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Au,qust 24, 1999
<br />
<br />99 - 197 - Items Submitted by City Council
<br />
<br />Adoption of a resolution for approval of $4 million in Empowerment Zone Bonds for
<br />the City of Norfolk.
<br />
<br /> Motion by Mr. Robinett, and seconded by Mr. Benn, to adopt the following
<br />resolution, and was adopted by the following vote:
<br />
<br />"RESOLUTION APPROVING THE AUTHORIZATION AND ISSUANCE BY THE
<br />INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF NORFOLK OF SAID
<br />AUTHORITY'S EMPOWERMENT ZONE FACILITY REVENUE BONDS
<br />(RENAISSANCE REALTY, L.L.C. PROJECT), SERIES 1999, IN AN AMOUNT NOT
<br />TO EXCEED $4,000,000.00.
<br />
<br /> WHEREAS, the Industrial Development and Revenue Bond Act, Chapter 49,
<br />Title 15.2 of the Code of Virginia, as amended, authorizes the creation of the Industrial
<br />Development Authority of the City of Norfolk (the "Authority") and the Council of the City
<br />of Norfolk created the Authority by adoption of Ordinance Nos. 26,565 and 27,524
<br />(collectively, the "Act"), and the Act empowers the Authority to assist Renaissance
<br />Realty, L.L.C., a Virginia limited liability company (the "Applicant"), by the issuance of its
<br />Empowerment Zone Facility Revenue Bonds (the "Bonds") to pay a portion of the costs
<br />of (1) the acquisition, construction and equipping of a 16,000 sq. ft. restaurant facility on
<br />approximately one acre of land located on the northwest corner of 40th Street and
<br />Hampton Boulevard, fronting along the northern line of 40th Street; along the eastern
<br />line of Hampton Boulevard, fronting the southwest corner of 41 st Street, along the
<br />southern line of 41st Street; and premises now or formerly numbered 4001 - 4015
<br />Hampton Boulevard, in the City of Norfolk and (2) issuing such Bonds; and
<br />
<br /> WHEREAS, the Applicant, which owns the Project, has its present principal place
<br />of business at 132 E. Little Creek Road, in the City of Norfolk, Virginia; and
<br />
<br /> WHEREAS, the Project is located in the 10 square mile area of the Cities of
<br />Norfolk and Portsmouth which has been designated an empowerment zone under
<br />Section 1391(g) of the Code, Norfolk and Portsmouth jointly nominated said area for
<br />designation as a new empowerment zone, and applicable law requires that the Bonds
<br />be approved by the City of Portsmouth as well as by the City of Norfolk; and
<br />
<br /> WHEREAS, Section 1394 (f)(1) of the Code provides that "new empowerment
<br />zone facility bonds" are exempt from the state volume cap restrictions of Section 146 of
<br />the Code if bonds are designated under Section 1394(f)(2)(A) of the Code for such
<br />purpose by the local government or governments which nominated the area to which
<br />the bonds relate for designation as an empowerment zone under Section 1391 (g) of the
<br />Code (a "new empowerment zone");
<br />
<br /> WHEREAS, the Authority has recommended that the City Councils of Norfolk
<br />and Portsmouth approve the issuance of the Bonds and designate the Bonds as "new
<br />empowerment zone facility bonds" for purposes of Section 1394(f)(2)(A) of the Code,
<br />and Norfolk City Council has already granted that approval; and
<br />
<br /> WHEREAS, the aggregate face amount of bonds which may be designated
<br />under Section 1394(f)(2)(A) of the Code with respect to a new empowerment zone may
<br />not exceed $130,000,000.00 if such zone is in an urban area and the zone has a
<br />population of less than 100,000, and such limit will not be exceeded by the issuance of
<br />the proposed bonds;
<br />
<br /> NOW, THEREFORE, BE IT RESOLVED by the Council of the City of
<br />Portsmouth:
<br />
<br /> Section 1: That, relying upon the representations of the Authority by its counsel,
<br />the recitals in the preambles hereto are found to be true and correct in all respects and
<br />are adopted as findings of this Council as if fully rewritten herein.
<br />
<br /> Section 2: That the Project proposed to be financed by the issuance of the
<br />Bonds is deemed appropriate for such financing and, accordingly, the Council
<br />designates the Bonds as "New Empowerment Zone Facility Bonds" for purposes of
<br />Section 1394(f)(2)(A) of the Code.
<br />
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