Minutes 07/25/2000 - Laserfiche WebLink

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July 25, 2000 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"); and WHEREAS, the Cities of Norfolk and Portsmouth jointly nominated the above- described area for designation as a new empowerment zone; and 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; and WHEREAS, the Company has requested the Authority to recommend to the Councils of the Cities of Norfolk and Portsmouth that they designate a portion of the Bonds in the aggregate principal amount of $8,000,000 as "new empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code; and WHEREAS, a public hearing with respect to the Bonds as required by the Act and the Code, was held by the Authority on June 20, 2000; and WHEREAS, a copy of the Authority's resolution approving the issuance of the Bonds and recommending that the Council approve the issuance of the Bonds, subject to the terms to be agreed upon, a record of the public hearing with respect to the Bonds, a Fiscal Impact Statement in the form prescribed by Section 15.2-4907 of the Act and the Authority's recommendation that the Bonds in the aggregate principal amount of $8,000,000 be designated by the Council as "new empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code, have been filed with the Council. NOW, THEREFORE, BE IT RESOLVED by the members of the City Council of the City of Portsmouth, Virginia that: 1. The recitals made in the first preamble to this Resolution are hereby adopted as a part of this Resolution. 2. The City Council of the City of Portsmouth, Virginia, approves the issuance of the Bonds by the Authority to assist in the plan of finance described herein for the benefit of the Company to the extent required by the Code and Section 15.2-4906 of the Act, and the Council designates a portion of the Bonds in an aggregate principal amount of $8,000,000 as "new empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code. 3. The approval of the issuance of the Bonds, as required by the Code and Section 15.2-4906 of the Act, does not constitute an endorsement to a prospective purchaser of the Bonds of the creditworthiness of the Project or the Company, and, as required by Section 15.2-4909 of the Act, the Bonds shall provide that neither the City nor the Authority shall be obligated to pay the Bonds or the interest thereon or other costs incident thereto except from the revenues and moneys pledged therefor and neither the faith or credit nor the taxing power of the Commonwealth of Virginia, the City or the Authority shall be pledged thereto." 00-177(B): "A RESOLUTION APPROVING ISSUANCE OF ENTERPRISE ZONE FACILITY REVENUE BONDS OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF PORTSMOUTH, VIRGINIA, IN AN AMOUNT NOT TO EXCEED $3,000,000 FOR THE ACQUISITION, DEVELOPMENT AND FINANCING OF THE OCEAN MARINE, L.L.C., PROJECT.