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R-03-11 A RESOLUTION APPROVING THE EXERCISE BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA OF POWERS CONFERRED BY THE INDUSTRIAL DEVELOPMENT AND REVENUE BOND ACT IN CONJUNCTION WITH THE ISSUANCE FOR END TO END, INC.. A VIRGINIA CORPORATION, OF NOT TO EXCEED $4,000,000 OF THE AUTHORITY'S EMPOWERMENT ZONE FACILITY REVENUE BONDS TO PAY A PORTION OF THE COSTS OF (1) THE PURCHASE OF AUTOMATED ELECTRONICS MANUFACTURING EQUIPMENT AND THE ACQUISITION AND CONSTRUCTION OF CERTAIN LEASEHOLD IMPROVEMENTS, TO BE LOCATED AT 415 PORT CENTRE PARKWAY, IN SUITE 102 AND AN ADJOINING SUITE, IN THE CITY OF PORTSMOUTH. VIRGINIA AND (2) THE ISSUANCE OF SAID BONDS AND DESIGNATING SUCH BONDS AS NEW EMPOWERMENT ZONE FACILITY REVENUE BONDS WHEREAS. the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2 of the Code of Virginia, as amended (the "Act"), authorizes the creation of the Industrial Development Authority of the City of Portsmouth. Virginia (the "Authority"), the Council of the City of Portsmouth has created the Authority, and the Act empowers the Authority to assist End To End, Inc., a Virginia corporation (the "Applicant"), by the issuance of not to exceed $4,000,000 of its new empowerment zone facility revenue bonds (the "Bonds") to pay a portion of the costs of (1) the purchase of automated electronics manufacturing equipment and the acquisition and construction of certain leasehold improvements, to be located at 415 Port Centre Parkway, in Suite 102 and an adjoining suite, in the City of Portsmouth, Virginia (the "Project") and (2) issuing such Bonds; and WHEREAS, the Applicant, which will own the Project, has its present principal place of business at 415 Port Centre Parkway, Suite 102. in the City of Portsmouth; Virginia ("Portsmouth"); and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires approval by this Council of the issuance of any private activity bonds by the Authority after the Authority has held a public hearing to consider the issuance of such bonds as one of the acts required in order for the interest on such bonds to qualify for exemption from the imposition of federal income tax; and WHEREAS, the Project is located in the 10 square mile area of Portsmouth and the City of Norfolk, Virginia ("Norfolk") which has been designated an empowerment zone under Section 1391(g) of the Code; WHEREAS, Section 1394(t)(1) of the Code provides that "new empowerment zone facility bonds" are exempt from the state volume cap restrictions of Section 146 of the Code if bonds are designated under Section 1394(11(2)(A) of the Code for such purpose by the local government or governments which nominated the area to which the bonds relate for designation as an empowerment zone under Section 1391(g) of the Code (a "new empowerment zone");