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HomeMy WebLinkAbout8903RESOLUTION NO. — 8,903 M M M M M 1 2 3 4 A RESOLUTION AUTHORIZING AN ADDENDUM TO THAT CERTAIN 5 AGREEMENT BY AND BETWEEN THE CITY OF LITTLE ROCK, 6 ARKANSAS AND THE I -630 TO ARKANSAS STATE HIGHWAY 10 7 PARKWAY PROPERTY OWNERS IMPROVEMENT DISTRICT NO. 338 8 OF PULASKI COUNTY, ARKANSAS, DATED AUGUST 5,1986; AND 9 to OTHER PURPOSES. 11 12 13 WHEREAS, on or about August 5, 1986, the City of Little Rock, Arkansas 14 ( "City") and 1 -630 to Arkansas State Highway 10, Parkway Property Owners 15 Improvement District No. 338 of Pulaski County, Arkansas the ( "District "), entered into 16 17 an agreement ( "Agreement ") relating to construction of certain improvements comprising 18 a portion of the roadway now known as Chenal Parkway ( "Parkway "); and 19 WHEREAS, the Agreement provided for, among other things, annual payments 20 by the City, on or before August 1 of each year for the years 1987 through 1988, 21 22 inclusive, in the annual amount of $175,500, provided, however, that the obligation of 23 the City to make each payment will be subject to annual appropriation of said amount 24 by the Board of Directors of the City; and 25 WHEREAS, the District has determined that because of prevailing lower interest 26 27 rates, substantial savings can be obtained by refunding its outstanding Construction 28 Bonds dated as of June 10, 1987; and 29 WHEREAS, in consideration of the substantial savings to be obtained through the 30 refunding of its Construction Bonds, the City and the District have mutually agreed to 31 32 a reduction of the City's annual obligation for the years 1993 through 1998, (the 33 "Remaining Annual Payments ") as more particularly set forth in the following resolution. 34 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF 35 36 THE CITY OF LITTLE ROCK, ARKANSAS, AS FOLLOWS: 166 t r /,3; r r r� r w. r r �■ r . . . �■�■ �■ .� 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 SECTION 1. That the City Manager, upon the advise of the City Director of Finance, is authorized to negotiate with the District for the purpose of reaching an agreement to reduce the amount of each of the Remaining Annual Payments, based upon the projected interest savings resulting from the refunding of the District's Construction Bonds, and, provided further, that in the interest of obtaining the highest possible savings, the Mayor, upon the recommendation of the City Manager and Director of Finance, is authorized to execute and deliver an addendum to the Agreement which shall reflect any reduction of the City's Remaining Annual Payments. SECTION 2. That all other provisions of the Agreement not specifically modified or amended herein shall remain in full force and effect as set forth in the Agreement which is attached hereto As Exhibit "A' and incorporated herein by reference and made a part of this resolution. SECTION 3. This resolution shall take effect and be in force from and after its adoption. ADOPTED: May 4, 1993 ATTEST: APPROVED AS TO FORM: THUMAS M. UARVENTE1W CITY ATTORNEY APPROVED: 'AJSF -T!ASON, VICE I 167 • • Exhibit "A" iss AGREEMENT STATE OF ARKANSAS) COUNTY OF PULASKI) CtAl This Agreement, dated as of August S -, 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 169 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. 7,43 6 , 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 1987 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. dAE 170 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- 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 ROC , RKANSAS By Mayor ATTEST: By: C' y Clerk 1572C -4 -4- I -630 TO ARKANSAS STATE HIGHWAY 10 PARKWAY PROPERTY OWNERS IMPROVEMENT DISTRICT NO. 338 OF PULASKI COUNTY, ARKANSAS By: ' Commissioner By: Commissioner By: Com4issioner 171