HomeMy Public PortalAbout1985_08_14_R131The Town of Leesburg in Virginia
PRESENTED August 14~ 1985
RESOLUTION NO. 85-131 ADOPTED August 14~ 1985
A RESOLUTION: APPROVING THE ISSUANCE OF REVENUE BONDS BY THE SUFFOLK REDEVELOP-
MENT & HOUSING AUTHORITY FOR THE EXETER GARDEN APARTMENT PROJECT
PURSUANT TO SECTION 103(k) OF THE INTERNAL REVENUE CODE
WHEREAS, the Council of the Town of Leesburg in Virginia (the "Council")
on this day held a public hearing regarding the issuance by the Suffolk
Redevelopment and Housing Authority (the "Housing Authority") of its revenue
bonds in an amount not to exceed $25,000,000 (the '~onds") to assist IMG/Exeter
Associates Limited Partnership, a Virginia limited partnership (the "Developer"),
in the financing of the acquisition, construction and equipping of a garden
apartment project of up to 384 units (the '~roject") to be located in the Exeter
planned residential neighborhood in the Town of Leesburg, Virginia (the "Town");
and
WHEREAS, Section 103(k) of the Internal Revenue Code of 1954, as amended,
(the "Code"), provides that the governmental unit having jurisdiction over the
area in which the Project is to be located must approve the issuance of the
Bonds; and
WHEREAS, the Project is to be located in the Town and the Council constitu-
tes the highest elected governmental unit of the Town;
THEREFORE, RESOLVED by the Council of the Town of Leesburg in Virginia as
follows:
SECTION I. The Council approves the issuance of the Bonds by the Housing
Authority for the benefit of the Developer to the extent required by Section
103(k) of the Code to permit the Housing Authority to assist in the financing of
the Project.
IMGRE S 1
Revenue Bonds-Exeter
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SECTION II. The approval of the issuance of the Bonds, as required by
Section 103(k) of the Code, does not constitute an endorsement of the Bonds or
the creditworthiness of the Project or the Applicant. As required by Section
36-29 of the Code of Virginia of 1950, as amended, the Bonds shall provide that
the Bonds shall not be a debt of the City of Suffolk, the Commonwealth of Vir-
ginia or any political subdivision thereof (other than the Housing Authority),
including the Town of Leesburg; and neither the Commonwealth of Virginia, nor
any political subdivision thereof (other than the Housing Authority), including
the City of Suffolk and the Town of Leesburg, shall be liable thereon, nor in
any event shall the Bonds be payable out of any funds or properties other than
those of the Housing Authority specifically pledged thereto. The Bonds shall
not constitute an indebtedness within the meaning of any constitutional or sta-
tutory debt limitation or restriction.
SECTION III. Pursuant to the limitations contained in Temporary Income Tax
Regulations Section 5(f)103-2(f)(3)(ii), this resolution shall remain in effect
for a period of one year from the date of its adoption.
SECTION IV. The approval contained in Section 1 hereof is contingent upon
the Developer's execution and delivery of a written agreement with the Town in
the form and substance acceptable to the Town Attorney, including such other sup-
portive documents and opinions as said Town Attorney may request, embodying the
terms, conditions and commitments contained in that certain letter dated August 1,
1985 from John M. Dempsey, Vice President, Investors Management Group, Ltd., to
Revenue Bonds-Exeter
Page 3
Marylou Hill, Chairman, Finance and Administration Committee of the Town, as
amended by the letter of August 8, 1985, from Stephen P. Robin to Martha M.
Semmes, Director of Planning, Zoning and Development of the Town, relative to
deleting the word "direct" from the phrase "direct rental subsidy" in paragraph
5 and deletion of Paragraph 2 under Item 5.
PASSED this 14th day of August
ATTE ST:
, !985.
Robert F..o Se~ila, Mayor
Town of Leesburg
Clerk of C~cil
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