The Portsmouth City Council held a work session at approximately 9:45 AM followed by a regular public meeting in the evening. The work session featured presentations from Bon Secours Mercy Health on a bond issuance, a planning and zoning training overview, introduction of a new HR director, and liaison reports. The regular meeting included public hearings on four zoning and use permit applications, approval of several grants and donations, appointments to boards and commissions, and public comments on a variety of issues.
Good evening, citizens of Portsmouth, and welcome to our public work session. I want to acknowledge all of our visitors and individuals joining us today. And I want to thank my colleagues on council for showing up today as well. I will ask that all of my colleagues note their presence electronically. Thank you, Madam Clerk. And now we will turn the meeting over to the city manager, Mr. Carter. Sir, you have the floor. Thank you, Mayor. Yeah. Our work session tonight will feature three main agenda items a presentation by bond secures, an overview of planning and zoning training and uh the count city council liaison report. Uh first, bond secures will outline their plan to utilize to utilize bonds issued by the Henrico Economic Development Authority for facility upgrades across Virginia, Ohio, and South Carolina, including some improvements that will happen at Mary View. This informational presentation will emphasize that neither the city nor the EDA nor the EDA will bear any financial liability obligations related to these bonds. Bond security is requesting a resolution from the council solely to ensure compliance with federal tax exempt bond regulations. First, we have uh the representatives from Bond Secure. If you're coming forward at this time, they will provide some information to you concerning those bonds. Please introduce yourself and your colleague. Okay. Thank you, Mr. Carter. Um good evening, uh Mr. Mayor, members of council. Thank you for having us. I'm Aaron Sutton with the law firm of Dinsmore and Shoal, and we are serving as bond counsel on this transaction. Uh Bon Secor Mercy Health is a 501c3 nonprofit health system with facilities in five states. Uh here in Virginia, they have the Richmond Market and the Hampton Roads markets, which as you know includes Maryview Hospital here in Portsmouth. In accordance with the plan of finance adopted by the Mercy Health, the Bon Secur Mercy Health Board of Directors last week. Bon Secores is seeking to do a public offering of tax exempt revenue bonds, the proceeds of which will be used to refund some of their outstanding debt and fund some capital projects for their facilities in the Commonwealth, including at Maryville. The Henrico County uh EDA will serve as the governmental issuer of these tax exempt bonds. And at the at this time, I'm coming to you for two reasons. One, a state law reason, and two, the federal law reason. Uh the state law reason is that under Virginia uh Industrial Development Authority Act, an industrial, I'm sorry, an economic development authority, henreco in this case, can issue revenue bonds to finance facilities outside their jurisdiction only with a concurring resolution then from legislative body of those uh other localities. The henrico EDA is meeting uh this Thursday to consider an inducement resolution which starts the bond approval process. So bond secor Mercy Health is the borrower needs to then take that inducement resolution from NRICO to the other localities, including here in the city of Portsmouth for that concurring resolution, which would allow NRICO to issue the bonds and money to be spent here in Portsmouth. The second reason is that we will need your approval under federal tax law. Um the IRS code in order to obtain tax exemption for um qualified 501c3 bonds. We must first have a public hearing, also known as a TEFRA hearing, which many of you are familiar with, um, seven days after public notice was published in a newspaper, and then obtain the applicable elected representative approval uh for the jurisdiction, which is you, the city council. Um notice of the public hearing was published today in the Virginian pilot, which will cover the public hearing that the City of Portsmouth uh economic development authority will hold next Tuesday morning. Um after that, we will come back to council to seek your approval after the public hearing and after Henrico um gives their inducement resolution. Um it's anticipated that the bonds will be offered and sold around mid-April and the financing will close around May 1st. And at this time, the portion of the bonds allocated to Maryview is approximately 30 million, which covers um prior capital expenditures going back two years, and uh future capital plans going forward uh two years. It's important to note that the debt service on the bonds are secured only by the funds and revenues of bond secures, Mercy Health, and will not constitute a debt or general obligation of any political subdivisions, including the City of Portsmouth. And I have with me John Haynes, who is the CFO of the Hampton Roads Market for Bon Securse, and he can answer any questions that you have about the Maryview projects. Thank you. Any questions from our colleagues on council? Councilman Hugo. So you have the floor. Yeah, thanks, Mr. Mayor. Uh good evening, Miss Sutton.