19930713 r-93-32RESOLUTION NO. R-93-32
WHEREAS, the Industrial Development Authority of the City of
Fairfax, Virginia, (the "Authority"), has considered the request
of the George Mason University Educational Foundation, Inc. (the
"Foundation") for the issuance of the Authority's revenue bonds in
an amount not to exceed $2,000,000 (the "Bonds"), to assist the
Foundation in its plans to refinance certain educational and
administrative university facilities at 3087 University Drive (the
"Facilities"); and
WHEREAS, the Authority has held a public hearing on the issue
of Bonds on June 30, 1993; and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986,
as amended (the "Code"), and Section 15.1-1378.1 of the Code of
Virginia, as amended (the "Virginia Code"), provide that the
governmental unit 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; and
WHEREAS, the Authority issues its bonds on behalf of the City
of Fairfax, Virginia (the "City"), the Facilities are located in
the City and the City Council of the City of Fairfax, Virginia (the
"City Council") constitutes the highest elected governmental unit
of the City; and
WHEREAS, the Authority has requested the City Council to join
with the Authority to "designate" the Bonds as "qualified tax-
exempt obligations" for the purpose of Section 265(b) (3) of the
Code to improve the marketability of the Bonds and reduce the
Authority's cost of financing; and
WHEREAS, the Authority recommends that the City Council
approve the issuance of the Bonds; and
WHEREAS, a copy of the Authority's resolution approving the
issuance of the Bonds, a record of the public hearing and a "fiscal
impact statement" with respect to the financing and the Facilities
have been filed with the City Council;
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAIRFAX,
VIRGINIA:
1. The city Council hereby approves the issuance of the
Bonds by the Authority for the benefit of the Foundation to the
extent required by Section 147(f) of the Code and Section
15.1-1378.1 of the Virginia Code, to permit the Authority to assist
in the refinancing of the Facilities, provided that the Bonds are
issued in calendar year 1993.
2. The City hereby designates the Bonds as "qualified tax-
exempt obligations" for the purpose of Section 265(b) (3) of the
Code, provided that the Bonds are issued in calendar year 1993.
3. The City represents as follows:
(a) The City will in no event designate more than
$10,000,000 of obligations as "qualified tax-exempt
obligations," including the Bonds, for the purpose of Code
Section 265(b) (3) of the Code in calendar year 1993;
R-93-32
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(b) The city, all its ,,subordinate" entities (within the
meaning of Section 265(b)(3) of the Code), and all entities
which issue tax-exempt obligations on behalf of the City and
its subordinate entities, together, have not issued more than
$10,000,000 of tax-exempt obligations in calendar year 1993
(not including "private activity bonds" as defined in Section
141 of the Code other than "qualified 501(c)(3) bonds" as
defined in Section 145 of the Code), including the Bonds;
(c) Barring circumstances unforeseen as of the date of
delivery of the Bonds, the City will not issue tax-exempt
obligations itself or approve the issuance of tax-exempt
obligations of any of such other entities if the issuance of
such tax-exempt obligations would, when aggregated with all
other tax-exempt obligations theretofore issued by the City
and such other entities in calendar year 1993, result in the
City and such subordinate entities having issued a total of
more than $10,000,000 of tax-exempt obligations in calendar
year 1993 (not including private activity bonds other than
qualified 501(c)(3) bonds), including the Bonds; and
(d) The city has no reason to believe that the City and
such other entities will issue tax-exempt obligations in
calendar year 1993 in an aggregate amount that will exceed
such $10,000,000 limit;
provided, however, that if the city receives an opinion of
nationally recognized bond counsel that compliance with any
covenant set forth in (a) or (c) above is not required for the
Bonds to be qualified tax-exempt obligations, the City need not
comply with such restriction.
3. Approval of the issuance of the Bonds as required by
Section 147(f) of the Code does not constitute an endorsement to
a prospective purchaser of the Bonds or the creditworthiness of the
Foundation or the Facilities, and, as required by Section 15.1-1380
of the Virginia Code, the Bonds shall provide that neither the City
nor the Authority shall be obligated to pay the Bonds or the
interest thereon or other costs incident thereto except from the
revenues and moneys pledged therefor, and neither the faith and
credit nor the taxing power of the Commonwealth of Virginia, the
City or the Authority shall be pledged thereto.
4. The officers of the City Council and officers of the City
are authorized to execute such certificates as appropriate to
assist in the designation of the Bonds as qualified tax-exempt
obligations.
Adopted by a majority of a quorum of the city Council of the
City of Fairfax, Virginia, on July 13, 1993.
ATTEST:
C~%~lerk