Minutes 02/11/2003 - Laserfiche WebLink

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Februar~ 11, 2003 WHEREAS, the Applicant, which will own the Project, has its present principal place of business at 415 Port Centre Parkway, Suite 102, in the City of Portsmouth, Virginia ("Portsmouth"); and WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), requires approval by this Council of the issuance of any private activity bonds by the Authority after the Authority has held a public hearing to consider the issuance of such bonds as one of the acts required in order for the interest on such bonds to qualify for exemption from the imposition of federal income tax; and WHEREAS, the Project is located in the 10 square mile area of Portsmouth and the City of Norfolk, Virginia ("Norfolk") which has been designated an empowerment zone under Section 1391 (g) of the Code; WHEREAS, Section 1394(0(1) of the Code provides that "new empowerment zone facility bonds" are exempt from the state volume cap restrictions of Section 146 of the Code if bonds are designated under Section 1394(f)(2)(A) of the Code for such purpose by the local government or governments which nominated the area to which the bonds relate for designation as an empowerment zone under Section 1391(g) of the Code (a "new empowerment zone"); WHEREAS, Norfolk and Portsmouth jointly nominated the above-described area for designation as a new empowerment zone; WHEREAS, the aggregate face amount of bonds which may be designated under Section 1394(f)(2)(A) of the Code with respect to a new empowerment zone may not exceed $130,000,000 if such zone is in an urban area and the zone has a population of less than 100,000, and such limit will not be exceeded by the issuance of the proposed bonds; WHEREAS, the Authority held a public hearing on January 21, 2003, in compliance with the requirements of the Code and Section 15.2-4906 of the Act and after such public hearing did adopt a resolution to issue an amount not to exceed $4,000,000 of its tax-exempt new empowerment zone facility bonds, and recommending the public approval of the Bonds by the Council of the City of Portsmouth and the designation of the Bonds by the Councils of the Cities of Norfolk and Portsmouth as "new empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code (the "Authority's Resolution"); and WHEREAS, a copy of the Authority's Resolution, a record of the public hearing with respect to the Bonds and a Fiscal Impact Statement in the form prescribed by Section 15.2-4907 of the Act, have been filed with the Council. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: Section 1: That, relying upon the representations of the Authority, the recitals in the preambles hereto are found to be true and correct in all respects and are adopted as findings of this Council as if fully rewritten herein. Section 2: That the Project proposed to be financed by the issuance of the Bonds is deemed appropriate for such financing and, accordingly, the issuance of the Bonds is hereby approved to the extent required by Section 147(f) of the Code and Section 15.2-4906 of the Act, and the Council designates the Bonds as "new empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code. Section 3: The approval of the issuance of the Bonds and their designation as new empowerment zone facility bonds, as required by Sections 147(0 and 1394(f)(2)(A) of the Code and Section 15.2-4906 of the Act, do not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Applicant. The Bonds shall provide that the City of Portsmouth shall not be obligated to pay the Bonds or the interest thereon or other costs incident thereto, and neither the faith or credit nor the taxing power of the Commonwealth of Virginia or the City of Portsmouth shall be pledged thereto.