Minutes 06/14/2005 - Laserfiche WebLink

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June 14. 2005 Motion by Mr. Moody, and seconded by Ms. Randall, to adopt the following ordinance, and was adopted by the following vote: "AN ORDINANCE APPROPRIATING $85,853 IN THE CITY'S FY 2004-2005 GENERAL FUND OPERATING BUDGET FOR SCHOOL BUS DEBT SERVICE EXPENDITURES." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None 05 - 263 - Adoption of an ordinance requesting Portsmouth Port and Industrial Commission to authorize a lease extension to Universal Maritime Service Corporation, Inc. (a Maersk subsidiary) at Portsmouth Marine Terminal; and to authorize two conveyances to the Virginia Port Authority of properties adjacent to the entrance to the Midtown Tunnel. Vision Principle: Robust and Prospering Economy. Background: . Approximately thirty years ago, the Virginia Port Authority (VPA) conveyed to the City two properties at the Portsmouth Marine Terminal (PMT) to help enable the City to provide financing for certain terminal improvements. The City was compensated at the time for arranging the financing. The properties are legally required to be re-conveyed to the VPA. Debt service has been paid by lease payments from Maersk and a predecessor company. . The debt is almost fully retired, and the Maersk lease will expire shortly. . Maersk needs a lease extension until its new terminal is operational. . The properties need to be re-conveyed to VPA, subject to the Maersk lease extension. . The City will retain the rent for the lease extension. . For legal reasons, the Maersk lease is with the PPIC rather than the City, and so the ordinance calls upon PPIC to execute the lease extension. Discussion: . No requirements are placed on the PPIC or the City under the lease extension other than the provision of the premises. . Financial Impact: The City will receive $580,000 net revenue per year for four years, subject to possible earlier cancellation and a possible one-year extension. Recommended Action: Adoption of an ordinance requesting Portsmouth Port and Industrial Commission to authorize a lease extension to Universal Maritime Service Corporation, Inc. (a Maersk subsidiary) at Portsmouth Marine Terminal; and to authorize two conveyances to the Virginia Port Authority of properties adjacent to the entrance to the Midtown Tunnel. Vision Principle: Robust and Prospering Economy. Next Steps Following Council Action: . The City Attorney will handle legal transactions. . The City Manager will execute the deeds. . The PPIC will execute the amended lease, and the City's Chief Financial Officer will collect lease payments. Motion by Mr. Heretick, and seconded by Mr. Whitehurst, to adopt the following ordinance, and was adopted by the following vote: "AN ORDINANCE TO AUTHORIZE AND TO DIRECT CERTAIN PROPERTY TRANSACTIONS WITH UNIVERSAL MARITIME SERVICE CORPORATION AND THE VIRGINIA PORT AUTHORITY, INVOLVING TWO PROPERTIES OWNED BY THE CITY OF PORTSMOUTH AT PORTSMOUTH MARINE TERMINAL." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None