Minutes 12/09/2008 - Laserfiche WebLink

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December 9, 2008 08 - 536 - Adoption of a resolution concerning a Performance Agreement with APM Terminals. Vision Principle: World Class Maritime Center. Background: . This Performance Agreement concludes ongoing discussions between the City, the Virginia Economic Development Partnership, and APM Terminals dating to 2001 concerning a $500,000 Governor's Opportunity Fund ("GOF") grant for the APM Portsmouth Terminal. Discussion: . The GOF grant requires a local match. . In 2001, the City stated that the $500,000 local match would be in cash, payable in two installments. . In 2004, the City stated its intention to have the local match be in-kind, rather than in cash, and it identified certain specific in-kind contributions that were anticipated. . Those in-kind contributions were not implemented to a sufficient degree to meet the local match requirement. . This agreement reconciles the two different local match proposals by allowing the local match to be partly in-kind and partly in cash. The cash component will be $250,000, payable over three years. . APM will receive a state grant of $500,000 as a result of this agreement. . Financial Impact: There will be a direct cost of $250,000 spread over three years, balanced against substantial indirect financial benefits. The indirect financial benefits are stabilizing the long-term presence here of APM, which pays over $6,000,000 per year in local taxes, and contributing to future expansion of the terminal, as well as a possible APM corporate headquarters relocation to Portsmouth. APM tax revenues help reduce the tax burden on Portsmouth citizens. Recommended Action: Adoption of the resolution is recommended. Vision Principle: World Class Maritime Center. Next Steps Following Council Action: . City Manager and City Attorney will execute agreement. . Upon receipt of the GOF grant, it will be distributed to APM. . Continue to work with APM on possible future expansion and corporate relocation. 1. Mark Geduldig-Yatrofsky, 2713 Sterling Point Road, spoke in support of this item. Motion by Mr. Heretick, and seconded by Mr. Moody, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION CONCERNING A PERFORMANCE AGREEMENT WITH APM TERMINALS. BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that the City Manager, acting for and on behalf of the City, is authorized and directed to sign a Performance Agreement with APM Terminals that is substantially the same as the one attached hereto, and that has been approved by the City Attorney.." Ayes: Heretick, Moody, Psi mas, Randall, Smith, Whitehurst, Holley Nays: None - New Business - 08 - 537 - Boards and Commissions Mr. Moody offered the following nominations: