15097176
1 ORDINANCE NO. 15,097
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3 AN ORDINANCE APPROPRIATING $245,000.00
4 FROM THE CITY OF LITTLE ROCK GENERAL FUND
5 PAYABLE TO THE ADVERTISING AND PROMOTION
6 COMMISSION; AUTHORIZING A LOAN AGREEMENT
7 FOR THE REPAYMENT OF SAID FUNDS; AND FOR
8 OTHER PURPOSES.
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10 WHEREAS, the University of.Arkansas at Little Rock is
11 in need of sports equipment for basketball games held in the
12 City of Little Rock; and
13 WHEREAS, the Board of Directors of the City of Little
14 Rock desires to provide the funding necessary for the purchase
15 of this equipment; and
16 WHEREAS, this equipment will be used in the Statehouse
17 Convention Center by the Little Rock Advertising and Promotion
18 Commission; and
19 WHEREAS, the acquisition of this equipment is vital
20 to the economic development of the City of Little Rock, and
21 further, will provide among other things, increased attendance
22 at events held in the Statehouse Convention Center and thereby
23 increase revenues for the Little Rock Advertising and Promotion
24 Commission.,
25 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
26 OF THE CITY OF LITTLE ROCK, ARKANSAS:
27 Section 1. The sum of $245,000.00 is hereby appropriated
28 from the City's General Fund and loaned to the Advertising and
29 Promotion Commission for the purchase of the necessary sporting
30 equipment as outlined in previous fact sheets.
31 Section 2. The City Manager is hereby authorized and
32 directed to negotiate a loan agreement with the Advertising and
33 Promotion Commission with the.repayment of $245,000.00 over a
34 period of time not to exceed ten (10) years with interest at
35 the rate of seven percent (7%).
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1 Section 3. The City Manager and Director of Finance
2 and Administration is hereby authorized and directed to transfer
3 the said $245,000.00 to the Advertising and Promotion Commission
4 upon execution of the Loan Agreement.
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6 PASSED: May 20, 1986
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8 ATTEST: APPROVED:
9 J' -1ZOW -
10 4- AIl'c-,CtlS-
11 CITY CLERK (ASST.) ROBBIE HANCOCK MAYOR THOMAS A. PRINCE
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13 APPROVE AS TO FORM:
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16 M RK STODOLA, CITY ATTORNEY
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City of Little R
E. Jack M urphy
Director of Finance
& Treasurer
Room 208 City Hall
Markham & Broadway
Little Rock, Ar. 72201
371 -4806
MEMORANDUM
Date: May 6, 1986
TO: Charles ickerson, Acting City Manager
FROM: E rphy, Finance Director
SUBJECT: Proposed unding of UALR Basketball Equipment
After meeting with Dr. Les Wyatt of UALR and Barry Travis,
we are in basic agreement on a method of funding the purchase of
certain basketball equipment for UALR.
Following is a brief outline of my proposal from the City's
standpoint:
1. The City of Little Rock will advance $245,000
for purchase of basketball equipment.
2. There will be a re- payment contract between the
City of Little Rock and Little Rock Advertising
and Promotion Commission (A & P).
3. UALR will enter into a rental agreement with
A & P with UALR pledging a certain amount
of money from basketball game receipts to make
lease purchase payments.
4. The A & P Commmission will use funds received
from UALR and if those are not sufficient its
own funds to re -pay the $245,000 to the City
over a period not to exceed 10 years.
5. The City will receive 7% interest on the outstanding
balance of money loaned. One -year treasury bills
are yielding 6.56 %; three -year treasury notes are
yielding 7.07 %; and five -year treasury notes are
yielding 7.21 %. The current prime rate is 8 112%
on corporate loans at large US money center
commercial banks. The federal reserve discount
rate in New York is 6 1/2 %.
6. The City agrees the contract with A & P may be
terminated at any time A & P pays all of the
outstanding balance. There will be no pay -off
penalty.
178
0
Charles Nickerson
May 6, 1986 179
Page Z
7. The City agrees to re- negotiate a new contract
in the event a sports arena is built and the
basketball equipment being purchased is no
longer needed at the Statehouse Convention
Center or can be used in a new arena.
8. In order to protect the City's interest
during the contract period, title to the
equipment will remain with the City and /or
A & P Commission.
EJM:sr