<br />June 26. 2007
<br />
<br />Discussion:
<br />. During its April 5, 2007 meeting, Empowerment 2010 Inc. voted to approve a
<br />motion authorizing use of empowerment zone bonds to finance this project.
<br />. On May 23,2007, the Norfolk EDA adopted a resolution approving these bonds.
<br />
<br />Staff Recommends:
<br />Adoption of proposed resolution. Vision Principle: A Robust and Prospering Economy
<br />
<br />Next Steps Following Council Action:
<br />. None
<br />
<br />Motion by Ms. Randall, and seconded by Mr. Heretick, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"RESOLUTION CONCURRING WITH THE RESOLUTION OF THE CITY COUNCIL
<br />OF NORFOLK AND APPROVING THE AUTHORIZATION AND ISSUANCE BY THE
<br />ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF NORFOLK OF SUCH
<br />AUTHORITY'S NEW EMPOWERMENT ZONE FACILITY REVENUE BONDS (FORT
<br />NORFOLK PLAZA, LLC PROJECT), SERIES 2007, IN AN AGGREGATE AMOUNT
<br />NOT TO EXCEED $85,000,000 AND DESIGNATING A PORTION OF SUCH BONDS
<br />AS NEW EMPOWERMENT ZONE FACILITY BONDS.
<br />
<br />WHEREAS, the Industrial Development and Revenue Bond Act, Chapter 49, Title
<br />15.2 of the Code of Virginia, as amended, authorizes the creation of the Economic
<br />Development Authority of the City of Norfolk (the "Authority") and the Council of the City of
<br />Norfolk, Virginia created the Authority by adoption of Ordinance Nos. 26,565, 27,524 and
<br />40,357 (collectively, the "Act"); and
<br />
<br />WHEREAS, the Act empowers the Authority to assist Fort Norfolk Plaza, LLC, a
<br />Virginia limited liability company (the "Company"), by the issuance of its taxable or tax-
<br />exempt New Empowerment Zone Facility Bonds in one or more series (the "Bonds") to
<br />pay a portion of (1) the costs of acquiring, constructing and equipping a mixed-use
<br />building containing (a) an extended-stay hotel with approximately 126 rooms and
<br />related administrative and support facilities, (b) approximately 160,000 square feet of
<br />medical office space, (c) approximately 20,000 square feet of retail space, and (d) a
<br />parking garage containing approximately 800 parking spaces and related facilities,
<br />together with all necessary site improvements and infrastructure related to the
<br />foregoing, all of which facilities will be built on approximately 2 acres of land located at
<br />301 Riverview Avenue, on the south side of Brambleton Avenue in the City of Norfolk,
<br />Virginia, which will be owned and operated, directly or indirectly, by the Company or an
<br />affiliate of the Company; (2) reserve funds for debt service on the Bonds; (3) capitalized
<br />interest on the Bonds for a period not to exceed thirty (30) months after the date on
<br />which the Bonds are issued; and (4) the costs of issuing the Bonds (collectively, such
<br />facilities are referred to as the "Project"); and
<br />
<br />WHEREAS, the Company has its present principal place of business at 400
<br />Gresham Drive, Suite 507, in the City of Norfolk, Virginia; and
<br />
<br />WHEREAS, the mixed-use building to be acquired, constructed and equipped by
<br />the Company as described in the second Recital of this Resolution is located in the ten
<br />square-mile area of the Cities of Portsmouth and Norfolk that has been designated an
<br />empowerment zone under Section 1391 (g) of the Internal Revenue Code (the "Code");
<br />and the Cities of Portsmouth and Norfolk jointly nominated such area for designation as
<br />a new empowerment zone, and applicable law requires that the Bonds be approved by
<br />the City of Portsmouth as well as by the City of Norfolk; and
<br />
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