Agenda 09/23/2008 - Laserfiche WebLink

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BANK QUALIFICA nON ALLOCATION AGREEMENT This Bank Qualification Allocation Agreement is made and entered into as of October _,2008 (this "Allocation Agreement"), by and among the Industrial Development Authority of the Henry County, Virginia, a political subdivision of the Commonwealth of Virginia (the "IDA"), and (i) the City of Martinsville, Virginia (the "City"), and (ii) Henry County, Virginia (the "Collnty") (collectively, the City and the County are referred to as, the "Participating Units"). RECIT ALS: \VHEREAS, the IDA is financing the construction of a shell building to be located in the Patriot Center Industrial Park (the "Project") with the proceeds to received from the IDA's issuuncl: und sale of its $1,500,000 Lease Revenue Bond (Henry County Shell Building Project), Series 2008 (the "Bond") to (the "Bank"); repayment of \,,'hich is secured by, among other things, a subject. to appropriation lease payment obligation of the County pursuant to a Lease Agreement dated as of October I, 2008 by and between the IDA and the County with respect to the Project (the "Lease Agreement"); WHEREAS, the County, the City and the IDA have previously entered into a Revenue Sharing Agreement dated as of April 30, 2002 1,vith respect to the Patriot Center Industrial Park; \-VHEREAS, the City is entering a Suppo11 Agreement "vith the IDA, the County and certain other parties (the "Support Agreement") whereby, among other things, the City \vill agree, on a subject to appropriation basis, to nmd to or otherwise reimburse the County for an amount equal to thirty three (33%) percent of the pay1nents due and payable by Henry County during the term of the Lease Agreement; and WHEREAS, pursuant to a resolution adopted by the City Council of the City on September _, 2008, while recognizing that the obligations of the City under the SUppOlt Agreement shall in no way constitute an obligation or indebtedness of the City, nor a pledge of the full faith and credit Or taxing power of the City. in furtherance of the terms and conditions of the Revenue Sharing Agreement, the City acknO\vledged and agreed that that an allocation to the City of approximately 33'!,'o of the principal amount of the Bond for purposes of Section 265(b)(3)(C)(iii) of the Intemal Revenue Code of 1986, us amended (the "Code") represents a reasonable allocation bearing a reasonable relationship to the benefits to be received hy the City from the issuance of the Bond in connection with the fjnancing of the Project. WHEREAS, pursuant to Section 265(b)(3)(C)(iii} of the Internal Revenue Code of 1986, as amended (the "Code") the Participating Units are entering into this Allocation Agreement to allocate the amount of the Bond amongst the IDA, the City, and the County. NOW, THEREFORE, the parties hereby agree as follows: 1, Allocation of Bond. The parties hereto in-evocably agree to allocate the amount of the Bond for purposes of Section 265(b}(3)(C)(iii) of Code as set forth belo'vv: IDA City County $ 0 $ 495..000 $ \'005,000 $ 1,500,000 Total