Minutes 12/09/2008 - Laserfiche WebLink

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December 9, 2008 Discussion: . The agreement is the most financially prudent way to provide the needed courthouse facilities, it is significantly less expensive than other alternatives, and it will be the fastest way to provide the facilities, unless construction is delayed by the lawsuit involving courthouse construction that is currently pending. . The proposed new courthouse would meet all applicable legal guidelines, and it is within the City's five-year Capital Improvement Plan debt capacity. . The principal cost of the Agreement will be financed by the present owner on terms that are advantageous to the City. The financing will be secured by a deed of trust on City Hall and the City Hall Parking Deck. . The agreement is contingent on obtaining court approval in the pending litigation. Financial Impact: . The contract will be for an amount not expected to exceed $30,000,000. The present projected contract amount is $27,942,897, with a possibility of additional costs if the project is substantially delayed by the pending litigation. Recommended Action: . Adoption of the resolution. Vision Principle: Bold New Directions. Next Steps Following Council Action: . Sign agreement. . Await completion of pending litigation. Upon completion of the case, construction for the new courthouse can begin, with an expected completion period of two years. 1. Steve Carroll, 3112 Riveredge Road, spoke in support of this item. Motion by Mr. Smith, and seconded by Mr. Whitehurst, to adopt the following resolution, and was adopted by the following vote: "RESOLUTION TO AUTHORIZE A SALE AND DEVELOPMENT AGREEMENT FOR A CIRCUIT COURT COURTHOUSE. BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: 1. That the City Council hereby finds and determines that development of a new Circuit Court Courthouse pursuant to the attached Sale and Development Agreement (the "Agreement") is the only source and means for doing so that complies with the dual requirements of (a) meeting all applicable sections of the Virginia Courthouse Facility Guidelines as promulgated by the Supreme Court of Virginia; and (b) being fiscally prudent and respecting the reasonable financial needs of Portsmouth citizens and taxpayers. Based upon extensive and exhaustive study, investigation, consideration, factual investigation, staff reports, and advice from independent qualified professionals over a period of several years, the City Council hereby makes a legislative finding pursuant to Virginia Code S2.2-4303 that there is no other source or means for providing a new Circuit Court Courthouse that is practicable, practicably available, and financially advantageous to the City and its taxpayers. 2. That the City Council further finds and determines that the new Circuit Court Courthouse, when constructed pursuant to the Agreement, will meet the City's responsibility for courthouse facilities under Virginia Code S15.2-1637 et seq. 3. That the City Manager, acting for and on behalf of the City of Portsmouth, is hereby authorized and directed to execute and deliver a Sale and Development Agreement for a Circuit Court Courthouse (the "Agreement") that is substantially the same as the attached instrument and that is approved as to form and legality by the City Attorney.