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February 11, 2020 <br /> <br />Financial impact: <br /> <br /> The funds will support activities in the existing Annual Action Plan and there will <br />be no impact to service delivery. HOME funds require a match of not less than 25% of <br />HOME funds drawn. <br /> <br />Recommended Action: <br /> <br /> Adoption of the ordinance. <br /> <br />Next Steps Following Council Action: <br /> <br /> The funds are approved and available upon authorization of the appropriation. <br /> <br />Motion by Mr. Moody, and seconded by Ms. Psimas, to adopt the following <br />ordinance, and was adopted by the following vote: <br /> <br />“ORDINANCE ACCEPTING $117,307.50 OF COMMUNITY DEVELOPMENT BLOCK <br />GRANT PROGRAM INCOME AND $20,000 OF HOME INVESTMENT PARTNERSHIPS <br />PROGRAM INCOME AND APPROPRIATING SAID AMOUNTS IN THE FY 2020 <br />COMMUNITY PLANNING AND DEVELOPMENT PROGRAM FUND.” <br /> <br />Ayes: Battle, Clark, Glover, Lucas-Burke, Moody, Psimas, Rowe <br />Nays: None <br /> <br />20 - 56 - Adoption of an ordinance accepting Commonwealth Development <br />Opportunity Funding in the amount of $180,000 from the Virginia Economic <br />Development Partnership Authority and appropriating said funds in the FY 2020 <br />Grants Fund for distribution in accordance with state guidelines and in furtherance <br />of the development of the former BASF site by Lineage Logistics. <br /> <br />Background: <br /> <br /> The Commonwealth Development Opportunity Fund offers grants to stimulate <br />local economies and employment by inducing large employers to locate, and make <br />substantial investments, in Virginia. <br /> <br /> In 2019, Lineage Logistics (formerly Preferred Freezer) was considering new <br /> <br />facility locations in several different states. <br /> <br /> Lineage is a global leader in the cold storage industry, with facilities in Europe and <br /> <br />the United States. <br /> <br /> To convince Lineage to choose Portsmouth over competing localities in other <br />states, the Virginia Economic Development Partnership Authority (VEDP) approved a <br /> <br />Development Opportunity grant in the amount of $180,000. <br /> <br /> As a condition of the grant, VEDP requires a local match. The Portsmouth Port <br />and Industrial Commission (PPIC) has agreed to provide $180,000 of its own funds to <br /> <br />serve as the match. <br /> <br /> As a result of the state and local efforts Lineage chose Portsmouth. In October <br />2019 it acquired 3599 Progress Avenue, where it will invest $60 million in the construction <br /> <br />of a new 200,000 square foot cold storage facility. <br /> <br /> The project will redevelop a portion of the former BASF chemical plant property <br />(which closed in 2007) and will provide for considerable economic investment in the West <br /> <br />Norfolk community. <br /> <br /> Upon completion, the cold storage facility will provide at least 60 new jobs with an <br /> <br />average annual salary of $50,000. <br /> <br /> The project will provide a tremendous benefit to Portsmouth and its citizens, <br />including by increasing the tax base, offering employment opportunities, and triggering <br /> <br />additional economic investment. <br /> <br />Discussion: <br /> <br /> VEDP will provide its $180,000 grant to the City immediately; however, the funds <br />are not to be released by the City until Lineage has met certain investment and <br />employment targets established by VEDP. <br /> <br /> <br /> <br /> <br /> <br />