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HomeMy WebLinkAbout15139262 ORDINANCE NO. 15,139 AN ORDINANCE AUTHORIZING THE ISSUANCE OF CITY OF LITTLE ROCK, ARKANSAS HOTEL AND RESTAURANT GROSS RECEIPTS TAX BONDS (LITTLE ROCK CONVENTION CENTER REFUNDING), SERIES 1986, FOR THE PURPOSE OF ADVANCE REFUNDING THE CITY OF LITTLE ROCK, ARKANSAS HOTEL AND RESTAURANT GROSS RECEIPTS TAX BONDS (LITTLE ROCK CONVENTION CENTER PROJECT), SERIES 1980; AUTHORIZING A TRUST INDENTURE SECURING THE SERIES 1986 BONDS; AUTHORIZING THE SALE OF THE SERIES 1986 BONDS; AUTHORIZING AN OFFICIAL STATEMENT; AND AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO. WHEREAS, the City of Little Rock, Arkansas (the "City ") has issued its Hotel and Restaurant Gross Receipts Tax Bonds (Little Rock Convention Center Project), Series 1980 (the "Series 1980 Bonds "), for the purpose of financing a portion of the cost of acquiring, constructing and equipping a convention facility known as "Statehouse Convention Center" (the "Project "); and WHEREAS, the City and Little Rock Center Associates, Ltd., an Arkansas limited partnership (the "Developer "), entered into a Construct and Lease Agreement dated April 17, 1979, as amended and supplemented by a Supplemental Agreement dated August 5, 1980 (the "Development Agreement "), providing for the acquiring, constructing and equipping of the Project and a convention hotel as a joint undertaking of the City and the Developer; and WHEREAS, as the "Excelsior operation; and WHEREAS, principal amount principal amount re the Project and the convention hotel (known Hotel ") have been completed and are now in the Series 1980 Bonds were issued in the of $27,375,000, of which $26,970,000 in mains outstanding and unpaid; and WHEREAS, the City has determined that debt service savings can be realized by issuing /refunding bonds (the "Refunding Bonds ") for the purpose of advance refunding the Series 1980 Bonds and the issuance of the Refunding Bonds has been authorized by the electors of the City at a special election on July 15, 1986; 0-/7 Ir--_ 1,3 263 NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. The Refunding Bonds are hereby authorized and shall be issued in the principal amount of $30,775,000. The Refunding Bonds initially issued shall be dated August 15, 1986. Bonds issued in exchange therefor shall be dated as of the date to which interest on the Refunding Bonds has been paid. The proceeds of the Refunding Bonds shall be used to advance refund the Series 1980 Bonds and to pay costs of issuing the Refunding Bonds. Any excess proceeds shall be applied to redeem the Refunding Bonds in multiples of $5,000 on the date of delivery of the Refunding Bonds to the underwriters named herein (which date with be hereinafter called the "Closing Date ". The Refunding Bonds shall be designated "City of Little Rock, Arkansas Hotel and Restaurant Gross Receipts Tax Bonds (Little Rock Convention Center Refunding), Series 1986," and shall mature on January 1 in the years and in the principal amounts set forth below: Year Principal Amount Year Principal Amount 1988 $385,000 2002 $ 950,000 1989 405,000 2003 1,025,000 1990 430,000 2004 1,100,000 1991 450,000 2005 1,185,000 1992 480,000 2006 1,275,000 1993 510,000 2007 1,375,000 1994 545,000 2008 1,480,000 1995 580,000 2009 1,,595,000 1996 625,000 2010 1,720,000 1997 665,000 2011 1,850,000 1998 715,000 2012 1,995,000 1999 765,000 2013 2,150,000 2000 825,000 2014 2,315,000 2001 885,000 2015 2,495,000 Section 2. To prescribe the terms and conditions upon which the Refunding Bonds are to be executed, authenticated, issued, accepted, held and secured, the Mayor is hereby authorized and directed to execute, acknowledge and deliver a Trust Indenture (the "Indenture ") by and between the City and First Commercial Bank, National Association, Little Rock, Arkansas, as trustee (the "Trustee "), and the City Clerk is hereby authorized and directed to attest the signature of the Mayor and to affix the seal of the City thereto. The Indenture is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the City Advertising and Promotion Commission of the City (the "Commission ") and the underwriters named below in 2 264 order to complete the Indenture, with such insubstantial changes as shall be approved by those persons executing the Indenture. Execution shall constitute conclusive evidence of approval. Section 3. The Refunding Bonds shall be sold to E.E. Hutton & Company Inc. and T.J. Raney & Sons, Inc. (the "Underwriters ") for a purchase price equal to 97.7% of the principal amount of the Refunding Bonds plus accrued interest on all Refunding Bonds from August 15, 1986, to the Closing Date. The Refunding Bonds shall bear interest at the rates specified by the Underwriters. No bond shall bear interest at a rate exceeding 8% per annum. The true interest cost to the City of the Refunding Bonds shall be equal to or less than 7.9% per annum. "True interest cost" means the discount rate which when used in computing the present worth as of the Closing Date of all payments of principal (at maturity or in accordance with mandatory sinking fund redemption requirements) and interest to be paid on the Refunding Bonds produces an amount equal to the purchase price paid by the Underwriters for the Refunding Bonds (inclusive of accrued interest). The sale of the Refunding Bonds shall be upon the terms and conditions set forth in a Bond Purchase Agreement (the "Bond Purchase Agreement ") to be entered into between the City and the Underwriters. The Bond Purchase Agreement is hereby approved in the form submitted to this meeting and the Mayor is authorized to execute and deliver the Bond Purchase Agreement on behalf of the City. Section 4. There shall be pledged to the payment of the principal of and interest on the Refunding Bonds, (1) revenues derived from the two percent (2%) gross receipts tax levied by the City upon the gross receipts or gross proceeds derived from furnishing, within the boundaries of the City, hotel or motel accommodations and upon the gross receipts or gross proceeds of restaurants and similar establishments located within the boundaries of the City, which tax has been levied by Ordinance No. 12,353 of the City, as amended by Ordinance No. 13,527, pursuant to the authority of Act No. 185 of the Acts of Arkansas of 1965, as amended; (2) revenues, including rent paid under the Development Agreement, derived by the City from convention facilities commonly known as "Robinson Auditorium" and "Statehouse Convention Center" and from the underground parking garage located adjacent to Robinson Auditorium; (3) except as otherwise specified in the Indenture, all other revenues received by the Commission which the City or the Commission may lawfully use in connection with Robinson Auditorium or the Statehouse Convention Center, or for payment of debt service on the Refunding Bonds; and (4) "state turnback revenues" received by or on behalf of the City in accordance with the provisions of Act No. 763 of the Acts of Arkansas of 1977, as amended, for use in paying principal of and interest on r r �■ �r ■r r� r r r �r r it r r■ r 265 the Refunding Bonds. The referred to as the "Pledged above revenues will be hereinafter It Revenues. Section 5. In order to provide for the retirement of the Series 1980 Bonds and to defease the lien on the Pledged Revenues in favor of the Series 1980 Bonds, a sufficient amount of the proceeds of the Refunding Bonds or "Permitted Investments" purchased from such proceeds will be deposited in an escrow account to be held by the Trustee pursuant to an escrow deposit agreement (the "Escrow Agreement ") with the City. The uninvested cash and Permitted Investments deposited under the Escrow Agreement, and the interest earned thereon, must be sufficient, without reinvestment, to pay when due at maturity and upon redemption of all then outstanding bonds on January 1, 1990, the principal of, redemption premium and interest on the Series 1980 Bonds. The term "Permitted Investments" shall mean either (1) direct or fully guaranteed obligations of the United States of America which are not subject to redemption prior to maturity, or (2) other obligations secured by a perfected pledge to the Trustee of collateral consisting of obligations described in (1) which collateral and the interest to be earned thereon is sufficient, without regard to the obligation secured, to retire the Series 1980 Bonds. The Escrow Agreement shall contain such other terms and conditions as are acceptable to the Mayor. In order to accomplish the purposes of this Section, the Mayor is hereby authorized to execute and deliver the Escrow Agreement and to take all other action and execute all instruments necessary. Section 6. The Preliminary Official Statement dated July 25, 1986, relating to the Refunding Bonds, is hereby approved in the form submitted to this meeting. The distribution of the Preliminary Official Statement by the Underwriters to various prospective and actual purchasers of the Refunding Bonds is hereby ratified. There is hereby authorized the preparation and distribution to various prospective and actual purchasers of the Refunding Bonds of a final Official Statement in substantially the form of the Preliminary Official Statement. The Mayor is authorized to approve and execute the Official Statement on behalf of the City. Section 7. The Mayor, City Clerk and other appropriate officers and employees of the City are authorized and directed, for and on behalf of the City, to take whatever action is necessary to carry out the authority conferred by this Ordinance, and execute all instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. 4 M M M r � � M r M M r M M I r L- Section 8. The Commitment For Municipal Bond Insurance (the "Commitment ") issued by Financial Guaranty Insurance Company ( "FGIC "), whereby FGIC commits to issue its policy insuring the payment of the principal of and interest on the Refunding Bonds is hereby approved in the form submitted to this meeting. The Director of Finance is authorized and directed to accept the Commitment on behalf of the City. Section 9. There shall be filed in the office of the City Clerk, as a part of the minutes of the meeting at which this ordinance is adopted, copies of the Indenture, Bond Purchase Agreement, Preliminary Official Statement and Commitment presented to this meeting. Such documents shall be available for inspection by any interested person. Section 10. All ordinances and resolutions and parts thereof in conflict herewith are hereby repealed to the extent of the conflict. PASSED: July 29 , 1986. APPROVED: ATTEST: - S�� ozz� Vice Mayor ity Cler (SEAL) 5 266 M