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June 24. 1986
<br />
<br />This
<br />
<br />resolution shall take effect immediately upon its adoption."
<br />
<br /> Ayes; Beamer, Corprew, Gray, Lucas, Webb, Whitlow, Holley
<br /> Nays: None
<br />
<br /> 86-229 Letter from the City Manager recommending adoption of a resolution to approve
<br />the issuance of $615,000 in Industrial Revenue Bonds for the benefit of Effingham Office
<br />Partners to finance the renovation of the former E. O. crawford Building at 601-603 Effingham
<br />Street into a "Business Incubator" office building for use by new and small businesses.
<br />
<br /> ,On June 11, 1986, the Industrial Development Authority of the City of Portsmouth passed
<br />a resolution recommending that $615,000 of the City,s local Industrial Revenue Bond allo~
<br />be allocated to the Authority for the benefit of Effingham Office Partners. City Council pre-
<br />viously provided local governing body approval of this project on April 22, 1986.
<br />
<br /> The intent of these bonds is to finance the renovation of the former E. O. Crawford
<br />building at 601-603 Effingham Street into a "business incubator" office building for use by
<br />new and small businesses. These bonds would also be used to finance the purchase of office
<br />equipment which will be made available to tenants on a shared-use basis. As noted in the
<br />enclosed Fiscal Impact Statement and Development Summary, this project is expected to generate
<br />in excess of $16,000 in local, annual taxes and 40 new jobs in the City of Portsmouth.
<br />
<br /> The attached resolution has been prepared by the City Attorney, and I recommend its
<br />approval, subject to D-1 consideration."
<br />
<br /> On motion of Mrs Webb and seconded by Mrs. Lu~as, the following resolution was adopted,
<br />and by the following vote:
<br />
<br />"A RESOLUTION CONFIRMING THE APPROVAL OF THE ISSUANCE OF INDUSTRIAL DEVELOPMENT
<br />REVENUE BONDS BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH,
<br />VIRGINIA FOR THE BENEFIT OF EFFINGH~4 OFFICE PARTNERS IN AN AMOUNT NOT TO EXCEED
<br />$615,000 FOR THE ACQUISITION, RENOVATION AND EQUIPPING OF AN OFFICE AND COMMERCIAL
<br />FACILITY AT 601-603 EFFINGHAM STREET IN THE CITY OF PORTSMOUTH, VIRGINIA.
<br />
<br /> WHEREAS, the %ndustrial Development AuthoritM of the City of Portsmouth, Virginia (IDA)
<br />has been authorized to advertise and hold public hearings relative to the issuance of Indus-
<br />trial Development Revenue Bond~; and
<br />
<br /> WHEREAS, IDA has considered the application of Effingham Office Partners, a Virginia
<br />General Partnership, (the"ComPany") with a principal place of business at 54 Sandie Point
<br />Drive, Portsmouth, Virginia, for the issuance by IDA of Industrial Development Revenue Bonds
<br />in an amount not to exeeed Six Hundred Fifteen Thousand Dollars [$615,000) to assist in
<br />financing the acquisition, renovation and equipping of an office and commercial facility to
<br />be located at 601-603 Effingham Street in the City of Portsmouth, Virginia (the "Facility"),
<br />andhas held a public hearing thereon on March 12, 1986; and
<br />
<br /> WHEREAS, the Council of the City of Portsmouth adopted a resolution approving the iss
<br />of Industrial Development Revenue Bonds by IDA for the benefit of the "Company" to assist in
<br />financing the acquisition, renovation and equipping of the "Facility" in an amount not to
<br />exceed Six Hundred Fifteen Thousand Dollars ($615,000) on April 22, 1986, but did not allocate
<br />the_City's Local Bond Allocation on any portion thereof; and
<br />
<br /> WHEREAS, pursuant to the authority vested in him under the Deficit Reduction Act of 1984
<br />(the"Act"), the Governor of Virginia on January 23, 1985 issued Executive Order No. 54(85)
<br />(the 'Order") providing a formula for the allocation of the State Ceiling as defined in that
<br />Order; and
<br />
<br /> WHEREAS, the "Order" authorized the City Council of the City of Portsmouth, Virginia
<br />allocate Six Hundred Fifteen Thousand Dollars ($615,000) of the City's portion of the State
<br />Ceiling on Privat~il Activity Bonds to IDA in order to cover the issuance by IDA of Industrial
<br />Development Revenue Bonds in said amount for the ben6fit of the "Company".
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED THAT THE Council of the City of Portsmouth confirms its
<br />approval of the issuance of Industrial Development Revenue Bonds by IDA for the "Company" in
<br />an amount not to exceed Six Hundred Fifteen Thousand Dollars ($615,000) to assiSt the acquisi-
<br />tion, rehabilitation and equipping of the vaility and allocates Six Hundred Fifteen Thousand
<br />Dollars ($615,000) of the City's limit imposed pursuant to the "Order" to IDA in order to co'
<br />the issuance by IDA of the Six Hundred Fifteen Thousand Dollars ~$615~000) Industrial Develop-
<br />ment Revenue Bonds for the benefit of the "Company"; provided, however, that if the Bonds are
<br />not issued on or before the forty-fifth (dSth) day after the date on which this resolution is
<br />adopted by City Council, such allocation for the benefit of the "Company" shall expire unless
<br />such forty-five (45) day period is extended by resolution of this Council.
<br />
<br /> BE IT FURTHER RESOLVED that the adoption of this resolution does not constitute an endors
<br />ment of the Bonds, financial viability of the "Facility" or the credit worthiness of the
<br />"Company", but the Bonds shall provide that neither the Commonwealth of Virginia, City of
<br />Portsmouth, nor IDA shall be obligated to pay the Bonds or the interest thereon or the costs
<br />incident thereto except from the revenues and monies pledged therefor, and neither the faith
<br />nor the credit of the taxing power of the Commonwealth, the City or IDA shall be pledged
<br />thereto.
<br />
<br />This
<br />
<br />resolution shall take effect immediately upon its adoption."
<br />
<br /> Ayes: Beamer, Corprew, Gray, Lucas, Webb, Whitlow, Holley
<br /> Nays: None
<br />
<br />
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