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R-01'74 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA AUTHORIZING THE ISSUANCE AND SALE OF A GENERAL OBLIGATION PARKING NOTE TO FINANCE THE ACQUISITION OF THE MIDDLE STREET PARKING GARAGE; APPROVING AND RATIFYING THE SALE OF SUCH NOTE; AND PROVIDING FOR THE DETAII,S OF THE ISSUANCE AND SALE OF SUCH NOTE. WHEREAS. the City Council of the City of Portsmouth, Virginia (the "City") has determined that it is advisable to acquire a parking garage known as the Middle Street Parking Garage (the "Project") and to issue the City's General Obligation Parking Note, Series 2001 (the "Note") to provide interim financing for the acquisition of the Project; and WHEREAS, the Note is to be issued on the terms set forth in this Resolution and a public hearing has been held on November 13, 2001, on the issuance of the Note after due publication of notice in accordance with Section 15.2-2606 of the Code of Virginia of 1950, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA: 1. Authorization of Note and Use of Proceeds. The City Council hereby determines that it is advisable to contract a debt and to issue and sell the Note and the issuance and sale of the Note in the maximum principal mount of $7,500,000 are hereby authorized. The proceeds from the issuance and sale of the Note shall be used to pay the costs, in whole or in part, of acquisition of the Project. 2. Pledge of Full Faith and Credit: Payment of Note. The full faith and credit of the City are hereby irrevocably pledged for the payment of the principal of, premium, if any, and interest on the Note as the same become due and payable. The City Council shall levy an annual ad valorem tax upon all property in the City, subject to local taxation, sufficient to pay the principal of, premium, if any, and interest on the Note as the same shall become due for payment unless other fimds are lawfully available and appropriated for the timely payment thereof. It is anticipated that the principal of the Note will be paid at or prior to maturity fi.om moneys available to the City from permanent financing for the Project 3. Details and Sale of Note. The Note shall be issued upon the terms established pursuant to this Resolution and upon such other terms as may be determined in the manner set forth in this Resolution. The Note shall be issued in fully registered form, shall be dated the date of issuance and delivery (or such other date as the Chief Financial Officer may approve) and shall be in the form of a single note in the denomination equal to its pnncipal amount or, if approved by the Chief Financial Officer, in minimum denominations of $100,000. The Note shall be issued upon such other terms as may be approved by the Chief Financial Officer, inchiding, bur not limited to, the aggregate principal amount of the Note, the prepayment provisions, the sale price and interest rate on the Note, provided that the maturity of the Note shall be not more than approximately one year from its date, the principal amount shall not exceed the amount set forth in paragraph one and the interest rate on the Note shall not exceed 4.5%. The City Manager and the Chief Financial Officer, or either of them, are authorized to