Laserfiche WebLink
Metadata
Document management portal powered by Laserfiche WebLink 9 © 1998-2015 Laserfiche. All rights reserved.
<br />("MHCEDC"), the City and the Harvest Foundation (Harvest") (collectively, whether <br />encompassed in one or more agreements, referred to as, the "Support Agreement"), pursuant to <br />which, generally, (i) the MHCEDC will agree to fund to or otherwise reimburse Henry County <br />for certain design, engineering, legal and other soft costs associated with the development of the <br />Project, together with an amount equal to the rental payments due during the first year of the <br />Lease Agreement, (ii) the City, in consideration of the Revenue Sharing Agreement and its other <br />interests and desire to facilitate the development of the Project, will agree, subject to the terms <br />set forth therein, to fund to or otherwise reimburse Henry County for an amount equal to at least <br />thirty three (33%) percent of the rental payments due and payable by Henry County during the <br />second through the fifth year of the Lease Agreement, and (iii) Harvest will agree, if the entire <br />outstanding principal of and interest on the Bond has not been prepaid prior to the maturity date <br />thereof, to effectuate a purchase of the Property and/or otherwise make payment to or reimburse <br />Henry County for or in an amount equal to the entire outstanding principal balance of the Bond <br />on or before the maturity date thereof, in each case subject to the terms and conditions of the <br />Support Agreement, together with such changes, modifications or additions to the foregoing as <br />may be approved by the City; <br /> <br />(d) A Collateral Assignment or similar agreement pursuant to which the Henry <br />County IDA and Henry County will assign substantially all of their rights under the Support <br />Agreement to and for the benefit of the Bank; and <br /> <br />(e) Such other documents and agreements as may be deemed necessary or <br />appropriate by Henry County in order to effectuate the financing of the Project. <br /> <br />WHEREAS, the obligation of the City to make any payments under the Support <br />Agreement shall be subject to annual appropriations by the City Council, which is under no legal <br />obligation to make such appropriations. Neither the Lease Agreement, the Support Agreement, <br />the other Financing Documents nor the Bond will constitute a general obligation debt of the <br />Commonwealth of Virginia or any political subdivision thereof, including the City, Henry <br />County, and the Henry County IDA, or a pledge of the faith and credit or taxing power of the <br />Commonwealth of Virginia, the City, Henry County or the Henry County IDA. <br /> <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE <br />CITY OF MARTINSVILLE, VIRGINIA: <br /> <br />1. It is determined to be in the best interests of the City and its citizens for the City <br />Council to enter into a Support Agreement in connection with the Project. <br /> <br />2. The City Manager and Assistant City Manager, either of whom may act, are <br />hereby authorized and directed to execute and deliver a Support Agreement in connection with <br />the Project upon the terms and conditions generally described herein, together with such <br />amendments, modifications and supplements thereto as may be acceptable to the City Manager <br />or Assistant City Manager; provided, however, that (i) the principal amount of the obligations <br />under the Lease Agreement shall not exceed $3,500,000, (ii) the interest rate on the principal <br />components of the rentals under the Lease Agreement shall not exceed 4.00% per annum, (iii) <br />the final maturity date of the Bond and the term of the Lease Agreement shall not extend beyond <br /> <br />2 <br />