1983-12-05(II) - Laserfiche WebLink

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300' ORDINANCE: AMENDING REAL ESTATE TAX RELIEF AND RENT RELIEF (2nd reading) and he was, therefore, requesting $1.2 million in Industrial Development Bonds for the Paramount Theatre. Mr. Redinger presented revised plans for the Paramount Theatre which were changed to allow for an Historic Rehabilitation Tax Credit. Dr. Hall moved the resolution authorizing Industrial Development Bonds for the Paramoun~ Theatre, Mrs. Gleason seconded the motion, and it was unanimously approved by Council. WHEREAS, the Industrial Development Authority of the City of Charlottesville, Virginia (the "Authority"), has considered the application of Paramount Limited Partnershi~ (the "Company") requesting the issuance of the Authority's industrial development revenue bonds in an amount not to exceed $1,200,.000 (the "Bonds") to assist in the financing of the Company's acquisition, construction, renovation and equipping of a retail and office facility consisting of approximately 13,536 square feet (the "Project") located at 211-213 East Main Street (formerly known as the Paramount Theatre) in the City of Charlottesville, Virginia, and has held a public hearing thereon on November 29, 1983; and WHEREAS, Section 103(k) of the Internal Revenue Code of 1954, as amended, provides that the governmental unit hawing jurisdiction over the issuer of industrial development bonds and over the area in which any facility financed with the proceeds of industrial development bonds is located must approve the issuance of the bonds; and WHEREAS, the Authority issues its bonds on behalf of the City of Charlottesville, Virginia (the "City"); the Project is to be located in the City and the Council of the City of Charlottesville, Virginia (the "Council") constitutes the highest elected governmental unit of the City; and WHEREAS, the AuthOrity h'as recommended that the Council approve the issuance of the Bonds; and ~7HBREAS, a copy of the Authority's resolution approving the issuance of the Bonds, subject to the terms to be agreed upon, a certificate of the pUblic hearing, and a Fiscal Impact Statement have been filed with the Council; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF CHARLOTTESVILLE, VIRGINIA: 1. The Council approves the issuance of the Bonds by the Authority for the benefit of the Company, as required by Section 103(k) and Section 15.1-1378.1 of the Virginia Code, to permit the Authority to assist in the financing of the Project. 2. The approval of the issuance of the Bonds does not con- stitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Company. 3. This Resolution shall take effect immediately upon its adoption. Mr. Gary O'Connell, Assistant City Manager, summarized the report prepared by staff on the deferral ootion for real estate tax relief. Mr. Conover moved to amend the ordinance to include a deferral of 20% of the real estate tax for those persons having income between $12,000 and $1S,000, with 8% interest to be charged on the deferred tax. Mr. Buck stated his opposition to t~e amendment for the following reasons. 1) Raising the limit could increase enrollment in the program by 50% and, therefore, decrease revenues for the City. 2) Many people who have similar incomes but do not qualify, resent the program. 3) With extended families living in one household, the deferral may put a burden on families to the extent that they may need to dispose of the property. Dr. Gunter stated that she felt the amendment would only catch Charlottesville up with other localities, and would help those families who 'have problems because they can no longer help their elderly parents.