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R-02-63 <br /> <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 1997 ACQUISITION COSTS OF TWO <br />PARCELS OF LAND AT FAIRWOOD HOMES, <br /> <br /> WHEREAS, the Industrial Development Authority of the City of Portsmouth, <br />Virginia (the "Authority"), on November 12, 1997 issued its $6,555,000 Variable Rate <br />Demand Revenue Bonds, Series 1997A (Fairwood Homes Project) (the "1997A Bonds") <br />to finance certain costs of acquring two parcels of land within the area of the City of <br />Portsmouth, Virginia (the "City") known as the Fairwood Homes property (the <br />"Property"); and <br /> <br /> WHEREAS, the City, on August 12, 1997, adopted a resolution authorizing the issuance <br />of a general obligation guarantee of the City in the principal amount of $7,000,000 to guarantee <br />the payment of principal of and interest of the 1997A Bonds (the "City Guarantee"); and <br /> <br /> WHEREAS, the City, on October 1, 1997, entered into a Deed of Lease with the <br />Authority (the "Deed of Lease") to ensure the marketability of the 1997A Bonds at the most <br />attractive interest rate; and <br /> <br /> WHEREAS, the City under the Deed of Lease is obligated to pay to the Authority an <br />amount sufficient to provide adequate funds for debt service on the 1997A Bonds, including all <br />payment obligations owed by the Authority to any financial institution providing a letter of credit <br />to secure and provide payment of principal, interest or purchase price on the 1997A Bonds; and <br /> <br /> WHEREAS, the City's obligations under the Deed of Lease are secured by the City <br />Guarantee; and <br /> <br /> WHEREAS, the Council of the City (the "Council") has determined that it is in the best <br />interests of the City to enter into an interest rate protection agreement to protect the City against <br />increases in the variable interest rate on the 1997A Bonds and increases in the City's obligations <br />under the Deed of Lease. <br /> <br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, <br />Virginia: <br /> <br /> Section 1. Findings and Determinations. That the Council hereby determines that it is <br />advisable to enter into an interest rate protection agreement to protect the City against increases <br />in the variable interest rate on the 1997A Bonds and increases in the City's obligations under the <br />Deed of Lease. <br /> <br /> Section 2. Authorization of the Interest Rate Protection Agreement. That the City <br />Manager and the Chief Financial Officer, and such other officers and agents of the City as the <br />City Manager or Chief Financial Officer may designate, are each hereby authorized to execute an <br />interest rate protection agreement in connection with the Deed of Lease and the 1997A Bonds, <br />within the parameters set forth in Section 3 of this Resolution, with such counterparty as shall be <br /> <br /> <br />