7,500,000 General Obligation Parking Note, Series 2001 (the "Note") to provide interim financing for the acquisition of a parking garage known as the Middle Street Parking Garage (the "Project"); and WHEREAS, the City Council of the City (the "City Council") has held a public hearing, after due publication of notice, in accordance with Section 15.2-2606 of the Code of Virginia of 1950, as amended, on November 13, 2001 on the issuance of the Note; and WHEREAS, the issuance of the Note was authorized by a resolution adopted by the City Council on November 13, 2001 (the "2001 Note Resolution"); and WHEREAS, the Note matures on November 28, 2002; and WHEREAS, the City Council has determined that it is in the best interests of the City to amend the Note to extend the maturity of the Note. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA: 1. Authorization of Amended Note. The City Council hereby determines that it is best interests of the City to amend the Note and extend the maturity of the Note. The extension of the maturity of the Note is hereby authorized and such extension shall be evidenced by an amendment to the Note (the "Amended Note"). The Amended Note is hereby authorized, provided that the Amended Note shall mature not later than November 28, 2003.