Agenda 08/01/2006 - Laserfiche WebLink

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RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT PROVIDING FOR THE OBLIGATIONS OF THE CITY TO CONSIDER CERTAIN APPROPRIATIONS TO THE INDUSTRIAL DEVELOPMENT AUTHORITY OF HENRY COUNTY, VIRGINIA AND HENRY COUNTY, VIRGINIA TO FINANCE THE CONSTRUCTION OF A SHELL BUILDING FOR ECONOMIC DEVELOPMENT PURPOSES AT THE PATRIOT CENTER INDUSTRIAL PARK WHEREAS, the City Council (the "City Council") of the City of Martinsville, Virginia (the "City"), desires to assist Henry County, Virginia ("Henry County") and the Industrial Development Authority of Henry County, Virginia (the "Henry County IDA") in connection with their efforts to obtain financing for all or a portion of the costs associated with the design, construction and equipping of a shell building on Lot 5 located in the Patriot Center Industrial Park for use in economic development efforts to attractive commercial businesses to locate in the area, together with related costs and expenses (collectively, the "Project"); WHEREAS, the Henry County IDA is the fee simple owner of Lot 5 located in the Patriot Center Industrial Park (together with the Project, referred to as, the "Property"); WHEREAS, pursuant to that certain Revenue Sharing Agreement dated as of April 30, 2002 by and among the City, Henry County and the Henry County IDA (the "Revenue Sharing Agreement"), the parties have agreed, among other things, that when a business locates on one of the designated sites on the Property, Henry County will pay to the City, on a subject to appropriation basis, one-third of all revenues generated by the real estate, personal property, machinery and tools, and consumer utility taxes collected by Henry County from the business located on such site, after Henry County is reimbursed for infrastructure costs in excess of grant funds and after repayment of any cash incentives that may be paid by the County. WHEREAS, the undertaking of the Project is expected to financed through the issuance by the Henry County IDA of its Lease Revenue Bond (Henry County Project), Series 2006 (the "Bond"), and the issuance of the Bond is expected to be undertaken in accordance with the following documents (the "Financing Documents"): (a) A Lease Agreement between the Henry County IDA and Henry County, pursuant to which the Henry County IDA will lease the Property to the County, and the County will agree, on a subject to appropriation basis, to make lease payments thereunder equal to or greater than the debt service payments due and payable on the Bond; (b) An Assignment Agreement from the Henry County IDA to Patrick Henry National Bank (the "Bank"), assigning the rights of the Henry County IDA under the Lease Agreement (except for certain rights to indemnification, payment of fees and expenses, etc.) to and for the benefit of the Bank; (c) One or more support, purchase or similar agreements by and among the Henry County, the Henry County IDA, the Martinsville Henry County Economic Development Council