R-14-04 RESOLUTION NO. R-14-04
WHEREAS, in connection with the City's sale of a portion of its water system to
Fairfax Water, which transaction closed on January 3, 2014, certain collateral (namely, one of
the City water tanks) for the 2008 Financing Lease held by SunTrust Bank in the original
principal amount of$4,821,000.00 (the "2008 Loan") was released by SunTrust Bank; and
WHEREAS, in exchange for such release of collateral, the City and SunTrust Bank
entered into a Modification Agreement dated December 24, 2013 and the City provided to
SunTrust Bank a letter giving certain assurances to SunTrust Bank for the repayment of the
remaining balance of the 2008 Loan, and the City Council desires to formally confirm the
terms of such agreement.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Fairfax, that (i) the City affirms to SunTrust Bank that it intends to utilize a portion of the sale
of the remaining portion of the City water system, to Loudoun Water, to pay in full the
remaining balance due under the 2008 Loan, and (ii) in the event the transaction with
Loudoun Water does not close on or prior to February 15, 2014, the City will either provide
substitute collateral, of a form satisfactory to SunTrust Bank and equivalent in value to that of
the water tank released as part of the Fairfax Water transaction, or otherwise pay the
remaining balance of the 2008 Loan in full on or prior to February 28, 2014.
ADOPTED this 14th day of January, 2014.
cc-147)-(-:
Mayor
ATTEST:
i
City Clerk
The vote on the motion to approve was recorded as follows:
VOTE:
Councilman DeMarco Aye
Councilman Drummond Aye
Councilman Greenfield Aye
Councilman Meyer Aye
Councilmember Schmidt Aye
Councilman Stombres Aye