5644 RESOLUTION NO. 5,644
A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK
TO EXECUTE ON BEHALF OF THE CITY OF LITTLE ROCK,
ARKANSAS A CONTRACT FOR THE PAYMENT OF CERTAIN SUMS
OF MONEY IN LIEU OF TAXES AND FOR OTHER PURPOSES.
WHEREAS, Leird Church Furniture Mfg. Co. , Inc. (here-
inafter referred to as "LEIRD" ) has submitted to the City of
Little Rock, Arkansas (hereinafter referred to as "CITY" ) a
proposal under the terms of which it offers to make a pay-
ment of money in lieu of taxes on certain lands , buildings,
and improvements owned by CITY and leased by it to LEIRD,
which taxes would be due if LEIRD, and not the CITY, were
the owner of said property; and
WHEREAS, the Board of Directors finds that the said
proposal is fair and reasonable and should be accepted;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. The Mayor and City Clerk are hereby authorized
and directed to execute on behalf of the CITY the following
contract with LEIRD :
AGREEMENT FOR THE PAYMENT OF
MONEY IN LIEU OF TAXES
WHEREAS , the City of Little Rock, Arkansas (hereinafter
referred to as "CITY" ) , proposes to issue Industrial Develop-
ment Revenue Bonds under the provisions of Act No. 9 of the
First Extraordinary Session of the Sixty-second General
Assembly of the State of Arkansas , approved January 21, 1960
(as amended) , in the principal sum of Six Hundred Thousand
Dollars ($600 , 000. 00) for the purpose of securing and developing
industry in the CITY by providing the permanent financing
for the acquisition and construction of an industrial plant
for the manufacturing and distribution of church furniture
(hereinafter called "PROJECT" ) ; and
WHEREAS , CITY will lease said PROJECT to Leird Church
Furniture Mfg. Co. , Inc. (hereinafter referred to as LEIRD;
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WHEREAS, title to the lands constituting the site for
the PROJECT, the buildings and improvement constructed
thereon shall be and remain in the CITY until the Bonds
shall have been fully retired by LEIRD from lease rentals;
and
WHEREAS, LEIRD as Lessee is required to pay all taxes
which may become due on the PROJECT; and
WHEREAS , the said lands, buildings , and improvements so
long as the CITY shall hold title thereto, is exempt from
taxes under the holding of the Arkansas Supreme Court in the
case of Wayland v. Snapp, 232 Ark. 57, 334 S.W. 2d 633 (1960)
with the result that no taxes are due to be paid by LEIRD as
Lessee; and
WHEREAS, the CITY has indicated a reluctance for the
several taxing authorities to lose all tax revenues which
otherwise they would receive if the said lands, buildings
and improvements were privately owned; and
WHEREAS , LEIRD understands that as Lessee it will have
no obligation to pay taxes, but desires, nevertheless, as an
inducement to the CITY to issue said Bonds, to make a payment
in lieu of the taxes which would otherwise be due if LEIRD,
and not the CITY, were the owner;
NOW, THEREFORE, in consideration of the premises, to
induce LEIRD to undertake the PROJECT and to induce the CITY
to issue the Bonds, LEIRD and CITY agree:
1. LEIRD will pay, and CITY will accept, in lieu of
all taxes on the lands, buildings and improvements owned by
the CITY and leased to LEIRD yearly sums of money calculated
as follows :
(a) The millage rate within the CITY and applicable
to real property multiplied by $120 , 000 will be the
amount due for the calendar year of 1978.
(b) For each calendar year after 1978, the amount
due shall be determined by increasing the $120 , 000 by
five percent (5%) per year and multiplying that figure
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by the millage rate within the CITY applicable to real
property.
LEIRD will make the aforesaid payments to the CITY at
or before such times as those payments would be due to be
paid if they were ad valorem taxes on real property.
2. The aforesaid payments are intended to be, and will
be accepted in lieu of all ad valorem taxes on the said
lands, buldings and improvements owned by the CITY and
leased to LEIRD which would have to be paid to the State of
Arkansas, Pulaski County, the City of Little Rock, school
districts and/or any and all other political subdivisions of
the State of Arkansas if the said properties were not exempt
from ad valorem taxes under the provisions of Article 16 ,
Section 5 of the Constitution of the State of Arkansas as
interpreted by the Arkansas Supreme Court in the case of
Wayland v. Snapp, supra.
3 . If by reason of a change in the Constitution, a
change by the Arkansas Supreme Court in its interpretation
of the Constitution or otherwise, LEIRD is required to pay
any tax which the payments specified herein are intended to
be in lieu of (as defined in paragraph 2 hereof) , LEIRD may
deduct the aggregate of any such payments made by it from
the amount herein agreed to be paid in lieu of taxes and
need to pay only the difference to the CITY. In no event
shall LEIRD be required to pay in any year an amount greater
than that which it would be required to pay in taxes as the
owner of the said properties.
4. This Agreement shall terminate upon the final
termination of the lease to LEIRD, and the payments due
under this Agreement for the year in which this Agreement
shall terminate shall be reduced by whatever amount LEIRD
shall owe for the year of termination for taxes of the
nature for which the payments hereunder are made in lieu
thereof.
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IN TESTIMONY WHEREOF, the parties hereto have caused
this instrument to be executed and attested by their respec-
tive officers and officials this day of January, 1977.
LEIRD CHURCH FURNITURE
MFG. CO. , INC.
By:
ATTEST: ED KUTAIT, President
Clara Kettlewell, Secretary
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
/ / /
By: / ,.11,1A,A.-,I,i/4
ATTEST: Mayo/
City Clerk
(SEAL)
Section 2. This Resolution shall be in full force and
effect from and after its adoption.
ADOPTED: December 21 , 1976 .
APP' 'VED:
/
ATTEST: L.. _ _ i .-,04,Add AI/.4
Mayor/
Cit ek 44"61/
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