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July 25, 2000
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<br />Financial Impact:
<br />
<br />· Neither the City nor the Industrial Development Authority of the City of Portsmouth
<br />makes any financial commitment or is in any way legally obligated to the repayment of
<br />the bonds.
<br />
<br />· The bonds will not be considered against or included in the City's debt capacity.
<br />
<br />· A Fiscal Impact Statement is attached which outlines the fiscal benefits to the City.
<br />
<br />1. Louis Whitehead, 4415 County Street, spoke in opposition to approval of this item.
<br />
<br /> Motion by Mr. Benn, and seconded by Mr. Robinett, to adopt the following
<br />resolutions, and was adopted by the following vote:
<br />
<br />00-177(A):
<br />
<br />"A RESOLUTION APPROVING ISSUANCE OF EMPOWERMENT ZONE FACILITY
<br />REVENUE BONDS OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE
<br />CITY OF PORTSMOUTH, VIRGINIA, IN AN AMOUNT NOT TO EXCEED $8,000,000
<br />FOR THE ACQUISITION, DEVELOPMENT AND FINANCING OF THE OCEAN
<br />MARINE, L.L.C., PROJECT.
<br />
<br /> WHEREAS, there has been described to the Industrial Development Authority of
<br />the City of Portsmouth, Virginia (the "Authority"), the plans of Ocean Marine LLC (the
<br />"Company") whose principal place of business is 543 E. Indian River Road, Norfolk,
<br />Virginia 23523, for the issuance of the Authority's empowerment zone facility revenue
<br />bonds in an aggregate principal amount not to exceed $8,000,000 (the "Bonds") to
<br />assist the Company in (a) acquiring certain interests or rights in approximately 13 acres
<br />of real property (the "Real Property") generally lying immediately northward of the
<br />Norfolk Naval Shipyard and southward of the City of Portsmouth Municipal Center,
<br />fronting on the Southern Branch of the Elizabeth River, and comprising in part what is
<br />commonly referred to as the Old Coast Guard Base, (b) undertaking the development,
<br />construction, renovation and equipping of certain facilities to be situated on or adjacent
<br />to the Real Property (the "Improvements"), including a marina, boat dry-storage
<br />building, indoor boat repair facility, equipment for lifting vessels out of the water, a rail
<br />transfer system for moving and holding vessels on land, a travel lift for lifting vessels, a
<br />dockmaster's building, a dry-storage control building, fuel docks and fuel tanks, marina
<br />pump-out stations, piers, parking areas and other facilities and improvements related to
<br />the planned Ocean Marine Yacht Center and (c) financing the costs associated with the
<br />issuance of the Bonds; and
<br />
<br /> WHEREAS, the Company in its appearance before the Authority has described
<br />the benefits to be derived from the above undertakings and has requested the Authority
<br />to agree to issue the Bonds under Chapter 49, Title 15.2 of the Code of Virginia, as
<br />amended (the "Act"); and
<br />
<br /> WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"),
<br />provides that the highest elected governmental officials of the governmental units
<br />having jurisdiction over the issuer of private activity bonds shall approve the issuance of
<br />such bonds; and
<br />
<br /> WHEREAS, the Authority issues its bonds on behalf of the City of Portsmouth,
<br />Virginia (the "City"), and the members of the City Council of the City of Portsmouth (the
<br />"Council") constitute the highest elected governmental officials of the City; and
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<br /> WHEREAS, Section 15.2-4906 of the Code provides that the Council shall within
<br />60 calendar days from the public hearing with respect to revenue bonds either approve
<br />or disapprove the issuance of such bonds; and
<br />
<br /> WHEREAS, the Real Property and the Improvements (collectively, the "Project")
<br />are or will be located in the 10 square mile area of Cities of Norfolk and Portsmouth,
<br />Virginia, which has been designated an empowerment zone under Section 1391(g) of
<br />the Code; and
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