HomeMy WebLinkAbout17581ORDINANCE NO. 17, 581
�D L
AN ORDNANCE PROVIDING FOR THE ISSUANCE AND SALE OF CAPITAL
IMPROVEMENT REVENUE BONDS FOR THE PURPOSE OF FUNDING THE ACQUISITION
OF PARKING IMPROVEMENTS IN THE CITY OF LITTLE ROCK, ARKANSAS; 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 City of Little Rock ( "City "), acting by and through the Little Rock Advertising and
Promotion Commission (the "Commission "), and for itself through the Board of Directors of the City, has
previously acknowledged the need for additional parking for automobiles to support the current expansion
of convention facilities at the Statehouse Convention Center and other office and commercial facilities
nearby; and
WHEREAS, pursuant to such findings the City adopted on February 7, 1997, Resolution 9,911 of
the resolutions of the City stating the City's intention to issue revenue bonds to finance the acquisition of
the existing parking deck and related improvements located at Second and Main Streets (the "Project") which
is presently owned by the Metrocentre Improvement District No. 1 of the City of Little Rock
( "Metrocentre "); and
WHEREAS, pursuant to Resolution No. 9,911, the staff, attorneys and other advisors selected by
the City and the Commission have made further investigations, including the determination made in
consultation with local consulting engineers, that the cost of constructing a new facililty substantially similar
to the Project in 1997 would be approximately $3,400,000; and
WHEREAS, at a duly advertised and convened public hearing held on September 30, 1997, the
Board of Directors of the City received additional information and made further findings supporting the need
to maintain and preserve adequate public parking which is necessary because of additional development in
the area of downtown Little Rock including, in particular, the opening of the River Market District, the
activities and events conducted at Riverfront Park, the opening of the new downtown branch of the Little
Rock Public Library, the expansion of the Arkansas Territorial Restoration Museum, the relocation of the
Museum of Science and History to East Markham Street and the construction of the Alltel Arena and related
improvements, all of which are expected to increase the demand for public parking in the downtown area
of the City; and
WHEREAS, pursuant to Resolution No. 9,911, the staff, attorneys and other advisors selected by
the City and the Commission have developed a financing plan for the acquisition of the Project; and
WHEREAS, the City intends to acquire from Metrocentre the Project which will be operated and
managed by the Commission; and
WHEREAS, the City is authorized and empowered under the laws of the State of Arkansas, including
particularly Arkansas Code Annotated Title 14, Chapter 164, Subchapter 4, as amended (the "Act "), to issue
revenue bonds for the purpose of financing the Project; and
WHEREAS, in order to finance the acquisition of the Project, the City intends to issue its Capital
Improvement Revenue Bonds (Second and Main Street Parking Project), Series 1997 (the "Series 1997
Bonds ") in an aggregate principal amount of not to exceed $3,300,000; and
WHEREAS, the City will pledge the revenues of the Project, together with certain other parking
revenues of the City more specifically defined hereinafter (the "Revenues ") to secure the payment of the
principal of and interest on the Bonds.
NOW THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock,
Arkansas:
Section 1. The acquisition of the Project from Metrocentre, the operation and management of the
Project by the Commission in conjunction with the Commission's operation of the Statehouse Convention
Center and related activities, and the operation and management of the surface parking lot located on the
east half of the block immediately adjacent to the Project are hereby authorized and approved.
Section 2. Under the authority of the Constitution and laws of the State of Arkansas, including
particularly Arkansas Code Annotated Title 14, Chapter 164, Subchapter 4, the Series 1997 Bonds are
hereby authorized and ordered sold and issued in the total principal amount of not to exceed $3,300,000,
at a net effective interest rate of not to exceed ten (10) percent per annum, and with a final maturity of not
to exceed thirty (30) years. The Bonds shall not be general obligations of the City or the Commission, but
shall be special obligations payable solely from revenues derived from the Project, together with all other
parking revenues of the City, from whatever source derived, and not previously pledged for other purposes
(collectively, the "Revenues "). Revenues not needed to pay debt service on the Series 1997 Bonds may be
released from the lien of the Indenture (hereinafter defined) and used by the City for any lawful purpose,
at the times and in the manner provided in the Indenture (hereinafter defined).
Section 3. The issuance of the Series 1997 Bonds is hereby authorized for the purposes of (i)
providing funds to finance the cost of the acquisition of the Project, (ii) to fund the Series 1997 Debt Service
Reserve Fund (as defined in the hereinafter defined Indenture), and (iii) to pay the costs of issuance of the
Series 1997 Bonds. The Series 1997 Bonds will mature, bear interest and be subject to redemption in
accordance with the provisions of the Indenture (hereinafter defined).
Section 4. The Series 1997 Bonds shall be sold to the purchaser or purchasers identified in a Bond
Purchase Agreement in substantially the form submitted to the meeting at which this Ordinance is adopted
(the "Bond Purchase Agreement "), with such changes, omissions, insertions and revisions as the Mayor, City
Clerk, and Director of Finance and Treasurer shall deem advisable, the execution and delivery by the Mayor
of such Bond Purchase Agreement to constitute conclusive evidence of the City's acceptance and approval
thereof. All actions heretofore taken by the Mayor, City Clerk, and Director of Finance and Treasurer in
connection with the offering of the Series 1997 Bonds, including the preparation of the Preliminary Official
Statement, preparation of the Indenture, and preparation of this Ordinance (the "Authorizing Ordinance ")
are hereby in all respects ratified and approved. The Mayor is hereby authorized and directed to take such
action, at such time, with respect to the Preliminary Official Statement as is necessary to cause the
Preliminary Official Statement to be 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
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Treasurer shall deem advisable is hereby authorized and approved and the Mayor or Treasurer shall sign
and deliver the final Official Statement for distribution to the owners of the bonds and other interested
persons.
Section 5. The Trustee for the Bonds (the "Trustee ") shall be identified in the Indenture, the
approval of which by the Mayor to constitute approval of the Trustee's appointment to serve in such
capacity.
Section 6. To prescribe the terms and conditions upon which the Series 1997 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 November 1, 1997 (the "Indenture ") by and among the City, the
Commission, 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
and the Commission. The Indenture is hereby approved in substantially the form submitted to this meeting,
with such changes, omissions, insertions and revisions (including, without limitation, those with respect to
the principal amount and maturities of and interest rates to be borne by the Bonds, but subject to the
limitations contained in Section 1 of this Authorizing Ordinance) as the Mayor, City Clerk, and Director
of Finance and Treasurer shall deem advisable, the execution and delivery by the Mayor and City Clerk of
such Trust Indenture to constitute conclusive evidence of the City's acceptance and approval thereof.
Section 7. 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 preparation, 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 1997 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 8. The appointment of Wright, Lindsey & Jennings as Bond Counsel is hereby approved
and ratified.
Section 9. It is hereby found and declared that an immediate need exists for the parking
improvements in order to achieve the most cost effective financing for the development of the City's
metropolitan infrastructure. 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: September 30, 1997
ATTEST:
09 _9. � , �I ,�.,s /�n r.GL.
ROBBIE HANCO K, C! Y CLERK
APPROVED:
o
J DAILEY, MAYOR
APPROVED AS TO FORM:
d
THOMAS M. CARPE
CITY ATTORNEY
g:b.n6W.065
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