Minutes 05/27/2008 - Laserfiche WebLink

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May 27.2008 WHEREAS, Section 1394(f)(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 April 17, 2007, 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 not to exceed $12,000,000 of its tax-exempt new empowerment zone facility revenue bonds for the Project, and recommended the public approval of the Bonds by this Council and the designation of the Bonds by this Council and the Council of the City of Norfolk, Virginia (the "Norfolk Council") as "new empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code (the "2007 Official Action Resolution"); and WHEREAS, by resolutions adopted on June 12, 2007 (the "Original Council Resolutions"), (i) this Council granted public approval of the Bonds in compliance with the requirements of Section 147(f) of the Code and Section 15.2-4906 of the Act, and designated the Bonds as new empowerment zone facility bonds, and (ii) the Norfolk Council designated the Bonds as new empowerment zone facility bonds, but both such resolutions provided that they would expire after one year, on June 12, 2008; WHEREAS, the Applicant has proceeded with due diligence on the development of the Project, having acquired title to its site and diligently pursued the requisite municipal development approvals, but it has concluded that it will not be possible to market the Bonds for sale and issue them prior to the expiration of the Original Council Resolutions on June 12, 2008, making it necessary to repeat the public approval process and obtain extensions of the Original Council Resolutions for one (1) year from the date or dates of their resolutions granting such extensions; WHEREAS, the Authority, after due notice, on April 15, 2008, conducted a second public hearing (the "2008 Public Hearing") on the application and plan of financing of the Applicant for new empowerment zone facility bond financing of the Project in compliance with the requirements of Section 147(f) of the Code and Section 15.2-4906 of the Act, and adopted a resolution (the "2008 Official Action Resolution") reconfirming its official intent to finance a portion of the cost of the acquisition, construction and equipping of the Project, agreeing in principle to issue, either at once or over the course of a plan of financing lasting up to three years, not to exceed $12,000,000 of its Bonds therefore, as proposed by the Applicant, and recommending (i) to this Council the extension of its previous public approval and designation of the Bonds and (ii) to the Norfolk Council the extension of its previous designation of the Bonds; WHEREAS, a copy of the Authority's 2008 Official Action Resolution, a record of the 2008 Public Hearing with respect to the Bonds and a new Fiscal Impact Statement, revised to reflect current tax rates and in the form prescribed by Section 15.2-4907 of the Act, have been filed with this Council; and