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HomeMy WebLinkAbout108970 0 1 RESOLUTION NO. 10.897 2 A RESOLUTION TO RATIFY THE AMENDED, RESTATED AND 3 SUBSTITUTED LEASE AND CONCESSION AGREEMENT BY 4 AND BETWEEN THE CITY OF LITTLE ROCK, ARKANSAS, THE 5 LITTLE ROCK ADVERTISING & PROMOTION COMMISSION, 6 AND BG EXCELSIOR LI IITED PARTNERSHIP; TO AMEND 7 VARIOUS CITY RESOLUTIONS TO ACCOMELISH THIS 8 PURPOSE; TO RATIFY THE EXCLUSIVE AWARD OF 9 CONCESSION SERVICES FOR THE STATEHOUSE CONVENTION 10 CENTER TO BG EXCELSIOR LIMITED PARTNERSHIP 11 APPROVED IN LITTLE ROCK, ARK., ORDINANCE NO.18,344 12 (AUGUST 29, 2000); AND FOR OTHER PURPOSES. 13 WHEREAS, the City approved the terms of a lease agreement between the City, 14 the Little Rock Advertising & Promotion Commission ( "Commission "), and BG 15 Excelsior Limited Partnership ( "BG Excelsior "), and authorized the Mayor and City 16 Clerk to execute any necessary documents to make this lease effective, provided such 17 execution occurred before 4:00 PM, Friday, September 15, 2000, and 18 WHEREAS, the unconditional and appropriate execution of all documents by 19 this September 15, 2000, deadline did not occur, thus making voidable the 20 authorization granted in Little Rock, Ark., Resolution No. 10,826 (May 23, 2000), as 21 amended by Little Rock, Ark., Resolution No. 10,864 (July 25, 2000), and Little Rock, 22 Ark., Resolution No. 10,884 (August 29, 2000), and 23 WHEREAS, the failure to provide a timely, unconditional, and appropriate 24 execution of all documents also would render voidable the exclusive concession 25 agreement for the Statehouse Convention Center between the City, the Commission, 26 and BG Excelsior, approved in Little Rock, Ark., Ordinance No. 18,344 (August 29, 27 2000), and 28 WHEREAS, on Monday, September 19, 2000, BG Excelsior complied with all 29 of the previous terms and conditions set forth by this Board and, unconditionally 0 0 1 delivered fully executed documents to the City as required by the terns of previous City 2 resolutions and ordinances, and the escrow agreements attached to these resolutions, 3 including but not limited to an executed order of dismissal with prejudice of the lawsuit 4 filed by M.S. Green -- Little Rock against the City, the Commission, and other parties, s in the Pulaski Chancery Court, and 6 WHEREAS, after a review of the entire situation the Board, upon 7 recommendation of the Commission, believes that it is in the best interest of the citizens 8 of the City to permit this lease agreement to be ratified, 9 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF 10 DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: 11 Section 1. The Board of Directors of the City of Little Rock, Arkansas, ratifies 12 execution by the Mayor, the City Clerk, and any other City officials, of the Amended, 13 Restated and Substituted Lease and Concession Agreement, and all other documents 14 necessary to complete the transaction contemplated by this Agreement, as executed on 15 Monday, September 19, 2000, by BG Excelsior, and as previously authorized by the 16 City and the Commission pursuant to previous City resolutions and ordinances. 17 Section 2. Severability. In the event any title, section, paragraph, item, sentence, 18 clause, phrase, or word of this resolution is declared or adjudged to be invalid or 19 unconstitutional, such declaration or adjudication shall not affect the remaining portions 20 of the resolution which shall remain in full force and effect as if the portion so declared 21 or adjudged invalid or unconstitutional was not originally a part of the resolution. 22 Section 3. Repealer. All laws, ordinances, resolutions, or parts of the same, that 23 are inconsistent with the provisions of this resolution are hereby repealed to the extent 24 of such inconsistency, and in particular, without limiting the foregoing clause, the 25 provisions of Little Rock, Ark., Resolution No. 10,826 (May 23, 2000), Little Rock, 26 Ark., Resolution No. 10,864 (July 25, 2000), Little Rock, Ark., Resolution No. 10,884 27 (August 29, 2000), to the extent that they impacted Little Rock, Ark., Ordinance No. 28 18,344 (August 29, 2000), or as they required execution on or before certain dates and da 0 0 1 WHEREAS, the request for additional authority to increase the amount of 2 expenditures on renovation of the hotel needs to be reviewed by bond counsel before 3 any amendment to the Agreement can be authorized, 4 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF s DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: 6 Section 1. The Board of Directors authorizes the Mayor to send the attached 7 letter to bond counsel for an opinion as to whether a proposed amendment to the s Agreement to permit an additional $2.5 million in renovation expenditures would 9 adversely affect the exclusion of interest on the bonds from the gross income of holders 10 of the bonds for federal income tax purposes. 11 Section 2. Severability. In the event any title, section, paragraph, item, 12 sentence, clause, phrase, or word of this resolution is declared or adjudged to be invalid 13 or unconstitutional, such declaration or adjudication shall not affect the remaining 14 portions of the resolution which shall remain in full force and effect as if the portion so 15 declared or adjudged invalid or unconstitutional was not originally a part of the 16 resolution. 17 Section 3. Repealer. All laws, ordinances, resolutions, or parts of the same, 18 that are inconsistent with the provisions of this resolution are hereby repealed to the 19 extent of such inconsistency. 20 ADOPTED: September 19, 2000 21 ATTEST: APPROVED: 22 n 23 2 U/ 24 Nancy Wood, City Clerk im Dailey, Mayor 25 APPROVED AS TO LEGAL FORM: 26 28 Thomas M. Carpenter, ity Attorney -2- a a t w City at Little ft Ad Jim Dailey City Hall, Room 203 Mayor 500 W. Markham Little Rock, AR 72201 -1427 (501) 371 -4516 FAX (501) 371 -4498 September 25, 2000 John R. Tisdale, Esq. WRIGHT, LINDSEY & JENNINGS 200 West Capitol Avenue, Ste. 2200 Little Rock, AR 72201 Re: City of Little Rock, Arkansas, Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 1993 Dear Mr. Tisdale: Previously, the City employed your firm to obtain an opinion from qualified bond counsel as to whether a proposed lease agreement` between the City, the Little Rock Advertising & Promotion Commission, and the BG Excelsior Limited Partnership would have an adverse affect on the exclusion of bond interest from the gross income of bond holders for federal income tax purposes. The purpose of this letter is to seek additional information in this regard. The City ratified entry into a lease agreement with BG Excelsior on September 19, 2000. BG Excelsior has asked the City if it would be permissible to include an additional $2.5 million in renovation costs that it finances for the overall project. In addition, it would like to agree with the City to lease 50 parking places that are currently leased on a month to month basis for M.S. Green -- Little Rock, Inc. To the extent that these issues might be documented as amendments to the lease agreement with the City, the City would like your opinion as to any adverse affects these amendments would have on the bond issue. If it would be easier to issue one formal opinion on this issue, please feel free to do so. Sincerely, 9 Jim Dailey j Mayor JD:mlg 'The document is formally entitled the Amended, Restated and Substituted Lease and Concession Agreement between the City of Little Rock, Arkansas, the Little Roc'.: Advertising & Promotion Commission, and BG Excelsior Limited Partnership. Through this letter it is referred to simply as "the lease agreement."