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ORDINANCE NO. 15,154
AN ORDINANCE AMENDING AND SUPPLEMENTING
ORDINANCE NO. 15,139 WHICH AUTHORIZED THE
ISSUANCE OF CITY OF LITTLE ROCK, ARKANSAS
HOTEL AND RESTAURANT GROSS RECEIPTS TAX
BONDS (LITTLE ROCK CONVENTION CENTER
REFUNDING), SERIES 1986; AND AUTHORIZING AND
PRESCRIBING OTHER MATTERS PERTAINING
THERETO.
WHEREAS, on July 29, 1986, the Board of Directors of
the City of Little Rock, Arkansas (the "City ") adopted Ordinance
No. 15,139, which authorized the issuance of refunding bonds
(the "Refunding Bonds ") in the principal amount of $30,775,000
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 (the "Series 1980
Bonds "); and
WHEREAS, Ordinance No. 15,139 authorized the sale of
the Refunding Bonds to E. F. Hutton & Company Inc. and T. J.
Raney & Sons, Inc. (the "Underwriters ") for a purchase price of
97.7% of the principal amount of the Refunding Bonds plus
accrued interest from August 1, 1986, to the date of delivery of
the Refunding Bonds to the Underwriters (the "Closing Date "),
and provided that the Underwriters could specify the interest
rates for the Refunding Bonds so long as no interest rate in
excess of 8.0% per annum was specified and the true interest
cost to the City of the Refunding Bonds (the term "true interest
cost" was defined to mean 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 on
the Refunding Bonds produces an amount equal to the purchase
price paid by the Underwriters) did not exceed 7.9% per annum;
and
WHEREAS, the Underwriters have completed the marketing
of the Refunding Bonds and have specified the interest rates for
the Refunding Bonds (which rates result in a true interest cost
to the City of approximately 7.85 %, which is slightly lower than
the true interest cost specified in Ordinance No. 15,139); and
WHEREAS, it has been determined that the refunding can
be accomplished by issuing only $30,745,000 of Refunding Bonds;
and
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WHEREAS, Ordinance No. 15,139 approved, among other
documents, a Bond Purchase Agreement (the "Original Bond
Purchase Agreement ") between the City and the Underwriters, but
the Underwriters have now presented a revised form of Bond
Purchase Agreement reflecting the changes herein approved and
requested that it be substituted for the form of Original Bond
Purchase Agreement;
NOW, THEREFORE, BE IT ORDAINED by the Board of
Directors of the City of Little Rock, Arkansas:
Section 1. Sections 1 and 3 of Ordinance No. 15,139
are hereby amended to read as follows:
(a) "Section 1. The Refunding Bonds are hereby
authorized and shall be issued in the principal amount of
$30,745,000. 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 will 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, and shall bear interest at the rates per annum, set
forth below:
(b) "Section 3. The Refunding Bonds shall be sold to
E. F. Hutton & Company Inc. and T. J. Raney & Sons, Inc. (the
"Underwriters" for a purchase price equal to $30,037,865 (which
is 97.7% of the principal amount of the Refunding Bonds) plus
accrued interest on the Refunding Bonds from August 15, 1986 to
the Closing Date. The sale of the Refunding Bonds shall be upon
Principal
Interest
Principal
Interest
Year
Amount
Rate
Year
Amount .
Rate
1988
$385,000
5.200
1996
$ 625,000
7.000
1989
405,000
5.700
1997
665,000
7.100
1990
430,000
5.900
1998
715,000
7.200
1991
455,000
6.100
1999
765,000
7.300
1992
480,000
6.300
2000
820,000
7.400
1993
515,000
6.500
2005
5,135,000
7.625
1994
545,000
6.700
2015
18,220,000
7.750"
1995
585,000
6.900
(b) "Section 3. The Refunding Bonds shall be sold to
E. F. Hutton & Company Inc. and T. J. Raney & Sons, Inc. (the
"Underwriters" for a purchase price equal to $30,037,865 (which
is 97.7% of the principal amount of the Refunding Bonds) plus
accrued interest on the Refunding Bonds from August 15, 1986 to
the Closing Date. The sale of the Refunding Bonds shall be upon
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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. 2. Ordinance No. 15,139, as herein amended
and supplemented, shall continue in full force and effect.
Section 3. 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, a copy of the revised Bond Purchase
Agreement as presented to and approved by the Board at this
meeting. Such document shall be available for inspection by any
interested person.
Section 4. All ordinances and resolutions and parts
thereof in conflict herewith are hereby repealed to the extent
of the conflict.
PASSED: August 13 , 1986.
ATTEST:
City Cler c
(SEAL)
APPROVED:
�--T r___l
Mayor
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