Agenda 10/14/2008 - Laserfiche WebLink

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(c) One or more support, purchase or similar agreements by and among the Henry County. the Henry County lOA, the MaJtinsville Henry County Economic Development Council (HMHCEDC") and the City (collectively, whether encompassed in one or more agreements, referred to as, the "Support Agreemcnt"), pursuant to which, generally, (i) the )\,1HCEDC will agree to fund to or othem'ise reimburse Henry COllnty for ccrtain design, engineering, maintenance, insurance, utility, legal and other soft costs associated \vith the development of the Project, together with an amount equal to the rental payments due during the first year of the Lease Agreement and (ii) the City, in consideration of the Revenue Sharing Agreement and its other interests and desire to facilitate the development of the Project, \\'ill agree, subject to the terms set forth therein, to fund to or otherwise reimburse Hemy COUllly Ibr an amollnt cquallo at least thirty three (33%) percent of the rental payments due and payable by Henry County dUling the second through the fit1h year of the Lease Agreement, in each case subject to the terms and conditions of the Support Agreement, together with su(,~h changes, modifications or additions to the tc.1regoing as may be approved by the City: (d) A Collateral Assignment or similar agreement pursuant to which the Henry County IDA and Henry County \1:ill assign substantially all of their rights under the Support Agreement to and for the benefit of the Bank; (e) A Bank Qualification Allocation Agreement with respect to the Series 2008 Bond and the Series 2009 Bond. (1) Such other documents and agreements as may be deemed necessary or appropriate by Henry County in order to effectuate the financing of the Project. WHEREAS, the obligation of the City to make any payments under the Support Agreement shall be subject to annual appropriations by the City Council, which is under no legal obligation to make sllch appropriations. Neither the Lease Agreement. the Support Agreement, the other Financing Documents nor the Bond will constitute a general obligation debt of the Commonwealth of Virginia or any political subdivision thereoe including the City, Henry County, and the Henry County IDA, or a pledge of the faith and credit or taxing power of the Commorl\vealth of Virginia, the City, Henry County or the Henry County IDA. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COl.1NCIL OF THE CITY OF J\.'1ARTINSVILLE, VIRGINIA: 1. It is detennined to be in the best interests of the City and its citizens 1(:Jr the City Council to enter into a Support Agreement in connection with the Project. 2 The City rvlanager and Assistant City l'vlanager, either of \\'hom may act, arc hereby authorized and directed to execute and deliver a Support Agreement in cOIll1ectiol1 with the Project upon the tenns and conditions generally described herein, together with slIch amendments, modifications and supplements thereto as may be acceptable to the City I'vlanager or Assistant City },,-fanager; provided. however, that (i) the aggregate principal amount of the obligations under the Lease Agreement sballnot exceed 53.500,000, (ii} the interest rate on the ")