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the General Fund contribution to the debt service relatively <br />stable. Ms. Scott stated that two technical, tax-related <br />issues, arbitrage and small issuer limits, make it more <br />advantageous for the City to issue bonds in 1991. Ms. Scott <br />reviewed the timetable for the public hearing and adoption of <br />the bond ordinance. <br /> <br /> Responding to a question from Ms. Waters, Ms. Scott <br />estimated that approximately $1 million would be saved by <br />issuing the $7 million bonds in 1991 rather than 1992. <br /> <br /> Ms. Waters questioned whether issuing the bonds in 1991 <br />would still be needed or recommended if the renovations to <br />Johnson School were delayed. <br /> <br /> Ms. Scott stated that it would still be advantageous to <br />issue the bonds in 1991, but if the Johnson School <br />renovations were delayed the issue would be reduced by half. <br /> <br /> Mr. Toscano asked what assumptions staff started with <br />in regard to the bond issuance~ will the City get into too <br />much debt; and what happens if the dedicated funds do not <br />meet the debt service. Mr. Toscano stated that his major <br />concern was with the cost of the Water Street parking garage <br />and the revenues anticipated from the Water Street parking <br />garage and from the Michie project, adding that if the <br />revenues are less than anticipated the funds will need to be <br />found elsewhere. <br /> <br /> Responding to a question from Mr. Toscano, Ms. Scott <br />stated that the debt service would be reduced by $100,000 for <br />each $1 million reduction in the bond issuance. <br /> <br /> Mr. Toscano expressed concern that the estimate of <br />$350,000 to construct the pedestrian gateway under 9th Street <br />was too low and asked who provided the estimate. <br /> <br /> Mr. George Ray, Director of Economic Development, stated <br />that the estimate had been developed by a firm in Roanoke. <br /> <br /> Ms. Waters noted that the architectural firm will have <br />been selected and feedback provided prior to the actual bond <br />issue. <br /> <br />STAFF REPORT: MICHIE COMPANY <br /> <br /> Mr. William Atwood, architectural consultant for the <br />Michie project, reviewed the physical plans for the Michie <br />project. <br /> <br /> Mr. Jack Chambers, Chairman of the Charlottesville <br />Industrial Development Authority (CIDA), stated that the <br />Authority has approved the terms of the ground lease <br />agreement. <br /> <br /> Mr. George Gilliam attorney for CIDA, stated that the <br />Michie Company will pay CIDA $1,650,000 on November 4th to <br />lease the land on the former CSX property, will build a $5 <br />million to $6 million building, and will pay an additional $1 <br />million in the year 2016 as a supplemental rent payment. <br />Thereafter, the Michie Company can buy the land for <br />$1,000 or continue to rent for $1,000 a year. Each year the <br />Michie Company will make a payment to the City in lieu of <br />taxes. <br /> <br /> Mr. Toscano questioned how the staff had arrived at the <br />estimate of $79,000 in sales tax receipts from the project. <br /> <br /> Responding to a question from Ms. Waters regarding <br />environmental cleanup of the site, Mr. Gilliam stated that <br />extensive testing has been done of the site and only minor <br />cleanup is anticipated which is expected to be removed during <br />construction by the Michie Company. Mr. Gilliam added that <br /> <br /> <br />