Minutes 08/26/1986 - Laserfiche WebLink

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August 26, i986 WHEREAS, the Council of The City of Portsmouth adopted a ~solution approving the issuance of Industrial Development Revenue ~nds by IDA for the benefit of The "Company" to assist in financin he acquisition, construction and equipping of the "Facility" in not to exceed Three Hundred Forty-Six Thcusand, Five Hundred ~llards ($546,500) on May 27, 1986, but did not allocate the City's Local Bond Allocation or any portion thereof; and WHEREAS, pursuant to the authority vested in him by the Deficit ~ction Act of 1984 (the"~Act'') the Governor of Virginia issued Executive Order No. 54(85) on January 23, 1985, and amended on July 14, 1986 (the "Order") providing a formula for the allocatio~ of the rte Ceiling as defined in that Order; and he WHEREAS, the "Order" authorized the City Council of the City Virginia to allocate its portion of the State Ceiling to issuing authorities within the City of Portsmouth, Virginia; ~HEREAS, the IDA now requests the allocation of Three Hundred housand Dollars C$300,000) to the "EomFany". NOW, THEREFORE, BE IT RESOLVED that the Council of the City of ?ortsmouth, Virginia confirms its approval of the issuance of Indus- rial Development Revenue Bonds by IDA for the "Company' in an to exceed Three Hundred Thousand Dollars ($300,000) to assist the "Company" in financing a portion of the cost of acquisition, 5truction and equipping of the "Facility" and allocates Three Hundre rhousand Dollars (~300,000) of the City's limit imposed pursuant to the "Order" To IDA in order to cover the issuance by IDA of the hree Hundred Thousand Dollars ($300,000) Industrial Development ~enue Bonds for the benefit of ~he "Company"; provided, however, if the Bonds are not issued on or before August 29, 1986, such al- location for the benefit of the "Company" shall expire unless such ~eriod is extended by a resolution of this Council. BE IT F~RTHER RESOLVED that the allocation made hereby does nol onstitute an endorsement of the Bonds, financial viability of the ;acility" or the credit worthiness of the "Compan)" but, as re~ by ~15.1-1380 of the Code of Virginia, 1950, as amended, the Bonds shall provide that neither the Commonwealth of Virginia, City of uth nor IDA shall ~e obligated to pay the Bonds or the inter- est thereon or the costs incident thereto except from the revenues and monies pledged therefor, and neither the faith nor credit of the taxing power of tke Commonwealth, the City nor IDA shall be pledged thereto. This resolution shall take effect immediately upon its adoptioz Ayes: Barnes, Corprew, Gray, Lucas, SimFson, Webb, Holle' Nays: None 86-318 Letter from the City Manager recommending adoption of a resclution recommending that $1.1 million of the City's local Industrial Revenue BondAllocation be allocated to the Authority the benefit of Northside Associates to construct and equip a 10( bed rest home complex. "On August 13, 1986, the Industrial Development Authority of the City of Portsmouth approved an Allocation Resclution that $1.1 million of the City's local Industrial Revenue Bond Alloca ion be allocated to the Authority [or the benefit of Northside sociates. City Council previously provided local governing body approval of this project on June 24, 1986. These bonds would be used to purchase land owned by the Ports- ~outh Redevelopment and Housing Authority at the corner of Fort Lan and Enterprise Way and to construct and equip a 100 bed rest home complex. As indicated in the enclosed Development Summary, this ~roject is expected to create 36 jobs and generate more than $27,00(