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R-07-26 A RESOLUTION APPROVING THE EXERCISE BY THE ECONOMIC 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 OLD TOWNE HOSPITALITY, L.L.C., A VIRGINIA LIMITED LIABILITY COMPANY, OF NOT TO EXCEED $12,000,000 OF THE AUTHORITY'S NEW EMPOWERMENT ZONE FACILITY REVENUE BONDS TO FINANCE A PORTION OF (1) THE COST OF A 120 ROOM HOLIDAY INN AND SUITES HOTEL, (2) A DEBT SERVICE RESERVE FUND, (3) CAPITALIZED INTEREST, AND (4) THE COSTS OF ISSUING SUCH BONDS AND DESIGNATING THEM AS NEW EMPOWERMENT ZONE FACILITY BONDS FOR PURPOSES OF SECTION 1394(t)(2)(A) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. 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 Economic Development Authority of the City of Portsmouth, Virginia (the "Authority"); and this Council has created the Authority; and WHEREAS, the Act empowers the Authority to assist Old Towne Hospitality, L.L.C., a Virginia limited liability company (the "Applicant"), by the issuance of not to exceed $12,000,000 of its new empowerment zone facility revenue bonds (the "Bonds") to finance a portion of (I) the costs of a 120-room Holiday Inn and Suites Hotel, to be located on an approximately four acre parcel ofland at the southwest corner of Port Centre Parkway and Crawford Connector South, in the City of Portsmouth, Virginia (the "Project"), (2) a debt service reserve fund, (3) capitalized interest, and (4) the costs of issuing such Bonds; and WHEREAS, the Applicant, which will own the Project, has its present principal place of business at 825 Greenbrier Circle, Suite F, Chesapeake, V A 23320; 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