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June 24, 1986
<br />
<br /> 86-228 Letter from the City Manager recommending adoption of a resolution to approve
<br />the issuance of $300,)00 in Industrial Revenue Bonds for the benefit of Herbert Haneman, Mary
<br />Dixon and Helen Gould to construct a machine shop, electric shop, warehouse and training
<br />facility located at 3501 Shipwright Street to be leased to Western Branch Diesel.
<br />
<br /> "On June ll, 1986, the Industrial Development Authority of ~he City of Portsmouth voted
<br />to recommend that $300,C00 of the City's Industrial Revenue Bond allocation be allocated to
<br />the Authority for the benefit of Herbert A. Haneman, Mary H. Dixon and Helen H. Gould. City
<br />Council previously provided local governing body approval of this project on May 27, 1986.
<br />
<br /> These bonds would be used to construct a machine sh6p, electric sh6p, warehouse and
<br />training facility located at 3501 Shipwright Street ~o be leased ~o Western Branch Diesel.
<br />This project is expected to generate $16,000 annually in local taxes, and will retain 15 jobs
<br />and create 15 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 /> Barry W. Hunter, Bond Counsel, Kaufman & Canoles, Sovran Center, Norfolk, representing
<br />Herbert Haneman, Mary Dixon, and Helen Gould, stated that the facility is 15,000 sq. ft.
<br />instead of L,900 sq. ft. as noted in the resolution; and intuited if this was an allocation
<br />resolution. The City Attorney responded that it was an all~cation resolution.
<br />
<br /> On mormon of Mr. Gray and seconded by Mr. Beamer, 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 ~HE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH
<br /> FOR HERBERT A. HANEMAN, MARY H. DIXON AND HELEN H. GOULD IN AN AMOUNT NOT TO
<br /> EXCEED $300,000 FOR THE CONSTRUCTION AND EQUIPPING OF A MACHINE SHOP, ELECTRIC
<br /> SHOP, WAREHOUSE AND TRAINING FACILITY AT 3501 SHIPWRIGHT STREET IN THE CITY OF
<br /> PORTSMOUTH, VIRGINIA.
<br />
<br /> WHEREAS, the Industrial Developmen~ Authority of the City of Portsmouth, Virginia (IDA)
<br />has been authorized by the Council of the Cit) of Portsmouth, Virginia to advertise and hold
<br />public hearings relative to the issuance of Industrial Development Revenue Bonds; and
<br />
<br /> WHEREAS, IDA has considered the application of Herbert A. Haneman, Mary H. Dixon and
<br />Helen H. Gould (collectively the "Company") with the principal place of business at 2S01 Ship-
<br />wright Street, Portsmouth, Virginia for the issuance by IDA of Industrial Development Revenue
<br />Bonds in an amount not to exceed Three Hundred Thousand Dollars ($300,000) to assist in financ
<br />i~g the construction and equipping of a 15,000 square foot machine shop, electric shop, ware-
<br />house and training facility to be located at 550~ Whipwright Street ~n the City of Portsmouth,
<br />Virginia (the"Facility"), and held a public hearing thereon on May 14, 1986; and
<br />
<br /> WHEREAS, the Council of the City of Portsmouth adopted a resolution approving the issuanc~
<br /> of Industrial Revenue Bonds by the IDA for the benefit of the "Company" to assist in financing
<br /> but did not allocate ~he City's Local Bond
<br />
<br />~he construction and equipping of the "Facility",
<br />Allocation on any portion thereof; and
<br />
<br /> WHEREAS, pursuant to the authority vested in
<br />Act of 1984 (the "Act"), the Governor of Virginia
<br />No. 54(85) (the "Order") providing a formula for
<br />in that Order; and
<br />
<br />him mn accordance with the Deficit Reduction
<br />on January 23, 1985 issued Executive Order
<br />the allocation of the State Ceiling as define,
<br />
<br /> WHEREAS, the "Order" authorized the City Council of ~he City of Portsmouth, Virginia to
<br />allocate its port,on of the State Ceiling to the issuing authorities within the City of
<br />Portsmouth, Virginia; and
<br />
<br /> WHEREAS, ~he Industrial Development Authority adopted a resolution June 24, 1986 recommen.
<br />ing that the Council of the City of Portsmouth, Virginia allocate Three Hundred Thousand
<br />Dollars ($500,000] of the City's port.on of the State Ceiling on Private Activity Bonds to IDA
<br />in order to cover the issuance by ~DA of Three Hundred Thousand Dollars ($300,000) Industrial
<br />Development Revenue Bonds for the benefit of the "Company".
<br />
<br /> NOW, THEREFORE, BE I7 RESOLVED that the Council of the City of Portsmcuth confirms its
<br />approval of the issuance of Industrial Development Revenue Bonds by IDA for the "Compgny"
<br />limiting the amount of same not to exceed Three Hundred Thousand Dollars ($300,000) to con-
<br />struct and equip the "Facility" and allocates Three Hundred Thousand Dollars ($300,000) of the
<br />City's limit imposed pursuant to the "Order" to IDA in or~er to cover the issuance by [DA of t]
<br />Three-Hundred Thousand Dollars ($300,000) Industrial Development Revenue Bonds for the benefit
<br />of the "Company"; provided, however, that if the Bonds are not issued on or before the forty-
<br />fifth (45th) day after the date on which this resolution is adopted by City Council, such al-
<br />location for the benefit of the "Company" shall expire unless such forty-five (45) day period
<br />is extended by resolution of ~his Council.
<br />
<br /> BE IT FURffHER RESOLFED that the adoptmon 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 />inciden~ thereto excep~ 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 />
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