Agenda 09/23/2008 - Laserfiche WebLink

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SUPPORT AGREEMENT THIS SUPPORT AGREEMENT. made as of 1. 2008, is entered into by and among Henry County, Virginia (the "County"), the City Council of the City of Martinsville, Virginia (the "City Council"), acting as the governing body of the City of Martinsville, Virginia (the "City"), the Industrial Development Authority of the Henry County. Virginia (the "Authority") and the Martinsville Henry County Economic Development Council ("fvtHCEDC"), in cotUlection with the financing for all or a portion of the costs associated with the design, construction and equipping of a shell building on Lot 10 located in the Patriot Center lndustrial Park for use in the County' s economic development efforts to attractive commercial businesses to locate in the County, together with related costs and expenses (collectively, the "Project"), \vith the proceeds to be received from the Authority's issuance of its $1,500,000 Lease Revenue Bond (Hemy County Shell Building Project) Series 2008 (the "Series 2008 Bond") and the $2,000,000 Lease Revenue Bond (Henry County Shell Building Project) Series 2009 (the "Series 2009 Bond") (the Series 2008 Bond and the Series 2009 Bond shall hereinafter be collectively referred to as the "Bonds"), fi'om the purchaser of the Bonds (the "Bank"). WITNESSETH WHEREAS, the Authority is the fee simple o\vner of Lot 10 located in the Patriot Center lndustrial Park (together with the Project, referred to as, the "PropeI1y"); WHEREAS, the County has agreed to lease the Property from the Authority pursuant to the tenns and conditions of a Lease Agreement dated as of October I, 2008 (the "Lease Agreement"), pursuant to which, among other things, the County has agreed to pay. on a subject to appropriation basis, rental payments under the Lease Agreement sufficient to pay 100% of the principal of and interest on the Bonds as and when due and payable. WHEREAS, a condition precedent to the execution and delivery of the Lease Agreement by the COllnty, and the \villingness of the Bank to purchase the Bonds, is the execution and delivery o[ this Agreement. \VHEREAS, each of the parties to this Agreement has an interest in facilitating the successful financing and completion of the Project, and hereby desires to enter into this Agreement in order to effectuate the foregoing. NO\V. THEREFORE, for and in consideration of the foregoing and of the mutual covenants herein set forth, the parties hereto agr~e as follows: I. TIle Authority hereby agrees to use its best etTot1s to issue the Bond, and to make the proceeds thereof available to the County in order to undert<lk.c the Project in accordance with the tenns and conditions of the Lease Agreement. The County hereby agrees, [or the benefit of each of the pariies hereto, to abide by the telms and conditions of the Lease Agreement. ? The MHCEDC hereby agrees, upon receipt of applicable invoices or s.imilar documentation from the CUlmt)', to fund to or otherwise reimburse the County (either dirc-etly or via the Authority), for the design, engineering, maintenance, insurance, utility, legal and other cosls associated with the development and t1nancing of the Project together with an amount equal to the rental payments due under the Lease Agreement through 1, [20 I 0]. which is anticipated to