|
865
<br />
<br />June 24~ 1986
<br />
<br /> 86-227 - Letter from the City Manager recommending adoption of a resolution to approve
<br />the issuance of $2,000,000 in Industrial Revenue Bonds for the benefit of Pe×aco Associates to
<br />purchase and develop approximately 6.4 acres of land owned by the Portsmouth Port and Industri~
<br />Commission on Broad Street.
<br />
<br /> "On June ll, 1986, the Industrial Development Authority of the City of Portsmouth held a
<br />public hearing and approved an Industrial Revenue Bond Inducement Resolution in the amount of
<br />$2,000,000 for the benefit of Pe×aco Associates, a general partnership comprised of Charles R.
<br />Chambers, Francis H. Muldoon, Craig N. Johnson, William J~ Neumann, Herman V. Ruter, and Denni~
<br />Weaver (principals in Nacirema Operating Company and Lavino Shipping Company) and J. Michael
<br />Sasser. The bonds would be used to purchase and develop approximately 6.4 acres of land owned
<br />by the Portsmouth Port and Industrial Commission (PPIC) on Broad Street.
<br />
<br /> The partnership would initially construct an 8,000 sq. ft. office building with~masonry
<br />exterior, a 4 acre paved terminal area, and a vehicle maintenance facility to be used as the
<br />area headquarters for Nacirema Operating Company and for other port-related activity, The
<br />partnership would subsequently construct an additional 4,000 sq. ft. of masonry office space
<br />for lease. PPIC has reserved the right to review the site and landscaping plans.
<br />
<br /> As indicated on the enclosed Development Summary, this project is expected to generate
<br />more than $88,000 annually in local taxes and to create 34 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."
<br />
<br /> On motion of Mr. Beamer and seconded by Mr. Lucas, the following resolution was adopted,
<br />and by the following vote:
<br />
<br />"A RESOLUTION APPROVING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS BY
<br />THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA FOR PEXACO
<br />ASSOCIATES IN AN AMOUNT NOT TO EXCEED $2,000,000 FOR THE ACQUISITION, CONSTRUCTION
<br />AND EQUIPPING OF OFFICE AND COMMERCIAL FACILITIES TO BE LOCATED AT THE NORTHEAST
<br />INTERSECTION OF BROAD STREET AND MEANDER ROAD IN THE CITY OF PORTSMOUTH, VIRGINIA.
<br />
<br /> WHEREAS, the Industrial Development Authority 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 Bonds; and
<br />
<br /> WHEREAS, the IDA has considered the application of Pexaco Associates, a Virginia General
<br />Partnership, comprised of Charles R. Chambers, Francis H. Muldoon, Craig N. Johnson, William
<br />J. Neumann, Herman V. Ruter and Dennis Weaver (principals in Nacirema Operating Company and
<br />Lavino Shipping Company) and J. Michael Sasser, (the "Company") f6r~the issuance by IDA of
<br />Industrial Development Revenue Bonds in an amount not to exceed Two Million Dollars ($2,000,00
<br />to finance a portion of the cost of acquiring, constructing and equipping office and commercia
<br />facilities to be located at the northeast intersection of Broad Street and Meander Road in the
<br />City of Portsmouth, Virginia (the "Facility"), and has held a public hearing thereon on June
<br />11, 1986; and
<br />
<br /> WHEREAS, pursuant to the authority vested in him in the Deficit Reduction Act of 1984 (th,
<br />"Act") the Governor of Virginia issued Executive Order No. 54(85) (the "Order") providing a
<br />formula for the allocation of the State Ceiling as defined in that "Order" and authorized the
<br />City Council of Portsmouth, Virginia to allocate its portion of the State Ceiling to the
<br />issuing authorities within the City of Portsmouth, Virginia;and
<br />
<br /> WHEREAS, the IDA has requeste City Council to approve the issuance of the Bonds to comply
<br />with the applicable federal and state lsw, and a copy of IDA's resolution approving the issu-
<br />ance of the Bonds subject to the terms and conditions contained therein and the appropriate
<br />limitation, a reasonably detailed summary of the comments expressed at the public hearing and
<br />a fiscal impact statement, have been provided to the City Coundil for their consideration; and
<br />
<br /> WHEREAS; the City Council acknowledges that the adoption of this resolution does not con-
<br />stitute an allocation of the City?,s 1986 Local Allocation as defined in, and imposed pursuant
<br />to, the "Order" or any portion thereof.
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Portsmouth, Virginia
<br />approves the issuance of Industrial Development Revenue Bonds by IDA for the "Company" in an
<br />amount not to exceed Two Million Dollars ($2,000,000) to assist in financing the cost of ac-
<br /> quiring, constructing and equipping the "Facility".
<br />
<br /> BE IT FURTHER RESOLVED that ~he adoption of this resolution does not constitute an endorse
<br />merit 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 resolution shall take effect immediately upon its adoption."
<br />
<br />Ayes: Beamer, Corprew, Gray, Lucas, Webb, Whitlow, Holley
<br />Nays: None
<br />
<br />
<br />
|