15225 1 RESOLUTION NO. 15,225
2
3 A RESOLUTION AUTHORIZING THE USE OF UP TO SEVEN
4 HUNDRED THOUSAND DOLLARS ($700,000.00), TO PAY A PORTION
5 OF THE PRINCIPAL OF AND INTEREST ON THE CITY OF LITTLE
6 ROCK, ARKANSAS, HOTEL GROSS RECEIPTS TAX BONDS, SERIES
7 2018,DUE ON DECEMBER 1,2020; AND FOR OTHER PURPOSES.
8
9 WHEREAS,an outbreak of Coronavirus disease identified in Wuhan, China, in December 2019,was
10 declared a Public Health Emergency of International Concern by the World Health Organization on January
11 30,2020,and a pandemic on March 11,2020,and is known as the COVID-19 Pandemic; and,
12 WHEREAS,as the COVID-19 Pandemic persists, restrictions on travel and consumer activity driven
13 by social distancing intended to slow the viral infection rate have led to hotel booking cancellations and
14 deferrals,and convention and conference cancellations; and,
15 WHEREAS, the principal of and interest on the City of Little Rock, Arkansas (the "City"), Hotel
16 Gross Receipts Tax Bonds(the"Bonds"),Series 2018,dated December 13,2018,are payable from a pledge
17 of the receipts derived by the City from taxes levied by the City at an aggregate rate of 2%on gross receipts,
18 or gross proceeds derived and received from the renting,leasing or otherwise furnishing of hotel motel,bed
19 and breakfast or short-term condominium or apartment rental accommodations for sleeping for profit in the
20 City(the"Taxes"); and,
21 WHEREAS,the Taxes were levied under ordinances adopted on December 1,2015; and,
22 WHEREAS,collections of the Taxes in excess of the amount necessary to pay debt service when due
23 on the Bonds are divided between the City and the Little Rock Advertising and Promotion Commission;
24 and,
25 WHEREAS, collection of the Taxes have been sufficient to pay the debt service payments on the
26 Bonds due in 2019;and,
27 WHEREAS,the collections of the Taxes accumulated as of March 31,2020,are sufficient to meet the
28 July 1, 2020, interest obligation of Six Hundred Eighty-Six Thousand, Seventy-One and 88/100 Dollars
29 ($686,071.88), but, because of restrictions intended to prevent the spread of COVID-19,collections of the
30 Taxes may not be sufficient to meet the December 1,2020,principal and interest debt service obligation of
31 One Million,Two Hundred Forty-One Thousand, Seventy-One and 88/100 Dollars($1,241,071.88);and,
32 WHEREAS, it is necessary to authorize the use of the City's share of collections of the Taxes prior to
33 the issuance of the Bonds to make the debt service payment due on the Bonds on December 1,2020.
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1 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
2 OF LITTLE ROCK,ARKANSAS:
3 Section 1. The Board of Directors of the City of Little Rock, Arkansas, hereby authorizes the use, if
4 necessary,of up to Seven Hundred Thousand Dollars($700,000.00)from the proceeds of the City's share
5 of the Taxes levied and collected prior to the issuance of the Bonds to make the principal and interest
6 payment due on December 1, 2020. The funds are available in the Parks 1% Lodging Tax Special Project
7 in Accounting Unit No. 108459,Activity S45A711.
8 Section 2. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
9 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
10 adjudication shall not affect the remaining portions of the resolution which shall remain in full force and
11 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
12 ordinance.
13 Section 3. Repealer. All laws, ordinances, resolutions, or parts of the same, which are inconsistent
14 with the provisions of this resolution are hereby repealed to the extent of such inconsistency.
15 ADOPTED: May 19,2020
16 A IL APPROVED:
17
18 ' anr�
7sal-
19 +_3' ity Clerk Frank Scott,Jr.,Mayor
20 APPR I D •it LEGAL FORM:
21
22 / A A . -
23 Thomas M.Carpenter,City Atto/l ey
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