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March 14, 2000
<br />
<br />· In order to yield the lowest cost of financing, it is recommended that a general
<br />obligation guarantee be associated with these bonds. City Council must approve the
<br />accompanying resolution in order to authorize the use of the City's general obligation
<br />guarantee.
<br />
<br />Financial Impact:
<br />
<br />· A projection of the financial impact of the project is outlined below:
<br />
<br />Taxes received by City:
<br /> Admissions Tax
<br /> Sales, Food & Beverage Tax
<br /> Total Taxes
<br />
<br />$300,000
<br /> 100,000
<br /> 400,000
<br />
<br />Base Lease Payment from Rising Tide
<br />
<br />275,000
<br />
<br />Total Fixed Payments
<br />
<br />675,000
<br />
<br />Percentage rent (minimum) from Rising Tide
<br />
<br />200,000
<br />
<br />Revenues to City/IDA
<br />
<br />$875,000
<br />
<br />Estimated Debt Service (20 years)
<br />
<br />$790,000
<br />
<br />· Based on the above projection, the use of general obligation guaranteed is expected
<br /> to have minimal impact on the City's overall debt position.
<br />
<br /> Motion by Mr. Moody, and seconded by Mr. Whitehurst, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"A RESOLUTION APPROVING A PLAN OF FINANCING WITH THE INDUSTRIAL
<br />DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, FOR THE
<br />CONSTRUCTION OF AN OUTDOOR PERFORMING ARTS CENTER AND RELATED
<br />FACILITIES, INCLUDING AN AUTHORIZATION TO MAKE A GENERAL
<br />OBLIGATION GUARANTEE IN A PRINCIPAL AMOUNT NOT TO EXCEED
<br />$10,000,000 TO SUPPORT OBLIGATIONS TO BE ISSUED BY THE AUTHORITY
<br />FOR SUCH PROJECT.
<br />
<br /> WHEREAS, the Council (the "Council") of the City of Portsmouth, Virginia (the
<br />"City"), desires to undertake, in conjunction with the Industrial Development Authority of
<br />the City of Portsmouth (the "Authority"), the construction of an outdoor performing arts
<br />center and related facilities on the downtown Portsmouth waterfront (the "Project"); and
<br />
<br /> WHEREAS, the Authority, pursuant to the Industrial Development and Revenue
<br />Bond Act (the "Act") under which it is created, is authorized to exercise all the powers
<br />set forth in the Act, which include, among other things, the power to acquire and
<br />improve, maintain, equip, own, lease and dispose of properties, including "taxable
<br />authority facilities" within the meaning of the Act, to the end that the Authority may be
<br />able to protect and promote tourism and economic development in the Commonwealth,
<br />to issue revenue bonds, notes and other obligations for the purpose of carrying out any
<br />of its powers and to pledge the revenues and receipts from the leasing of such facilities,
<br />or from any other source, to the payment of such bonds, notes and other obligations;
<br />and
<br />
<br /> WHEREAS, the Council desires to (a) convey to the Authority various real estate
<br />parcels that will comprise the site for the Project, and (b) provide in a timely manner
<br />such financial assistance as may be needed by the Authority to provide for the financing
<br />of the Project; and
<br />
<br /> WHEREAS, the Authority has adopted on February 15, 2000, a resolution
<br />authorizing (a) the issuance of revenue bonds (the "Bonds") in a principal amount not to
<br />exceed $10,000,000, including the issuance of a note in anticipation of such bonds (the
<br />"Note" and together with the Bonds, the "IDA Obligations"), (b) the construction of the
<br />Project, and (c) after construction of the Project, the operation of the Project in the
<br />public interest through a long-term lease or operating agreement; and
<br />
<br />
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