RESOLUTION OF THE BOARD OF SUPERVISORS

OF ALBEMARLE COUNTY, VIRGINIA

 

 

                        The Industrial Development Authority of Albemarle County, Virginia (the “Authority”) was requested by the University of Virginia Foundation (the “Foundation”), whose principal business address is 465 Crestwood Drive, Charlottesville, Virginia  22903, to hold, on behalf of Albemarle County, Virginia (the “County”), a public hearing on the issuance by the Industrial Development Authority of the City of Charlottesville, Virginia (the “Charlottesville Authority”) of its revenue bonds in an amount not to exceed $170,000,000 (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 “Virginia Code”).  The proceeds of the Bonds will be used to assist the Foundation in (a) financing the cost of (i) the acquisition, construction and equipping of the Advanced Research Technology building  (the “ART Building”) located at 550 Ray C. Hunt Drive in the Fontaine Research Park in the County, (ii) the acquisition and construction of the West Main Street parking garage fronting on 11th Street, S.W., in the City of Charlottesville, Virginia (the “City”) located one-half block southwest of the intersection of West Main Street and 11th Street, S.W. and to be used in part by tenants of a future office building to be built adjacent thereto, (iii) the construction of the West Main Street connector, an above-ground walkway which connects the parking garage fronting on 11th Street with the University of Virginia Hospital in the City, (iv) the acquisition, construction and equipping of the Life Sciences Annex attached to the ART Building and to be used for laboratory space located at 550 Ray C. Hunt Drive in the Fontaine Research Park in the County, and (v) the construction of a road in the University of Virginia Research Park off of Airport Road, which is located on the west side of U.S. Route 29 approximately 6 miles north of the City limits in the County, and (b) refinancing the cost of (i) the acquisition, construction and equipping of the Dynamics Building used by the University of Virginia for office space and located at 2015 Ivy Road in the City, (ii) the acquisition, construction and equipping of the Blake Center Building used by the University of Virginia for office space and located at 1224 Jefferson Park Avenue in the City, (iii) the acquisition, construction and equipping of a building used by the University of Virginia for office space and other purposes located at 400 Ray C. Hunt Drive in the County, (iv) certain land located in the University of Virginia Research Park and possibly other locations and (v) the acquisition, construction and equipping of buildings used primarily for the housing of students attending the University of Virginia that are located at (1) 2021 Ivy Road, (2) 600 Brandon Avenue and (3) 411, 413-415 and 417-419 Brandon Avenue consisting of 48 units, 44 units and 47 units, respectively, all in the City (all of the foregoing in clauses (a) and (b) being collectively referred to herein as the “Projects”).  The proceeds of the Bonds will also be used to finance certain costs of the issuance of the Bonds.

 

                        Section 147(f) of the Internal Revenue Code of 1986, as amended (the “Code”), and Section 15.2-4906 of the Virginia Code, provide that the highest elected governmental unit of the locality having jurisdiction over the issuer of private activity bonds and over the area in which any facility financed with the proceeds of private activity bonds is located must approve the issuance of the bonds.  Some of the Projects are located in the County, and the Board of Supervisors of the County (the “Board”) constitutes the highest elected governmental unit of the County.  The Bonds will be issued by the Charlottesville Authority, and the City Council of the City gave its approval to the issuance of the Bonds on December 4, 2006.  Section 15.2-4905 of the Virginia Code 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 of the second locality.  The Charlottesville Authority adopted its inducement resolution on November 14, 2006 (the “Charlottesville Inducement Resolution”).

 

                        Following the public hearing held by the Authority on November 14, 2006, the Authority adopted a resolution (the “Resolution”) in which it recommended and requested that the Board approve of the issuance of the Bonds by the Charlottesville Authority.  A copy of the Resolution, a brief summary of the Authority's public hearing, the Foundation's Fiscal Impact Statement and the Charlottesville Inducement Resolution have been filed with the Board. 

 

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

 

1.   The recitals made in the first paragraph above are hereby adopted as part of this Resolution.

 

2.   The Board hereby concurs with the Charlottesville Inducement Resolution and approves the issuance of the Bonds by the Charlottesville Authority for the benefit of the Foundation, to the extent required by Section 147(f) of the Code and Section 15.2-4906 of the Virginia Code, to permit the Charlottesville Authority to assist in the financing and refinancing of the Projects.

 

3.   The concurrence with the Charlottesville Inducement Resolution and the approval of the issuance of the Bonds do not constitute an endorsement to a prospective purchaser of the creditworthiness of the Projects or the Foundation, and neither the County nor the Authority shall be obligated to pay the Bonds or the interest thereon or other costs incident thereto, and neither the faith and credit nor the taxing power of the Commonwealth of Virginia nor any political subdivision thereof, including the County and the Authority, shall be pledged thereto.

 

4.   The County, including its elected representatives, officers, employees and agents, shall not be liable and hereby disclaims all liability for any damage to the Foundation, direct or consequential, resulting from the Charlottesville Authority’s failure to issue the Bonds for any reason.

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

 

Attachments:
Albemarle IDA Resolution
Charlottesville IDA Resolution
Fiscal Impact Statement
Summary of Statements
Return to consent agenda
Return to regular agenda