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<br /> <br />R-OB-23 <br /> <br />RESOLUTION <br /> <br />I <br />j <br />I <br />i <br />! <br /> <br />A RESOLUTION APPROVING THE EXERCISE BY THE ECONOMIC DEVELOPMENT <br />AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA OF POWERS <br />CONFERRED BY THE INDUSTRIAL DEVELOPMENT AND REVENUE BOND ACT, IN <br />CONJUNCTION WITH THE ISSUANCE FOR OLD TOWNE HOSPITALITY, L.L.C., A <br />VIRGINIA LIMITED LIABILITY COMPANY, OF NOT TO EXCEED $12,000,000 OF THE <br />AUTHORITY'S NEW EMPOWERMENT ZONE FACILITY REVENUE BONDS TO <br />FINANCE A PORTION OF (1) THE COST OF A 120 ROOM HOLIDAY INN AND SUITES <br />HOTEL, (2) A DEBT SERVICE RESERVE FUND, (3) CAPITALIZED INTEREST, AND (4) <br />THE COSTS OF ISSUING SUCH BONDS AND DESIGNATING THEM AS NEW <br />EMPOWERMENT ZONE FACILITY BONDS FOR PURPOSES OF SECTION <br />1394(t)(2)(A) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED. <br /> <br />WHEREAS, the Industrial Development and Revenue Bond Act, Chapter 49, Title 15.2 of <br /> <br />the Code of Virginia, as amended (the "Act"), authorizes the creation of the Economic Development <br /> <br />Authority of the City of Portsmouth, Virginia (the "Authority"), this Council has created the <br /> <br />Authority, and the Act empowers the Authority to assist Old Towne Hospitality, L.L.C., a Virginia <br /> <br />limited liability company (the "Applicant"), by the issuance of not to exceed $12,000,000 of its new <br /> <br />empowerment zone facility revenue bonds (the "Bonds") to finance a portion of (1) the costs of a <br /> <br />120-room Holiday Inn and Suites Hotel, to be located on an approximately 2.5 acre parcel of land at <br /> <br />the southwest corner of Port Centre Parkway and Crawford Connector South, in the City of <br /> <br />Portsmouth, Virginia (the "Project"), (2) a debt service reserve fund, (3) capitalized interest, and (4) <br /> <br />the costs of issuing such Bonds; and <br /> <br />WHEREAS, the Applicant, which will own the Project, has its present principal place of <br /> <br />business at 825 Greenbrier Circle, Suite F, Chesapeake, VA 23320; and <br /> <br />WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), <br /> <br />requires approval by this Council of the issuance of any private activity bonds by the Authority after <br /> <br />the Authority has held a public hearing to consider the issuance of such bonds as one of the acts <br />