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88 <br /> <br />plans of Dogwood Housing Limited Partnership, a Virginia <br />limited partnership (the "Applicant") to refund the <br />$1,400,000.00 Charlottesville Redevelopment and <br />Housing Authority Rehabilitation Loan Revenue Bond <br />(Dogwood Housing Limited Partnership Project) originally <br />issued on September 24, 1982 through the issuance of <br />bonds of the Charlottesville Redevelopment and Housing <br />Authority (the "Authority") in the maximum amount not <br />to exceed $1,200,000.00 Cthe "Bonds"); and <br /> <br /> WHEREAS, the Authority has unanimously recommended <br />to Council that it approve the issuance of the Bonds. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED by the City <br />Council of the City of Charlottesville that the Council <br />hereby approves the issuance of the Bonds by the <br />Authority. <br /> <br />RESOLUTION: APPROVING FINANCING BY CHARLOTTESVILLE <br />INDUSTRIAL DEVELOPMENT AUTHORITY FOR BARNES LUMBER COMPANY <br />PROPERTY <br /> <br /> Mr. Barnes stated that he would abstain from <br />consideration of the matter due to a confli'ct of <br />interest. <br /> <br /> Mr. George Gilliam, an attorney representing <br />the Charlottesville Industrial Development Authority, <br />stated that the Authority has entered into a contract <br />to acquire the Barnes Lumber Company property, subject <br />to City Council's approval. Mr. Gilliam stated that <br />Jefferson National Bank would lend the Authority a <br />portion of the purchase price. Mr. Gilliam stated <br />that the property will be subdivided into portions, the <br />first of which will be sold to Jefferson National <br />Bank. The second portion will be sold to Martin-Horn <br />Contractors, who will construct their office on the <br />site. These first two parcels will be paid for in <br />cash. The third parcel will be transferred to an <br />entity of Martin-Horn and financed by the Authority <br />for a maximum of five years. The property would be <br />used for commercial and light industrial develoument. <br />The Authority will retain site review approval for the <br />entire parcel. The Authority will have a year to <br />exercise its option on the second phase, with a <br />similar arrangement for the following phases. Each <br />phase will be entered into only after the Authority is <br />insured that the prope-ty will be sold. Mr. Gilliam <br />stated that the project was beneficial for the <br />following reasons: a good profit would be made with <br />minimal risk to the Authority, the project would be <br />developed in an orderly manner, and the offices of <br />Jefferson National Bank and Martin-Horn would remain <br />in the City. <br /> <br /> Responding to a question from Mr. Buck concerning <br />what made this project feasible when it had not been <br />able to be put together in the private market, Mr. <br />Gilliam replied that no one in the private market <br />had been successful in developing the project and <br />credited George Ray, Economic Development Coordinator, <br />for the proposed project. <br /> <br /> Dr. William Harris, Chairman of the Industrial <br />DevelOpment Authority, stated that the project would <br />increase the taxes on the property by 1000% and <br />would increase the employment by 600%. Dr. Harris <br />stated that the project was a good example of a success- <br />ful public/private venture and noted that no public <br />funds were~involved in the project, only funds which <br />had been collected as fees by the Authority. <br /> <br /> <br />