Minutes 11/12/2002 - Laserfiche WebLink

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November 12, 2002 WHEREAS, the Industrial Development Authority of the City of Portsmouth, Virginia (the "Authority"), on November 12, 1997 issued its $6,555,000 Variable Rate Demand Revenue Bonds, Series 1997A (Fairwood Homes Project) (the "1997A Bonds") to finance certain costs of acquiring two parcels of land within the area of the City of Portsmouth, Virginia (the "City") known as the Fairwood Homes property (the "Property"); and WHEREAS, the City, on August 12, 1997, adopted a resolution authorizing the issuance of a general obligation guarantee of the City in the principal amount of $7,000,000 to guarantee the payment of principal of and interest of the 1997A Bonds (the "City Guarantee"); and WHEREAS, the City, on October 1, 1997, entered into a Deed of Lease with the Authority (the "Deed of Lease") to ensure the marketability of the 1997A Bonds at the most attractive interest rate; and WHEREAS, the City under the Deed of Lease is obligated to pay to the Authority an amount sufficient to provide adequate funds for debt service on the 1997A Bonds, including all payment obligations owed by the Authority to any financial institution providing a letter of credit to secure and provide payment of principal, interest or purchase price on the 1997A Bonds; and WHEREAS, the City's obligations under the Deed of Lease are secured by the City Guarantee; and WHEREAS, the Council of the City (the "Council") has determined that it is in the best interests of the City to enter into an interest rate protection agreement to protect the City against increases in the variable interest rate on the 1997A Bonds and increases in the City's obligations under the Deed of Lease. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: Section 1. Findinqs and Determinations. That the Council hereby determines that it is advisable to enter into an interest rate protection agreement to protect the City against increases in the variable interest rate on the 1997A Bonds and increases in the City's obligations under the Deed of Lease. Section 2. Authorization of the Interest Rate Protection Aqreement. That the City Manager and the Chief Financial Officer, and such other officers and agents of the City as the City Manager or Chief Financial Officer may designate, are each hereby authorized to execute an interest rate protection agreement in connection with the Deed of Lease and the 1997A Bonds, within the parameters set forth in Section 3 of this Resolution, with such counterparty as shall be selected by the officer executing the interest rate protection agreement and with such changes, insertions and deletions to such interest rate protection agreement as may be consistent with this Resolution and the determinations made pursuant hereto and as may be approved by the officer executing such interest rate protection agreement, said execution being conclusive evidence of such approval; and the Clerk of the City is hereby authorized to affix and attest the seal of the City thereto. Section 3. Parameters of the Interest Rate Protection Aqreement. That the following limitations shall be applicable to the interest rate protection agreement: (i) the term shall not exceed the final maturity of the 1997A Bonds which is November 1, 2027, (ii) the notional amount relating to the 1997A Bonds then in effect shall not exceed Six Million Five Hundred and Fifty-Five Thousand Dollars ($6,555,000), and (iii) the fixed interest rate under the interest rate protection agreement shall not exceed 6.00% Section 4. Pled.qe of Full Faith and Credit. That the full faith and credit of the City shall be and hereby is irrevocably pledged to the payment of the obligations of the City under such interest rate protection agreement as the same become due.