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Home My WebLink About21644 I 1 ORDINANCE NO. 21,644 2 3 AN ORDINANCE TO AMEND ORDINANCE NO. 21,564 (MARCH 20, 4 2018); TO ESTABLISH THE MATURITY SCHEDULE FOR THE CITY'S 5 HOTEL GROSS RECEIPTS TAX BONDS,SERIES 2018; TO RATIFY AND 6 CONFIRM THE SALE OF THE BONDS; TO DECLARE AN 7 EMERGENCY; AND FOR OTHER PURPOSES. 8 9 WHEREAS, pursuant to Ordinance No. 21,564, adopted March 20, 2018 ("Ordinance No. 21,564"), 10 the Board of Directors of the City of Little Rock,Arkansas(the"City")has authorized the issuance and sale 11 of the City's Hotel Gross Receipts Tax Bonds, Series 2018 (the "Bonds") in the maximum aggregate 12 principal amount of Thirty-Seven Million, Five Hundred Thousand Dollars ($37,500,000.00) for the 13 purpose of financing a portion of the costs of improvements to MacArthur Park, including particularly, 14 without limitation, renovations and additions to, and furnishings and equipment for, the Arkansas Arts 15 Center and renovations and equipment for the MacArthur Museum of Arkansas Military History, including 16 any necessary parking, landscaping, signage, drainage, lighting, road and utility improvements in 17 MacArthur Park(collectively,the "Improvements"); and, 18 WHEREAS,the Board of Directors has determined that the Bonds should be issued in the aggregate 19 principal amount of Thirty-Two Million,Five Hundred Seventy Thousand Dollars($32,570,000.00),which 20 when combined with the face amount of the Municipal Bond Debt Service Reserve Policy to be issued by 21 Build America Mutual Assurance Company, is within the parameters set by Ordinance No. 21,564; and, 22 WHEREAS,the Preliminary Official Statement dated March 21,2018,which has been updated and is 23 now dated October 30,2018 (the "Preliminary Official Statement"),has been exhibited to and is before the 24 Board of Directors at the meeting at which this ordinance is adopted; and 25 WHEREAS, the City has made arrangements for the sale of the Bonds to Stephens Inc. (the 26 "Underwriter"), pursuant to a Bond Purchase Agreement between the Underwriter and the City (the 27 "Agreement"),the form of which has been approved by Ordinance No. 21,564; and 28 WHEREAS, due to the passage of time since Ordinance No. 21,564 was adopted, the interest payment 29 dates for the Bonds shall be June 1"and December 1St instead of April 1"and October 1St,the principal payment St SS 30 date for the Bonds shall be December 1 instead of April 1 and the final maturitydate for the Bonds shall P � 31 be December 1,2048, instead of April 1, 2048. 32 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY 33 OF LITTLE ROCK,ARKANSAS; [Page 1 of 5] 2036 1,150,000 4.000 2037 1,195,000 4.000 2040 3,885,000 4.000 2044 5,945,000 4.000 2048 6,970,000 4.125 1 2 Section 5. The first optional redemption date for the Bonds shall be December 1,2028. 3 Section 6. The Bonds maturing on December 1, 2040,2044, and 2048, shall be subject to mandatory 4 sinking fund redemption prior to maturity as follows: 5 Bonds Maturing December 1, 2040 6 '1 Year.(December 1St) Amount 2038 $1,245,000 2039 1,295,000 2040 (maturity) 1,345,000 7 8 Bonds Maturing December 1,2044 9 Year(December 4) Amount 2041 $1,400,000 2042 1,455,000 2043 1,515,000 2044 (maturity) 1,575,000 10 11 Bonds Maturing December 1, 2048 12 Year(December 1) Amount 2045 $1,640,000 2046 1,705,000 2047 1,775,000 2048 (maturity) 1,850,000 13 14 Section 7. The form of Bond contained in Ordinance No. 21,564 shall be amended and completed 15 according to the terms of this Ordinance. [Page 3 of 5] 1 Section 1. The sale of the Bonds to the Underwriter at a price of Thirty-Two Million, Seven Hundred 2 Fifty-Four Thousand, Five Hundred Fifteen and 15/100 Dollars ($32,754,515.15) (principal amount less 3 Underwriters' discount of Two Hundred Seventy-Six Thousand, Eight Hundred Forty-Five Dollars 4 ($276,845.00)plus net original issue premium of Four Hundred Sixty-One Thousand,Three Hundred Sixty 5 and 15/100 Dollars($461,360.15), pursuant to the Agreement, is hereby approved,ratified and confirmed. 6 Section 2. The Preliminary Official Statement, in substantially the form submitted to this meeting, is 7 hereby approved and the use of the Preliminary Official Statement in connection with the sale of the bonds 8 is hereby authorized, ratified and confirmed, and the Mayor is hereby authorized and directed, for and on 9 behalf of the City, to execute the Preliminary Official Statement and the final Official Statement in the 10 name of the City for use in connection with the sale of the bonds. 11 Section 3. Section 4 of Ordinance No. 21,564 is hereby amended by changing "April 1, 2048" to 12 "December 1, 2048" as the final maturity date of the Bonds, by changing "October 1, 2018" to "June 1, 13 2019" as the first interest payment on the Bonds and by changing "April 1St and October 1st" to "June 1St 14 and December lss" as the interest payment dates on the Bonds. 15 Section 4. The Bonds shall bear interest at the rates and shall mature on December 1St in the amounts 16 and in the years as follows: Year(December lst) Amount ;' Interest Rate 2019 $425,000 3.000% 2020 555,000 5.000 2021 580,000 5.000 2022 610,000 5.000 2023 640,000 5.000 2024 670,000 5.000 2025 705,000 5.000 2026 740,000 5.000 2027 780,000 5.000 2028 815,000 5.000 2029 860,000 5.000 2030 900,000 5.000 2031 945,000 5.000 2032 995,000 3.625 2033 1,030,000 3.625 2034 1,065,000 4.000 2035 1,110,000 3.750 [Page 2 of 5] 1 "(b) The Senior Vice President of Finance and Administration of LRCVB shall deposit 2 all collections of the Tax received on and after December 1, 2018 (the "Pledged 3 Revenues"), into the Revenue Fund. Deposits shall be made at least once each month not 4 later than the fifth(5th)business day of the month, commencing in January 2019." 5 Section 9. Section 8(c)of Ordinance No. 21,564 is hereby amended to read as follows: 6 "(c) The Trustee shall transfer from the Revenue Fund into the Debt Service Account 7 in the Bond Fund not less than five (5) business days before each June 1st and December 8 1St, an amount that will be sufficient to cause the Debt Service Account in the Bond Fund 9 to have moneys to pay the principal of and interest on the bonds on the next due date thereof 10 and Bond Insurer Reimbursement Amounts (as defined in Section 25 hereof) due the 11 Insurer." 12 Section 10. Section 8(f)of Ordinance No. 21,564 is hereby amended to read as follows: 13 "(f)All moneys remaining in the Revenue Fund on December 1St of each year shall be 14 withdrawn from the Revenue Fund and applied as follows: (1) one-half of the remaining 15 amount in the Revenue Fund shall be transferred to the Advertising and Promotion Fund 16 and used for any lawful purpose and(2) one-half of the remaining amount in the Revenue 17 Fund shall be transferred to the City and used for parks purposes." 18 Section 11. This ordinance shall supplement Ordinance No. 21,564 in authorizing the issuance of the 19 Bonds. 20 Section 12. The provisions of this ordinance are separable and in the event that any section or part 21 hereof shall be held to be invalid, such invalidity shall not affect the remainder of this Ordinance. 22 Section 13. Ordinance No.21,564,as amended hereby,shall be and remain in full force and effect. All 23 ordinances and resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such 24 conflict. 25 Section 14. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or 26 word of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or 27 adjudication shall not affect the remaining portions of the ordinance which shall remain in full force and 28 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the 29 ordinance. 30 Section 15. Repealer. All laws, ordinances, resolutions, or parts of the same, that are inconsistent 31 with the provisions of this resolution, are hereby repealed to the extent of such inconsistency. 32 Section 16. Emergency Clause. It is hereby ascertained and declared that the Improvements are 33 immediately needed for the preservation of the public peace, health and safety and to remove existing 34 hazards thereto. The Improvements cannot be accomplished without the issuance of the Bonds. Therefore, [Page 4 of 5] 1 it is declared that an emergency exists and this ordinance being necessary for the .f the o reservationpublic P 2 peace, health and safety shall be in force and take effect immediately upon and after its sassage. 3 PASSED: November 5,2018 4 ATT.164�4- APPROVE 5 sp !( / / ,/,./ 4., 6 ,A.1-..., A d' e. f i 7 Susa i -1775 City Clerk Mark Stodola, ayor 8 APP',O ID .• 1 LEGAL FORM: r 9 10 l G1.41'-A-- Lij- 11 Thomas M. Carpenter, City Attor y 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // [Page 5 of 5]