Minutes 08/12/1997 - Laserfiche WebLink

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BE tt RESOLVED BYit~E CouNGi[:.~OFiTHE CITY OF PORTSMOUTH, VIRGINIA. Section 1. Find nqs and Determinations. The Council (the "Council") of the City of Portsmouth, Virginia (the "City") hereby finds and determines as follows: (a) The City has entered into Agreements of Purchase and Sale (the "Purchase Agreements") under which the City has agreed to purchase two parcels of land (Parcels 1 and 2) within the area of the City known as the "Fairwood Homes property". (b) The Purchase Agreements recite that the City has entered into the same for the public purpose of eliminating blight and stimulating economic development and may convey all the property and rights to which it is entitled by the purchase Agreements to the Industrial Development Authority of the City of Portsmouth (the "Authority.") (c) The City and the Authority contemplate that such Parcels 1 and 2 will be developed for commercial and light industrial uses and the City as requested the Authority, in accordance with the provisions of the Purchase Agreements, to acquire such Parcels 1 and 2 to be held for development by the Authority for commercial and light industrial uses. (d) For the purpose of providing funds to pay the cost of acquisition of the Parcels 1 and 2, the Authority has made a determination to issue an issue of the revenue bonds of the Authority in an aggregate principal amount of $7,000,000 .(the "Authority Bonds"). (e) In the judgment of the Council, it is desirable to authorize the issuance of a general obligation guarantee of the City to guarantee to payment of the principal of and interest on the Authority Bonds. (f) A public hearing has been held with respect t° the adoption of this resolution on August 12, 1997, as required by and in accordance with Section 15.1-227.8.A of the Code of Virginia, 1950. Section 2. Authorization of Issuance of General Obli.qation'Guarantee. Pursuant to Chapter 5.1 of Title 15.1 of the Code of Virginia, 1950 (the same being the Public Finance Act of 1991), and the Charter of the City, there are hereby authorized to be issued Seven Million Dollars ($7,000,000) aggregat~ principal. amount of general obligations of the City in the form of a general obligation guarantee of the principal of and interest on the Authority Bonds to be issued by the Authority to provide funds to pay the cost of acquisition of two parcels of land (Parcels 1 and 2) within the area of the City known as the "Fairwood Homes Property" for the public purpose of eliminating blight and stimulating economic development in the City, such Parcels 1 and 2 to be held by the Authority for development for commercial and light industrial uses. Such guarantee may be in the form of a Development Agreement by and between the City and the. Authority and may contain such terms and conditions as the City and the Authority shall agree and shall be approved as to form and substance by the City Manager and the City Attorney prior to the execution thereof. Such guarantee shall provide that the City shall guarantee the payment when due of the principal of and interest on the Authority Bonds. ' Section 3, Pledqe of Full Faith and Credit: The full faith and credit of the City shall be a~d hereby is irrevocably pledged to the payment of the obligations of the City under such guarantee as the same becomes due. In each year while such guarantee, or any portion thereof, is in effect, there shall be assessed, levied and collected, upon all property within the City subject to taxation by the City a tax, over and above all Other taxes, authorized or limited by law and without limitation as to rate o~ amount, sufficient to pay when dUe the obligations of the City under such guarantee'to the extent other fundsiof the City are not lawfully available and appropriated for such purpose.