Minutes 11/12/2002 - Laserfiche WebLink

Home Browse Search

November 12, 2002 - Unfinished Business - 02 - 302 - Code amendment: 1. William Crodick, 3314 Broadway Street, spoke in opposition to this item. Motion by Mr. Whitehurst, and seconded by Ms. Randall, to adopt the following ordinance, approved at the October 29, 2002 meeting, and was adopted by the following vote: 02-242(b): "ORDINANCE TO AMEND CHAPTER 40 OF THE CODE OF THE CITY OF PORTSMOUTH, VIRGINIA (1988) BY AMENDING SECTIONS 40-44-4 PERTAINING TO DIMENSIONAL REQUIREMENTS FOR NONRESIDENTIAL DISTRICTS, SECTION 40-43.4(1) PERTAINING TO ACCESSORY USES AND STRUCTURES, AND SECTIONS 40-71.2(e) AND 40-73(c) AND (e) PERTAINING TO PARKING LOT SCREENING AND LANDSCAPING REQUIREMENTS." Ayes: Benn, Griffin, Moody, Pitts, Randall, Whitehurst, Holley Nays: None 02 - 325 - Adoption of resolutions authorizing the execution of interest rate protection agreements to protect the City against future increases in interest rates on debt outstanding for the Performing Arts Center and acquisition of Parcels 1 and 2 of Fairwood Homes. Deferred from October 29, 2002 City Council meeting. Recommendation: · Adoption of two resolutions authorizing the execution of interest rate protection agreements to protect the City against future increases in interest rates. Purpose and Need: · The City has approximately $25 million in variable rate debt outstanding for the construction of the Performing Arts Center, the acquisition of Parcels 1 and 2 of Fairwood Homes, and the PortCentre I bonds that have been substituted for Victory Crossings development. · The variable rate structures have saved the City hundreds of thousands of dollars, but does expose the City to some risk should interest rates rise quickly. · Currently market conditions exist that make the cost of interest rate protection very affordable as the costs of these products are at historic lows. · It is recommended that an interest rate "swap" be put in place for each of these bond issues. An interest rate "swap" will convert the interest rate to a fixed amount for the period of time indicated by the agreement. The estimated time period and rates for each of the bond issues is: Bond Issue Period of Interest Estimated Fixed Rate Protection Rate Fairwood Homes 3 years 2.10% PortCentre I 5 years 3.33% Performing Arts Center 8 years 3.95% · Due to the fact the Performing Arts Center and Fairwood Homes bonds carry general obligation guarantees by the City, the City Council must authorize the City Manager to enter into these agreements. It is expected that the IDA will take action on the Performing Arts Center bonds in November.