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<br />February 14. 2006
<br />
<br />"RESOLUTION DESIGNATING AS NEW EMPOWERMENT ZONE FACILITY BONDS
<br />FOR PURPOSES OF SECTION 1394(f)(2)(A) OF THE INTERNAL REVENUE CODE
<br />OF 1986, AS AMENDED, CERTAIN BONDS TO BE ISSUED BY THE ECONOMIC
<br />DEVELOPMENT AUTHORITY OF THE CITY OF NORFOLK FOR BBL ODU, LLC, A
<br />NEW YORK LIMITED LIABILITY COMPANY, IN AN AMOUNT NOT TO EXCEED
<br />$12,000,000, TO FINANCE (1) A PORTION OF THE COSTS OF A 110-ROOM
<br />SPRINGHILL SUITES BY MARRIOTT, TO BE LOCATED AT THE NORTHEAST
<br />CORNER OF HAMPTON BOULEVARD AND 45th STREET IN THE CITY OF
<br />NORFOLK, VIRGINIA, (2) RESERVE FUNDS FOR DEBT SERVICE AND GROUND
<br />RENT AND (3) A PORTION OF THE COSTS OF ISSUING SUCH BONDS.
<br />
<br />WHEREAS, the Industrial Development and Revenue Bond Act, Chapter 49,
<br />Title 15.2 of the Code of Virginia, as amended, and Ordinance Nos. 26,565, 27,524 and
<br />40,357 of the Council of the City of Norfolk, Virginia (collectively, the "Act"), authorize the
<br />creation of the Economic Development Authority of the City of Norfolk (the "Authority"),
<br />said Council has created the Authority, and the Act empowers the Authority to assist
<br />BBL ODU, LLC, a New York limited liability company (the "Applicant"), by the issuance
<br />of not to exceed $12,000,000 of its new empowerment zone facility revenue bonds (the
<br />"Bonds") to finance (1) a portion of the costs of a 11 O-room SpringHill Suites by Marriott,
<br />to be located at the northeast corner of Hampton Boulevard and 45th Street in the City of
<br />Norfolk, Virginia (the "Project"), (2) reserve funds for debt service and ground rent and
<br />(3) a portion of the costs of issuing such Bonds; and
<br />
<br />WHEREAS, the Applicant, which will own the Project, has its present principal
<br />place of business at 302 Washington Avenue Extension, in the City of Albany, New York;
<br />and
<br />
<br />WHEREAS, the Project is located in the 10 square mile area of the City of
<br />Portsmouth, Virginia ("Portsmouth") and the City of Norfolk, Virginia ("Norfolk") which
<br />has been designated an empowerment zone under Section 1391 (g) of the Code;
<br />
<br />WHEREAS, Section 1394(f)(1) of the Code provides that "new empowerment
<br />zone facility bonds" are exempt from the state volume cap restrictions of Section 146 of
<br />the Code if bonds are designated under Section 1394(f)(2)(A) of the Code for such
<br />purpose by the local government or governments which nominated the area to which the
<br />bonds relate for designation as an empowerment zone under Section 1391 (g) of the
<br />Code (a "new empowerment zone");
<br />
<br />WHEREAS, Norfolk and Portsmouth jointly nominated the above-described area
<br />for designation as a new empowerment zone;
<br />
<br />WHEREAS, the aggregate face amount of bonds which may be designated
<br />under Section 1394(f)(2)(A) of the Code with respect to a new empowerment zone may
<br />not exceed $130,000,000 if such zone is in an urban area and the zone has a
<br />population of less than 100,000, and such limit will not be exceeded by the issuance of
<br />the proposed Bonds;
<br />
<br />WHEREAS, the Authority held a public hearing on January 25, 2006, in
<br />compliance with the requirements of the Code and Section 15.2-4906 of the Act and
<br />after such public hearing did adopt a resolution to issue an amount not to exceed
<br />$12,000,000 of its tax-exempt new empowerment zone facility revenue bonds for the
<br />Project, and recommended the public approval of the Bonds and plan of financing by the
<br />Council of the City of Norfolk and the designation of the Bonds by the Councils of the
<br />Cities of Norfolk and Portsmouth as "new empowerment zone facility bonds" for
<br />purposes of Section 1394(f)(2)(A) of the Code (the "Authority's Resolution"); and
<br />
<br />WHEREAS, a copy of the Authority's Resolution, a record of the public hearing
<br />with respect to the Bonds, a Fiscal Impact Statement in the form prescribed by Section
<br />15.2-4907 of the Act and certain other documents pertaining to the Project and its
<br />financing have been filed with the Council;
<br />
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