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RESOLUTION OF THE CITY COUNCIL OF • THE CITY OF CHARLOTTESVILLE, VIRGINIA APPROVING THE ISSUANCE OF A "BANK -QUALIFIED" BOND TO BE ISSUED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE CITY OF CHARLOTTESVILLE, VIRGINIA, WHEREAS, the Industrial Development Authority of the City of Charlottesville, Virginia (the "Authori "),has considered the request of Independence Properties, Inc. ("IPI") for the issuance of the Authority's bank -qualified revenue bond in the amount of $530,000 (the "Bond") in order to assist IPI to finance all or any portion of several projects, including, without limitation, (a) to retire existing indebtedness of IPI issued in connection with the Industrial Development Authority of the City of Charlottesville, Virginia Facility Revenue Note (Independence Properties, Inc.), Series 1997, which was issued on December 30, 1997 in the original principal amount of $526,000 (the "Prior Bonds"); (b) to provide a portion of the permanent financing for the renovation, reconstruction, expansion, modification, and equipping of.IPI's existing buildings; and (c) to finance the costs of issuing the Bond (collectively, the "Project"); WHEREAS, the Authority issues its bonds on behalf of the City of Charlottesville, Virginia (the „City„); WHEREAS, the City Council of the City (the "City Council") constitutes the highest elected • governmental unit of the City; WHEREAS Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), provides 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 Bond; WHEREAS, the allocable portion of the Bond to refinance and refund the Prior Bonds was previously designated as "bank -qualified" tax-exempt obligation, and further, the Authority has designated the remaining allocable portion of the Bond for the new moneyportion of the Project (the "New Money Portion of the Bond"), as further described herein; WHEREAS, the Authority and IPI desire such "bank -qualified" designation approval by the City for the New Money Portion of the Bond in order to obtain a favorable financing rate for the Bonds; WHEREAS, the Authority has duly held a public hearing on November 12, 2002, on the issuance of the Bond upon due notice of publication therefor, and the Authority has recommended to the City Council the approval of the Project and the Bond; and WHEREAS, a copy of the Fiscal Impact Statement, the Certificate of Publication of Public 0