Minutes 01/23/2001 - Laserfiche WebLink

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January 23, 2001 · Tower Mall Redevelopment · To facilitate the redevelopment of the Tower Mall area, the City is responsible for the demolition of the facility and a portion of the infrastructure costs that totals approximately $3.2 million. As these activities are considered public improvements, they are eligible for tax-exempt, general obligation financing that will be provide the lowest cost of financing. It is requested that the Council authorize an amount of $3.5 million of general obligation bonds that would be issued in March with the already planned issuance of bonds previously authorized. · Performing Arts Center: · In March 2000, Council authorized a $10 million general obligation guarantee of bonds to be issued by the IDA for the Performing Arts Center. At that time, design was not complete and issues still existed regarding VDOT's approval of the site plan. The final costs, including costs to assemble the site and costs to issue the bonds, have been determined and are anticipated to be approximately $13 million. · In addition, to revisions in the costs of the projects, revisions have been made to the proformas and the expected revenues to the City. Based on the revised proformas and the estimated debt service on the project, it is still anticipated that the project revenues will pay for the debt service and therefore have no negative impact on the City's financial position. As the final estimates are approximately $13 million, it will be necessary to authorize an additional $3 million general obligation guarantee to the IDA for the additional amount of bonds needed to fully finance the project. Financial Impact: · The proceeds of such indebtedness will be applied to finance the costs of various public projects of and for the City, for the purposes of Economic Development in the Downtown and Victory Boulevard sections of the City. The projects covered under this resolution are: Fairwood Homes Tower Mall Redevelopment Performing Arts Center Total $ 5,000,000 3,500,000 3,000,000 $11,500,000 · The Fairwood Homes additional debt service is approximately $350,000 annually, as interest only is being paid in the first years of the bonds, during which time properties are expected to be sold that will retire the bonds. · The debt service associated with the facility costs of the Performing Arts Center is expected to be paid from the taxes generated from the facility and the base rent from Rising Tide. · Associated debt service with Tower Mall is approximately $300,000 and will be paid from the increased tax revenues associated with the redevelopment. Motion by Mr. Moody, and seconded by Mr. Whitehurst, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA, AUTHORIZING A MAXIMUM AMOUNT OF $11,500,000 IN GENERAL OBLIGATION FINANCING FOR REDEVELOPMENT PURPOSES. WHEREAS, the Council of the City of Portsmouth, Virginia (the "City") has determined that it is advisable to issue a maximum amount of $11,500,000 general obligation bonds or other general obligation financing to finance the cost of certain redevelopment and economic development projects consisting primarily of the following: (i) acquisition of certain land in the Victory Boulevard area for the purpose of eliminating blight and promoting redevelopment and economic development; (ii) demolition of certain structures and construction of infrastructure on certain property in the Victory Boulevard area for the purpose of promoting redevelopment and economic development and preventing blight and (iii) paying a portion of the costs associated with the development of the downtown Performing Arts Center (the "Projects"). The City has held a public hearing on such financing on January 23, 2001.