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R -19 -02 A RESOLUTION AUTHORIZING THE CITY OF PORTSMOUTH TO ENTER INTO A COOPERATION AGREEMENT TO PROVIDE FOR THE PAYMENT OF NOTES ISSUED BY THE ECONOMIC DEVELOPMENT AUTHORITY AND TO PLEDGE THE CITY'S FULL FAITH AND CREDIT IN CONNECTION THEREWITH. WHEREAS, the Economic Development Authority of the City of Portsmouth, Virginia (the "Authority "), has determined that it is advisable to issue its revenue notes (the "Notes ") to finance the acquisition of property in the City of Portsmouth, Virginia (the "City ") in the Victory Crossing area and costs of issuance associated therewith (collectively, the "Project "); and WHEREAS, the terms of the Notes shall be substantially as set forth in a proposal from UBT Municipal Finance, Inc., an affiliate of Union Bank & Trust dated January 9, 2019 (as the same may be amended as permitted by this Resolution, the "Proposal "); and WHEREAS, pursuant to the Proposal, the lender has required the Notes be payable first from available funds of the Authority and second from funds provided by the City under a cooperation agreement with the Authority (the "Cooperation Agreement "), a form of which is on file with the City and attached hereto as Exhibit A; and WHEREAS, the City's obligation to make payments under the Cooperation Agreement, including without limitation payments equal to the debt service on the Notes (such obligation of the City to be hereinafter referred to as the "Obligation "), will be secured by the full faith and credit of the City, and as such, the Obligation will be a "general obligation bond" within the meaning of the Public Finance Act of 1991 (the "Public Finance Act "), Section 15.2 -2600 et seq. of the Code of Virginia (1950), as amended (the "Virginia Code "); and WHEREAS, a public hearing on the Obligation has been held after notice was published in accordance with the requirements of Section 15.2 -2606 of the Virginia Code. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Portsmouth, Virginia: 1. That the Council hereby determines that it will benefit the inhabitants of the City through the promotion of their prosperity and welfare for the City to incur the Obligation and contract such debt in an aggregate principal amount not to exceed $5,275,000 on the terms and conditions as substantially set forth in the Proposal and the Cooperation Agreement. The Obligation shall be used to pay principal, premium, if any, and interest on the Notes and the proceeds of the Notes shall be used to pay the costs of the Project. 2. That the Obligation shall be a general obligation of the City to which the full faith and credit of the City are hereby irrevocably pledged. The Council is hereby authorized to and shall levy and collect annually, at the same time and in the same manner as other taxes of the City are assessed, levied and collected, a tax upon all taxable property within the City, over and above all other taxes authorized or limited by law, and without limitation as to rate or amount, sufficient to pay when due the payments under the Obligation to the extent other funds of the City are not lawfully available and appropriated for such purpose.