9071M �
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RESOLUTION NO. 9, 0 71
A RESOLUTION APPROVING THE ISSUANCE BY THE CITY OF LITTLE ROCK,
ARKANSAS RESIDENTIAL HOUSING AND PUBLIC FACILITIES BOARD OF NOT TO
EXCEED $3,800,000 PRINCIPAL AMOUNT OF MORTGAGE REVENUE REFUNDING
BONDS
WHEREAS, the City of Little Rock, Arkansas Residential Housing and Public Facilities
Board (formerly City of Little Rock, Arkansas Residential Housing Facilities Board) (the
"Facilities Board ") has outstanding its Mortgage Revenue Bonds (Out -in -the -Woods Project),
dated February 1, 1984 (the "1984 Bonds "), the unpaid principal balance of which is
$3,080,000, which were issued to finance the construction and equipping of a 128 -unit apartment
complex at 9201 Kanis Road in the City of Little Rock, owned by D&J Limited Partnership; and
WHEREAS, at the time the 1984 Bonds were issued, D&J Development Company, a
separate Arkansas limited partnership, which has the same general partners as D&J Limited
Partnership, owned and operated a multifamily apartment project comprising 112 units, which
had been financed by a conventional mortgage loan and which immediately adjoins the project
financed by the 1984 Bonds (the apartment project owned by D&J Development Company is
referred to herein as the "Phase I Project," and the apartment project financed by the 1984
Bonds is referred to herein as the "Phase II Project "); and
WHEREAS, the owner of the Phase II Project has requested that the Facilities Board
undertake the issuance of refunding bonds in order to redeem the 1984 Bonds on February 1,
1994, under conditions which would permit the sale of refunding bonds at a lower effective
interest cost, and the related owner of the Phase I Project has requested that the Facilities Board
issue bonds to permit the refinancing of its conventional mortgage loan on the Phase I Project,
and as a condition thereof, would agree to restrict the occupancy of the apartments in the Phase I
Project pursuant to the Facilities Board's policies to persons having an income not greater than
150% of the median family income for Pulaski County for a period equal to the restrictions on
the Phase II Project; and
WHEREAS, the Facilities Board, at its meeting held December 21, 1993, has adopted a
resolution expressing its intent to issue revenue refunding bonds to permit the refinancing
requested by the respective owners of the Phase I Project and the Phase II Project; and
WHEREAS, it is expected that revenue refunding bonds (hereinafter called the "Refunding
Bonds ") would not exceed in aggregate principal amount the sum of $3,800.000 and would be
issued in two series, as follows: (i) one series (which would be tax- exempt under federal law)
will equal the outstanding principal amount of the 1984 Bonds ($3,080,000). and (ii) a second
series of not to exceed $720,000 in principal amount (interest on which would be taxable for
federal income tax purposes) will provide for the refinancing of the conventional mortgage loan
and would also pay the costs and expenses of the issuance of the Refunding Bonds; and
WHEREAS, First Commercial Bank, National Association (the 'Bank "). has heretofore
issued a letter of credit assuring payment of principal and interest on the 1984 Bonds, and has
issued its commitment to the respective owners of the Phase I Project and the Phase II Project
to issue one or more letters of credit to assure payment of the Refunding Bonds: and
A -/ -I
0
WHEREAS, the Board of Directors of the City of Little Rock desires to assist the Facilities
Board in reducing the expense of its multifamily housing programs and the related debt service
costs, so as to assure the continued availability of multifamily residential units to persons of low
and moderate income; and
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WHEREAS, a public hearing was held before the Board of Directors of the City of Little
Rock, Arkansas, on January 4, 1994, regarding the issuance of the Refunding Bonds following
publication of notice of the public hearing in the Arkansas Democrat - Gazette on or about
December 23, 1993; and
WHEREAS, pursuant to the provisions of the Revenue Bond Act of 1987, Arkansas Code
Annotated Sections 19 -9 -601 to 607, inclusive (Supp. 1991) (the "Arkansas Code "), and Section
147(f) of the Internal Revenue code of 1986, as amended (the "1986 Code "), it is necessary that
the issuance of the Refunding Bonds be approved by the Board of Directors of the City of Little
Rock, Arkansas; and
WHEREAS, the Board of Directors of the City of Little Rock, Arkansas, has determined
that the Refunding Bonds will be issued to serve a proper public purpose;
Now THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
LITTLE ROCK, ARKANSAS, THAT:
Section 1. The issuance by the Facilities Board of not to exceed $3,800,000 principal
amount of its Refunding Bonds for the purposes described above, in such series as it shall
determine, be and the same is hereby approved within the meaning of Arkansas Code and the
1986 Code. The Facilities Board may proceed in the manner deemed proper by it to accomplish
the refinancing described above and the refunding of the 1984 Bonds on such terms and
conditions as the Facilities Board shall determine consistent with the laws of the State of
Arkansas and the ordinances of the City of Little Rock applicable to it.
Section 2. This Resolution is adopted solely for the purpose of complying with the
provisions of the Arkansas Code and the 1986 Code, and, by the adoption of this Resolution,
the City does not assume any direct or indirect financial responsibility for the payment of the
Refunding Bonds.
Section 3. It is hereby ascertained and declared that, due to uncertainties of the
marketplace and the limited term of the Bank's commitment, the refinancing of the 1984 Bonds
above must be accomplished as soon as possible in order to assure the continued availability of
safe and sanitary housing facilities for low and moderate income residents of the City of Little
Rock, and to alleviate immediate hazards to the health, safety, and welfare of the City of Little
Rock. its inhabitants, and their property, and that this can be accomplished only by the issuance
of the Refunding Bonds. It is, therefore, declared that an emergency exists, and this Resolution,
being necessary of the immediate preservation of the public peace, health, and safety, shall take
effect and be in force from and after its passage.
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ADoP'rED: January 4, 1994.
Attest:
<_�Z a. . e hLQ,,P, ck-
Robbie Hancock, City Clerk
(SEAL)
Approved as to form:
Thomas M. Carpenter, City A rney
BE
Approved:AA�qAA''
�w i0wLr",
Mayor im Dailey