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R-07-34 A RESOLUTION CONCURRING WITH THE RESOLUTION OF THE CITY COUNCIL OF NORFOLK AND APPROVING THE AUTHORIZATION AND ISSUANCE BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF NORFOLK OF SUCH AUTHORITY'S NEW EMPOWERMENT ZONE FACILITY REVENUE BONDS (FORT NORFOLK PLAZA, LLC PROJECT), SERIES 2007, IN AN AGGREGATE AMOUNT NOT TO EXCEED $85,000,000 AND DESIGNATING A PORTION OF SUCH BONDS AS NEW EMPOWERMENT ZONE FACILITY BONDS. WHEREAS, the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2 of the Code of Virginia, as amended, authorizes the creation of the Economic Development Authority of the City of Norfolk (the "Authority") and the Council of the City of Norfolk, Virginia created the Authority by adoption of Ordinance Nos. 26,565, 27,524 and 40,357 (collectively, the "Act"); and WHEREAS, the Act empowers the Authority to assist Fort Norfolk Plaza, LLC, a Virginia limited liability company (the "Company"), by the issuance of its taxable or tax-exempt New Empowerment Zone Facility Bonds in one or more series (the "Bonds") to pay a portion of (I) the costs of acquiring, constructing and equipping a mixed-use building containing (a) an extended- stay hotel with approximately 126 rooms and related administrative and support facilities, (b) approximately 160,000 square feet of medical office space, (c) approximately 20,000 square feet of retail space, and (d) a parking garage containing approximately 800 parking spaces and related facilities, together with all necessary site improvements and infrastructure related to the foregoing, all of which facilities will be built on approximately 2 acres of land located at 30 I Riverview Avenue, on the south side of Brambleton Avenue in the City of Norfolk, Virginia, which will be owned and operated, directly or indirectly, by the Company or an affiliate of the Company; (2) reserve funds for debt service on the Bonds; (3) capitalized interest on the Bonds for a period not to exceed thirty (30) months after the date on which the Bonds are issued; and (4) the costs of issuing the Bonds (collectively, such facilities are referred to as the "Project"); and WHEREAS, the Company has its present principal place of business at 400 Gresham Drive, Suite 507, in the City of Norfolk, Virginia; and WHEREAS, the mixed-use building to be acquired, constructed and equipped by the Company as described in the second Recital of this Resolution is located in the ten square-mile area of the Cities of Portsmouth and Norfolk that has been designated an empowerment zone under Section 1391 (g) of the Internal Revenue Code (the "Code"); and the Cities of Portsmouth and Norfolk jointly nominated such area for designation as a new empowerment zone, and applicable law requires that the Bonds be approved by the City of Portsmouth as well as by the City of Norfolk; and WHEREAS, Section 1394(t)(I) 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(t)(2)(A) of the Code for such purpose by the local