2017-03ORDINANCE NO. 2017-03
AN ORDINANCE AWARDING A PRIME LEASE TO EFFECT THE
REFUNDING OF THE CITY'S PUBLIC IMPROVEMENT
REFUNDING CERTIFICATES OF PARTICIPATION, SERIES 2011B,
AND PUBLIC IMPROVEMENT REFUNDING CERTIFICATES OF
PARTICIPATION, SERIES 2011C
WHEREAS, the City of Fairfax, Virginia (the "City"), previously issued its Public
Improvement Refunding Certificates of Participation, Series 201113, and Public Improvement
Refunding Certificates of Participation, Series 2011 C (collectively, the "2011 COPs");
WHEREAS, the City desires to refund the 2011 COPs;
WHEREAS, the City Council of the City (the "Council") has determined that it is in
the best interests of the City and its residents to refund the 2011 COPs through a lease
refinancing arrangement, pursuant to which the City will lease certain real property and the
improvements thereon (as hereinafter described, the "Property") to a lessee and conduit issuer
of bonds (as hereinafter described, the "Lessee"), who will lease the Property back to the City
in exchange for certain rental payments, subject to annual appropriation by the Council;
WHEREAS, the City will enter into a prime lease with the Lessee and lease the
Property to the Lessee pursuant to the terms of such prime lease;
WHEREAS, the Lessee will enter into a bond purchase and lease agreement with the
City and a bank or other financial institution (the "Purchaser"), pursuant to which the Lessee
will lease the Property back to the City, issue its lease revenue bonds (the proceeds of which
will be loaned to the City to refund the 2011 COPS) and assign its rights under the prime lease
and the bond purchase and lease agreement (including the right to receive the rental payments,
but excluding the rights to receive certain notices and payment of its fees and expenses) to the
Purchaser;
WHEREAS, the Council has determined to lease one or more of the following parcels
of real property and the improvements (both existing and future) thereon owned by and
located in the City: (1) Stafford Drive Park, located at 3300 Stafford Drive, Fairfax, Virginia
22030 (Tax Parcel No. 47-4-02-001-A), (2) the Blenheim Property, located at 3610 Old Lee
Highway, Fairfax, Virginia 22030 (Tax Parcel No. 57-2-02-190), and (3) Stafford East Park,
located at 3255 Stafford Drive, Fairfax, Virginia 22030 (Tax Parcel No. 47-4-02-002)
(collectively such leased parcels, the "Property");
WHEREAS, the Council will delegate to the City Manager, in collaboration with the
City's financial advisor, Davenport & Company LLC, the authority to determine which of the
above -referenced parcels shall constitute the Property;
WHEREAS, pursuant to an advertisement made in the manner prescribed by law, the
Council has received bids from the entity or entities described on Exhibit A attached hereto
offering to act as prime lessee under a prime lease and as financing lessor and conduit issuer
of bonds for the benefit of the City under a bond purchase and lease agreement, a summary of
which bids has been read aloud and further details of which are shown in the bidding
documents on file in the office of the City Clerk;
WHEREAS, the Council has, after having followed procedures required by general
law, received recommendations from City staff as to the bids submitted to the City and has
conducted such other investigation as the Council deemed fit to make; and
WHEREAS, the Council, after such consideration, analysis and deliberation, has
approved and found sufficient the technical ability, financial condition, legal qualification and
general character of the hereinafter named bidder as the bidder that provides the lowest
overall cost to the City to effect the lease refinancing arrangement;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Fairfax, Virginia, that:
1. It is the intention of the City to grant a lease for a period not to exceed forty
(40) years to the City of Fairfax Economic Development Authority of upon the terms and
conditions of a Prime Lease, substantially in the form attached hereto as Exhibit B, being one
of the documents providing for the lease refinancing arrangement to refund the 2011 COPs.
2. This Ordinance shall take effect immediately.
Approved: March 28, 2017
0 ,4 -/- rKorff
Mayor
( ae(,A 3// ZO/"j
Date
ATTEST:
City Clerk
Votes
Councilmember DeMarco
Aye
Councilmember Drummond
Aye
Councilman Greenfield
Aye
Councilmember Miller
Aye
Councilmember Schmidt
Aye
Councilmember Stehle
Aye