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December 11, 2018
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<br /> If PPIC does not adopt the Resolution, this item will be removed from the
<br />December 11 Council agenda. If PPIC does adopt the Resolution, the attached City
<br />Council Resolution approving PPIC’s issuance of the bonds will be presented for
<br />consideration. Since the PPIC’s public hearing will be held on the morning of December
<br />11, the PPIC Resolution and “Record of Public Hearing” attached hereto are drafts
<br />(reflecting what typically transpires at a bond issue public hearing), and City Council will
<br />be provided a final version of the Record of Public Hearing before the Council meeting
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<br />that evening.
<br />
<br />Financial Impact:
<br />
<br /> The bonds will not create a debt or pledge of the faith and credit of the City of
<br />Portsmouth or PPIC and will not be payable from local tax revenue.
<br />
<br /> The PPIC will receive an annual variable amount as an administrative fee for the
<br />issuance (depending upon the outstanding principal amount of the bonds). The fee is
<br />estimated at roughly $5,000-$6,000 annually for the first several years.
<br />
<br />Next Steps Following Council Action:
<br />
<br /> Adoption of the Council’s resolution.
<br />
<br /> “Host Jurisdiction” approval in January by Fairfax County, being the location of the
<br />facility.
<br />
<br /> Adoption of a final bond resolution by the PPIC, likely at its late January meeting.
<br />
<br />1. Donna Sayegh, P. O. Box 50141, spoke in opposition to this item.
<br />
<br />Motion by Ms. Psimas, and seconded by Mr. Smith, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />“RESOLUTION APPROVING THE ISSUANCE OF NOT-TO-EXCEED $4,800,000 TAX-
<br />EXEMPT PORTSMOUTH PORT AND INDUSTRIAL COMMISSION BANK QUALIFIED
<br />REVENUE BONDS (CYA SPORT & COMMUNITY CENTER PROJECT), SERIES 2019.
<br />
<br />WHEREAS,
<br />Chapter 157 of the Acts of Assembly of 1954, as amended (the “Act”),
<br />authorizes the creation of the Portsmouth Port and Industrial Commission (the
<br />“Commission”) and the City Council of the City of Portsmouth, Virginia (the “City”) duly
<br />activated the Commission and appoints its commissioners; and
<br />
<br />WHEREAS,
<br />the Act empowers the Commission to assist CYA Sport & Community
<br />Center, LLC, a not-for-profit Virginia limited liability company (the “Applicant”), by the
<br />issuance of the Commission’s bonds, to finance (1) longer-term working capital for the
<br />Applicant, which will refinance a conventional mortgage loan (the “Acquisition Loan”) that
<br />financed the purchase of two parcels of real property and a 62,560 sq. ft. building and
<br />other improvements thereon collectively known as the The Fieldhouse and located at
<br />3730 Stonecraft Blvd., Chantilly, Virginia 20151 (also known as 14810 Murdock Street,
<br />Chantilly, Virginia 20151), and at 3801 Glorus Road, Chantilly, Virginia 20151 (“The
<br />Fieldhouse”), and (2) a portion of the costs of issuance of the Bonds described below
<br />(collectively, the “Project”); and
<br />
<br />WHEREAS,
<br />the Applicant owns The Fieldhouse, leasing it to CYA Facility
<br />Management, LLC (“Management”) for Management to operate The Fieldhouse, and both
<br />the Applicant and Management have their present principal place of business at the
<br />above-mentioned addresses for The Fieldhouse, in Fairfax County, Virginia; 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 of
<br />any private activity bonds by the Commission after the Commission 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 income
<br />tax; and
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