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January 28, 2025
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<br />WHEREAS,
<br /> the Bonds will be issued pursuant to the Virginia Industrial
<br />Development and Revenue Bond Act, Chapter 49, Title 15.2, Code of Virginia of 1950,
<br />as amended (the “Act”), and will be limited obligations of the Henrico Authority payable
<br />solely from the revenues and receipts derived from payments provided by BSMH; and
<br />
<br />WHEREAS,
<br /> the facilities of Maryview to be financed or refinanced are located
<br />within the boundaries of the City of Portsmouth, Virginia, which, pursuant to the Act, has
<br />created the Economic Development Authority of the City of Portsmouth, Virginia (the
<br />“Portsmouth Authority”) and Section 15.2-4905 of the Act permits the issuance of the
<br />Bonds by the Henrico Authority for the benefit of BSMH and its nonprofit affiliates,
<br />including Maryview, if the governing body of the City of Portsmouth, Virginia concurs in
<br />the Inducement Resolution adopted by the Henrico Authority; and
<br />
<br />WHEREAS,
<br /> Section 147(f) of the Internal Revenue Code of 1986, as amended
<br />(the “Code”), provides that an “applicable elected representative” of the governmental unit
<br />having jurisdiction over the area in which any facility financed or refinanced with the
<br />proceeds of the Bonds is located must approve the issuance of the Bonds in order for the
<br />interest on the Bonds to be entitled to certain exemptions from taxation provided by the
<br />Code, and the City Council of the City of Portsmouth, Virginia, as elected legislative body,
<br />constitutes such applicable elected representative within the meaning of the Code; and
<br />WHEREAS, on January 21, 2025, pursuant to the requirements of Section 147(f) of the
<br />Code and the Act, the Portsmouth Authority held a public hearing concerning the
<br />proposed issuance of the Bonds; and
<br />
<br />WHEREAS,
<br /> on January 21, 2025, the Portsmouth Authority adopted a resolution
<br />approving the issuance of the Bonds by the Henrico Authority and recommending that the
<br />City Council of the City of Portsmouth, Virginia concur in the Inducement Resolution of
<br />the Henrico Authority and approve the issuance of the Bonds by the Henrico Authority to
<br />comply with Section 147(f) of the Code and Section 15.2-4905 of the Act; and
<br />
<br />WHEREAS,
<br /> a copy of the Portsmouth Authority Resolution and a Summary of the
<br />statements expressed at the public hearing have been filed with the Council.
<br />
<br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF
<br />PORTSMOUTH, VIRGINIA:
<br />
<br />1. The recitals made in the preamble to this Resolution are hereby adopted as
<br />a part of this resolution.
<br />
<br />2. The City Council of the City of Portsmouth, Virginia, approves the issuance
<br />of the Bonds by the Henrico Authority for the benefit of BSMH and its nonprofit affiliates,
<br />including Maryview, and concurs in the Inducement Resolution adopted by the Henrico
<br />Authority for all purposes for which such concurrence and approval is required, including
<br />without limitation, Section 147(f) of the Code and Section 15.2-4905 of the Act.
<br />
<br />3. The approval of the issuance of the Bonds, as required by Section 147(f) of
<br />the Code, and the concurrence in the Inducement Resolution adopted by the Henrico
<br />Authority as required by Section 15.2-4905 of the Act, does not constitute an
<br />endorsement to a prospective purchaser of the Bonds of the creditworthiness of BSMH,
<br />nor does it constitute indebtedness of or a pledge of contributions from the City of
<br />Portsmouth, Virginia or the Portsmouth Authority. Neither the faith and credit nor the
<br />taxing power of the City of Portsmouth is pledged to the payment of the principal or
<br />interest on such Bonds or any other costs related thereto. Neither the Portsmouth
<br />Authority nor the City of Portsmouth nor any of their representatives, commissioners,
<br />officers, or employees shall have any liability for or related to the Bonds.
<br />
<br />4. The City Clerk is hereby instructed to forward a copy of this resolution to the
<br />Portsmouth Authority, the Henrico Authority, and representatives of BSMH.
<br />
<br />5. This Resolution shall take effect on the date of its adoption.”
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