Minutes 12/11/2018 - Laserfiche WebLink

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December 11, 2018  The VSHF property is currently assessed at $6,798,490, more than three times the acquisition cost.  Closing on the acquisition is anticipated to occur during December 2018. Financial Impact:  The City will spend approximately $1,820,000 (including purchase price and closing costs) to acquire 206 High Street. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  The City will proceed with closing on acquisition of the property. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, spoke in opposition to this item. 2. Tony Goodwin, 38 Linden Avenue, spoke in support of this item. Motion by Ms. Lucas-Burke, and seconded by Mr. Moody, to adopt the following ordinance, and was adopted by the following vote: “ORDINANCE APPROPRIATING $1,820,000 FROM THE GENERAL FUND – UNASSIGNED FUND BALANCE FOR THE PURPOSE OF ACQUIRING 206 HIGH STREET.” Ayes: Clark, Lucas-Burke, Moody, Psimas, Smith, Rowe Nays: None 18 - 467 - Adoption of an ordinance appropriating $5,150,000 from the General Fund – Unassigned Fund Balance for the purpose of providing a short-term loan to the Economic Development Authority of the City of Portsmouth, Virginia. Background:  On December 11 City Council will consider a resolution approving a loan of not to exceed $5,150,000 to EDA for the purpose of acquiring certain property in settlement of litigation with Victory Crossing Developers II, LLC.  If the resolution is approved, it will be necessary for City Council to appropriate $5,150,000 to fund the loan. That is the purpose of this ordinance. Discussion:  The ordinance covered by this CMR would appropriate $5,150,000 from the General Fund – Unassigned Fund Balance for the purpose of funding the loan to EDA.  The ordinance also includes language necessary under the Internal Revenue Code to authorize the EDA to issue bonds to repay the loan. Financial Impact:  The ordinance appropriates funds for a loan in an amount not to exceed $5,150,000 to EDA. Recommended Action:  Adoption of the ordinance. Next Steps Following Council Action:  Assuming adoption of both the ordinance and the separate agenda item authorizing and approving the loan, the loan will be made to EDA. 1. Mark Geduldig-Yatrofsky, P. O. Box 50141, asked that the rumor be dispelled that the monies were being taken from the schools Risk Management Fund. 2. Donna Sayegh, 3104 Garland Drive, spoke in opposition to this item.