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7636RESOLUTION NO. 7,636 313- 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 4-19 It-9 0 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 1572C -7 -2- APPROVED: — — T/_ _�� Mayor, Thomas A. Prince 314 315 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 i 316 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. -2- 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 -3- 317 318 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 -4- 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. 320 (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 -2- 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 321 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 -3- 1572C -6 -4- r 322 I -630 TO ARKANSAS STATE HIGHWAY 10 PARKWAY PROPERTY OWNERS IMPROVEMENT DISTRICT NO. 338 OF PULASKI COUNTY, ARKANSAS By: Commissioner By: Commissioner By: Commissioner e-19 F -15