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16489547 ORDINANCE NO. 16,489 AN ORDINANCE AUTHORIZING THE ISSUANCE BY THE CITY OF LITTLE ROCK, ARKANSAS, OF NOT TO EXCEED $30,000,000 IN CAPITAL IMPROVEMENT BONDS UNDER AMENDMENT NO. 62 TO THE ARKANSAS CONSTITUTION FOR THE PURPOSE OF ACQUIRING, CONSTRUCTING, AND EQUIPPING IMPROVEMENTS AND ADDITIONS TO THE CITY'S CONVENTION FACILITIES; LEVYING AN ADDITIONAL ONE PERCENT (1 %) TAX ON THE GROSS RECEIPTS OF HOTELS, MOTELS, RESTAURANTS, CAFES, AND CAFETERIAS IN THE CITY; CALLING A SPECIAL ELECTION ON THE QUESTION OF ISSUING SAID BONDS TO BE SECURED BY AND PAYABLE FROM THE PROCEEDS OF SAID TAX; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. WHEREAS, the Board of Directors (the "Board") of the City of Little Rock, Arkansas (the "City "), owns convention facilities, including generally Robinson Auditorium, a parking garage, and the Statehouse Convention Center (collectively, the "Convention Facilities "), which are operated by the Little Rock Advertising and Promotion Commission (the "Commission ") pursuant to the Advertising and Promotion Commission Act, Arkansas Code Annotated (1987 & Supp. 1991) §§ 26 -75 -601 to -618, as amended (the "Act "); and WHEREAS, pursuant to authority of the Act, Ordinance No. 12,353 of the City passed May 4, 1970, and Ordinance No. 13,527 of the City passed November 7, 1978, the City now levies and collects a tax of two percent (2 %) (the "Existing Tax ") upon the gross receipts from the renting, leasing, or otherwise furnishing of hotel or motel accommodations for profit in the City and upon the gross receipts of restaurants, cafes, cafeterias, and all other establishments engaged in the business of selling prepared food for consumption on the premises of such establishments in the City; and WHEREAS, the Board has determined that improvements and additions to the Convention Facilities, including the acquisition, construction, and equipping of an expansion to and renovation of the Statehouse Convention Center and related support facilities, an additional parking deck which may include space to house an exhibition hall or museum, pedestrian access to the Convention Facilities and Riverfront Park, renovation of Robinson Auditorium, and relocation of streets, alleys, and bridge ramps, are immediately necessary in order to take full advantage of the City's resources for the attraction of visitors, resulting in many economic and other benefits to the City and its inhabitants, and that funds therefor can best be obtained by the issuance of capital improvement bonds pursuant to Amendment No. 62 to the Arkansas Constitution; and WHEREAS, the City may obtain funds for securing and repaying the bonds, for operating the improved and expanded Convention Facilities, and for otherwise taking full -1- 0& Ar M E • 548 advantage of its resources for the attraction of visitors by increasing the rate of the Existing Tax to a total of three percent (3 %); NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS, THAT: Section 1. The Board hereby authorizes the issuance of capital improvement bonds under Amendment No. 62 to the Arkansas Constitution, as implemented by the Act and the Local Government Bond Act of 1985, Arkansas Code Annotated (1987 & Supp. 1991) $§ 14- 164 -301 to -339, as amended, in an amount not to exceed $30,000,000 for the purpose of financing the acquisition, construction, and equipping of improvements and additions to the Convention Facilities as described above. Section 2. (a) In addition to the Existing Tax of two percent (2 %) now being levied pursuant to Ordinance No. 12,353 of the City passed May 4, 1970 and Ordinance No. 13,527 of the City passed November 7, 1978, there is hereby levied a tax of one percent (1 %) on the gross receipts or gross proceeds from the renting, leasing, or otherwise furnishing hotel or motel accommodations for profit in the City and on the gross receipts or gross proceeds received from the sale of prepared food and beverages for on- premises consumption by restaurants, cafes, cafeterias, and all other establishments engaged in the selling of prepared food for consumption on the premises of such establishments; provided, however, that such tax shall not apply to such gross receipts or gross proceeds of organizations qualified under section 501(c)(3) of the federal Internal Revenue Code. (b) The total tax of three percent (3 %) shall be collected from the purchaser or user of the accommodations or food by the person, firm, corporation, association, trust, or estate (or other entity of whatever nature) furnishing such accommodation or selling such food, and such entity shall remit to the Commission on the 15th day of each month all collections of the tax for the preceding month, accompanied by reports on forms to be prescribed by the Commission. (c) As provided in the Act, the provisions of the Arkansas Gross Receipts Act of 1941, Arkansas Code Annotated (1987 & Supp. 1991) §§ 26 -52 -101 et seq., as amended, together with the rules and regulations thereunder, shall, so far as practicable, apply to the administration, collection, assessment, and enforcement of the tax. Section 3. All collections of the tax shall be credited to the City Advertising and Promotion Fund created by Ordinance No. 12,353 of the City. The City may pledge the revenues derived from the tax for the payment of bonds issued pursuant to the Act. Section 4. The City Advertising and Promotion Fund shall be used in the manner determined by the Commission exclusively for advertising and promoting the City and its environs, for the construction, reconstruction, extension, equipment, improvement, maintenance, repair, and operation of the Convention Facilities and public recreation facilities in the City, as the same now or hereafter exist, for the operation of tourist- oriented facilities, and for the payment of the principal of, interest on, and fees and expenses in -2- M • 549 connection with bonds issued pursuant to the Act in the manner as shall be determined by the Commission. Section 5. A special election shall be, and the same is hereby, called to be held in the City on October 19, 1993, at which election there shall be submitted to the electors of the City the question of issuing the bonds identified in Section 1 above to be secured by the levy and collection of the total tax of three percent (3 %). Section 6. The question shall be placed on the ballot for the special election in substantially the following form: There is submitted to the qualified electors of the City of Little Rock, Arkansas, the issuance of capital improvement bonds under Amendment No. 62 to the Arkansas Constitution, as implemented by the Advertising and Promotion Commission Act, as amended, and the Local Government Bond Act of 1985, as amended, in an amount not to exceed $30,000,000 for the purpose of financing the acquisition, construction, and equipping of improvements and additions to the City's convention facilities. The City has levied a 3% local hotel and restaurant gross receipts tax within the City, the proceeds of which shall be pledged to pay the principal of, interest on, and fees and expenses in connection with said bonds. Vote on the question by placing an "X" in the appropriate square, either for or against: FOR bond issue in amount of $30,000,000 for the purpose of financing improvements and additions to the City's convention facilities AGAINST bond issue in amount of $30,000,000 for the purpose of financing improvements and additions to the City's convention facilities Section 7. The election shall be held and conducted, the vote cast, and the results declared in the manner provided for in the Local Government Bond Act of 1985, as amended, and the election laws of the State as then in effect. Only qualified electors of the City shall have the right to vote at the election. Section 8. The results of the election shall be proclaimed by the Mayor and published one time in a newspaper having general circulation within the City. Section 9. A certified copy of this ordinance shall be furnished to the Pulaski County Board of Election Commissioners. x. W E-1 M a a a a M a= • an a a 0 a a a 550 Section 10. In the event a majority of the qualified electors voting on the question vote for the issuance of said bonds, the tax provided by Section 2 of this ordinance shall become effective, enforceable, and collectible on the first day of the first calendar month subsequent to the expiration of 30 days from the date of publication of the Mayor's proclamation of the results of the election. Section 11. No part of this ordinance is intended, nor shall it be construed, to amend or repeal any part or provision of Ordinance No. 12,353 of the City passed May 4, 1970 or Ordinance No. 13,527 of the City passed November 7, 1978. All other ordinances and resolutions and parts thereof in conflict in whole or in part with any of the provisions of this ordinance are hereby repealed to the extent of such conflict. Section 12. The provisions of this ordinance are hereby declared to be severable. If any provision shall be held to be invalid or to be inapplicable to any persons or circumstances, such invalidity or inapplicability shall not affect the remainder of the provisions of this ordinance. Section 13. The Board hereby determines that the advertisement and promotion of the City and the improvement and expansion of the Convention Facilities are essential to take full advantage of the City's resources for the attraction of visitors, resulting in many economic and other benefits to the City and its inhabitants and in the continued development of the City and the welfare of its inhabitants; that the City is in dire need of additional revenues for the advertising and promotion of the City and for providing essential improvements and additions to the Convention Facilities; that an appropriate way to provide such funds is by the levying of a hotel and restaurant gross receipts tax on the gross receipts from such businesses within the City and by the issuance of bonds payable from such tax revenues as authorized by Amendment No. 62 to the Arkansas Constitution and the implementing legislation therefor; and that this ordinance shall be given immediate effect so that the essential improvements and additions to the Convention Facilities may be constructed as soon as possible. Therefore, an emergency is hereby declared to exist and this ordinance, being necessary for the immediate preservation of the public health, safety, and welfare, shall be in full force and effect from and after its passage and approval. PASSED AND APPROVED this 7th day of September, 1993. ATTEST: City Clerk Robbie Hancock 13 APPROVED: < (Proposal was defeated by vote of 5,594 For and 7,649 Against.)