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<br />May 23. 2006 <br /> <br />Staff Recommends: <br />Adoption of an ordinance authorizing (1) the issuance and sale of General Obligation <br />Bonds not to exceed $29,500,000 for the purpose of financing the costs of various <br />public improvement projects, (2) the issuance and sale of General Obligation Refunding <br />Bonds not to exceed $38,000,000, (3) the issuance and sale of Taxable General <br />Obligation Refunding Bonds not to exceed $9,000,000, and (4) the issuance and sale of <br />General Obligation Notes not to exceed $7,000,000 for the purpose of financing the <br />costs, in part, of the new courts complex. Vision Principle: A Robust and Prospering <br />Economy. <br /> <br />Next Steps Following Council Action: CFO to oversee the issuance and sale of <br />bonds in July 2006. <br /> <br />Motion by Ms. Psi mas, and seconded by Mr. Heretick, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />"ORDINANCE OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA <br />AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $29,500,000 <br />AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS FOR THE <br />PURPOSE OF FINANCING THE COSTS OF VARIOUS PUBLIC IMPROVEMENT <br />PROJECTS OF AND FOR THE CITY; AUTHORIZING THE ISSUANCE AND SALE OF <br />NOT TO EXCEED $38,000,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL <br />OBLIGATION REFUNDING BONDS; AUTHORIZING THE ISSUANCE AND SALE OF <br />NOT TO EXCEED $9,000,000 AGGREGATE PRINCIPAL AMOUNT OF TAXABLE <br />GENERAL OBLIGATION REFUNDING BONDS; AND AUTHORIZING THE ISSUANCE <br />AND SALE OF NOT TO EXCEED $7,000,000 GENERAL OBLIGATION NOTES." <br /> <br />Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley <br />Nays: None <br /> <br />06 - 235 - Adoption of a resolution approving the issuance of multi-family housing <br />revenue bonds by PRHA in an amount not anticipated to exceed $7,000,000 for the <br />development of 57 rental units. Vision Principle: Neighborhood and Community <br />Transformation. <br /> <br />Background: <br />. As a condition of the Jeffry Wilson HOPE VI project, PRHA must construct new <br />affordable housing. <br />. As the first phase of new construction, PRHA will develop 57 rental units as part <br />of the Westbury neighborhood. <br />. Rather than rely on local funding, PRHA will use tax credit and tax-exempt bond <br />financing to construct the new development. <br /> <br />Discussion: <br />. Federal law requires that a municipality approve the issuance of multifamily <br />housing bonds. <br />. City approval is an administrative requirement of federal law and does not <br />subject the City to any liability. <br />. The Resolution also authorizes PRHA to form new legal entities to construct and <br />operate the HOPE VI developments. This is necessary because PRHA will finance the <br />developments in part through federal tax credits. To qualify for tax credits, the entity <br />owning the development must be a limited partnership. PRHA will maintain full <br />operational control. <br />. Financial Impact: There will be a positive financial impact on the City. The <br />bonds will not constitute City debt. After construction on currently vacant land, the <br />housing development will pay real estate taxes to the City. Additional benefits to the <br />City are identified on the attached Fiscal Impact Statement. <br />