Minutes 12/11/2007 - Laserfiche WebLink

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December 11. 2007 Discussion: . Federal law requires that a municipality approve the issuance of multifamily housing bonds. . City approval is an administrative requirement of federal law and does not subject the City to any liability. . The resolution also confirms Council's approval of PRHA's formation of separate legal entities for financing, constructing and the operating of tax credit and bond- financed development. Financial Impact: . There will be a positive financial impact on the City. The bonds will not constitute City debt and the use of bond financing will allow PRHA to leverage private equity rather than rely on City or other governmental funding. After construction on currently vacant land, the housing development will pay real estate taxes to the City. Additional benefits to the City are identified on Exhibit 4 (Fiscal Impact Statement) to the attached PRHA Certificate of Public Hearing. Staff Recommends: Adoption of proposed resolution. Vision Principle: Thriving Neighborhoods and a Sense of Community. Next Steps Following Council Action: . PRHA will obtain financing commitments from a bond purchaser. Motion by Mr. Moody, and seconded by Mr. R. Smith, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION APPROVING THE ISSUANCE OF MULTI-FAMILY HOUSING REVENUE BONDS NOT TO EXCEED $10,000,000 BY THE PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY. WHEREAS, the Portsmouth Redevelopment and Housing Authority (the "Authority") proposes to issue its multi-family housing revenue bonds in an amount not currently expected to exceed $10,000,000 (the "Bonds") to finance the development of 122 multifamily rental housing units located at 1116 County Street and generally described as bounded by County Street, Phoebus Street, and King Street, in the City of Portsmouth, Virginia (the "City"), and generally known as Phoebus Square Apartments (the "Project") for the benefit of Phoebus Square, L.P., a Virginia limited partnership; and WHEREAS, on November 19, 2007, the Authority held a public hearing on the issuance of the Bonds; and WHEREAS, the Authority has recommended that the City Council of the City of Portsmouth, Virginia (the "Council"), approve the issuance of the Bonds; and WHEREAS, a copy of the Authority's resolution approving the proposed Bonds, a record of the public hearing, and a "fiscal impact statement" with respect to the Project have been filed with the Council. NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that: 1. The Council hereby approves the issuance of the Bonds as proposed by the Authority, to the extent required by Section 147(f) of the Internal Revenue Code of 1986, as amended, and Section 15.2-4906 of the Virginia Code of 1950, as amended. 2. Such approval does not constitute and shall not be represented as constituting an endorsement of the Bonds, or the creditworthiness of the Project or any source of payment of the Bonds. The Bonds shall continue to provide that they shall not be a debt of the Commonwealth of Virginia or any political subdivision thereof (other than the Authority) and that neither the Commonwealth of Virginia nor any political subdivision thereof (other than the Authority) shall be liable thereon.