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<br />RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEMENT
<br />PROVIDING FOR THE OBLIGATIONS OFTHE CITY TO CONSIDER
<br />CERTAIN APPROPRIATIONS TO THE INDUSTRIAL DEVELOPMENT
<br />AUTHORITY OF HENRY COUNTY. VIRGINIA AND HENRY COUNTY, VIRGINIA
<br />TO FINANCE THE CONSTRUCTION OF A SHELL BUILDING FOR
<br />ECONOMIC DEVELOPl\:'1ENT PURPOSES AT THE PATRIOT CENTER
<br />INDUSTRIAL PARK
<br />
<br />\VIiEREAS, th~ City Council (th~ "City Council") of the City of Martinsville, Virginia
<br />(the "City"), desires to assist Henry County, Virginia ("Henry County") and the Industrial
<br />Development Authority of Henry County, Virginia (the "Henry COllnty IDA") in connection
<br />\;,,'itl1 their efforts to obtain financing for all or a portion of the costs associated with the design,
<br />construction and equipping of a shell building on Lot IO located in the Patriot Center Industrial
<br />Park for use in economic development efforts to attractive commercial businesses to locate in the
<br />area, together with related costs and expenses (collectively, the "Project");
<br />
<br />\VHEREAS, the Henry County IDA is the fee simple owner of Lot 10 located in the
<br />Patriot Center Industrial Park (together with the Project, refen-ed to as. the "Prope11y");
<br />
<br />\VHEREAS, pursuant to that celtain Revenue Sharing Agreement dated as of April 30,
<br />2002 by and among the City, Henry County and the Henry County IDA (the "Revenue Sharing
<br />Agreement"), the parties have agreed, among other things, that when a business locates on one of
<br />the designated sites on the Property, Henry County \\'ill pay to the City, on a subject to
<br />appropriation basis, one-third of all revenues generated by the real estate, personal property,
<br />machinery and tools, and consumer utility taxes ~oJlected by Henry County from the business
<br />located on sLlch site, aftcr Henry County is reimbursed for infrastructure costs in excess of grant
<br />funds and aftcr repayment of any cash incentives that may be paid by the COLlnty'
<br />
<br />\VHEREAS, the undertaking of the Project is expected to financed through the issuance
<br />by the Henry County IDA of its Lease Revenue Bond (Henry County Shell Building Project), in
<br />the aggregate principal amount of $3,500,000 consisting of the $1,500,000 Lease Revenue Bond,
<br />Series 2008 (the" Series 2008 Bond") and the $2,000,000 Lease Revenue Bond, Series 2009 (thc
<br />"Series 2009 Bond") (the Series 2008 Bond and the Series 2009 Bond shall collectively be
<br />referred to as the "Bonds"), and the issuance of the Bonds are expected to bc undertaken in
<br />accordance with the following documents (the "Financing Documents"):
<br />
<br />(a) A Lease Agreement between the Henry County IDA and Henry County', pursuant
<br />to which the Henry County IDA \villleasc the Property to the County, and the County will agree,
<br />on a subject to appropriation basis, to make lease payments thereunder equ;ll to or l:,'Ycater than
<br />the debt service pa)1nents due and payable on the Bond:
<br />
<br />(b) An Assignment Agreement from the Henry Count)' IDA to n___________,__ ..... (the
<br />"Bank"), assie,'11ing the rights of the Henry County IDA under the Lease Agreement (except for
<br />ce11ain t'ights to indemnification, payment of fees and expenses, etc.) to and for the benefit of the
<br />Bank:
<br />
<br />I
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