|
January 23, 2001
<br />
<br /> WHEREAS, Ellis-Gibson Development Co. (the "Developer") has proposed
<br />development of a new downtown parking garage located on the south side of London
<br />Street, between London and Queen Streets, and being generally between Crawford
<br />Street on the east and Middle Street on the west (the "Parking Garage") on property
<br />currently owned, under contract, or to be acquired by the Developer; and
<br />
<br /> WHEREAS, said location is the most desirable and feasible location for the
<br />Parking Garage of all possible locations in Downtown Portsmouth; and
<br />
<br /> WHEREAS, it would be impossible as a practical matter for the City to acquire
<br />ownership of either the Developer's site or any other feasible site for the Parking
<br />Garage quickly enough to commence and complete construction of the Parking Garage
<br />within the time frame mandated by the public interest; and
<br />
<br /> WHEREAS, the Developer is highly qualified in the prompt and economical
<br />development and financing of high-quality structures comparable to the Parking Garage
<br />in an urban setting, as most recently demonstrated by its successful development of the
<br />new Portsmouth Social Services Building, and Developer is desirous of developing the
<br />Parking Garage for the City;
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
<br />Portsmouth, Virginia ("City Council"), that City Council hereby adopts the preceding
<br />recitals as legislative findings. City Council hereby makes the following determination,
<br />based upon all of said legislative findings, pursuant to the Virginia Public Procurement
<br />Act (.Va. Code §11-41D.) and Portsmouth City Code §12-215(c): Developer is the only
<br />source practicably available to develop the Parking Garage, competition is not feasible,
<br />and negotiation and award of a contract to Developer without competitive procurement
<br />is in the best interest of the City. Accordingly,
<br />
<br /> BE IT FURTHER RESOLVED by City Council that the City Manager is
<br />authorized, for and on behalf of the City, to enter into a Development Agreement,
<br />Capital Lease, or other document of similar import, regardless of title (the "Development
<br />Agreement") for the development and financing of the Parking Garage, as follows:
<br />
<br /> 1. The Development Agreement shall be with Ellis-Gibson Development Co. or a
<br />wholly owned transactional entity of said company (the "Developer").
<br /> 2. It shall provide for development and financing of the Parking Garage by the
<br />Developer on said site owned or to be owned by the Developer, with the City having full
<br />right of approval over interior design, exterior design, and construction standards.
<br /> 3. It shall require that construction be completed by December 31, 2001, subject
<br />to force majeure.
<br /> 4. It shall provide that after construction is complete, the Parking Garage shall
<br />be leased to the City reflecting such terms and conditions as are commonly used in
<br />capital leases for buildings, with the City to have exclusive use and possession of the
<br />Parking Garage and the sole duty of maintenance during the lease term, and with the
<br />Developer being obligated to convey the Parking Garage, including land and
<br />improvements, to the City in fee simple with clear, marketable, and insurable title upon
<br />payment of a nominal sum at conclusion of the lease.
<br /> 5. It shall be fiscally prudent and contain such terms and conditions as the City
<br />Manager, in the sound exercise of his discretion, deems advisable to protect the
<br />financial interests of the City after first receiving recommendations from the City's Chief
<br />Financial Officer, and it shall be approved as to form and legality by the City Attorney.
<br /> 6. The only principal financial obligation of the City to the Developer under the
<br />Development Agreement for the entire cost of designing, developing, constructing, and
<br />financing the Parking Garage, including the cost of assembling the site for the Parking
<br />Garage (collectively, the "Project Costs") shall be lease payment obligations to the
<br />Developer. Provided, however, that the City may pay such incidental predevelopment,
<br />interim financing, and transaction costs as the City Manager determines to be
<br />reasonable under the circumstances.
<br /> 7. The Project Costs shall be negotiated by the City Manager in accordance with
<br />common industry standards, and with full fiscal prudence.
<br />
<br />
<br />
|