Minutes 01/14/2025 - Laserfiche WebLink

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January 14, 2025 25 - 19 - Adoption of a resolution certifying the City of Portsmouth’s support of an application for the Virginia Department of Rail and Public Transportation Industrial Access Railroad Track Fund in the amount of $750,000 in furtherance of the development of 1 Harper Avenue for port-related uses. Background:  In 1995 the Commonwealth Transportation Board (CTB) resolved that the Industrial Access Railroad Track Program is to provide funding to be used as an incentive to encourage industrial or commercial development in the Commonwealth of Virginia.  Under the terms of the Program, the following organizations are eligible to apply for Industrial Access Railroad Track funding: Business, Commercial or Industrial Enterprises o Municipal and County Governments acting on behalf of Business, Commercial or o Industrial Enterprises Local Departments of Economic Development acting on behalf of Enterprises o Railroads  All applications for Industrial Access Railroad Track Funds require a Resolution from the local governing body requesting that such funds be allocated to the proposed project. Discussion:  The DeLong Co., Inc. has partnered with CSX to develop a rail-served, multi- commodity rail transload facility at 1 Harper Ave. to provide rail-to-container transloading. Improvements include earthworks, rail construction, buildings, conveyers, storage, operational equipment and other related development expenses.This would continue the revitalization of the Portsmouth Marine Terminal industrial area.  The application will seek a grant of $750,000 from DRPT. The DeLong Co., Inc. will expend at least $1,457,403 of its own funds to serve as the required match for the grant.  The project will represent a total capital investment of over $26.2 million and ultimately result in increased business operations and approximately 14 new employee positions.  The City will have no liability for the project or obligation to commit any local funding to the project.  The Resolution proposed for City Council consideration affirms the Council’s support for the project and is required in order for the Industrial Access Railroad Track Fund application to be submitted. Financial Impact:  If the application is successful, the project would be funded entirely by the Commonwealth of Virginia and private funding. No City funds are required to be expended as a match for the Industrial Access Railroad Track Fund grant. Recommended Action:  Adoption of the Resolution. Next Steps Following Council Action:  Submission by The DeLong Co., Inc. of its Industrial Access Railroad Track Fund grant application to the Virginia Department of Rail and Public Transportation. Motion by Mr. Hugel, and seconded by Ms. Bryant, to adopt the following resolution, and was adopted by the following vote: “RESOLUTION CERTIFYING THE CITY OF PORTSMOUTH’S SUPPORT OF AN APPLICATION FOR A VIRGINIA DEPARTMENT OF RAIL AND PUBLIC TRANSPORTATION INDUSTRIAL ACCESS RAILROAD TRACK FUND GRANT IN THE AMOUNT OF $750,000 IN FURTHERANCE OF THE DEVELOPMENT OF 1 HARPER AVENUE FOR PORT-RELATED USES.