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Home My WebLink About21298 1 ORDINANCE NO. 21,298 2 3 AN ORDINANCE TO AUTHORIZE THE ISSUANCE OF A PROMISSORY 4 NOTE TO PROVIDE SHORT-TERM FINANCING UNDER AMENDMENT 5 NO. 78 TO THE ARKANSAS CONSTITUTION FOR THE ACQUISITION 6 OF REAL PROPERTY; TO DECLARE AN EMERGENCY; AND FOR 7 OTHER PURPOSES. 8 9 WHEREAS, the City of Little Rock, Arkansas (the "City") is authorized and empowered under the 10 provisions of Amendment No. 78 to the Arkansas Constitution ("Amendment No. 78") and Act No. 1808 11 of 2001 (codified as Title 14, Chapter 78 of the Arkansas Code of 1987 Annotated) (the "Act"), to issue 12 notes and to expend the proceeds thereof to finance all or a portion of the cost of acquiring, constructing 13 and installing real property or tangible personal property having an expected useful life of more than one 14 (1)-year;and, 15 WHEREAS, employees, who work to advertise, promote, market and sell the City to visitors and 16 conventions, as well as support the maintenance, operation,security, booking,and hosting of events in the 17 City's convention centers,need to work from a central facility located within the Markham Street corridor 18 with easy access to the various City-owned properties that are under the care or control of the Little Rock 19 Advertising& Promotion ("the Commission");and, 20 WHEREAS, such a facility, located at 101 South Spring Street in Little Rock (the "Property to be 21 Financed"or"the Facility"), is currently available for purchase that the Commission considers suitable to 22 meet the above-describe needs;and, 23 WHEREAS, the Commission's operation of the Facility will support or otherwise pertain to the 24 advertising and promotion of the City and the City's convention centers; and, 25 WHEREAS, the purchase of the Facility is an administrative cost that the Commission deemed to be 26 in its best interest in order to conduct its business;and, 27 WHEREAS,the Commission will at all times operate the Facility in accordance with state law. 28 WHEREAS, the City proposes to finance the acquisition of the Facility for public purposed including 29 use by the Commission; and, 30 WHEREAS, it is proposed that the City issue its promissory note in the principal amount of Two 31 Million, Eight Hundred Fifty Thousand Dollars ($2,850,000.00) (the "Note") under Amendment No. 78 32 and the Act for the purpose of financing all or a portion of the costs of the Property to be Financed; and, 33 WHEREAS, the City intends to arrange for a loan (the "Loan") from a banking institution (the 34 "Lender")and to issue the Note to the Lender in consideration for the Loan; IPage 1 of31 NOW,THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY 2 OF LITTLE ROCK,ARKANSAS: 3 Section 1. The Board of Directors hereby finds that the Property to be Financed is real property and 4 will have a useful life of more than one (1)-year. The Board of Directors further finds that the aggregate 5 principal amount of the Note and the City's outstanding indebtedness issued or incurred under Amendment 6 No. 78 does not exceed 5%of the assessed value of taxable property located within the City as determined 7 by the last tax assessment. 8 Section 2. Under the authority of the Constitution and laws of the State of Arkansas (the "State"), 9 including particularly Amendment No. 78 and the Act,the Note is hereby authorized and ordered issued in 10 the principal amount of Two Million, Eight Hundred Fifty Thousand Dollars ($2,850,000.00) for the 11 purpose of financing all or a portion of the costs of acquiring the Property to be Financed and paying 12 expenses of issuing the Note. The Note shall be dated the date of issuance and shall bear interest on the 13 outstanding principal amount at a fixed rate not to exceed 5% per annum. The Note shall be repaid in five 14 (5) substantially equal annual amortized installments of principal and interest, commencing one (1)-year 15 from the date of the Note and on the same day of each year thereafter, with the final installment due five 16 (5) years from the date of the Note. The Note shall be issued in fully registered form. The Note shall be 17 executed by the Mayor and the City Clerk and the seal of the City shall be affixed to the Note. 18 Section 3. The Note shall be issued to the Lender in consideration for the Loan. The Lender shall be 19 selected by the City Manager based upon the commitment or proposal for the Loan that the City Manager 20 determines to have the lowest cost to the City and the best terms. The City Treasurer is hereby authorized 21 and directed to solicit proposals or commitments for the Loan from at least three (3) banking institutions 22 having offices in the City, in such manner as shall be approved by the City Manager. The City Manager 23 shall have the right to reject any and all proposals and commitments. 24 Section 4. As provided in Amendment No. 78, the annual debt service payments on the Note in each 25 fiscal year shall be charged against and paid from the general revenues of the City for such fiscal year. For 26 the purpose of making the annual debt service payments,there is hereby, and shall be, appropriated to pay 27 the Note, an amount of general revenues of the City sufficient for such purposes. The City Treasurer is 28 hereby authorized and directed to withdraw from the general fund of the City the amounts and at the times 29 necessary to make the annual debt service payments on the Note. 30 Section 5.The City shall provide such financial information to the Lender as the Lender may reasonably 31 request, including any operating agreement related to the Facility. 32 Section 6. The Mayor, City Manager, City Treasurer, City Attorney and City Clerk are hereby 33 authorized and directed, for and on behalf of the City, to perform all acts of whatever nature necessary to 34 effect and carry out the authority conferred by this ordinance and to execute all papers, documents, [Page 2 of 31 1 certificates and other instruments that may be required for the carrying out of such authority or to evidence 2 the exercise thereof. 3 Section 7. Pursuant to Ark. Code Ann. § 26-75-606(a)(3)(B), if the Commission is ever dissolved,the 4 City shall assume the authority granted to the Commission with respect to the Facility. 5 Section 8. The Mayor and City Manager each have authority to execute all documents necessary to 6 effectuate the action contemplated herein. 7 Section 9. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase or 8 word of this Ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or 9 adjudication shall not affect the remaining portions of this ordinance which shall remain in full force and 10 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally part of this 11 Ordinance. 12 Section 10. Repealer. All laws, ordinances, resolutions, or parts of the same which are inconsistent 13 with the provisions of this ordinance are hereby repealed to the extent of such inconsistency. 14 Section 11. Emergency Clause. The instigation and completion of the projects hereinabove set forth 15 are essential to the public health, safety and welfare of the citizens of the City and must be financed as 16 quickly as possible because there is a limited time to close on the purchase of the property in question; an 17 emergency is, therefore, declared to exist and this ordinance shall be in full force and effect from and after 18 the date of its passage. 19 PASSED: September 6,2016 20 • �' APPROVED: 21 �1�� 22 �4� //,1"1P)410° 23 us n La le City Clerk Mark Stodola,Mayor 24 AP OV S TO LEGAL FORM: 25 26 jhO 27 Thomas M. Carpenter, ity A r ey 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // 1Page 3 of 31