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R-09-52 A RESOLUTION OF THE COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA, AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION DEBT IN AN AMOUNT NOT TO EXCEED $77,798,292 AND NOTES IN ANTICIPATION THEREOF IN AN AMOUNT NOT TO EXCEED $76,000,000. WHEREAS, the City Council of the City of Portsmouth, Virginia (the "City") has approved the execution and delivery of a Revised Sale and Development Agreement among the City, Port Center One Associates, LLC and Port Center Two, LLC (the "Development Agreement"); WHEREAS, the City Council proposes to secure the City's payment obligations under the Development Agreement in the maximum amount of $77,798,292 (the "Payments") by a pledge of the City's full faith and credit and, if required, by a deed of trust on the City's property at 801 Crawford Street, Portsmouth, Virginia, commonly known as the City Hall Building, together with the parking deck attached thereto (the "Deed of Trust"); WHEREAS, the City Council has determined that it is advisable to authorize the issuance of bond anticipation notes (the "Notes") in anticipation of the issuance and sale of the Bonds and to issue up to $76,000,000 of its general obligation bonds (the "Bonds") to finance, in part, the City's obligation to make the Payments; WHEREAS, a public hearing has been held on September 8, 2009 on the issuance of the Bonds, the pledge of the City's full faith and credit to secure the Payments and the granting of the Deed of Trust after due publication of notice in accordance with Sections 15.2-1813 and 15.2- 2606 of the Code of Virginia of 1950, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA: 1. Authorization of Bonds and Notes; Use of Proceeds. The City Council hereby determines that it is advisable to contract a debt and to issue the Bonds in one or more series to pay all or a portion of the Payments. The City Council further determines that it is advisable to contract a debt and to issue the Notes in one or more series in anticipation of the issuance of the Bonds. The issuance of the Bonds and the issuance and sale of the Notes are hereby authorized. The proceeds from the issuance and sale of the Notes and the Bonds shall be used to finance or refinance all or a portion of the Payments. 2. Pledge of Full Faith and Credit. The full faith and credit of the City are hereby irrevocably pledged for the payment (a) of the Payments and (b) of the principal of, premium, if any, and interest on the Bonds and Notes as the same become due and payable. The City Council shall levy an annual ad valorem tax upon all property in the City, subject to local taxation, sufficient to pay the Payments and the principal of, premium, if any, and interest on the Bonds and Notes as the same shall become due for payment unless other funds are lawfully available and appropriated for the timely payment thereof. 3. Details and Sale of Notes. The Notes shall be issued upon the terms established pursuant to this Resolution and upon such other terms as may be determined in the manner set