Minutes 06/08/2004 - Laserfiche WebLink

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June 8, 2004 Motion by Mr. Pitts, and seconded by Ms. Randall, to adopt the following resolution, and was adopted by the following vote: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA AUTHORIZING A GENERAL OBLIGATION FINANCING OF THE CITY AND REQUESTING THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH TO ISSUE A LEASE REVENUE BOND TO FINANCE A CAPITAL PROJECT FOR THE CITY. WHEREAS, the City of Portsmouth, Virginia (the "City") proposes to finance the acquisition, construction and equipping of the facility for the City's Department of Behavioral Healthcare Services (the "Project"); WHEREAS, the Council of the City (the "City Council") proposes to provide for the issuance of lease revenue bonds (the "Bond") through the Industrial Development Authority of the City of Portsmouth, Virginia (the "Authority") to finance the Project and to pay the costs of issuance; WHEREAS, the City will lease the Project to the Authority pursuant to a lease (the "Prime Lease") and the Bond will be payable from rental payments derived by the Authority from a general obligation lease between the Authority and the City (the "Lease") pursuant to which the Authority will lease the Project back to the City; WHEREAS, the City has determined that it is necessary and advisable to pledge its full faith and credit to secure the City's obligation to make rental payments under the Lease; WHEREAS, the Bond will be issued pursuant to the following documents: (i) Prime Lease; (ii) Lease and (iii) Assignment of Rent and Leases. All documents listed above are referred to in this Resolution as the "Basic Documents;" and WHEREAS, the City Council has held a public hearing on June 8, 2004 on the general obligation lease financing of the City of the Project and the issuance of the Bond after due publication of notice in accordance with Section 15.2-2606 of the Code of Virginia of 1950, as amended. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORTSMOUTH, VIRGINIA: 1. Issue of Bonds. The City Council requests the Authority to issue its lease revenue bond in the maximum principal amount of $5,200,000 to be paid from rental payments made by the City under the Lease, secured by the pledge of the City's full faith and credit. 2. Pled.qe of Full Faith and Credit. The full faith and credit of the City is hereby irrevocably pledged to the payment of the principal and interest components of rental payments under the Lease as the same become due. In each year while the Lease, is outstanding and any rental payments are unpaid, there shall be assessed, levied and collected, 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 principal, and interest components of rental payments under the Lease to the extent other funds of the City are not lawfully available and appropriated for such purpose. 3. Authorization of Basic Documents. The execution and delivery of and performance by the City of its obligations under the Basic Documents to which it is a party are authorized. The Basic Documents and the Bond shall be in such form and contain such provisions as the Chief Financial Officer of the City and the City Manager, or either of them, shall approve, provided that the maximum principal amount of the Bond shall not exceed $5,200,000 and the true interest cost on the Bond shall not exceed 6%, such approval to be evidenced conclusively by the execution and delivery of the Lease.