Minutes 11/23/2021 - Laserfiche WebLink

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November 23, 2021 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA THAT: 1. The Council approves the issuance of the Bonds by the Authority for the benefit of the Borrower, as required by Section 147(f) of the Code, Section 15.2-4906, as applicable to housing authorities, of the Virginia Code and, to the extent applicable, Section 36-19(9) of the Virginia Code, to permit the Authority to assist in the financing of the Plan of Finance. 2. The approval of the issuance of the Bonds does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Borrower. 3. The Bonds shall provide that (a) neither the Commonwealth of Virginia, the City nor the Authority shall be obligated to pay the Bonds or the interest thereon or other costs incident thereto except from the revenues and monies pledged thereto, (b) neither the faith and credit nor the taxing power of the Commonwealth of Virginia, the City or the Authority is pledged to the payment of the principal of the Bonds or the interest thereon or other costs incident thereto, and (c) neither the City, nor any of its elected representatives, officers, or employees, nor the commissioners, officers or employees of the Authority, shall be liable personally on the Bonds by reason of their issuance. 4. In adopting this resolution, the City, including its elected representatives, officers, employees and agents, shall not be liable for, and hereby disclaim all liability for, any damages to any person, direct or consequential, resulting from the Authority's failure to issue the Bonds for any reason. 5. This resolution shall take effect immediately upon its adoption.” Ayes: Barnes, Battle, Lucas-Burke, Moody, Whitaker, Woodard, Glover Nays: None 21 - 359 - Adoption of a resolution approving the leasing of approximately 32,500 net square feet in the Social Services building at 1701 High Street to the Commonwealth of Virginia Department of General Services for use by the Portsmouth Health Department. Background:  By sublease dated October 1, 2001 (the “Sublease”), the City subleased portions of the Social Services building to the Commonwealth of Virginia for use by the Portsmouth Health Department.  In the fall of 2020, the City made its final debt service payment on the Social Services property and title automatically reverted to the City. Discussion:  Given that the City is now the owner of the building, the Commonwealth has requested that the Sublease be replaced with a direct lease that reflects the City’s ownership.  The proposed lease has an initial five-year term and one five-year option term. At the end of ten years, the lease renews annually unless terminated by either party.  The monthly rent under the proposed lease is the same as under the Sublease: $30,987.49 per month.  The proposed lease contains standard Commonwealth of Virginia lease terms and will allow the Portsmouth Health Department to remain a tenant in building. Financial Impact:  The City will continue to receive $30,987.40 per month for the Health Department’s use of offices in the Social Services building. Recommended Action:  Adoption of the Resolution.