Minutes 11/14/2000 - Laserfiche WebLink

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NOVEMBER 14, 2000 - City Manager's Report - 00 - 276 - Adoption of a resolution authorizing the City Manager (i) to enter into a Cooperation Agreement with the Industrial Development Authority pertaining to the IDA's financial obligations under its contract to sell the PortCentre I Building to CFW Communications, Inc. (nTelos); (ii) to enter into a Performance Agreement with CFW Communications to transfer to CFW grant funds received from the Governor's Opportunity Fund; and (iii) to transfer a parcel of land adjoining the PortCentre I Building site to the IDA. Recommendation: · Adoption of a resolution authorizing the City Manager (i) to enter into a Cooperation Agreement with the Industrial Development Authority pertaining to the IDA's financial obligations under its contract to sell the PortCentre I Building to CFW Communications, Inc. (nTelos); (ii) to enter into a Performance Agreement with CFW Communications to transfer to CFW grant funds received from the Governor's Opportunity Fund; and (iii) to transfer a parcel of land adjoining the PortCentre I Building site to the IDA. Purpose and Need: · The Industrial Development Authority is in the process of finalizing a contract to sell the PortCentre I Building to CFW Communications Company. · The IDA may need the City's financial assistance in order for the IDA to perform its obligations under the contract, such as fulfillment of the master lease terms. Under the terms of a proposed Cooperation Agreement between the City and the IDA, the City agrees to provide such financial assistance to the IDA. · The City has applied for and will be receiving a grant from the Governor's Opportunity Fund to facilitate this Project. Grant regulations require that the City and CFW Communications enter into a Performance Agreement that will bind CFW to certain capital investment and employment figures and to use the grant funds for improvements to the building after the funds are transferred by the City to CFW. · The contract for the sale of the PortCentre I Building gives CFW an option to purchase a 2-acre parcel of land adjacent to the site. City employees displaced by the Performing Arts Center construction are currently using a portion of the parcel for parking. Title to the property needs to be transferred to the IDA in order for it to perform its obligations under the contract should the option be exercised. The option may be exercised no earlier than July 1, 2002, after which date loss of the lot will not affect the Center or the displaced employees. The option will expire on July 1,2010. · Adoption of a resolution authorizing the City Manager to execute the Cooperation Agreement with IDA and the Performance Agreement with CFW Communications, Inc., and to transfer the subject parcel is required. Financial Impact: · Under the Cooperation Agreement, the City will back IDA master lease obligations that will not exceed $330,226 annually for five years. Source of funding will be the appropriation for the PortCentre I debt service under the original Cooperation Agreement between the IDA and the City. The City's annual financial obligation will be reduced by approximately $200,000 by the sale to CFW. · The Governor's Opportunity Grant is $400,000. · The City Assessor has valued at $132,400 the parcel that is to be transferred to the IDA in order to satisfy the IDA's option obligations under its Sales Contract with CFW. The option is at fair market value as determined by an MAI appraiser at the time the option is exercised.