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9 <br />Bonds "); (b) to provide a porti on of the permanent financing for the renovation, <br />reconstruction, expansion, modification, and equipping of IPI's existing buildings; and (c) <br />to finance the costs of issuing the Bond (collectively, the " Project "); <br /> <br />WHEREAS <br /> , the Authority issues its bonds on behalf of the City of <br />Charlottesville, Virginia (the " City "); <br /> <br />WHEREAS <br /> , the City Council of the City (the " City Council ") constitutes the <br />highest elected governmental unit of the City; <br /> <br />WHEREAS <br /> , Section 147(f) of the Internal Revenue Code of 1986, as amended <br />(the " Code "), provides that the governmental unit having jurisdiction over the issuer of <br />private activity bonds and over the area in which any facility financed with the proceeds <br />of private activity bonds is located must approve the issuance of th e Bond; <br /> <br />WHEREAS <br /> , the allocable portion of the Bond to refinance and refund the Prior <br />Bond was previously designated as "bank qualified" tax - exempt obligation, and further, <br />the Authority has designated the remaining allocable portion of the Bond for the n ew <br />money portion of the Project (the " New Money Portion of the Bond "), as further <br />described herein; <br /> <br />WHEREAS <br /> , the Authority and IPI desire such "bank - qualified" designation <br />approval by the City for the New Money Portion of the Bond in order to obtain a <br />fa vorable financing rate for the Bonds; <br /> <br />WHEREAS <br /> , the Authority has duly held a public hearing on November 12, 2002, <br />on the issuance of the Bond upon due notice of publication therefor, and the Authority <br />has recommended to the City Council the approval of t he Project and the Bond; and <br /> <br />WHEREAS <br /> , a copy of the Fiscal Impact Statement, the Certificate of Publication <br />of Public Notice, a Summary of Statements at the Public Hearing, and a copy of the <br />Authority's authorizing resolution (the " Resolution ") approving the issuance of the Bond, <br />subject to the terms to be agreed upon, have been filed with the City Council as required <br />by law. <br /> <br />NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF <br /> <br />THE CITY OF CHARLOTTESVILLE, VIRGINIA <br />: <br /> <br />1. Approval of Authority's Issuance of Bond for Benefit of IPI . The City <br />Council concurs with the Resolution and approves the Project and the issuance of the <br />Bond by the Authority for the benefit of IPI. <br /> <br />2. No Endorsement to Bond Purchasers . The approval of the issuance of the <br />Bond does not constitute an endorsement to prospective purchasers of the Bond or the <br />creditworthiness of the Project or IPI. <br /> <br /> 3. No Full Faith and Credit Pledge . The Bond shall provide that it shall not <br />be deemed to constitute a debt or pledge of the faith and credit or taxing power of the <br />Commonwealth of Virginia, or any political subdivision thereof, including the Authority <br />and the City, and neither the Authority nor any other political subdivision shall be <br />obligated to pay the principal of, premium, if any, or inte rest on the Bond or other costs <br />incident thereto, except from the revenues and monies pledged therefor, and neither the <br />faith and credit nor the taxing power of the Commonwealth of Virginia, or any political <br />subdivision thereof, including the Authority and the City, shall ble pledged for the <br />payment of principal or premium, if any, or interest on the Bond or other costs incident <br />thereto. <br /> <br />3. " Bank - Qualified" Designation Matters . <br /> <br />A. Deemed "Bank - Qualified" Designation - Refunding Portion of Bond: <br />It is to be un derstood that bond counsel for the Bonds has advised the City that such <br />allocable portion of the Bond that shall refinance and refund the outstanding amount of <br />