Minutes 03/10/2020 - Laserfiche WebLink

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March 10, 2020 “ORDINANCE ACCEPTING TITLE TO 387 QUEBEC STREET IN THE SUGAR HILL SECTION OF THE CITY FROM THE ECONOMIC DEVELOPMENT AUTHORITY AND AUTHORIZING THE PAYMENT OF $31,070 FROM THE STORMWATER FUND TO REIMBURSE EDA FOR THE COST OF ITS ACQUISITION OF THE PROPERTY.” Ayes: Battle, Clark, Glover, Lucas-Burke, Moody, Psimas, Rowe Nays: None 20 - 99 - Adoption of a resolution certifying the City of Portsmouth’s support for the demolition and revitalization of the former Cogentrix site, including through acceptance of a Port Host Communities Revitalization Fund Grant from the Virginia Department of Housing and Community Development, and further authorizing the execution of a Cooperation Agreement with the Portsmouth Port and Industrial Commission related to the project and the grant. Background:  Thanks to the hard work of Sherri Neil and the Portsmouth legislative delegation, last year the Virginia General Assembly created a Port Host Communities Revitalization Fund.  Under the terms of the Fund, the five Port Host Communities (Portsmouth, Front Royal, Newport News, Norfolk and Richmond) will be able to apply for grants from an annual pool of $1,000,000.  The grant money is to be used for the redevelopment of port-related properties to further economic development and employment growth.  The Portsmouth Port and Industrial Commission and the Economic Development Department partnered with Industrial Realty Group, a national industrial real estate development company (IRG), to submit an application for a portion of this year’s Fund.  IRG recently acquired the former Cogentrix site located in the West Norfolk area of the City, and the application is to support the demolition of existing facilities on the site.  PPIC and the Economic Development Department selected IRG for the Port Host Communities application after conducting a process to solicit potentially interested applicants and reviewing all responses.  On February 4, 2020 Governor Ralph Northam announced that the Virginia Department of Housing and Community Development (“DHCD”) has awarded the application $500,000 (half of the total funds available in this year’s pool for the five cities).  With the assistance from the Fund, IRG will be able to complete demolition of the Cogentrix facilities and develop the site as a new warehousing facility to serve companies doing business with the Port of Virginia.  The project will provide a significant benefit to Portsmouth and its citizens, including by increasing the tax base, offering employment opportunities, and triggering additional economic investment. Discussion:  The Port Host Communities Revitalization Fund grant is a reimbursement grant requiring a dollar for dollar match. The match will be provided by IRG through its own expenditures for the demolition.  It is anticipated that DHCD will provide the $500,000 grant to the City in advance, but that the City will be required to hold the funds until IRG has demonstrated the expenditure of at least $1,000,000 for demolition.  It is further anticipated that once DHCD determines that IRG has complied with the requirements for the release of funds, the City will disburse the grant funds to PPIC and then PPIC will disburse the funds to IRG.  The resolution proposed for City Council consideration (1) affirms the City’s support for the demolition and revitalization of the Cogentrix property and (2) authorizes the City Manager to execute a Cooperation Agreement with PPIC regarding the funding disbursement structure described above.