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July 25, 2000
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<br /> WHEREAS, there has been described to the Industrial Development Authority of
<br />the City of Portsmouth, Virginia (the "Authority"), the plans of Ocean Marine LLC (the
<br />"Company") whose principal place of business is 543 E. Indian River Road, Norfolk,
<br />Virginia 23523, for the issuance of the Authority's tax-exempt enterprise zone facility
<br />revenue bonds in an aggregate principal amount not to exceed $3,000,000 (the
<br />"Bonds") to assist the Company in (a) acquiring certain interests or rights in
<br />approximately 13 acres of real property (the "Real Property") generally lying
<br />immediately northward of the Norfolk Naval Shipyard and southward of the City of
<br />Portsmouth Municipal Center, fronting on the Southern Branch of the Elizabeth River,
<br />and comprising in part what is commonly referred to as the Old Coast Guard Base,
<br />(b) undertaking the development, construction, renovation and equipping of certain
<br />facilities to be situated on or adjacent to the Real Property (the "Improvements"),
<br />including a marina, boat dry-storage building, indoor boat repair facility, equipment for
<br />lifting vessels out of the water, a rail transfer system for moving and holding vessels on
<br />land, a travel lift for lifting vessels, a dockmaster's building, a dry-storage control
<br />building, fuel docks and fuel tanks, marina pump-out stations, piers, parking areas and
<br />other facilities and improvements related to the planned Ocean Marine Yacht Center
<br />and (c) financing the costs associated with the issuance of the Bonds; and
<br />
<br /> WHEREAS, the Company in its appearance before the Authority has described
<br />the benefits to be derived from the above undertakings and has requested the Authority
<br />to agree to issue the Bonds under Chapter 49, Title 15.2 of the Code of Virginia, as
<br />amended (the "Act"); and
<br />
<br /> WHEREAS, the Internal Revenue Code of 1986, as amended (the "Code"),
<br />provides that the highest elected governmental officials of the governmental units
<br />having jurisdiction over the issuer of private activity bonds shall approve the issuance of
<br />such bonds; and
<br />
<br /> WHEREAS, the Authority issues its bonds on behalf of the City of Portsmouth,
<br />Virginia (the "City"), and the members of the City Council of the City of Portsmouth (the
<br />"Council") constitute the highest elected governmental officials of the City; and
<br />
<br /> WHEREAS, Section 15.2-4906 of the Code provides that the Council shall within
<br />60 calendar days from the public hearing with respect to revenue bonds either approve
<br />or disapprove the issuance of such bonds; and
<br />
<br /> WHEREAS, the Real Property and the Improvements (collectively, the "Project")
<br />are or will be located in the area of the City of Portsmouth, Virginia, which has been
<br />designated an enterprise zone; and
<br />
<br /> WHEREAS, the aggregate principal amount of $3,000,000 will be issued as tax-
<br />exempt enterprise zone facility revenue bonds which, under Section 146 of the Code,
<br />are subject to the limitation on the volume of tax-exempt private activity bonds (the
<br />"Volume Cap") and thus will require an allocation of a portion of the Commonwealth of
<br />Virginia's Volume Cap; and
<br />
<br /> WHEREAS, the Commonwealth of Virginia, by statute and executive order
<br />promulgating the Virginia Private Activity Bond Allocation Guidelines (revised 12/98)
<br />(the "Guidelines"), has reserved the power to allocate its Volume Cap to itself, acting
<br />through the Virginia Small Business Financing Authority, whereupon the adoption of this
<br />resolution by this Council neither carries nor implies any assurance of or commitment
<br />for an allocation, nor any obligations with respect thereto; and
<br />
<br /> WHEREAS, as an issue of enterprise zone facility revenue bonds, that portion of
<br />the Bonds not designated "new empowerment zone facility bonds" will require the grant
<br />of an allocation by the Virginia Small Business Financing Authority from a portion of the
<br />"State Allocation" of the Volume Cap reserved to the Governor as a project of "state or
<br />regional interest"; and
<br />
<br /> WHEREAS, a public hearing with respect to the Bonds as required by the Act
<br />and the Code, was held by the Authority on June 20, 2000; and
<br />
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