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June 27,2000 <br /> <br />B. Adoption of a resolution approving a ground lease between the City and GEM <br />Portsmouth High, LLC of the property on which the municipal facility is to be built. <br /> <br />C. Adoption of a resolution to enter into an approximately twenty-year, general <br />obligation lease agreement, with an estimated principal amount not to exceed $13 <br />million. <br /> <br />Purpose and Need: <br /> <br />· The Social Services building received extensive storm damage during Hurricane <br />Floyd due to flooding resulting from the box culvert that runs underneath the building. <br />The Department of Social Services was relocated to Tower Mall temporarily until a <br />building solution was determined. <br /> <br />· After extensive study, it was determined the costs to repair the building exceed the <br />benefits, given that the building would still be located over the box culvert and that the <br />building foundation would still be located below the 100-year flood plain. <br /> <br />· It is recommended that a new facility be built behind the existing building on a <br />smaller footprint to avoid the box culvert. The new building foundation will also be <br />above the flood plain. <br /> <br />Financial Impact: <br /> <br />· The City will lease the building from the Developer. The City will then charge rent to <br />both the Departments of Social Services and Public Health with a major portion of the <br />rent to be reimbursed through State funds. It is estimated that the approximate annual <br />cost to the City will be between $100,000 and $200,000. <br /> <br /> Motion by Mr. Benn, and seconded by Mr. Pitts, to adopt the following resolution, <br />and was adopted by the following vote: <br /> <br />00-147(A): <br /> <br />"A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A <br />DEVELOPMENT AGREEMENT WITH GEM PORTSMOUTH HIGH, L.L.C., TO <br />CONSTRUCT A MUNICIPAL FACILITY TO HOUSE THE PORTSMOUTH <br />DEPARTMENT OF SOCIAL SERVICES AND THE PORTSMOUTH PUBLIC HEALTH <br />DEPARTMENT. <br /> <br /> BE IT RESOLVED by the Council of the City of Portsmouth, Virginia, that the <br />City Manager be, and he hereby is, authorized to enter into a development agreement <br />with GEM Portsmouth High, L.L.C., to construct a municipal facility to house the <br />Portsmouth Department of Social Services and Portsmouth Public Health Department <br />on property located in the 1700 block of High Street, Portsmouth, Virginia." <br /> <br />Ayes: Benn, Griffin, Moody, Pitts, Robinett, Whitehurst, Holley <br />Nays: None <br /> <br /> Motion by Mr. Pitts, and seconded by Mr. Whitehurst, to adopt the following <br />resolution, and was adopted by the following vote: <br /> <br />00-147(B): <br /> <br />"A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A <br />GROUND LEASE AGREEMENT WITH GEM PORTSMOUTH HIGH, L.L.C., FOR <br />PROPERTY LOCATED AT OR NEAR THE 1700 BLOCK OF HIGH STREET. <br /> <br /> BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that the City <br />Manager be, and he hereby is, authorized to enter into a ground lease with GEM <br />Portsmouth High, L.L.C., ("GEM") for property located at or near the 1700 block of High <br />Street, by which agreement the City of Portsmouth will lease said property to GEM <br />for a term of forty (40) years, and then sublease from GEM said property and all <br />improvements thereon pursuant to a development agreement with GEM to develop a <br />municipal facility to house the Portsmouth Department of Social Services and the <br />Portsmouth Health Department at said location. <br /> <br /> <br />