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August 13~ 1985
<br />
<br /> WHEREAS, the Industrial Developmont Authority of the
<br />has been authorized to advertise and hold public hearings
<br />Development Revenue Bonds; and
<br />
<br />City of Portsmouth, Virginia, (IDA)
<br />relative to the issuance of Industria'
<br />
<br /> WHEREAS, the IDA has considered the application of McGinnis Realty & Development Company
<br />and/or its assigns, (the "Company") for the issuance by IDA of Industrial Development Revenue
<br />Bonds in an amount nor to exceed Three Million Dollars ($3,000,000) to assist the "Company" in
<br />acquiring, constructing and equipping of an office building consisting of forty thousand
<br />(40,0001 square feet located on the southwest corner of High and Crawford Streets in the City
<br />of Portsmouth, Virginia (the"Facility") and has held a public hearing thereon on May 9 1985~
<br />and '
<br />
<br /> WHEREAS, IDA has requested City Council to approve the issuance of the Bonds for purposes
<br />of compliance with Section 103(K) of the Internal Revenue Code of 1954, as amended; and
<br />
<br /> WHEREAS, a copy of IDA's resolution approving the issuance of the Bonds, subject to the
<br />terms and conditions contained therein, and the appropriate certifications and documentations
<br />have been provided to the City Council for their consideration: and
<br />
<br /> WHEREAS, the Council of the City of Portsmouth, Virginia, acknowledges that Section 15.1-
<br />1378.1 6f the Code of Virginia, 1950, as amended, will require subseauenr consideration by
<br />this Council of this Bond issue within sixty [~6~ calendar days from an additional public hear-
<br />ing to be held by the Industrial Development Authority.
<br />
<br /> WHEREAS, the City of Portsmouth, Virginia, has allocated its entire local allocation impos
<br />pursuant to Executive Order No. 54(85) issued by the Governor of Virginia on January 23, 1985
<br />pursuant to the authority vested in hi~ in the Deficit Reduction Act of 1985 (the "Executive
<br />Order").
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED that for the purpose of compliance with Section 103(K) of
<br />the Internal Revenue Code, 1954, as amended, the Council of the City of Portsmouth, Virginia,
<br />approves the issuance of Industrial Development Revenue Bonds by IDA for the "Company" ~n an
<br />amount n~t to exceed One Million, Nine Hundred Thousand Dollars ($1,900,000) to assist in
<br />financing a portion of the cost of acquiring, constructing and equipping of the "Facility" and
<br />requests an allocation from the State Reserve as provided for in the "Executive Order' in an
<br />amount not to exceed One Million, Nine Hundred rhousand Dollars ($1,900,000) for the benefit
<br />of the "Company", and that the City Manager be, and he hereby is, authorized ~o submit an
<br />application with the Allocation Administrator to request an allocation from the State Reserve
<br />and execute any documents as may be required thereby.
<br />
<br /> BE IT FURTHER RESOLVED that the approval of the issuance of the Bonds as required by the
<br />applicable federal and state laws does not constitute an endorsement of the Bonds, financial
<br />viability of the "Facility" or the credit worthiness of the "Company" but, as required by
<br />Section 15.1-1380 of the Code of Virgifiia, 1950, as a~ended, the Bonds shall provide that
<br />neither the Commonwealth of Virginia, City of PortsmoUth, nor IDA shall be obligated to pay
<br />the Bonds or the interest thereon or the costs incideBt ~hereto except from the revenues and
<br />monies pledged therefor and neither the faith nor credit of the taxing power o£ the Common-
<br />wealth, the City nor IDA shalI be pledged thereto.
<br />
<br />This resolution shall take effect immediately upon its adoption."
<br />
<br />Ayes: Beamer, Corprew, 5ray, Lucas, Webb, Whitlow, Holley
<br />Nays: None
<br />
<br /> 85-226 Letter from the City Manager recommending
<br />the submission of an application to the Stare Industrial
<br />$4,480,000 for Medical Facilities of America XXXVII for
<br />100-bed nursing home facility on Tejo Lane.
<br />
<br />adoption of a resolution authorizing
<br />Revenue Bond Reserve in the amount of
<br />the constructing and equipping of a
<br />
<br /> "On August 8, 1985, the Industrial Development Authority of the City of Portsmouth held
<br />a public hearing and approved an Industrial Revenue Bond Inducement Resolution in the amount
<br />of $4,480,000 for the benefit of Medical Facilities o~ America XXXVII, a Virginia limited
<br />partnership. The IDA has also recommended that the City Council authorize the submission of an
<br />application to the State Industrial Revenue Bond ReseYve for this project. This action is
<br />necessary because the City has exhausted its 1985 per[capita Industrial Revenue Bond allocation
<br />~he next deadline for submission of applications to the State Reserve is August 15, 1985.
<br />
<br /> These bonds would be used in constructing and eqBipping a 100-bed nursing home £acility
<br />on Tejo Lane, extended, at Churchland Boulevard. As this project is non-manufacturing and not
<br />located within the Urban Enterprise Zone or a redevelopment area, it would not have been con-
<br />sidered ~ first priority for local allocation of InduStrial Revenue Bonds, is such were avail-
<br />able.
<br />
<br /> As indicated on the enclosed Development Summary, this project is expected to generate
<br />in excess of $66,000 in losal, annual taxes and to create approximately 80 new jobs (full-time
<br />equivalent] in the City of Portsmouth.
<br />
<br /> The attached resolution has been prepared by the City Attorney, and I recommend its a~-
<br />pr6val."
<br />
<br /> On motion of Mrs. Webb and seaonded by Mr. Gray, the following resolution was adopted,
<br />and by the following vote:
<br />
<br />
<br />
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