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<br />September 8. 2009
<br />
<br />09 - 464 - Adoption of a resolution authorizing the issuance of general obligation debt in
<br />an amount not to exceed $77,798,292 and notes in anticipation thereof in an amount
<br />not to exceed $76,000,000. Vision Principle: Thriving Neighborhoods and a Sense of
<br />Community.
<br />
<br />Background:
<br />. On August 25, 2009, City Council adopted a resolution authorizing the execution
<br />of an agreement with Port Center One Associates, LLC, and Port Center Two, LLC, for
<br />the purchase and redevelopment of a building and property in Port Centre to serve as
<br />the site of a courthouse complex to house the circuit court and the district courts.
<br />. The agreement sets the City's total obligation to the sellerldeveloper at no more
<br />than $77,798,292.
<br />
<br />Discussion:
<br />. The courthouse project will be funded with City General Obligation bonds in the
<br />amount of $77,798,292 that commit the City's full faith and credit to their repayment.
<br />. Since the City will attempt to issue such long-term bonds when interest rates are
<br />low, interim short-term financing in the form of bond anticipation notes (BANs) may be
<br />needed to provide funds prior to issuance of the permanent bonds.
<br />. The maximum amount of bond anticipation notes that might be needed is
<br />estimated to be $76,000,000.
<br />
<br />Financial Impact:
<br />. The City will be required to repay any bonds and bond anticipation notes.
<br />
<br />Staff Recommends:
<br />. Adoption of the resolution authorizing issuance of the bonds and the bond
<br />anticipation notes, as needed. Vision Principle: Thriving Neighborhoods and a Sense
<br />of Community.
<br />
<br />Next Steps Following Council Action:
<br />. The City's Chief Financial Officer, the City's financial consultant, and bond
<br />counsel will evaluate the bond market and establish a projected date for issuance of the
<br />bonds.
<br />
<br />Motion by Mr. Whitehurst, and seconded by Ms. Psimas, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA,
<br />AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION DEBT IN AN AMOUNT
<br />NOT TO EXCEED $77,798,292 AND NOTES IN ANTICIPATION THEREOF IN AN
<br />AMOUNT NOT TO EXCEED $76,000,000.
<br />
<br />WHEREAS, the City Council of the City of Portsmouth, Virginia (the "City") has
<br />approved the execution and delivery of a Revised Sale and Development Agreement
<br />among the City, Port Center One Associates, LLC and Port Center Two, LLC (the
<br />"Development Agreement");
<br />
<br />WHEREAS, the City Council proposes to secure the City's payment obligations
<br />under the Development Agreement in the maximum amount of $77,798,292 (the
<br />"Payments") by a pledge of the City's full faith and credit and, if required, by a deed of
<br />trust on the City's property at 801 Crawford Street, Portsmouth, Virginia, commonly
<br />known as the City Hall Building, together with the parking deck attached thereto (the
<br />"Deed of Trust");
<br />
<br />WHEREAS, the City Council has determined that it is advisable to authorize the
<br />issuance of bond anticipation notes (the "Notes") in anticipation of the issuance and
<br />sale of the Bonds and to issue up to $76,000,000 of its general obligation bonds (the
<br />"Bonds") to finance, in part, the City's obligation to make the Payments;
<br />
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