Legislation # 15-0201 Enactment Number none
Type Resolution Effective Date none
Introduction Date 6/10/2015
Title Resolution to Approve Obligations of the Hampton-Newport News Community Services Board
 
Legislation History 15-0201
DateNotice Of ActionDescription
6/10/2015 Approved items 1 through 10 on the consent agenda.
6/2/2015 Received By Clerk's Office
 
View Attachments 15-0201
FileTypeSizeDescription
No attachment(s) found
 
Legislation Text 15-0201

 

City of Hampton, Virginia

Resolution

22 Lincoln Street

Hampton, VA 23669

www.hampton.gov

 

File Number: 15-0201

 

Enactment Number: -

 

Resolution to Approve Obligations of the Hampton-Newport News Community Services Board

 

RESOLUTION

WHEREAS, the Cities of Hampton, Virginia, and Newport News, Virginia established the Hampton-Newport News Community Services Board (the Board) as required by Section 37.2 of the Code of Virginia, 1950, as amended;

 

WHEREAS, the Board leases from its affiliated property company, the Hampton-Newport News Community Services Board Property Company, Inc. (the Property Company), and its affiliated company, Share A Homes of the Virginia Peninsula (SAH), certain properties located in the cities of Hampton and Newport News, Virginia, and in the course of purchasing and improving said properties the Property Company and SAH have incurred secured debt, which they now desire to refinance in order to take advantage of current lower interest rates, thus providing more funds available annually to be used by the Board in connection with its mental health, developmental disability and substance abuse services to the community; and

 

WHEREAS, the officers of the Property Company have reached an agreement with the approval of its Board of Directors to borrow not more than $15.6 Million Dollars ($15,600,000.00) from TowneBank through the purchase by TowneBank of revenue bonds to be issued by the Virginia Small Business Financing Authority (the Authority) and loaned to the Property Company pursuant to a Bond Purchase and Refinancing Agreement between the Authority, the Property Company and TowneBank to be used to refinance the Project, being the refinance of Bank of America debt, and any related transactions;

WHEREAS, the officers of Share A Homes of the Virginia Peninsula (SAH) have reached an agreement with the approval of the Board of Directors to borrow not more than One Million Four Hundred Forty Thousand and 00/100 Dollars ($1,440,000.00) from TowneBank through the purchase by TowneBank of revenue bonds to be issued by the Virginia Small Business Financing Authority (the Authority) and loaned to SAH pursuant to a Bond Purchase and Refinancing Agreement between the Authority, SAH and TowneBank;

 

WHEREAS, TOWNEBANK has required as a condition of the loans that the payments due from the Property Company and SAH be guaranteed by the Board, making the Board a Guarantor of such loans;

 

WHEREAS, the Code of Virginia requires that the political subdivision or subdivisions that established the Board, in this case the Cities of Hampton and Newport News, must authorize loans payable by the Board, and the Guaranty of the Loans constitutes loans to the Board requiring such authorization;

 

WHEREAS, the City of Newport News is expected to authorize at its June 23, 2015 City Council meeting a similar resolution and entering into a Moral Obligation Payment Agreement in support of the portion of the Guaranty supporting the Property Companys debt on the Board Campus under the Series 2015A Bond with an initial principal amount estimated at $14,600,000, with the moral obligation to be limited to appropriating amounts in the current fiscal year of any required support of such portion of the Boards Guaranty;

WHEREAS, the refinancing of the current indebtedness at a lower interest rate will enable the Board to better carry out the governmental activities of the City of Hampton, Virginia, and the City of Newport News, Virginia; and

 

WHEREAS, the City of Hampton, Virginia would incur no financial obligation in authorizing the Boards guarantee of such loans;

NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hampton, Virginia:

 

1. The execution and delivery by the Board of a guaranty agreement in connection with the making of the loans are hereby approved. The execution and delivery by the Board of a note and related documents in connection with the making of the Line of Credit are hereby approved.

 

2. All actions of the authorized representatives of the Board as may be necessary to effectuate and consummate the execution and delivery of such guaranty agreement, the making of the Loan and the execution and delivery of the note and related documents relating to the Line of Credit are hereby approved.

 

3. This resolution shall take effect upon its adoption.

 

Adopted at the regular meeting of the City Council of the City of Hampton, Virginia held on June 10, 2015.

 

 

 

Signed by ____________________________ Date _________________

George E. Wallace, Mayor

 

 

 

 

Attested by ____________________________ Date _________________

Katherine K. Glass, CMC

Clerk of the Council