Minutes 09/28/1993 - Laserfiche WebLink

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September 28, 1993 Motion by Mr. King, and seconded by Mr. Griffin, to adopt the following resolution and by the following vote: "A RESOLUTION AUTHORIZING THE ISSUANCE OF AN AMOUNT NOT TO EXCEED THIRTY-EIGHT MILLION DOLLARS {$38,000,000) PRINCIPAL AMOUNT OF GENERAL OBLIGATIONS OF THE CITY OF PORTSMOUTH, VIRGINIA, IN THE FORM OF A GENERAL OBLIGATION GUARANTEE OF CERTAIN DEBT OBLIGATIONS OF THE SPORTS AUTHORITY OF HAMPTON ROADS, VIRGINIA. WHEREAS, the Council (the "Council") of the City of Portsmouth, Virginia (the "City"), has determined that it would be in the best interest of the City fo~ the City to guarantee certain debt obligations of the Sports Authority of Hampton Roads (the "Authority") proposed to be issued by the Authority for the purpose of building a horse race track and ancillary structures and costs associated with the establishment of a horse racing facility in the City (the '.Project"); and WHEREAS, in the judgment of the Council, it is necessary and expedient to authorize the issuance of general obligation Bonds of the City in an aggregate principal amount of not to exceed Thirty-Eight Million Dollars ($38,000,000) in the form of a general obligation ~uarantee of debt obligations of the Authority; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Portsmouth, Virginia: 1. Pursuant to Chapter 5.1 of Title 15.1 of the Code of Virginia, 1950, as amended, the same being the Public Finance Act of 1991, and the Charter of the City, for the purpose of guaranteeing certain debt obligations of the Authority proposed to be issued by the Authority for the purpose of financing the Project, there are hereby authorized to be issued Thirty-Eight Million Dollars ($38,000,000) of general obligations of the City in the form of a general obligation guarantee of debt obligations of the Authority (the "Guarantee"). 2. The Guarantee shall be evidenced by a guarantee agreement pursuant to which the City shall guarantee not to exceed Thirty-Eight Million Dollars ($38,000,000) principal amount of debt obligations of the Authority. Such guarantee agreement may contain such terms and provisions as the City and the Authority shall agree and shall be approved as to form and substance by the Council prior to the execution and delivery thereof. Such guarantee shall provide that the City will guarantee prompt payment of the principal of and interest on such debt obligations of the Authority. 3. The full faith and credit of the City shall be and hereby is irrevocably pledged to the punctual payment of its obligations under the Guarantee as the same become due and payable. In each year while the Guarantee is in effect, there shall be assessed, levied and collected, at the same time and in the ssune manner as other taxes in the City are assessed, levied and collected, an ad valorem tax upon all property subject to taxation by the City, without limitation as to rate or amount, sufficient to provide for the payment of such obligations as the same become due and payable. 4. The City Attorney of the City is authorized and directed to file a copy of this resolution, certified by the City Clerk of the City to be a true copy hereof, with the Clerk of the Circuit Court of the City of Portsmouth, Virginia.