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May 14, 2024
<br />
<br />
<br /> Legally the Authority is required to wait two years from closure of HRRJ before it
<br />formally dissolves. During the two-year period, the Authority’s reserves will be used to
<br />resolve any outstanding contracts and expenses. To the extent the Authority’s reserves
<br />are insufficient to cover all expenses, each of the member cities will be responsible for
<br />20% of the excess costs. If any Authority reserves remain at the end of the two-year
<br />period, each of the member cities will be entitled to a distribution of 20% of the remaining
<br />reserves.
<br />
<br />Financial Impact:
<br />
<br /> The City will be purchasing the Hampton Roads Regional Jail property for
<br />$31,500,000.
<br />
<br /> To the extent the Authority’s reserves do not cover all of the Authority’s expenses
<br />during the wind-down period, the City will be responsible for paying 20% of the expenses.
<br />
<br /> To the extent any Authority reserves remain at the end of the wind-down period,
<br />the City will receive 20% of the remaining reserves.
<br />
<br />Recommended Action:
<br />
<br />
<br /> Adoption of the resolution.
<br />
<br />Next Steps Following Council Action:
<br />
<br /> The Authority will continue to wind down its affairs.
<br />
<br /> The City will purchase the HRRJ property from the Authority.
<br />
<br />1. JoAnn Clarke, 4717 Thornwood Avenue, spoke in opposition to this item.
<br />
<br />Motion by Mr. Tillage, and seconded by Ms. Lucas-Burke, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />“RESOLUTION TO CLOSE THE HAMPTON ROADS REGIONAL JAIL.
<br />
<br /> WHEREAS,
<br /> the HAMPTON ROADS REGIONAL JAIL AUTHORITY (“Authority”)
<br />was established on December 14, 1993, pursuant to Section 53.1-95.2 et seq., VA Code
<br />Ann., (1950), as amended; and
<br />
<br />WHEREAS,
<br /> the Authority is comprised of five municipal entities including, the City
<br />of Portsmouth, Virginia, the City of Norfolk, Virginia, the City of Hampton, Virginia, the
<br />City of Newport News, Virginia, and the City of Chesapeake, Virginia (individually, the
<br />“member city”) or collectively as the “member cities”); and
<br />
<br />WHEREAS,
<br /> pursuant to the Amended and Restated Agreement for Creation of the
<br />Hampton Roads Regional Jail Authority, all decisions concerning membership,
<br />withdrawal of members, and the continued operation of the Hampton Roads Regional Jail
<br />(“Jail”) by the Authority must be unanimous, with resolutions adopted by each member
<br />city; and
<br />
<br />WHEREAS,
<br /> the member cities agree unanimously that they want to close the Jail
<br />(for the purpose of housing inmates) as of April 1, 2024, sell the facility and its contents
<br />to the City of Portsmouth, and wind down and dissolve the Authority as soon as possible
<br />thereafter; and
<br />
<br />WHEREAS,
<br /> the City Council of the City of Portsmouth has concluded that closing
<br />the Jail as of April 1, 2024, selling the facility and its contents to the City of Portsmouth,
<br />and winding down and dissolving the Authority as soon as possible thereafter is in the
<br />best interest of the Authority and its member cities; and
<br />
<br />WHEREAS,
<br /> in furtherance of the desire of the member cities to close the Jail, the
<br />Authority has advised that all outstanding debt under the Authority’s Master Indenture of
<br />Trust has been defeased and deemed paid as of March 28, 2024;
<br />
<br />NOW, THEREFORE, BE IT RESOLVED
<br /> by the Council of the City of Portsmouth,
<br />Virginia:
<br />
<br />
<br />
<br />
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