Agenda 10/14/2008 - Laserfiche WebLink

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RESOLUTION AUTHORIZING THE EXECUTION OF AN AGREEI\IENT 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 DEVELOPl\'IENT PURPOSES AT THE PATRIOT CENTER INDUSTRIAL PARK \VHEREAS, the City Council (tbe "City Council") of the City of I'v1artinsville, 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 \vith 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 10 located in the Patriot Center Industrial Park for use in economic development eft()rts to attractive commercial businesses to locate in the area, together \vith related costs and expenses (collectively, the "Project"); \VHEREAS, the Henry County IDA is the fee simple owner of Lot I (I located in the Patriot Center Industrial Park (together with the Project, refened to as. the "PropeI1y"); \VHEREAS, pursuant to that certain Revenue Sharing Agreement dated a~ 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 b.y the COllnty. \Vl-IEREAS, the undertaking of the Project is expected to financed through the issuance by the Henry County IDA of its Lease Revenue Bond (Henry COllnty Shell Building Project), in the aggregate principal amount of $3,500,000 consisting of the $1,500,000 Lease Revenue Bond, Series 2008 (the" Series 2008 Bond") and the $2,000,000 Lease Revenue Bond, Series 2009 (the "Series 2009 Bond") (the Series 2008 Bond and the Series 2009 Bond shall collectively be refened to as the "Bonds"), and the issuance of the Bonds are 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 \villlease the Property to the County, and the County \>,'ill 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 COllnt)' IDA to ___________________ (the "Bank "), assie,'11ing the rights of the Henry County IDA under the Lease Agreement (except for certain rights to indemnification, payment of fees and expen~es_ etc.) to and for the beneHt of the Bank;