Minutes 12/09/1986 - Laserfiche WebLink

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December 9, 1986 "The City's last general obligation bdnd issue, which was sold on November 1, 1985, included ~1,495,000 for a Rehabilitation Loan Program to be administered by the Portsmouth Redevelopment and HousJ .thority (PRHA). The bonds were issued to create a funding source from which PRHA could lend moneys to rehabilitation loan recipients to facilitate the rehabilitation of housing or other xmprovements within the City. I am now requesting the Council to appropriate thf so that PRHA can begin making rehabilitation loan from these )roceeds in 1987. PRHA will repay the entire principal amount, plus nterest at 8.02% to the City over a 10 year period. The rehabilitation loan program has been in effect during 1986 but from a different funding source. The initial funding was pro- vided by mortagage subsidy bonds which PRHA sold to local banks. Both the mortgage subsidy bonds and the general obligation bonds ha~ limitations as to the maximum amounts that could be issued. Now that the tax law has been changed to preclude further mortgage sub- sidy bond issues, it is especially fortuitous that the City had the foresight to issue the maximum amount of bonds permissible for this purpose in its last bond sale. The City Council and staff, as well the PRHA Commissicners and staff, should be commended for their efforts and foresight in making these funds available for the con- tinuation of the rehabilitation loan program in 1987. The loans will continue to be available to residents of the designated neighborhoods at an interest rate of 7%. Community Development funds in the amount of $182,000 will be used along with the $1:495,000 of bond proceeds in order to make the 7% interest rate possible. The loans will be for a 10-year term, with the loan amount being $5,000 and the maximum $20,000 for residential property and $25,000 for commercial property. I am very pleased to request the City Council to approve this appropriation ordinance and to authorize the City Manager to execut~ the loan agreement with the Portsmouth Redevelopment and Housing tthority." On motion of Mr. Gray and seconded ~rdinance was approved on first reading, vote: by Mr. Barnes, the followint and was adopted by unanimo~ "AN ORDINANCE TO APPROPRIATE $1,495,000 FROM THE CAPITAL IMPROVEMENT FUND FOR REHABILITATION LOAN PROGRAM TO BE ADMINISTERED BY PORTSMOUTH REDEVELOPMENT AND HOUSING AUTHORITY." 86-451 Letter from the Cit? Manager recommending ad6ption of an ordinance to appropriate $95,000 from the Capital Improvement Fund for installation Of off-site sanitary sewer force main and awa~ of contract to responsible low bidder. "The 1985-90 Capital Improvement Program includes funds for construction of public improvements for the River Pointe site. Thi three-phase project will provide utilities and site improvements to facilitate development of apartments, townhouses, a life care facil- ity and an office park. The City will receive developable property and an expanded tax base. Projected employment is 2,000, with more than $115 million in private investment scheduled over a ten year Bids were received for Phase III on December 2, 1986. The bid :eceived were competitive and in line with today's construction cosl (see attached tah~a~io~ ~The~fof~Z~-anficip~t~d-pr6ject ~incIuding contingencies, administration, inspection and easement ~cquisition] is $95,000.00. The total anticipated cost was calcu- lated as follows: lg