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023-00 BOARD OF SUPERVISORS RESOLUTION OF THE BOARD OF SUPERVISORS OF FREDERICK COUNTY, VIRGINIA WHEREAS, the Industrial Development Authority of the County of Frederick, Virginia (the "Authority") has considered the application of Grafton School, Inc., a Virginia nonstock, nonprofit corporation (the" Applicant"), including a resolution adopted on October 30,2000 (the "Inducement Resolution"), by the Industrial Development Authority of Clarke County, Virginia (the "Issuer"), relating to the issuance ofthe Issuer's education facilities revenue bonds in an amount not to exceed $13,425,000 (the "Bonds") to assist in the financing or refinancing of one or more of the following capital projects (collectively, the "Projects"): (i) acquisition, construction and equipping ofan approximately 32,000 square foot building to be located at 4100 Price Club Boulevard in Chesterfield County, Virginia, to be used by the Applicant as an administrative and academic center; (ii) construction of an approximately 75-bed dormitory and a gymnasium, renovation of an existing dormitory for classroom, therapy and administrative purposes and related improvements and the equipping of such improvements on the Applicant's main campus at 180 Grafton Way in Berryville in Clarke County, Virginia; (iii) acquisition and renovation of an approximately 35,866 square foot building located at 120 Bellview Avenue in the City of Winchester, Virginia, to be used by the Applicant for offices, adult services, and administrative and maintenance facilities; (iv) refundinKofindebtedness incurred for the acquisition ofthe Applicant's group homes in Clarke County and Frederick County, Virginia, and for the acquisition and improvement ofthe Applicant's main campus described in item (i) above, and has held a public hearing thereon on November 21, 2000; and WHEREAS, the Authority has recommended that the Board of Supervisors of Frederick County, Virginia (the "Board"), concur in the Inducement Resolution for the issuance ofthe Bonds by the Issuer to comply with Section 147(1) ofthe Internal Revenue Code of 1986, as amended (the "Tax Code"), and Section 15.2-4906 of the Code of Virginia (1950), as amended (the "Virginia Code"); and WHEREAS, a copy of the Authority's resolution concurring in the issuance of the Bonds to assist with the financing or refinancing of the Projects, a copy of the Inducement Resolution, a Resolution - Board of Supervisors - Grafton School, Inc. Page 2 record of the public hearing and a "fiscal impact statement" with respect to that portion of the Projects located in Frederick County have been filed with the Board; BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF FREDERICK COUNTY, VIRGINIA: 1. The Board of Supervisors of Frederick County, Virginia, concurs in the Inducement Resolution for the issuance of the Bonds by the Issuer for the benefit of the Applicant, to the extent required by the Tax Code and the Virginia Code, to permit the Issuer to assist in the financing or refinancing of that portion of the Projects located in Frederick County. 2. The Board's concurrence in the Inducement Resolution for the issuance of the Bonds, as required by the Tax Code and the Virginia Code, does not constitute an endorsement of the Bonds or the creditworthiness of the Applicant. 3. This resolution shall take effect immediately upon its adoption. Upon motion made by W. Harrington Smith, Jr., and seconded by Sidney A. Reyes, the above resolution was approved by the Frederick County Board of Supervisors at their meeting held on December 13, 2000, by the following recorded vote: Richard C. Shickle Aye Robert M. Sager Aye Charles W. Orndoff, Sr. Aye Margaret B. Douglas Aye W. Harrington Smith, Jr. Aye Sidney A. Reyes Aye A COPY TESTE: iley, Jr. Cler , Board of Supervisors County of Frederick, Virginia RESOLUTION NO.: 023-00 BRYAN &COLEMAN, P.L.e. ATrORNEYS AT LAW q COURTSQUAIU( WINCH~!'TElt VIRGIN' A 22611I TEI.EPHONE, (5411)hh54:t'\4 E A X, (541')("'5-4.125 MAII.INC A"'JI(~~SS MI<"HAEI.I. KI(VAN H. EDMUNDS. 'OI.EMAN./11 1'.0. Jinx 2s0C! WINCH~~TER. V A 22"'" December 5, 2000 John R. Riley, Secretary Industrial Development Authority of Frederick County, Virginia 107 North Kent Street Winchester, Virginia 22601 RE: Grafton School, Inc. Dea&JQhn, Enclosed for filing with the Authority's records are one original and eight copies of the Certificate of Public Hearing for the Grafton School matter. I also enclose a copy of a letter of indemnification from Grafton School, issued for the benefit of the Authority and the Board of Supervisors in connection with this matter. Please place this matter on the agenda for the Board of Supervisors meeting scheduled for December 13,2000. Also enclosed is a draft copy of the Resolution to be considered by the Board of Supervisors at its December 13th meeting. Thank you. ~Y7 /~~~ Michael L. Bryan MLB/pmn Enclosures cc: Hart Lee, Esquire Bruce Downing, Esquire . .~~ ". . . ~ ;; I . ~ovember20,2000 Industrial Development Authority of the County of Frederick. Virginia 1 07 ~orth Kent Street Winchester, Virginia 22601 Attn: John Riley, Secretary Re: Application of Grafton School. Inc. for a concurrinl!: Resolution for the issuance of Oarke County Industrial Development Authority Bonds Dear Mr. Riley: In connection with and in order to induce the Industrial Development Authority of Frederick County, Virginia (the "Authority") to consider the adoption of a Resolution concurring in the issuance of certain Industrial Development Authority Bonds by the Industrial Development Authority of Clarke County, Virginia in an amount not to exceed $13,425,000.00, Grafton School, Inc. hereby agrees to pay all fees, costs and expenses of the Authority, the Board of Supervisors of Frederick County, Virginia (the "Board"), and their respective members, employees, attorneys and agents, including, but not limited to, the fees and disbursements of counsel in connection with such concurring Resolution. In addition, Grafton School, Inc. hereby agrees to indemnify and hold hlUllltess the Authority, the Board and each of their respective members, employees, attorneys and agents, from any and all loss, costs or expense (including reasonable attorney's fees) in the event of any litigation, administrative proceeding, investigation, or other proceeding or suit against the Authority, the Board, or any of their respective members, employees, attorneys and agents, in connection with or arising out of the consideration and/or adoption ofany concurring Resolution by such Authority and approval thereof by the Board. Grafton School, Inc. further agrees to comply with the Authority's rules and procedures and further agrees to advise the Authority in writing of any material changes in the information contained in the Application previously filed with the Authority. Very truly yours, Grafton School, Inc. By CERTIFICATE OF PUBLIC HEARING The undersigned Secretary of the Industrial Development Authority of the County of Fredetick, Virginia (the "AuthOlity") hereby celtifies as follows: I . A meeting of the Authority was duly called and held on November 21, 2000 at 10:00 a.m. in the Executive Session Room of the Board of Supervisors Meeting Room, located on the first floor of the Frederick County Office Building at 107 North Kent Street, Winchester, Virginia. The meeting was open to the public, and persons of differing views were given an opportunity to be heard. At such meeting all of the Directors ofthe Authority were present or absent throughout as follows: PRESENT: Gene T. Dicks, Temporary Vice-Chairman, Eleanor Casey, Gary Dove, Richard E. Williams, Ben P. Hallam, Richard G. Dick ABSENT: Fred L. Glaize, III 2. The Temporary Vice-Chairman announced the commencement of a public hearing on the application and plan of finance of Grafton School, Inc., a Virginia nonstock, nonprofit corporation (the "Applicant"), seeking concurrence by the Authority and the Board of Supervisors (the "Board") of Frederick County in the issuance of up to $13,425,000 education facilities revenue bonds (the "Bonds") by the Industrial Development Authority of Clarke County, Virginia (the "Issuer"), for the benefit of the Applicant, and that a notice of the hearing was published once a week for two consecutive weeks, the first publication being not more than 28 days nor less than 14 days prior to the hearing in The Winchester Star. a newspaper having general circulation in the County of Frederick, Virginia (the "Notice"). A copy of the Notice and a certificate of publication of such Notice have been filed with the records of the Authority and are attached hereto as Exhibit A. 3. The Temporary Vice-Chairman presented to the members of the Authority a certified copy of a resolution (the "Resolution") of the Issuer granting its preliminary approval of the proposed Bonds, a copy of which Resolution is attached hereto as Exhibit B. The Temporary Vice-Chairman also presented to the members of the Authority a copy of the proposed resolution concurring in issuance of the Bonds by the Issuer (the "Concurring Resolution"). 4. Michel L. Bryan, Esquire, of Bryan & Coleman, counsel for the Authority, advised the Directors that the concurrence of the Authority was necessary because some of the facilities owned by the Applicant, which are to be refinanced from a portion of the proceeds of the Bonds, are located in Frederick County. 5. Bruce E. Downing, Esquire, counsel for the Applicant, advised the Directors that under applicable law, the issuance of the Bonds by the Issuer to finance facilities in the County of Frederick required a public hearing and the concurrence in the issuance of the Bonds by the Authority and the Board. MI'. Downing then described the history and operations of the Applicant and the components of the proposed financing project, including the background of the Applicant in Frederick County and the adjacent political jUlisdictions, the proposed facilities to, be refinanced in Frederick County and the benefits expected to be derived from the project. A reasonably detailed summary of their statements and the fiscal impact statement required by the Industrial Development and Revenue Bond Act are attached hereto as Exhibits C and D. 6. Attached hereto as Exhibit E is a true, correct and complete copy of the Concurring Resolution whereby the Authority concurs in the issuance of the Bonds by the Issuer, adopted at such meeting of the Authority by a majority of the Directors of the Authority, with the ayes and nays being recorded in the minutes of such meeting as follows: Director Vote Gene T. Dicks Eleanor Casey Gary Dove Richard E. Williams Ben P. Hallam Richard G. Dick Aye Aye Aye Aye Aye Aye The Concurring Resolution constitutes all formal action taken by the Authority at such meeting relating to matters refen'ed to in the Concuning Resolution. The Concuning Resolution has not been repealed, revoked, rescinded or amended and is in full force and effect on the date hereof. WITNESS my hand and seal of the Authority this 21'1 day of November, 2000. (SEAL) uthority of the County of A B C D E Copy of Notice, CeJ1ified by Newspaper Resolution of the Industrial Development Authority of Clarke County, Virginia Summary of Statements fiscal Impact Statement Concurring Resolution ~.:\, ..-.".....~ .'\ _ " .',_ '. _. ,~,--.c _'""~~~'--_)""""":'.:' .t. ./, --./ _-:- t ~ .__:._~. J -<. _r.~;' - ..=-,--, -- ""':-<'~~~~t loP\-' :: '- -~~~L ---...... .=- .~-,,~-::'~~ ~fI F~e;fj;'fl ~ ~ lEl.~ 'It~~m~I~;~ -"~;-~ ':.~~:- _ ,"'l:.l J"'IR-.;... cr.:- ~'l-~ "Q"..,~~ ( '" -..:-~ -\: - - ';._.::: -~ -::."'t fill ~ ~ 11C) ,ii<~ _ .16.-~~,o, _. ~ f _.' Ii! .11 , _ .: __'. _ . __: :. , _, _ ' ,. ~ _.b;~ NOTICE OF PUBLIC HEARING ON PROPOSED INDUSTRIAL DEVELOPMENT BOND FINANCING BY INDUSTRIAL DEVELOPMENT AUTHORITY FOR THE COUNTY OF FREDERICK, VIRGINIA The Industrial Development Authonty for the County of Fredenck. VirginIa (the "Authonly") will hold a public hear- ing on the applicahon ot Gratton School. Inc., a VirginIa nonstock. nonprolil corporalion (the "Applicant''!. whose pnnclpal place of business IS focaled at 120 Bellvlew Avenue, Wrncheslel, Virglr"a tor the Authonly to consIder the adoption of a resolullon concurring In the issuance by the Industnal Development Authorlly 01 Clarke County, VirgInia pursuant to lhe Virginia Industrial Development and Revenue Bond Acl (the "Act"), ollis industrial devel- opment levenue bonds in an amount currently expected not to exceed 513,425,000. Proceeds 01 the bonds will be used \0 pay all or a portIon 01 Ih~ COSIS 01 {i) refunding pnar Inoebtedness. renovating eXtsllng lacl/ilies and con- structing new tacllitles atlhe Berryvitle Campus localed at 1 BO Gra"on lane in the County 01 Clarke, Virginia, (ii) acqUlnng, construcllnp and eqUIppIng an approximately 32.000 square toot academiC and adminlslrallve center al 4100 Pnce Club Boulevard in the County of Cheslerfleld, VIrginia, (Ill) relundlng prior indebtedness, and renovallng a faCIlity 01 approXlmateiy 35,866 square feet located at 120 Beltvll'W Avenue in the CIty 01 Winchester, Virginia, I" . 'efundlng prior Indebtedness of Ihe Applicanl incurred Ince the acquisitions 01 group home residenliallacil- ,,~O located all09 Chelan Place, 193 Village Court, 106 Hilltop Terrace, 1677 MallbolO Road, 1532 Fairfax Pike, and 2123 MartInSburg Pike In the County 01 Frederick. Vlfglnra, and 536 Gra"on lane in the County 01 Clarke, Vlfglnla. and IV) paYing certain costs 01 issuance of the bonds: The acqulslllan. construction, eqUIppIng and refundIng 01 the lacllilies deSCribed above are hereinatler I' relerred to as the "PrOject," and the components of lhe Prolecl are or will b<l owned and operated by the \ Applicant, i As requrred by the Act, the issuance of the bondS as : requested by the Applicanl shall nol be deemed to cons';- i tute a debt or pledge of the laith and credit of the : Commonwealth o! Vlrglllla or the County 01 Frederick, virgInia. Neither the Commonwealth of Virginia nor any . politlCaf SUbdiVISion 'hereof. InCludIng the Authority and 'he County of Frederick, Virginia shall be Obligated to pay the bonds or the interest thereon or other costs inCidental thereto eKcept trom the revenues and moneys pledged therefor. and neither the lalth and credit nor Ihe taxing power 0.' the Commonwealth 01 Virginia or any politIcal subdiVISion thereof IS pledged to the payment 01 principal 01 such bonds or the intelesl thereon or other casls incl' dent therelo. . The public heanng, which may be continued or adJOumed, WIll b<l held at 10:00 a.m. on November 21 2000 in the Executive Session Room of the Board 01 Supervisors Meeting Room. located on Ihe IIrs1 floor 01 the Fredenck Countv OfllcC BUIldIng al 107 N. Kent St., Winchester, Vlrglnra. Any person Interesled in 'he Issuance ~t the l}()ooS or Ihe loc~hom.. nalure or purpuses of the P~oJect may appmn at the hoa nng anc' prescnl his or h~r views at may send wril1en commenls before the hean"Q to the Authority. cia John Riley, Secretmy of the At '. 107 N Kent Slleet. WIOchestm. VirqiniH 22601 INDUSTRIAL DEVELOPMENT AUTHORITY . FOR THE COUNTY OF FREDERICK, VIRGINIA tONE 667,3200 EXHIBIT "1\." " ., ! I"I \.. _. 1 1_",\,,0",- .-.. ......:(..'\,.0... ;'~' -=-- 'he Winchester Star . CERTIFICATE OF PUBLICATION We certify that the attached advertisement ~n the cause of: 1-: /" ; ".;, \~'L/"\" ..-.. /.. t'. ' I<~/', .. ....\..- /,:' ' /, r 'J,:;- appeared in The Winchester Star, a newspaper published in the City of winchester, Virginia, with a general circulation over 22.500 in the areas of the City of winchester, and the counti, of Frederick, Clarke and Warren, Virginia. / 1,- "; t , , Signature: Ii /t ,: (.. '1//: ~ '_ ,. Title: '. . /1' /~_ .1~/ _ .' /~ .' Date: / /'" ****** STATE OF VIRGINIA City of Winchester ,/ 1/1 f::f~ ~I Swor,nand SUQ~q"!;~edto before ~e r- -;-- ~'iG ;:"'1")( I/)/C ~ i day\.m.;--r/ ~(6? : flit"f) '1/1<<- ~c, /i {fEd f:. Z I,' / / / '- ~~tI.L Not~~y Public :' My commission expires: / I / ~ I ('/' /;1,/ 7/--,' :.,' '-, ".~) , ! ; NORTH KENT STREeT -wINC1IESTER. VIRGINIA 22601 EXHIBIT "B" RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF CLARKE COUNTY, VIRGINIA AUTHORIZING THE ISSUANCE OF UP TO $13,425,000 EDUCATIONAL FACILITIES REVENUE BONDS FOR THE PURPOSE OF FINANCING AND REFINANCING FACILITIES LOCATED IN THE COUNTIES OF CLARKE, CHESTERFIELD AND FREDERICK AND THE CITY OF WINCHESTER, VIRGINIA WHEREASt the Industrial Development Authority of Clarke County, Virginia (the "Authority"), a political subdivision of the Commonwealth of Virginia (the "Commonwealth"), is empowered by the Virginia Industrial Development and Revenue Bond Act (the "Act") to issue its revenue bonds for the purpose~ among other purposest of financing the acquisition, construction, equipping, expansiont enlargement, improvement and refinancing of facilities for use by organizations described in~SOI(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") and which are exempt from federal income taxation pursuant to ~SOI(a) of the Code, in order to benefit the inhabitants of the Commonwealth and to protect and promote the safety, health, welfare, convenience, or prosperity of the citizeAs of the Commonwealth; WHEREAS, the Authority has received a request dated October 12, 2000, on behalf of Grafton School, Inc., a Virginia nonstock, nonprofit corporation (the "Applicant") which has represented that it is an organization described in SSOI(c)(3) of the Code and is exempt from federal income taxation pursuant to ~501(a) of the Code, requesting that the Authority issue its revenue bonds to assist in the financing or refinancing of one or more of the following capital projects (collectively, the "Projects"): (i) construction of an approximately 7S-bed donnitory and a gymnasium, renovation of an existing donnitory for classroom, therapy and administrative purposes and related improvements and the equipping of such improvements on the Applicant's main campus at 180 Grafton Way in Berryville in Clarke County, Virginia; (ii) acquisition, construction and equipping of an approximately 32,000 square foot building to be located at 4100 Price Club Boulevard in Chesterfield County, Virginia, to be used by the Applicant as an administrative and academic center; (iii) acquisition and renovation of an approximately 35,866 square foot building located at 120 Bellview Avenue in the City of Winchester, Virginia, to be used by the Applicant for offices, adult services, and administrative and maintenance facilities; (iv) refunding of indebtedness incurred for the acquisition of the Applicant's group homes in Clarke County and Frederick County, Virginia, and for the acquisition and improvement of the Applicant's main campus described in item (i) above, all as more particularly described on Attachment A to this Resolution; The proceeds of such bonds would also be used to pay certain costs of issuance of the bonds. The Projects will be owned by the Applicant and used in the Applicant's business of providing educational and custodial services to children and adults with serious disabilities; WHEREAS, preliminary plans for the acquisition, construction, renovation, equipping and refinancing of the Projects have been described to the Authority by representatives of the Applicant, and a public hearing on the issuance of the Bonds for the Projects has been held by the Authority as required by ~147(f) of the Code and SI5.2-4906 of the Act; WHEREAS, the Applicant has represented that the estimated cost of the acquisition, construction, renovation, equipping and refinancing of the Projects and certain of the expenses of issue will require an issue of revenue bonds in the aggregate principal amount not to exceed $13,425,000.00; WHEREAS, the Applicant has acknowledged the necessity of obtaining, prior to the issuance of such bonds, the approval of the Projects by the Board of Supervisors of Clarke County, Virginia (the "Board of Supervisors"), in accordance with the requirements of ~147(f) of the Code and ~ 15.2-4906 of the Act, and the necessity of obtaining the concurrence of the governing bodies of the City of Winchester, Frederick County and Chesterfield County in the adoption of this preliminary approval for the financing or refinancing of the portions of the Projects respectively located in each of those political jurisdictions, in accordance with the requirements of SI47(f) of the Code and SI5.2-4905 of the Act. NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF CLARKE COUNTY, VIRGINIA: 1. It is hereby found and detennined that the acquisition, construction, renovation, equipping and refinancing of the Projects will be in the public interest of the County, will serve the purposes of the Act and will benefit the Commonwealth of Virginia and its inhabitants through the protection and promotion of their safety, health, welfare, convenience, or prosperity. 2. To induce the Applicant to undertake the Projects in the Commonwealth of Virginia, the Authority hereby agrees to assist the Applicant in financing the acquisition, construction, renovation, equipping and refinancing of the Projects by undertaking the issuance of its revenue bonds in an amount not to exceed $13,425,000 (the "Bonds"), upon tenns and conditions to be mutually agreed upon between the Authority and the Applicant. The Bonds will be issued pursuant to documents satisfactory to the Authority. 3. It having been represented to the Authority that it is necessary to proceed immediately with the acquisition, construction, renovation and equipping of the Projects, the Applicant may proceed with plans for the acquisition, construction, renovation and equipping of the Projects, and enter into contracts for the same, and to take such other steps as it may deem 2 appropriate in connection therewith, including the location of a purchaser or purchasers for the Bonds, provided that nothing herein shall be deemed to authorize the Applicam to obligate the Authority, without its consent, in each instance, to the payment of any moneys or the performance of any acts in connection with the Projects. The Authority agrees that the Applicant may be reimbursed from the proceeds of the Bonds for all costs so incurred by it, provided such expenditures and costs are properly reimbursable under applicable federal and state laws. 4. All costs and expenses in connection with the financing and the acquisition, construction, renovation, equipping and refinancing of the Projects, including the fees and expenses of counsel to the Applicant, counsel to the purchaser of the Bonds or credit facility provider, counscl to thc Authority and Bond Counsel. shall be paid from the proceeds of the Bonds, to the extent permitted under the Code, and otherwise by the Applicant. If for any reason such Bonds are not issued, it is understood that all such expenses shall be paid by the Applicant and that the Authority shall have no responsibility therefor. 5. The Applicant having requested the appointment of Williams, Mullen, Clark & Dobbins, P.c., as Bond Counsel in connection with the issuance of the Bonds, the Authority hereby appoints Williams, Mullen, Clark & Dobbins, P.c., as Bond Counsel to supervise the proceedings and approve the issuance of the Bonds. 6. The Bonds shall be issued only after (i) approval of the issuance of the Bonds by the Board of Supervisors within sixty (60) days of the public hearing referred to above, (ii) receipt of evidence of the concurrence of the governing bodies of the City of Winchester, Frederick County and Chesterfield County in the adoption of this preliminary approval for the financing or refinancing of the portions of the Projects respectively located in each of those political jurisdictions, in accordancc with the requirements of ~147(f) of the Code and SI5.2- 4905 of the Act, and (iii) receipt by the Authority of the approving opinion of Bond Counsel as to thc qualification of the Bonds under the Act. 7. The Chairman, Secretary or Assistant Secretary of the Authority is hereby authorized and directed to deliver to the Board of Supervisors (i) a reasonably detailed summary of the comments expressed at the aforesaid public hearing, (ii) a fiscal impact statement concerning the Projects in the form specified in ~ 15.2-4907 of the Act, and (iii) a copy of this Resolution, which constitutes the recommendation of the Authority that the Board of Supervisors approve the financing of the Projects and the issuance of the Bonds. 8. The Authority intends that the adoption of this resolution be considered as a declaration of "official intent" within the meaning of Treasury Regulations 91.150-2 promulgated under the Code. To that end, the Authority, based on reprcsentations of the Applicant. reasonably expects to finance or refinance all or a portion of the Projects through the issuance of the Bonds in a principal amount not to exceed $13,425,000.00. Based on representations of the Applicant, the Authority reasonably expects that the Applicant may receive reimbursement from the proceeds of the Bonds for ccrtain costs of the Projects paid prior to the issuance of the Bonds and not paid from the proceeds of any other borrowing. The officers of the Authority are directed to makc a copy of this resolution continuously available for inspection by the general 3 f. public during normal business hours at the main administrative offices of the Authority from the date of adoption hereof through the date of the issuance of the Bonds. 9. This resolution shall take effect immediately upon its adoption and shall remain in full force and effect until the next regularly scheduled meeting of the Authority occurring two years after the date of adoption of this resolution, at which time it shall terminate unless specifically extended by the Authority. CERTIFICATE The undersigned Secretary or Assistant Secretary of the Industrial Development Authority of Clarke County, Virginia, hereby certifies that the foregoing is a true, correct and complete copy of a resolution duly adopted by a majority of the directors of the Authority present and voting at a meeting duly called and held on October 30, 2000, in accordance with law, and that such resolution has not been repealed, revoked, rescinded, or amended, but is in full force and effect on the date hereof. ?' d y/k<';~-.../ WIlNESS my hand this~day on~_U'''I, 2000. ~/-.--J //~f-<--L~ [Assistant] Secretary Industrial Development Authority of Clarke County, Virginia 1.\WAtCDLI8\HARTI.[.E\06(>4S02,(l2 4 - 0- - :? r II: l: _ :.) . c ofti:c::.~ 'u 0:; "'E=O )~ :: a: ,. wt oil 1: C:;:'04l mc.a.Q) 'O~~~ftj Q:lJlCCDC:C ~W E" 0 ~"Eo- G - 0 E %8(,)< l'- .. .. :Co. ! tD-S-::::I C".n.2~ ""E~" ftI VJ Q. c >::lQi Go ;> a::: e- w c e :; ~ 0- ::I_..Jc u..,_" -QIIftlo Oo.!: E Gi EJ<C( :!2 0 o _ :I: o o o '" N '" ii; ::;; o o o "'''' .... 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'" EXHIBIT C SUMMARY OF STATEMENTS Michel L Bryan, Esquire, of Bryan & Coleman, counsel for the Authority, advised the Directors that the concurrence of the Authority was necessary because some of the facilities owned by the Applicant, which are to be refinanced from a portion of the proceeds of the Bonds, are located in Frederick County. Bruce E. Downing, Esquire, counsel for the Applicant, advised the Authority that under applicable law, the issuance of Bonds by the Industrial Development Authority of Clarke County, Virginia to finance facilities in the County of Frederick required a public hearing and the concurrence in the issuance of the Bonds by the Authority and the Board of Supervisors of Frederick County, Virginia in order to use a portion of the Bond proceeds to refinance six residential facilities located in Frederick County, Virginia. He noted that Grafton School operates facilities in Clarke County, Chesterfield County, the City of Winchester and Frederick County, Virginia. Grafton School has recently acquired the Hester Building in the City of Winchester and seeks to use a pOltion of the Bond proceeds to refinance the purchase price, Mr. Downing advised that Grafton School initially stmted in 1958 as a small school for the child of Ruth Birch, who had a fOlm of dyslexia and was not being served by the local school system, From that beginning, Grafton has developed into a school and lots of other programs as well. Grafton provides a wide range of programs, including residential programs, day care, and consulting facilities to children and adults. Its scope of services has expanded to serve children with developmental disabilities, such as autism, severe learning disabilities and mental retardation, Grafton also serves children with emotional disorders, such as depression, attention deficit, conduct disorder and specializes in serving children and adults with multiple handicaps, which are a combination of developmental disabilities and emotion difficulties. Grafton provides services at its residential campus in Berryville that deal with individuals with conduct disorders, as well as training programs and treatment programs at its Berryville campus as well as its facilities in the City of Winchester. It operates a variety of group homes. In the City of Winchester there is a group home that provides a combination of academic and training programs. There are a total ofthilteen group homes in Frederick County. Seven group homes are dedicated to children, while six are dedicated to adults and provide days services and group home services. These are adults with mental retardation and neurological deficits or a combination thereof. Grafton seeks to refinance the purchase price of these six homes in Fredelick County from a portion of the Bond proceeds. Grafton also provides a range of consulting services li.)r the Mid-Atlantic Region. It serves school systems and localities that are dealing with individuals with multiple handicaps. In the last ten years the thrust has been to keep individuals within their localities and so Grafton has located facilities in Richmond, Virginia where Grafton is trying to combine leased facilities into one larger facility in order to better serve that area. Grafton also operates facilities in Rockville, Mal)'land. Grafton provides group SUppOltS (both day services and residential services) and provides a number of treatment facilities as well. The total budget for Grafton programs this year in Frederick County is $3.4 million, of which approximately $2.7 million is payroll for 109 full time employees in Fredelick County Of Grafton's more than 800 total employees, 20 I live in Frederick County and have a total salary of $5 million. Grafton provides not only needed services to this area but provides substantial economic contributions to the area as well. Grafton spends approximately $2.5million on goods and services within the Winchester/Frederick County region each year. It is a positive economic force in the area and provides benefits to the school system and the children and adults with needs. The bulk of its budget comes from payments from Social Services and school systems to care for individuals who al"e not adequately served by those Social Services and school systems. The proposed project with enable Grafton to update its facilities in Berryville, construct a first class facility in Chesterfield County, refinance the acquisition of the Hester Building in the City of Winchester and refinance six group homes in Fredelick County, Virginia. Next, Mr. Downing introduced David Kobes, Chief Financial Officer of Grafton, who was available to respond to any questions. No one else appeared or expressed any comments at the public hearing conducted by the Authority. EXHIBIT nD" nSCALIMPACTSTATEMENT FOR PROPOSED BOND FINANCING <. . Date: November 21, 2000 To the Board of Supervisors of Frederick County, Virginia Applicant: Facility: Grafton School, Inc. Refinancing of group homes in Frederick County, plus acquisition, renovation, construction and refmancing in Clarke and Chesterfield Counties and the City of Winchester I. Maximum amount of financing sought. 2. Estimated taxable value of the facility's real property to be constructed in the municipality. $ 13,425,000 S 0 $ 0 $ 0 $ N/A S 1,456,000 3. Estimated real property tax per year using present tax rates. 4. Estimated personal property tax per year using present tax rates. 5. Estimated merchants' capital tax per year using present tax rates. 6. (a) Estimated dollar value per year of goods that will be purchased from Virginia companies within the locality. (Berryville- Winchester area) (b) Estimated dollar value per year of goods that will be purchased from non-Virginia companies within the locality. (Berryville- Winchester area) << S 485,000 (c) Estimated dollar value per year of services that will be purchased from Virginia companies within the locality. (BerryvilJe- Winchester area) $ 1,035,000 (d) Estimated dollar value per year of services that will be purchased from non- Virginia companies within the locality. (BerryvilJe-Winchester area) $ 217,000 7. Estimated number of regular employees on year round basis. (Frederick only) 109 8. Average annual salary per employee. $ 24,771_ .c:::- -cF- C: r:? r - .~. I ~ , ~ Chairman, Industrial Development Authority of the County of Frederick, Virginia If one or more of the above questions do not apply to the facility indicate by writing N/A (not applicable) on the appropriate line. \0673$91.02 In Clarke County, we operate ~ resid~ntlallreatment and academic fcIcility. a 4-bell group home, and an in community academic program. Clarke ~ounly projects ~Cluded in the. bond financing include, refinancing existing debt on IhQ Bcrryllillo CempUll. renovation of existing dorm buildings Into additional academIC space, and constNcIing new dorms and a gymnasium. These projects are necessary to :-"rove living conditions for residents, and to meet licensing requirements. ThSl'll arQ 27 vehides assigned to.. facililies in Clar1<e County. we prOVide residential services to 64 consumers and day support to Il2 consumers In CIar1<e county facUities. The tolal 200012001 operating budget for Grafton programs located in Clarke County is 55.9 million. . . TotIl budget!!d payroll lor employees aUigMd to locations: in Clarl<e County ic $4.6 mUUon end represents 187 full timQ I:mployoQs. 42 employees live in Clarke County and have total salaries of S 1.0 milHon. '. Frederick County Statistical Infonnation In Frederick County, we operate four +bed chlld group homes, three 8 -bed child group homes, frve 4-bed adult group homes. and one 5-becI adult group home. Frederick County projects induded in !he bond financing include refinancing existing debt on six group homes. There are 15 vehides assigned to facilities in Clar1<e County. We provide reSidential serviCes to 59 consumers and day suppons to 17 consumers In Frederick County facilities. The tota12000J2001 operating budget for Grafton programs located In Frederick County is $3.4 mllian. Total budgeted payroll for employees assigned to locations in Frederick County is $2.7 million and represents 109 full time employees. r . . employees live in Frederick Counly and have total salaries of $5.0 million. Winchester Statisticallnfonnatlon In the City 01 Winchester, we operate two academic programs, four 8-bed chUd group homes. two 3-bed adult group homes and one 4-bed adult group home. We 81$0 have our administrative offices in the City of Winchester. WlflChester City projects included in the bond financing include the purchase and renovation of our Administrative fcIcillty. There are 28 vehicles assigned to facilities in the City of Winchester. We proVIde resldenllal services to 36 consumers and day supports to 72 consumers In Winchester facilities. The total 2000/2001 operating budget for Grafton programs located in Wmchesler is $6.1 million. Total budgeted payroll for employees assigned to locations in Winchester is $5.8 million ;lnd represents 224 rulltlme employees. 129 employees live in Winchester and have total salaries of $3.4 million. Combined Spending - Shenandoah Valley Total purchases for goods and services from local companies in the combined Clarke County, t-redelick county and the dty 01 olWlnchester are approximately 12.5 million ennuQlIy. Goods and services are purchased from \he following companies in the area: 'ehavioral Resources. DSL Data Services, Floor Shop, Food Uon, Mertins, J.V. Arthur, Lowe's, pifer Office Supply, ower Warner. Schenl<'s. Shenandoah's Pride. Staples, Valley Copper and Fiber, WaJ-Mart, Wlllchester Printers. Winchester Star and many others. G:\BudDOOI\ClINI\Irfredwinc IDA _ Noyumber 1S, ~ooo EXHIBIT "En RESOLUTION OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, VIRGINIA WHE~AS, the Industrial Development Authority of Clarke County, Virginia (the "Issuer"), a political subdivision of the Commonwealth of Virginia (the "Commonwealth"), is empowered by the Virginia Industrial Development and Revenue Bond Act (the "Act") to issue its revenue bonds for the purpose, among other purposes, of financing the acquisition, construction, equipping, expansion. enlargement, improvement and refinancing of facilities for use by organizations described in ~501(c)(3) of the Internal Revenue Code of 1986, as amended (the "Code") and which are exempt from federal income taxation pursuant to ~501(a) of the Code, in order to benefit the inhabitants of the Commonwealth and to protect and promote the safety, health, welfare, convenience, or prosperity of the citizens of the Commonwealth; WHERE~pprsyant to Section 15.2-4905 of the Act, the Issuer may issue its bonds with respect to facilities outside Clarke County if the governing body of the locality where the facilities are or will be located concurs with the inducement resolution for such bonds adopted by the Issuer; WHEREAS, the Industrial Development Authority of the County of Frederick, Virginia (the "Authority") has received a request dated November 6, 2000, on behalf of Grafton School, Inc., a Virginia nonstock, nonprofit corporation (the "Applicant"), requesting that the Authority concur in the resolution adopted by the Issuer on October 30, 2000 (the "Inducement Resolution"), a certified copy of which has been filed with the Authority, evidencing the Issuer's preliminary intention to issue its revenue bonds to assi~t in the financing or refinancing of one or more of the following capital projects (collectively, the "Projects"): (i) acquisition, construction and equipping of an approximately 32,000 square foot building to be located at 4100 Price Club Boulevard in Chesterfield County, Virginia, to be used by the Applicant as an administrative and academic center; (ii) construction of an approximately 75-bed dormitory and a gymnasiwn, renovation of an existing dormitory for classroom, therapy and administrative purposes and related improvements and the equipping of such improvements on the Applicant's main campus at 180 Grafton Way in Berryville in Clarke County, Virginia; (iii) acquisition and renovation of an approximately 35,866 square foot building located at 120 Bellview Avenue in the City of Winchester, Virginia, to be used by the Applicant for offices, adult services, and administrative and maintenance facilities; (iv) refunding of indebtedness incurred for the acquisition of the Applicant's , group homes in Clarke County and Frederick County, Virginia, and for the acquisition and impro,v.ement of the Applicant's main campus described in item (i) above, all as more particulariy described on Attachment A to this Resolution; The proceeds of such bonds would also be used to pay certain costs of issuance of the bonds. The Projects will be owned by the Applicant and used in the Applicant's business of providing educational arid custodial services to children and adults with serious disabilities; , '..," WHEREAS, preliminary plans for the acquisition, construction, renovation, equipping and refinancing of the Projects have been described to the Authority by representatives of the Applicant, and a public hearing on the issuance of the bonds for the Projects has been held by the Authority as required by ~147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), and ~15.2-4906 of the Act; WHEREAS, the Applicant has represented that the estimated cost of the acquisition, construction, renovation, equipping and refmancing of the Projects and certain of the expenses of issue will require an issue of revenue bonds in the aggregate principal amount not to exceed $13,425,000.00; WHEREAS, the Applicant has acknowledged the necessity of obtaining, prior to the issuance of such bonds, the concurrence of the Board of Supervisors of Frederick County (the "Board of Supervisors") in the adoption of the Inducement Resolution for the refinancing of the portion of the Projects to be located in Frederick County (the "County"), in accordance with the requirements of ~147(f) of the Code and ~15.2-4905 of the Act. NOW, THEREFORE, BE IT RESOLVED BY THE INDUSTRIAL DEVELOPMENT AUTHORITY OF THE COUNTY OF FREDERICK, VIRGINIA: I. It is hereby found and determined that the acquisition, construction, renovation, equipping and refmancing of the portion of the Projects to be located in the County will be in the public interest of the County and will promote the well:-being of the inhabitants of the County. 2. The Authority hereby concurs in the Inducement Resolution with respect to that portion of the Projects to be located in the County. 3. All costs and expenses in connection with the financing, including the fees and expenses of the Authority and its counsel, shall be paid from the proceeds of the bonds, to the extent permitted under the Code, and otherwise by the Applicant. If for any reason such bonds are not issued, it is understood that all such expenses shall be paid by the Applicant and that the Authority shall have no responsibility therefor. 4. The Authority hereby directs the Secretary or Assistant Secretary, either of whom may act, to deliver to the Board of Supervisors (i) a reasonably detailed summary of the comments expressed at the aforesaid public hearing, (ii) a fiscal impact statement concerning the 2 Projects in the form specified in ~15.2-4907 of the Act, and (iii) a copy of this Resolution, which constitutes the recommendation of the Authority that the Board of Supervisors concur in the Inducement Res~h,ltion with respect to that portion of the Projects to be located in the County. 5. This resolution shall take effect immediately upon its adoption and shall remain in full force and effect until the next regularly scheduled meeting of the Authority occurring two years after the date of adoption of this resolution, at which time it shall terminate unless specifically e#ended by the Authority. ",' .' CERTIFICATE The undersigned Secretary of the Industrial Development Authority of the County of Frederick, Virginia, hereby certifies that the foregoing is a true, correct and complete copy of a resolution duly adopted by a majority of the directors of the Authority present and voting at a meeting duly called and held on November 21, 2000, in accordance with law, and that such resolution has not been repealed, revoked, rescinded, or amended, but is in full force and effect on the date hereof. WITNESS my hand this 21st day of November, 2000. s~i- Industrial Development Authority of the County of Frederick, Virginia 1:\WMCDUB\HAR1'LEE\0669Sll.OI 3