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HomeMy WebLinkAbout17173nw=w i 28.3. ORDINANCE NO. 17,173 ` AN ORDNANCE PROVIDING FOR THE ISSUANCE AND SALE OF AIRPORT PASSENGER FACILITY CHARGE REVENUE BONDS FOR THE PURPOSE OF FUNDING CERTAIN IMPROVEMENTS AT THE LITTLE ROCK NATIONAL AIRPORT; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE; AND PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the Little Rock National Airport-Adams Field and its related properties and facilities (the "Airport") are being operated, managed and maintained by the Little Rock Municipal Airport Commission (the "Commission "), which was created pursuant to Arkansas Code Annotated, §§ 14-359 -101 et sea., as amended and Initiated Ordinance No. 8511 of the City of Little Rock, Arkansas, as amended (the "City"); and WHEREAS, on February 23, 1995, the Federal Aviation Administration ( "FAA ") authorized, in accordance with Pub. L. No. 101 -508, Title DX, Subtitle B, the Aviation Safety and Capacity Expansion Act of 1990, as amended, and Section 158.29 of the Federal Aviation Regulations (Title 14, Code of Federal Regulations, Part 158), the Airport to impose a passenger facility charge of $3.00 per enplaning passenger (with limited exemptions) (the "PFCs ") to finance the cost of certain authorized improvements (the "Authorized PFC Projects ") to the Airport and its facilities; WHEREAS, on February 23, 1996, the FAA authorized the use of PFCs for the Authorized PFC Projects. The total approved PFC Revenues (hereinafter defined) to be collected for the Authorized PFC Projects is $32,765,055. The FAA's use approval of the PFCs authorized the Airport to use the PFC Revenues received to pay costs of certain of the Authorized PFC Projects and debt service payments on bonds issued to fund such projects; and WHEREAS, the Authorized PFC Projects include the extension of runway 4L/22R at the 22R end, and taxiways C and F and the construction of a 1,000 foot by 500 foot runway safety area and relocation of an adjacent street (collectively, the "Project "); and WHEREAS, the Commission, on behalf of the City, has determined that the Project should be constructed and that, in connection therewith, revenue bonds of the City should be issued to fund a portion of the cost of the Project. The Commission has requested that the Board of Directors of the City (the "Board ") authorize the sale and issuance of Airport Passenger Facility Charge Revenue Bonds in the principal amount of $21,580,000 for the purpose of financing a portion of the Project,.establishing a debt service reserve fund and paying expenses incidental thereto and bond issuance costs; and WHEREAS, in order to finance a portion of the cost of the Project, the City will issue its Airport Passenger Facility Charge Revenue Bonds, Series 1996 (the "Series 1996 Bonds ") in an aggregate principal amount of $21,580,000; and NOW THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section L Under the authority of the Constitution and laws of the State of Arkansas, including particularly Act No. 53 of the Acts of Arkansas of 1949, as amended (codified at Arkansas Code Annotated �� r2 §§ 14- 359 -101 et seq.), Act No. 974 of the Acts of Arkansas of 1985, as amended (codified at Arkansas Code Annotated §§ 14- 164 -401 through 418, as amended), and Act No. 135 of the Acts of Arkansas of 1929 and Act No. 18 of the Acts of Arkansas of 1945 (codified at Arkansas Code Annotated §§ 14- 360 -101 et Le q,, as amended), the Series 1996 Bonds are hereby authorized and ordered sold and issued in the total principal amount of $21,580,000. The Bonds shall not be general obligations of the City, but shall be special obligations payable solely from revenues derived from PFCs, limited to the allowable costs of the Authorized PFC Projects, and all investment earnings on PFCs, up to a total of $32,765,055, and any additional PFCs imposed in accordance with 14 CFR 158.37 (the "PFC Revenues "). Section 2. The issuance of the Series 1996 Bonds is hereby authorized for the purposes of (i) providing funds to finance a portion of the cost of the Project, (ii) to fund the Series 1996 Debt Service Reserve Fund, and (iii) to pay the costs of issuance of the Series 1996 Bonds. The Series 1996 Bonds will mature, bear interest and be subject to redemption in accordance with the provisions of the Indenture (hereinafter defined). Section 3. The Series 1996 Bonds shall be sold to Lehman Brothers, Pryor, McClendon, Counts & Co., Inc., Crews & Associates, Inc. and Llama Company (collectively the "Underwriters "). The Underwriters propose to purchase the Series 1996 Bonds pursuant to a bond purchase agreement in substantially the form submitted to the meeting at which this Ordinance is adopted (the "Bond Purchase Agreement "). All actions heretofore taken by the Mayor, City Clerk, and Director of Finance and Treasurer in connection with the offering of the Series 1996 Bonds, including the preparation and distribution of the Preliminary Official Statement, preparation of the Official Statement, and preparation of this Ordinance (the "Authorizing Ordinance ") are hereby in all respects ratified and approved. The Preliminary Official Statement is deemed final for purposes of the Securities and Exchange Commission Rule 15(c) 2 -12, The Preliminary Official Statement of the City in the form presented at this meeting with such changes, omissions, insertions and revisions as the Mayor, City Clerk, and Director of Finance and Treasurer shall deem advisable is hereby authorized and approved and the Mayor or Treasurer shall sign and deliver the final Official Statement to the Underwriters for distribution to the owners of the bonds and other interested persons. Section 4. The appointment of Boatmen's Trust Company of Arkansas, to serve as trustee for the Series 1996 Bonds is hereby approved (the "Trustee"). Section S. To prescribe the terms and conditions upon which the Series 1996 Bonds are to be executed, accepted, held and secured, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture dated as of May 1, 1996 (the "Indenture ") between the City and the Trustee, and the City Clerk is hereby authorized and directed to execute, and acknowledge the Indenture and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Indenture to be accepted, executed and acknowledged by the Trustee. The Indenture is hereby approved in substantially the form submitted to this meeting. Section 6. The Mayor, the City Clerk, the City Director of Finance and Treasurer, and the Commission, for and on behalf of the City, are authorized and directed to do any and all things necessary to effect the execution and delivery of the Indenture, the performance of all obligations of the City under the Indenture, the issuance, execution, sale and delivery of the Series 1996 Bonds, and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by this Ordinance. The Mayor, City Clerk, the City Director of Finance and Treasurer, and the Commission are further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. Section 7. The appointment of Wright, Lindsey & Jennings and Howell & Goins, P.C. as Co -Bond Counsel is hereby approved and ratified. Section 8. It is hereby found and declared that an immediate need exists for the airport improvements in order to achieve the most cost effective financing for the City's Airport facilities. It is, therefore, declared that an emergency exists. This Ordinance, being necessary for the immediate preservation of the public peace, health and safety, shall take effect and be in force from and after its passage. PASSED: May 7, 1996 ATTEST: ROBBIE HANCOCK, CITY CLERK APPROVED AS TO FORM: 11140 r •;u g:bjb2288.102 APPROVED: