Minutes 12/11/2018 - Laserfiche WebLink

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December 11, 2018 Motion by Ms. Psimas, and seconded by Mr. Clark, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION AUTHORIZING A SHORT-TERM LOAN TO THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA IN AN AMOUNT NOT TO EXCEED $5,150,000 FOR THE PURPOSE OF ACQUIRING CERTAIN PROPERTY IN SETTLEMENT OF LITIGATION WITH VICTORY CROSSING DEVELOPERS II, LLC, AND FURTHER AUTHORIZING THE EXECUTION OF AGREEMENTS AND DOCUMENTS RELATED TO SAME. WHEREAS, in 2004 the Economic Development Authority of the City of Portsmouth, Virginia entered into an agreement (the “Development Agreement”) with Victory Crossing Developers II, LLC (the “Developer”) for the conveyance of property and development of a project known at various times as Victory Village or The Commons at Portsmouth Center (the “Project”); and WHEREAS, as required by the Development Agreement, EDA subsequently conveyed several parcels of property to the Developer; and WHEREAS, while the Developer did construct certain infrastructure improvements, the Project as a whole was not developed and, in 2016, EDA filed suit against the Developer for the purpose of exercising a right of reverter set forth in the Development Agreement; and WHEREAS, the Developer filed a counterclaim against EDA and also filed a lawsuit against the City of Portsmouth; and WHEREAS, the City, EDA and the Developer have reached an agreement in principle to exercise the reverter right and resolve all litigation (the “Settlement Agreement”); and WHEREAS, the Settlement Agreement requires the Developer to reconvey all of the property it currently owns to EDA, a total of approximately 19.19 acres (the “Reverter Property”); and WHEREAS, the Settlement Agreement requires EDA to pay a reverter price of $5,123,929.42 for the Reverter Property; and WHEREAS, the reverter price is approximately the assessed value of the Reverter Property; and WHEREAS, in order to fund EDA’s compliance with the Settlement Agreement and acquisition of the Reverter Property (including closing costs), the City intends to provide a short-term loan to EDA in an amount not to exceed $5,150,000 (the “Loan”); and WHEREAS, with the assistance of the City, the EDA intends to issue bonds or otherwise obtain financing to repay the Loan in full on or before March 31, 2019; and WHEREAS, the City and EDA intend to enter into (1) a Cooperation Agreement in substantially the form attached hereto as Exhibit A and (2) loan documents to memorialize the intended transactions described in this Resolution; and WHEREAS, by action at its December 11, 2018 meeting, EDA approved the Settlement Agreement, the Cooperation Agreement, and the transactions contemplated by this Resolution. NOW THEREFORE BE IT RESOLVED by the Council of the City of Portsmouth, Virginia that it approves the Settlement Agreement; and BE IT FURTHER RESOLVED that it approves and authorizes the execution of a Cooperation Agreement with EDA in substantially the form attached hereto as Exhibit A; and