7636RESOLUTION NO. 7,636
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A RESOLUTION EXPRESSING THE INTENT OF THE
CITY TO PAY A PORTION OF THE COSTS RELATED
TO THE CONSTRUCTION OF THE I -630 EXTENSION;
AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE AN AGREEMENT RELATING THERETO WITH
THE I -630 TO ARKANSAS STATE HIGHWAY 10
PARKWAY PROPERTY OWNERS IMPROVEMENT DISTRICT
NO. 338 OF PULASKI COUNTY, ARKANSAS TOGETHER
WITH A MEMORANDUM TO SUCH AGREEMENT; AND
PRESCRIBING MATTERS RELATED THERETO.
WHEREAS, the I -630 to Arkansas State Highway 10 Parkway
Property Owners Improvement District No. 338 of Pulaski County,
Arkansas (the "District ") is a validly formed and duly existing
property owners improvement district, formed under the laws of
the State of Arkansas for the purpose of constructing a
four -lane extension of I -630 from Financial Parkway to Markham
Street, an alternating four -lane and two -lane extension of I -630
from Markham Street to Arkansas State Highway 10, and two spur
roads (the "Project herein "); and
WHEREAS, the City of Little Rock Master Street Plan
reflects that portion of the four -lane extension from Financial
Parkway to Markham Street i.e. between Autumn Road and Bowman
Road, and the East 1/2 of Bowman Road from Financial Parkway to
Markham Street all of which is within the corporate limits of
the City of Little Rock, Arkansas (the "City "); and
WHEREAS, as a part of the master street plan the City
recognizes that the above - described City improvements are the
responsibility of the City; and
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WHEREAS, on March 5, 1986, the Board of Directors of the
City passed Ordinance No. 15,063 recognizing the City's
participation in the above - described City improvements; and
WHEREAS, it is desirable that this intent and participation
be further reflected in the attached Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
1. That the Mayor and City Clerk are hereby authorized to
execute an agreement by and between the City and the District,
in substantially the form and with substantially the contents as
set forth in the attached Agreement.
2. That the Mayor and City Clerk are further authorized
to execute and deliver a Memorandum of Agreement further
detailing the Agreement authorized in Section 1 hereof for the
purposes therein contained.
ADOPTED: August 5, 1986
ATTEST:
City lerk, Ja zech
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APPROVED:
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Mayor, Thomas A. Prince
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AGREEMENT
STATE OF ARKANSAS)
COUNTY OF PULASKI)
This Agreement, dated as of August 1986 (the
"Agreement "), is entered into by and among the City of Little
Rock, Arkansas, an Arkansas municipal corporation (the "City "),
and the I -630 to Arkansas State Highway 10 Parkway Property
Owners Improvement District No. 338 of Pulaski County, Arkansas,
a property owners improvement district formed under Act 613 of
the General Assembly of the State of Arkansas for the year 1983,
as amended (the "District ").
RECITALS
WHEREAS, the District is a validly formed and duly existing
property owners improvement district, formed under the laws of
the State of Arkansas for the purpose of constructing a
four -lane extension of I -630 from Financial Parkway to Markham
Street, an alternating four -lane and two -lane extension of I -630
from Markham Street to Arkansas State Highway 10, and related
improvements (the "Project" herein); and
WHEREAS, that portion of the four -lane extension from
Financial Parkway to Markham Street, i.e. between Autumn Road
and Bowman Road and the East 1/2 of Bowman Road from Financial
Parkway to Markham Street all of which is within the corporate
limits of the City and are shown on the City's most recent
master street plan (the "City Improvements" herein); and
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WHEREAS, the City recognizes that in the absence of the
construction by the District of the above- described proposed
City Improvements, the City would bear financial responsibility
for the construction of said City Improvements; and
WHEREAS, on March 5, 1986, the Board of Directors of the
City passed Ordinance No. 15,063 recognizing the City's
financial responsibility for above- described City Improvements
and expressing its intent to provide for the costs thereof; and
WHEREAS, on August 5, 1986, the Board of Directors of the
City adopted Resolution No. I reaffirming its
responsibilities and intentions under Ordinance No. 15,063, and
authorizing the Mayor of the City and the City Clerk to enter
into this Agreement; and
WHEREAS, the City is desirous of entering into this
Agreement to defray the costs of the City Improvements in
constructing the above - described Project;
NOW, THEREFORE, the City and the District, agree as follows:
AGREEMENTS
SECTION 1. In consideration for the construction by the
District of the City Improvements, which are a part of the
Project, the City agrees to pay to the District, on or before
August 1 of each year for the years 1986 through 1998,
inclusive, the annual amount of $175,500. Provided, however,
that the obligation of the City to make each payment shall be
subject to annual appropriation of said amount by the Board of
Directors of the City.
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SECTION 2. In the event that the City Board of Directors
shall fail in any given year to appropriate the amount set forth
in Section 1 of this Agreement, this Agreement shall be
automatically terminated. Provided further, that while it is
the present intention of the City to annually appropriate said
amounts over the entire term of the Agreement, the failure to
make such appropriation in any given year shall not be deemed a
breach of this Agreement, nor give rise to any cause of action
by the District for legal or equitable relief.
SECTION 3. The obligation of the City to pay to the
District the amounts set forth in Section 1 of this Agreement
shall terminate on August 1, 1998, or at such earlier time as
the obligation of the property owners of the District to pay
assessments related to the original construction of the
above- described proposed improvements shall have terminated.
SECTION 4. If at any time the City desires to fulfill its
obligations under this Agreement by making a single payment
constituting the entire amount of its share of the construction
costs associated with the above - described proposed improvements,
it may do so. Such payment amount shall be mutually agreed upon
by the City and the District at the time the City desires to
make such lump sum payment.
SECTION 5. The City shall be under no obligation to pay to
the District the amounts set forth in Section 1 of this
Agreement unless the District initiates construction of the
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above - described proposed improvements within twelve (12) months
from the date of this Agreement and such construction proceeds
toward completion with due diligence.
SECTION 6. The District covenants that it will construct
the above - described proposed improvements in conformance with
standards and specifications approved by the City.
IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed as of the date first above written.
CITY OF LITTLE ROCK, ARKANSAS
ATTEST:
By:
City Clerk
1572C -4
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By:
Mayor
I -630 TO ARKANSAS STATE
HIGHWAY 10 PARKWAY PROPERTY
OWNERS IMPROVEMENT DISTRICT
NO. 338 OF PULASKI COUNTY,
ARKANSAS
By:
Commissioner
By:
Commissioner
By:
Commissioner
319
MEMORANDUM TO AGREEMENT OF AUGUST 5, 1986
BETWEEN THE CITY OF LITTLE ROCK, ARKANSAS,
AND PROPERTY OWNERS IMPROVEMENT DISTRICT NO. 338 OF
PULASKI COUNTY, ARKANSAS
A Memorandum to the Agreement of August 5, 1986 between the City
of Little Rock, Arkansas, an Arkansas Municipal Corporation,
(The "City") and the I -630 to Arkansas State Highway 10 Parkway
Property Owners Improvement District No. 338 of Pulaski County,
Arkansas, a property owners improvement district formed under
Act 613 of the General Assembly of the State of Arkansas for the
year 1983 as amended (the "District ").
The purpose of this memorandum is to further define the intent
of the parties concerning the terms of their Agreement and to
contemporaneously memorialize the manner in which the Agreement
will be performed by both parties.
1. The parties estimate that the cost of construction of
the City's Improvements is $1,190,840. If these costs are paid
through an annual appropriation of $175,500, and assuming the
same interest rates of the District's bond issue in its
financing and the structure of its financing, the City
Improvements would be fully amortized in approximately 15 to 16
years. However, the City's contribution by the Agreement is
limited to 12 years and is on the basis of annual appropriation
in order that the City may achieve the same advantages that
property owners anticipate on the assumption that the Project,
including City Improvements, will be fully paid for in a less
period of time. In this regard the District acknowledges the
terms of the Agreement that the City's obligation is subject to
an annual appropriation and that it legally cannot commit itself
beyond that period of time.
2. It is anticipated that the Project will be fully paid
for in less than 15 to 16 years because of the following reasons:
(a) The proceeds remaining in the Construction Fund of the
District at the completion of the Project will be available for
payment of the cost of the financing;
(b) There is a possibility that federal funds can be made
available which will reduce the District and City's cost in the
project including the City Improvements; and
(c) Anticipated growth of assessed benefits of property
that lies within the District.
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(A) CONSTRUCTION FUND
The District agrees that the bond documents will require that
the Construction Fund will be used to pay for all costs of the
City Improvements and the Project and upon completion of the
Project all balances in the Construction Fund will be
transferred to the District's Bond Fund and used only to pay for
debt service of the Project.
(B) FEDERAL FUNDS
The City agrees to cooperate with the District in all efforts to
encourage and acquire federal funds or federal legislation which
can have the effect of federal grant funds being available to
pay for a portion of the cost of the Project including the City
Improvements and that any federal funds so received will be
applied to the cost of the Project and the City Improvements.
(C) GROWTH
The District's underwriters, Hill, Crawford & Lanford, Inc. and
Stephens Inc. have advised the District's Board of Commissioners
that they anticipate the District's financing can be retired in
11 years or in 1997. This calculation is based upon an
estimation of the debt coming due in each year together with the
debt that could be paid before maturity because of growth in the
overall level of assessed benefits of the District. Based on
the District assessor's projections, the Board of Commissioners
of the District have assumed that the average annual growth of
assessed benefits to the District will be approximately 7 1/2 %.
The District assessor has advised that this growth rate is
consistent with the experience of other improvement districts in
western Little Rock. Attached to this Memorandum is a schedule
which reflects the debt maturing in each year and the debt paid
before maturity as a result of these calculations, which was
prepared by the District's underwriters. On this assumption,
the City's contribution will be made each year and continue for
the next 11 years.
3. The parties anticipate that in the -event the city
proceeds with a captial improvement bond issue which includes
the City Improvements as a portion thereof, that the City's
obligation under the Agreement would be satisfied by a lump sum
payment which would take into account:
(a) The actual cost of the City Improvements as opposed to
estimations and;
(b) The City's portion of th
financing. The cost of financing shall
bond transaction and interest expense
District's bond issue until the date
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e District's cost of
include the cost of the
from the date of the
of payment. Appropriate
credit will be given
made towards the City
principal and interest
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to the City for all payments previously
Improvements which will be allocated to
based on the District's cost of borrowing.
4. The District agrees that the City Manager of the City
or his designee will become ex- officio member of the Board of
Commissioners of the District, will attend all meetings of the
Board of Commissioners, shall be entitled to fully participate
in the management of the affairs of the District as if he were a
member of the Board of Commissioners, except he shall have no
vote.
5. The Project will be constructed in a manner and to
construction standards approved by the City. All construction
of improvements will be bid, let and contracted for pursuant to
applicable bidding laws.
6. In addition to the payments of assessed benefits by
the property owners, the City expects to receive from property
owners as their property develops appropriate dedication of
property for public improvements.
7. The District agrees that on or before March 1 of each
year it shall file with the City Clerk a copy of its annual
financial report of its affairs certified according to
applicable law and annually shall make such further report to
the City as the Board of Directors of the City may require.
8. All terms used herein shall have the same meaning and
intent as defined within the Agreement and the Resolution.
IN WITNESS WHEREOF, the parties hereto have executed this
Memorandum to Agreement as of the date first above written.
ATTEST:
CITY OF LITTLE ROCK, ARKANSAS
By:
Mayor
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I -630 TO ARKANSAS STATE
HIGHWAY 10 PARKWAY PROPERTY
OWNERS IMPROVEMENT DISTRICT
NO. 338 OF PULASKI COUNTY,
ARKANSAS
By:
Commissioner
By:
Commissioner
By:
Commissioner
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