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R-02-62
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<br />A RESOLUTION AUTHORIZING THE EXECUTION OF AN INTEREST RATE
<br />PROTECTION AGREEMENT ON BEHALF OF THE CITY OF PORTSMOUTH,
<br />VIRGINIA, AND THE PERFORMANCE OF CERTAIN ACTIONS RELATING
<br />THERETO, WITH RESPECT TO THE CONSTRUCTION FINANCING FOR
<br />THE PERFORMING ARTS CENTER.
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<br /> WHEREAS, the Industrial Development Authority of the City of Portsmouth, Virginia
<br />(the "Authohty"), on March 23, 2000 issued its $10,000,000 Taxable Public Facility Revenue
<br />Note (Performing Arts Center), Series 2000 (the "2000 Note") to finance the construction of the
<br />Portsmouth Performing Arts Center (the "Portsmouth Performing Arts Center"); and
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<br /> WHEREAS. the City, on March 14, 2000, adopted a resolution authorizing the issuance
<br />of a general obligation guarantee of the City in the principal amount of $10,000,000 to guarantee
<br />the payment of principal of and interest of the 2000 Note (the "2000 City Guarantee"); and
<br />
<br /> WHEREAS, the City, on January 23, 2001. adopted a resolution authoriz'mg a $3.0
<br />million increase in the 2000 City Guarantee (the "2001 City Guarantee" together with the 2000
<br />City Guarantee, the "City Guarantee"); and
<br />
<br /> WHEREAS, the Authority on July 19, 2001 issued its $13,000,000 Taxable Variable
<br />Rate Public Facility Revenue Bonds (Performing Arts Center Project), Series 2001 (the "2001
<br />Bonds") to finance (i) the acquisition, construction, equipping and improvement of the
<br />Portsmouth Performing Arts Center, (ii) the refunding of the 2000 Note and (iii) the costs of
<br />issuing the 2001 Bonds (collectively, the "Project"); and
<br />
<br /> WHEREAS, the City, on March 23, 2000, entered into a Cooperation Agreement with
<br />the Authority, as amended by the First Amendment to Cooperation Agreement dated March 28,
<br />2001, (collectively, the "Original Cooperation Agreement"); and
<br />
<br /> WHEREAS, the issuance of the 2001 Bonds to provide long-term financing of the
<br />Performing Arts Center necessitated a second amendment to the Original Cooperation
<br />Agreement; and
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<br /> WHEREAS, the City, on July 1, 2001, entered into the Second Amendment to
<br />Cooperation Agreement with the Authority (the "Second Amendment to Cooperation
<br />Agreement" and together with the Original Cooperation Agreement, the "Cooperation
<br />Agreement"); and
<br />
<br /> 'WHEREAS, the City, under the Cooperation Agreement, is obligated to pay to the
<br />Authority an amount sufficient to provide adequate funds for debt service on the 2001 Bonds,
<br />including all payment obligations owed by the Authority to any financial institution providing
<br />credit enhancement to secure and provide payment of principal, interest or purchase price on the
<br />2001 Bonds; and
<br />
<br /> WHEREAS, the City's obligations under the Cooperation Agreement are secured by the
<br />City Guarantee; and
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