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October I, 1985
<br />
<br /> On motion of Mr. Gray and seconded by Mr. Beamer, the following ordinance was approved
<br />on first reading; award of the contract for Camden Avenue Replacement Sewer to T. A. Loving,
<br />being responsible low bidder, and award of fhe contract for Rodman Avenue Replacement Sewer
<br />to W. R. Hall, Inc., being responsible low bidder, and was adopted by unanimous vote:
<br />
<br />"AN ORDINANCE TO APPROPRIATE $4,525,357 FROM THE PUBLIC UTILITY CAPITAL
<br />IMPROVEMEN% FUND FOR CONSTRUCTION OF THE CAMDEN AVENUE AND RODMAN AVENUE
<br />SEWER REPLACEMENT PROJECT."
<br />
<br /> 85-281 Letter
<br />priate $104,00 from
<br />Program.
<br />
<br />from the City Manager recommending adoption of an
<br />the Community Development Fund for the 1985 Rental
<br />
<br />ordinance to appro-
<br />Rehabilitation Grant
<br />
<br /> "The U. S. Department of Housing and Urban Development has recently notified us of our
<br />allocation of $104,000 of Rental Rehabilitation Grant Funds for 1985. The grant will be
<br />administered by the Portsmouth Redevelopment and Housing Authority in the form of low interes~
<br />rehabilitation loans to owners of rental units~fordable to low income persons.
<br />
<br /> The neighborhoods targeted for the second year of the program are Brighton,
<br />Park View, Prentis Park and Truxton. A maximum of $5,000 in grant funds will be
<br />per unit with the owners having to privately finance at least 50 per cent of the
<br />the rehabilitation.
<br />
<br />Cradock,
<br />available
<br />to~a]lcost
<br />
<br />of
<br />
<br /> 1984 funds are being used for two projects, a duplex in Park View owned by Norman B.
<br />Brooke B. Schaab and Bay City Apartments, a 96 unit complex on Lincoln Street. The Schaab
<br />Unit, at 1025 Ann Street will have anew roof installed, have the electrical, plumbing and
<br />heatmng systems updated, be painted, carpeted and have broken windows, screens and doors
<br />replaced. The owner will also landscape the property. Funds for Bay City will provide new
<br />roofing, siding and guttering, new doors and windows, appliances and light fixtures. The
<br />brick veneer will be repaired, the metal fencing removed and a new development sign installed.
<br />
<br /> I recommend your approval of the Rental Rehabilitation Grant Program for 1985, and
<br />adoption of the attached ordinance to appropriate the funds."
<br />
<br /> Councilman-Whitlow stated that he would abstain on the matter, as his law firm represente
<br />some of the partners in this Froject that would be recipient of part of the grant funds.
<br />
<br /> On motion of Mrs. Lucas and seconded by Mr. Gray, the following ordinance was approved
<br />on first reading, and was adopted by S-0-1 (Abstaining-Whitlow) vote:
<br />
<br />'AN ORDINANCE TO APPROPRIATE $104,000 FROM THE COMMUNITY DEVELOPMENT FUND FOR
<br />tHE 1985 RENTAL REHABILITATION GRANT PROGRAM."
<br />
<br /> 85-282 Letter from the City Manager recommending adoption of the following actions
<br />necessary in order to mssue $30,000,000 of General Obligation Bonds.
<br />
<br /> 'Haying participaZed in the deliberations of
<br />recommending with their concurrence, that
<br />of general obligation bonds.
<br />
<br />the Municipal Finance Commission, I am
<br />proceed with the issuance of $30,000,000
<br />
<br /> lhe market for ~e~ municipal bonds has improved dramatically in recent months and, ~
<br />in fact, is presently at nearly the lowest interest rate that has existed in the last S years.
<br />In addition, the proceeds of the last bond issue, which was sold on November 23, 1982, have
<br />now B~n expended. In order to accomplish the preliminary steps necessary to issue bonds, I
<br />have placed on your agenda the following four items for your consideration:
<br />
<br />(a)
<br />
<br />A resolution authorizing the issuance of $20,150,000 in General Obligation Public
<br />Imp~'ovement Bonds for the purpose of providing funds to p~y the costs of various
<br />public improvement projects--
<br />
<br />This resolution will fund all the projects contained in prior year Capital
<br />Improvement Programs (CtP's) for which you have adopted resolutions; as well
<br />as the proposed 1985-86 CIP projects that will require bond funding ($8,000,000);
<br />and a portion of the 1986-87 CIP projects which are scheduled to be authorized next
<br />year ($2,530,124). In all, CIP projects totaling $18,655,000 will be funded from
<br />these bond proceeds.
<br />
<br />In addition to the foregoing projecns, I am very pleased to recommend $1,495,000
<br />for a Rehabilitation Loan Program. Our bond attorney has provided advice that under
<br />current Internal Revenue Code provisions, the City is entitled to use less than
<br />5 percent of the ~proceeds of an issue of general obligation bonds for a rehabilita-
<br />tion loan program, without being subject to the restrictive provisions that apply
<br />to qualified mortgage subsidy bonds. This affords an exuellent oppcrtunity for the
<br />C~ty to make a limited number of low interest loans available through the Portsmout~
<br />Redevelopment and Housing Authority (PRHA) for upgrading some of the City's housing
<br />stock. Under the proposed program, the City will lend $1,495,000 to PRHA, and the
<br />reFayments to the City will be structured in such a way as to meet the City's
<br />schedule of debt service for these proceeds. Although a number of details are yet
<br />to be resolved, I feel that the staffs of PRHA and the City are to be co~nended for
<br />developing such an innovative rehabilitation loan program. The funds will need to
<br />be appropriated by City Council at a later date in order for this program to be
<br />implemented, and I will furnish more information at that nime. In the unlikely even
<br />that Council would not wish to proceed with this program at that time, these bond
<br />proceeds could be used instead for other CIP projects.
<br />
<br />
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