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April 14, 2015
<br />
<br />Next Steps Following Council Action:
<br />
<br /> Adoption of the resolution.
<br />
<br />1. William Nusbaum, 999 Waterside Drive, Norfolk, spoke in support of this item.
<br />
<br />2. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item.
<br />
<br />Motion by Mr. Meeks, and seconded by Mr. Moody, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />“RESOLUTION APPROVING THE ISSUANCE OF NOT-TO-EXCEED $2,450,000 TAX
<br />EXEMPT PORTSMOUTH PORT AND INDUSTRIAL COMMISSION BANK QUALIFIED
<br />REVENUE BONDS (YMCA OF PORTSMOUTH PROJECT), SERIES 2015.
<br />
<br />WHEREAS
<br />, the Portsmouth Port and Industrial Commission (the “Commission”)
<br />was created pursuant to Chapter 157 of the Acts of Assembly of 1954, as amended (the
<br />“Act”), and is now existing and operating as a public body corporate and politic; and
<br />
<br />WHEREAS
<br />, the Commission was created to foster and stimulate the commerce
<br />of the port of the City of Portsmouth, Virginia (the “City”) and the development of
<br />industry in the area within its jurisdiction, and the Council believes that the financing and
<br />refinancing, so as to assure the continued availability of non-profit recreational facilities
<br />and amenities, are essential to creating and preserving a community and a quality of life
<br />conducive to maintaining industry in, and attracting industry to, the City; and
<br />
<br />WHEREAS
<br />, Section 25 of the Act empowers the Commission to issue its
<br />revenue bonds in accordance therewith to provide financing by making “loans” to pay all
<br />or any part of the “cost” of “facilities” for “a § 501(c)(3) organization” (as each term is
<br />defined in Section 25(b) of the Act, by reference to Section 15.2-4902 of the Code of
<br />Virginia of 1950, as amended, and Section 501(c)(3) of the Internal Revenue Code of
<br />1986, as amended), by making loans in furtherance of the purpose of assisting in the
<br />acquisition, construction, equipping, expansion, enlargement, improvement, financing,
<br />and refinancing of such facilities of the aforesaid entities in order to provide recreational
<br />and activity centers; and
<br />
<br />WHEREAS
<br />, representatives of YMCA of Portsmouth, a not-for-profit, Virginia
<br />non-stock corporation (the “Applicant”), have held discussions with representatives of
<br />the City and the Commission with respect to the Commission’s refinancing or financing
<br />(1) the Industrial Development Authority of the Town of Mount Jackson, Virginia Bank
<br />Qualified Revenue Bond (YMCA of Portsmouth Project), Series 2005B, which financed a
<br />portion of the cost of (A) a 10,000 sq. ft. children’s and teens’ activity center, (B)
<br />aerobics and group exercise rooms, (C) a swimming pool, and (D) furniture, fixtures and
<br />equipment for the Applicant’s facility at 4900 High St. W., Portsmouth, Virginia 23703,
<br />the outstanding principal amount of which is expected not to exceed $1,775,000 at its
<br />refinancing, (2) two taxable loans, the outstanding aggregate principal amount of which is
<br />expected not to exceed $450,000 at their refinancing, (3) not to exceed $300,000 of new
<br />capital expenditures for the acquisition, construction, renovation and/or equipping and
<br />installation of (a) cardiovascular exercise equipment, (b) dehumidification equipment for
<br />the pool room, (c) HVAC equipment for the gymnasium, (d) resurfaced floor and walls of
<br />the swimming pool, (e) carpeting and locker room fixtures and equipment, and (f) a new
<br />roof, all to be located at the Applicant’s facility at 4900 High St. W., Portsmouth, Virginia
<br />23703, and (4) a portion of the costs of issuance of the bonds (collectively, the
<br />"Project"); and
<br />
<br />WHEREAS
<br />, the Applicant, which owns the Project, has its present principal place
<br />of business at 4900 High Street W., in the City; and
<br />
<br />WHEREAS,
<br /> Section 147(f) of the Internal Revenue Code of 1986, as amended
<br />(the "Code"), requires, among other things, the approval by this Council of the issuance
<br />of any private activity bonds by the Authority after the Authority has held a public
<br />hearing to consider the issuance of such bonds as one of the acts required in order for
<br />the interest on such bonds to qualify for exemption from the imposition of federal
<br />income tax; and
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