Minutes 08/25/2015 - Laserfiche WebLink

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August 25, 2015  On February 10, 2015, City Council authorized the City Manager to submit an application to the Commonwealth of Virginia to amend the qualification thresholds within the first Zone to match those within the second. These amendments were submitted to the Virginia Department of Housing and Community Development (DHCD) and approved by DHCD on August 4, 2015. Discussion:  Formal action is required by City Council to amend the current Funding Agreement with EDA to reflect the approved modifications. Financial Impact:  The funds for the two modified incentives, the Business Personal Property Investment Grants and the Machinery & Tool Investment Grants, will be paid from the increase in the tax revenue from Business Personal Property taxes and Machinery & Tool taxes from the firms and/or property owners qualifying for the grants. Recommended Action:  Adoption of a resolution authorizing the City Manager to execute a Second Amended and Restated Funding Agreement. Vision Principle: A Robust Economy for Working Men and Women. Next Steps Following Council Action:  Present the Amended and Restated Funding Agreement to the EDA. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in opposition to this item. Motion by Ms. Psimas, and seconded by Mr. Moody, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A SECOND AMENDED AND RESTATED PORTSMOUTH VIRGINIA ENTERPRISE ZONE LOCAL INCENTIVES GRANTS FUNDING AGREEMENT WITH THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA. WHEREAS, on January 1, 2010 certain areas within the City of Portsmouth were designated by the Commonwealth of Virginia as an Enterprise Zone under Section 59.1- 538, et seq., of the Code of Virginia (“Zone 1”); and WHEREAS, on January 1, 2014 certain additional areas within the City of Portsmouth were designated by the Commonwealth of Virginia as a second Enterprise Zone (“Zone 2”); and WHEREAS, the Enterprise Zone designations provide certain development and employment incentives within the Zones (“Incentives”); and WHEREAS, on February 10, 2015, City Council authorized the City Manager to submit an application to the Commonwealth of Virginia to amend certain qualification thresholds for the Incentives within Zone 1, including related to required investment, employment and wage levels, to make the thresholds consistent with Zone 2; and WHEREAS, the application to amend the qualification thresholds within Zone 1 was duly submitted and approved by the Virginia Department of Housing and Community Development (“DHCD”) on August 4, 2015; and WHEREAS, the City of Portsmouth provides funding to the Economic Development Authority of the City of Portsmouth, Virginia (“EDA”) to implement the Incentives through that certain Amended and Restated Portsmouth Virginia Enterprise Zone Local Incentives Grants Funding Agreement dated as of March 12, 2015 (the “Existing Agreement”); and WHEREAS, it is necessary and desirable to further amend and restate the Existing Agreement to incorporate the amendments to Zone 1 approved by DHCD;