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R -18 -34
<br />ADOPTION OF A RESOLUTION APPROVING THE ISSUANCE OF NOT -TO- EXCEED
<br />$4,800,000 TAX- EXEMPT PORTSMOUTH PORT AND INDUSTRIAL COMMISSION
<br />BANK QUALIFIED REVENUE BONDS (CYA SPORT & COMMUNITY CENTER
<br />PROJECT), SERIES 2019.
<br />WHEREAS, Chapter 157 of the Acts of Assembly of 1954, as amended (the "Act "),
<br />authorizes the creation of the Portsmouth Port and Industrial Commission (the "Commission ") and
<br />the City Council of the City of Portsmouth, Virginia (the "City ") duly activated the Commission and
<br />appoints its commissioners; and
<br />WHEREAS, the Act empowers the Commission to assist CYA Sport & Community Center,
<br />LLC, a not - for - profit Virginia limited liability company (the "Applicant "), by the issuance of the
<br />Commission's bonds, to finance (1) longer -term working capital for the Applicant, which will
<br />refinance a conventional mortgage loan (the "Acquisition Loan ") that financed the purchase of two
<br />parcels of real property and a 62,560 sq. ft. building and other improvements thereon collectively
<br />known as the The Fieldhouse and located at 3730 Stonecraft Blvd., Chantilly, Virginia 20151 (also
<br />known as 14810 Murdock Street, Chantilly, Virginia 20151), and at 3801 Glorus Road, Chantilly,
<br />Virginia 20151 ( "The Fieldhouse "), and (2) a portion of the costs of issuance of the Bonds described
<br />below (collectively, the "Project "); and
<br />WHEREAS, the Applicant owns The Fieldhouse, leasing it to CYA Facility Management,
<br />LLC ( "Management ") for Management to operate The Fieldhouse, and both the Applicant and
<br />Management have their present principal place of business at the above - mentioned addresses for The
<br />Fieldhouse, in Fairfax County, Virginia; and
<br />WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code ")
<br />requires, among other things, the approval by this Council of the issuance of any private activity
<br />bonds by the Commission after the Commission has held a public hearing to consider the issuance of
<br />such bonds as one of the acts required in order for the interest on such bonds to qualify for
<br />exemption from the imposition of federal income tax; and
<br />WHEREAS, the Commission held a public hearing on December 11, 2018, in compliance
<br />with the requirements of the Code, Section 2 of Chapter 514 of the Acts of Assembly of 1983 of the
<br />General Assembly of Virginia, and Section 15.2 -4906 of the Code of Virginia of 1950, as amended,
<br />and after such public hearing did adopt a resolution to issue an amount not to exceed $4,800,000 of
<br />its tax - exempt bank qualified revenue bonds for the benefit of the Applicant (the "Bonds "), subject
<br />to the adoption of this resolution and the concurrence in the issuance of the Bonds by the Board of
<br />Supervisors of Fairfax County, Virginia (the "Fairfax County Board "); and
<br />WHEREAS, the Commission has recommended that the Council approve and the Fairfax
<br />County Board concur in the issuance of the Bonds; and
<br />WHEREAS, the Bonds, as "qualified 501(c)(3) bonds ", will be exempt, under Section
<br />146(g)(2) of the Code, from the limitation on the volume of notes or bonds the interest on which is
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