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June 27,2000
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<br /> BE IT FURTHER RESOLVED that the ground lease to GEM shall provide that at
<br />the expiration or termination of the City's sublease agreement with GEM, the ground
<br />lease to GEM shall also terminate."
<br />
<br />Ayes: Benn, Griffin, Moody, Pitts, Robinett, Whitehurst, Holley
<br />Nays: None
<br />
<br /> Motion by Mr. Pitts, and seconded by Mr. Moody, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />00-147(C):
<br />
<br />"A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PORTSMOUTH,
<br />VIRGINIA AUTHORIZING THE LEASE FINANCING OF A NEW MUNICIPAL
<br />BUILDING.
<br />
<br /> WHEREAS, the City Council of the City of Portsmouth, Virginia (the "City") has
<br />determined that it is necessary and advisable to authorize the development and lease
<br />financing of a new municipal building to house the Departments of Social Services and
<br />Public Health (the "Facility");
<br />
<br /> WHEREAS, the City Council proposes to finance the acquisition of the Facility
<br />pursuant to a general obligation capital lease (the "Lease") under which the City will
<br />lease the Facility and make rental payments therefor with a maximum aggregate
<br />principal component of $13,000,000 (thirteen million); and
<br />
<br /> WHEREAS, a public hearing has been held with respect to the proposed lease
<br />financing on June 27, 2000, as required by and in accordance with Section 15.2-2606A
<br />of the Code of Virginia of 1950, as amended;.
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
<br />Portsmouth, Virginia, that:
<br />
<br /> · Authorization and Execution of Lease. The City Council hereby authorizes
<br />the acquisition and financing of the Facility pursuant to the Lease and authorizes
<br />and directs the City Manager to approve the terms of the Lease, which approval
<br />shall be evidenced conclusively by the execution of the Lease, provided that the
<br />aggregate amount of the principal components of the rental payments shall not
<br />exceed $13,000,000 (thirteen million) and the term of the Lease shall not exceed 20
<br />(twenty) years. The City Council authorizes and directs the City Manager to execute
<br />on behalf of the City, the Lease, and, if required, the Clerk or any Deputy Clerk of
<br />the City is authorized and directed to affix or to cause to be affixed the seal of the
<br />City to the Lease and to attest such seal. The City Manager and his designees are
<br />authorized to execute and deliver on behalf of the City such instruments, documents
<br />or certificates, and to do and perform such things and acts, as they shall deem
<br />necessary or appropriate to carry out the transactions authorized by this Resolution
<br />or contemplated by the Lease; and all of the foregoing, previously done or performed
<br />by such officers or agents of the City, are in all respects approved, ratified and
<br />confirmed.
<br />
<br /> · Pled.qe of Full Faith and Credit. The full faith and credit of the City is
<br />hereby irrevocably pledged to the payment of the principal and interest components
<br />of rental payments under the Lease as the same become due. In each year while
<br />the Lease, is outstanding and any rental payments are unpaid, there shall be
<br />assessed, levied and collected, at the same time and in the same manner as other
<br />taxes of the City are assessed, levied and collected, a tax upon all taxable property
<br />within the City, over and above all other taxes, authorized or limited by law and
<br />without limitation as to rate or amount, sufficient to pay when due the principal, and
<br />interest components of rental payments under the Lease to the extent other funds of
<br />the City are not lawfully available and appropriated for such purpose.
<br />
<br /> · Reimbursement. The City Council adopts this declaration of official intent
<br />under Treasury Regulations Section 1.150-2. The City Council reasonably expects
<br />to reimburse any advances made or to be made by the City to pay the costs of the
<br />Facility from the proceeds of its debt or other financing. The maximum amount of
<br />debt or other financing expected to be issued for the Facility is $13,000,000 (thirteen
<br />million).
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