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The attached resolution has been prepared by the City Attorney, and I recommend its
<br />approval."
<br />
<br /> On motion of Mrs. Webb and seconded by Mr. Whitlow, the following resolution was adopted,
<br />and by the following vote:
<br />
<br />"A RESOLUTION APPROVING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS
<br />BY THE PORTSMOUTH PORT AND INDUSTRIAL COMMISSION FOR MOON ENGINEERING COMPANY,
<br />INC. IN AN ~40UNT NOT TO EXCEED $3,S00,000 TO ACQUIRE, CONSTRUCT, AND EQUIP A
<br />SHIP REPAIR FACILITY AT 1 HARPER ROAD IN THE CITY OF PORTSMOUTH, VIRGINIA, AND
<br />ALLOCATING A PORTION OF THE STATE CEILING ON PRIVATE ACTIVITY BONDS FOR THE
<br />BENEFIT OF MOON ENGINEERING COMPANY, INC.
<br />
<br /> WHEREAS, the
<br />advertise and hold
<br />Bonds; and
<br />
<br />Portsmouth Port and Industrial Commission (PPIC) has been authorized to
<br />public hearings relative to the issuance of Industrial Development Revenue
<br />
<br /> WHEREAS, PPIC has considered the application of Moon Engineering Company, Inc. (the
<br />"Company") for the ~ssuance by PPIC of Industrial Development Revnue Bonds ~n an amount not
<br />to exceed three Million, Five Hundred Thousand Dollars ($3,S00,000) to assit the "Company"
<br />in the acquisinion, construction, and equipping of a shipyard to~ether will all back-up facili-
<br />ties at 1 Harper Road in the City of Portsmouth, Virginia (the "Facility"), to be owned by the
<br />Company and has held a public hearing thereon June 28, 1985; and
<br />
<br /> WHEREAS, PPIC has requested City Council to approve the issuance of the Bonds to comply
<br />with the applicable federal and state law; and
<br />
<br /> WHEREAS, a copy of PPIC'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 or their consideration.
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED that the recitals made in the second preamble to this
<br />resolution are hereby adopted as a part of this resolution and that the Council of the City
<br />of Portsmouth, Virginia, approves the issuance of Industrial Development Revenue Bonds by
<br />PPIC for the Company in an amount not to exceed Three Million, Five Hundred Thousand Dollars
<br />$3,500,000) to assist in the acquisition, construction and equipping of the Facility and the
<br />allocation of Three Million, Five Hundred Thousand Dollars ($3,500,000) of the City's limit
<br />imposed pursuant to Executive Order No. 54[85) issue~ by the Governor of Virginia on January
<br />23, 1985 pursuant to the authority vested in him in ~he Deficit Reduction Act of 1984 to PPIC
<br />in order to cover the ussuance by PPIC of the Three Million, Five Hundred Thousand Dollars
<br />($3,500,000) Industrial Development Revenue Bonds fo~ the benefit of the Company; provided,
<br />however, if the bonds are non issued on or before th~ sixtieth (60th) day after the date on
<br />which this resolution is adopted by Council, such allocation for the benefit of the Company
<br />shall expire unless such sicty (60) day period is exnended by resolution of the Council.
<br />
<br /> BE I~ FURTHER RESOLVED that the approval of the issuance of the Bonds as required by the
<br />applicable federal and state law 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 Sectior
<br />15.1-1380 of the Code of Virginia, 1950, as amended, the Bonds shall provide that neither the
<br />Commonwealth of Virginia, City of Portsmouth, nor PPIC shall be obligated to pay the Bonds or
<br />the interest thereon or other costs incident thereto e×ceot from the revenues and monies
<br />pledged therefor, and neither the faith or credit of the taxing power of the Commonwealth, the
<br />City, nor PPIC shall be pledyed thereto.
<br />
<br />This resolution shall take effect immediately upon its adoption."
<br />
<br />Ayes: Beamer, Corprew, Gray, Lucas, Webb, Whitlow, Holley
<br />Nays: None
<br />
<br /> 85-184
<br />$1,244,400
<br />Portsmouth
<br />
<br /> Letter from the City Manager recommending adoption of a res61~tion allocating
<br />of the S7,935,525 portion of the State ceiling on Industrial Revenue Bonds to the
<br />Port and Industrial Commission for the benefit of Portsmouth Properties.
<br />
<br /> "On June 13, 1985, the Portsmouth Port and Industrial Commission approved an Industrial
<br />Revenue Bond Inducement Resolution in the amount of $80,000,000 for the benefit of Portsmouth
<br />Properties, a Virginia Limited Partnership. PPIC also passed a resolution reccmmending that
<br />the City Council allocate the remaining S1,244,400 of its $7,935,525 portion of the State
<br />ceiling on Industrial Revenue Bonds to PPIC for the benefit of Portsmouth Properties.
<br />
<br /> The allocation of $1,244,400 in Industrial Revenue Bonds to this project will exhaust
<br />the City's 1985 bond allocation. Therefore, i~ will be necessary for the City to apply to
<br />the State Industrial Revenue Bond Reserve for the remaining $78,755,600 in Industrial Revenue
<br />Bonds required to fund this project. It is anticipated that'this application to the State
<br />Reserve will be made prior to the next application deadline of August IS, 1985.
<br />
<br /> These bonds would be used by Portsmouth Properties to construct a ten million ton per
<br />year coal blending, storage and export t~rminkl between Elm Avenue, the Southern Branch of the
<br />Elizabeth River, Paradise Creek and Victory Boulevard. A required use Dermit was granted by
<br />the City Council on November 22, 1983, and remains in effect.' The curr~nt project was reduced
<br />in scale from a 15 million ton facility to a ten million ton facility to make it economically
<br />feasible.
<br />
<br />
<br />
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