11-11-9762
Board of Directors Room
City Hall - 500 W. Markham
Little Rock, Arkansas
November 11, 1997 - 4:00 P.M.
The Board of Directors of the City of Little Rock, Arkansas, reconvened from the
November 4, 1997 regular meeting, with Mayor Jim Dailey presiding. City Clerk Robbie
Hancock called the roll with the following Directors present: Directors Hodges, Cazort,
Keck, Joyce, Wyrick, Kumpuris, Kelly, and Adcock - total 8; Absent - Directors Wilson
and Hinton - total 2.
With a quorum present, Mayor Dailey declared the Board of Directors in session
and stated the purpose of the reconvened meeting was to consider the Resolution to set
out the terms of a promoter contract for the Riverfest Amphitheatre. However,
Mayor Dailey asked the Board to first consider an Ordinance levying an additional
one cent tax on the gross receipts of hotels, motels, and restaurants ( "hamburger
tax ") to pay for existing city parks and recreational facilities, and of the planned
Clinton Presidential Park to be located on the Arkansas River east of the Little
Rock River Market. (See Minutes of the Special Meeting held November 7, 1997.)
Mayor Dailey then asked Director Kumpuris to give an outline of the business plans
regarding the Clinton Presidential Library.
(Directors Hinton and Wilson enrolled at 4:08 o'clock P.M.)
Director Kumpuris showed the 10 minute video that had been produced and sent
to President Clinton regarding the site for the proposed Clinton Presidential Library. Mr.
Bill Bunten, Director of Parks and Recreation, explained the plans to enhance the site for
the Clinton Presidential Park and displayed charts and photographs. Mr. Craig Rains,
Chairman of the MacArthur Military History Museum Commission, spoke in support of
the location for the Presidential Library and its benefit to the MacArthur Military History
Museum at 9th and Commerce Streets. Other speakers in support were Mr. Townsend
Wolfe, Executive Director of the Arkansas Arts Center located in MacArthur Park at 9th
and Commerce Streets; Mr. Jimmie Moses, River Rail Project; Mr. Bobby Roberts,
Central Arkansas Library System located at 100 Rock Street; Ms. Montine McNulty,
Arkansas Hospitality Association; and Rev. Hezekiah Stewart. Director Kumpuris
proposed two ways to fund the site preparation for the Presidential Library: (1) an
additional one cent "hamburger tax" and (2) an agreement that would allow $10,000,000
to come from the Little Rock Municipal Water Works. The Ordinance for consideration
by the Board would levy the last penny under the "hamburger tax" - levying an
additional one cent tax on the gross receipts of hotels, motels, and restaurants.
Director Kumpuris recommended that the Ordinance be read twice and left on the
calendar for third and final reading on November 18, 1997. City Attorney Tom Carpenter
explained that the Advertising and Promotion "hamburger tax" can be used for
recreational facilities which can include parks and other types of facilities that attract
people to the area. Most of the items that have been set forth are park nature items or
Advertising and Promotion items in and of themselves, so that provides a major funding
mechanism. There are some things that can be done with the Parks Revenue Bonds
which the Board has already decided to use in the terms of Parks revenues and will be
used in combination with the "hamburger tax." Mayor Dailey read a letter from Governor
Mike Huckabee in support of the location for the Clinton Presidential Library. In
response to Director Keck's question as to the revenue anticipated from the additional one
cent hamburger tax, Director Kumpuris stated approximately $34 million to $35 million
over a twenty (20) year period, and more than 50% of that will come from people outside
our community. Mr. Skip Rutherford, local coordinator for the Presidential Library,
stated the Committee is in the process of establishing a Presidential Foundation, and
construction of the building will be dependent upon when we raise the money to do that.
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Minutes - Reconvened Meeting 63
November 11, 1997
Mr. Carpenter stated the Board had already decided to issue revenue bonds for
improvements in the parks, and bond counsel and underwriters have already been
selected. (See Resolution No. 9,953 of April 1, 1997, and Resolution No. 9,973 of May 6,
1997.) However, the bonds have not been issued yet. Bond counsel has opined that as
long as they are legitimate public parks and recreation types of purposes, then you can
use the revenues from the parks and golf courses, etc. for those bonds. The amount of the
initial bond issue was relatively small compared to what you are talking about here.
Following the questions and comments by the Board of Directors, Director Keck moved
to add to the Agenda the proposed Ordinance regarding the one cent tax. The motion was
seconded by Director Adcock and unanimously adopted. Whereupon, the proposed
Ordinance was presented, with the title being:
AN ORDINANCE LEVYING AN ADDITIONAL ONE PERCENT (1 %) TAX ON
THE GROSS RECEIPTS OF HOTELS, MOTELS, RESTAURANTS, CAFES,
AND CAFETERIAS IN THE CITY; DECLARING AN EMERGENCY; AND FOR
OTHER PURPOSES;
and the Ordinance was read the first time. There was a motion by Director Keck,
seconded by Director Adcock, to suspend the rules and place the Ordinance on second
reading. The motion was unanimously adopted by the Board Members present, being
eleven in number and two- thirds or more of the members of the Board of Directors, and
the second reading of the Ordinance ensued. The Ordinance was left on the calendar
for third and final reading at the Board of Directors regular meeting on Tuesday,
November 18, 1997. Director Hinton wanted to make sure that minority businesses are
involved in these projects. Director Cazort had questions regarding the proposed
agreement with Little Rock Municipal Water Works for the $10,000,000. Mr. Carpenter
stated there are two proposals on the table, and a third one being developed; there are
some major concerns about what the money will be used for and how it is used; but the
disagreement is the methodology and not the conclusion.
Mayor Dailey and Director Kelly were excused at 5:45 o'clock P.M. in order
-- to attend a 6:00 meeting. Therefore, Vice Mayor Keck presided for the remainder of the
meeting.
Consideration was then given to Resolution No. 10,126, entitled:
A RESOLUTION TO AMEND LITTLE ROCK, ARK. RESOLUTION 9599
(JANUARY 9, 1996) TO SET OUT THE NEW TERMS OF A PROMOTER
CONTRACT FOR THE RIVERFEST AMPHITHEATRE; AND FOR OTHER
PURPOSES. (Contract with The Concert Company (Butch Stone) and remove
Comtemporary Productions as a party to the agreement.)
City Attorney Tom Carpenter distributed copies of the contract and stated there is one
clause to be added to the contract which essentially relieves Comtemporary Productions
of St. Louis formally, if and only if there is an immediate payment of the $25,000 that is
owed to the City. That money is forthcoming as soon as the contract is signed. The
Resolution was then read and Director Adcock moved for its adoption. The motion was
seconded by Director Hinton, and the Resolution was adopted unanimously by the Board
Members present.
There being no further business to be presented, the reconvened meeting was
adjourned at 5:55 o'clock P.M.
ATTEST: APPROVED:
City Clerk Robbie Hancock ayor Jim Dailey
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