RESOLUTION OF THE BOARD OF SUPERVISORS

OF ALBEMARLE COUNTY, VIRGINIA

 

WHEREAS, the Economic Development Authority of Nelson County, Virginia (the “Nelson Authority”) has considered, at a public hearing held on August 3, 2006, the application of Kappa Sigma Endowment Fund (the “Endowment”), a Section 501(c)(3) entity formed as an Illinois Trust and Scottsville Road Holdings, LLC, a Virginia limited liability company (the “Company”, together with the Endowment, the “Borrower”), both exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the “Code”), both based in Albemarle County, Virginia and each having its principal place of business at P.O. Box 5643, 2020 Avon Court, Suite 29, Charlottesville, Virginia, 22905 in Albemarle County, Virginia; and

 

WHEREAS, the Borrower has requested that the Nelson Authority issue its revenue bonds or notes in an amount not to exceed $7,700,000 (the “Bonds”) pursuant to the Industrial Development and Revenue Bond Act, Title 15.2, Chapter 49 of the Code of Virginia of 1950, as amended (the “Act”) the proceeds from which Bonds will be used to assist the Borrower in financing the acquisition, construction, equipping and furnishing of the Endowment’s new National Headquarters and Museum facility of approximately 22,000 square feet and 3 stories to be located on approximately 8.356 acres, more or less (the “Facility”) in Albemarle County, Virginia to be known as 1612 Scottsville Road, Charlottesville, Virginia, fronting on the West Side of State Route 20 approximately 2 miles from the intersection with I-64 and Route 20 across the highway from Carter’s Mountain, in Albemarle County, Virginia and to pay costs of issuance; and

 

WHEREAS, the Industrial Development Authority of Albemarle County, Virginia (the “Albemarle Authority”) has, after a public hearing held on August 10, 2006, considered the request of the Borrower for the Albemarle Authority to recommend to the Board of Supervisors of Albemarle County, Virginia (the “Board of Supervisors”) its approval of and concurrence with the issuance of the Bonds by the Nelson Authority under the Act, in such amounts as may be necessary to finance the cost of the Facility; and

 

WHEREAS, the Facility will also benefit Albemarle County, Virginia (the “County”) and the Borrower has described the benefits to Albemarle County at such public hearing and the Albemarle Authority has recommended that the Board of Supervisors of Albemarle County approve of and concur with the issuance of the Bonds by the Nelson Authority under the Act; and

 

WHEREAS, Section 147(f) of the Code provides that both the governmental unit having jurisdiction over the area in which any facility financed with the proceeds of private activity bonds is located and the governmental unit on behalf of which such bonds are issued must approve the issuance of the bonds after public hearing; and

 

WHEREAS, Section 15.2-4905 of the Act provides that if a locality has created an industrial development authority, no industrial development authority created by a second locality may finance a facility located in the first locality unless the governing body of such first locality concurs with the inducement resolution adopted by the industrial development authority created by the second locality; and

 

WHEREAS, the Facility to be financed through the issuance of the Bonds is located in Albemarle County and the Board of Supervisors of Albemarle County constitutes the highest elected governmental unit of Albemarle County; and

 

WHEREAS, the Board of Supervisors of Albemarle County has created the Albemarle Authority pursuant to the Act; and

 

WHEREAS, the Board of Supervisors Nelson County, Virginia (“Nelson County”) constitutes the highest elected governmental unit of Nelson County;

 

WHEREAS, the Board of Supervisors of Nelson County has created the Nelson Authority pursuant to the Act; and

 

WHEREAS, the Board of Supervisors of Nelson County will approve on September 12, 2006, the plan of financing for the Facility and the issuance of the Bonds for the benefit of the Borrower and has designated the Bonds as “qualified tax-exempt obligations” under Section 265(b) of the Code; and

 

WHEREAS, the approving resolutions of the Board of Supervisors of Nelson County and the Nelson Authority are each contingent upon the Board of Supervisors of Albemarle County approval of, and concurrence with, the issuance of the Bonds by the Nelson Authority.

 

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF ALBEMARLE COUNTY, VIRGINIA:

 

1.      The Board of Supervisors of Albemarle County hereby approves and concurs with the financing of the Facility and the issuance of the Bonds by the Nelson Authority for the benefit of the Borrower, as required by Section 147(f) of the Code and Sections 15.2-4905 and 15.2-4906 of the Act, to permit the Nelson Authority to assist in the financing of the Facility.

 

2.      The approval of and concurrence with the issuance of the Bonds, as required by said Section 147(f) of the Code and Sections 15.2-4905 and 15.2-4906 of the Act, do not constitute an endorsement of the Bonds or the creditworthiness of the Borrower or otherwise indicate that the Facility possesses any economic viability.  As required by the Act, the issuance of the Bonds as requested by the Borrower will not constitute a debt or pledge of the faith and credit of the Commonwealth of Virginia, the Nelson County, Virginia or Albemarle County, Virginia.  Neither the Commonwealth of Virginia nor any political subdivision thereof, including the Nelson Authority, Nelson County, Virginia or Albemarle County, Virginia shall be obligated to pay the Bonds, or the interest thereon, or other costs incident thereto, except from the revenues and monies pledged therefore, and neither the faith and credit nor the taxing power of the Commonwealth of Virginia nor any political subdivision thereof, including the Nelson Authority, Nelson County, Virginia and Albemarle County, Virginia, will be pledged to payment of principal of such Bonds or the interest thereon or other costs incidental thereto.

 

3.      This resolution shall take effect immediately upon its adoption.

 

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