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HomeMy WebLinkAbout18688• • 1 ORDINANCE NO. 18,688 2 AN ORDINANCE TO CALL AND SET THE DATE FOR A SPECIAL 3 ELECTION TO REFER TO A VOTE OF THE PEOPLE THE QUESTION OF 4 WHETHER TO ISSUE CAPITAL IMPROVEMENT REVENUE BONDS 5 UNDER THE ARKANSAS CONSTITUTION, AMENDMENT 65, AND THE 6 PUBLIC FACILITIES BOARDS ACT TO FINANCE CAPITAL IMPROVE- 7 MENTS OF A PUBLIC NATURE FOR HOTEL PURPOSES; TO PRESCRIBE s OTHER MATTERS THAT PERTAIN THERETO; TO DECLARE AN 9 EMERGENCY; AND FOR OTHER PURPOSES. 10 WHEREAS, HLR LLC, an Arkansas limited liability company (the "Company "), 11 owns a hotel and related facilities located at 925 South University Avenue, Little Rock, 12 Arkansas, and intends to undertake substantial improvements to the hotel (the 'Project'); 13 and 14 WHEREAS, the City of Little Rock, Arkansas Residential Housing and Public 15 Facilities Board is a public facilities board duly organized and acting pursuant to the Public 16 Facilities Boards Act, and has committed to issue its revenue bonds in the principal amount 17 of $19,000,000 and make the proceeds available for the financing of the Project and to pay 1s costs incurred in connection therewith, subject to approval by the voters in the City; and 19 WHEREAS, these bonds will be repaid from rents and other monies generated by the 20 project, or from other legal sources, but will not be repaid from tax receipts or other 21 revenues of the City of Little Rock, Arkansas; and, 22 WHEREAS, the Public Facilities Board has determined that the issuance of bonds for 23 the Project will be in the public interest and will promote the general health and welfare of 24 the inhabitants of the City and adjacent areas; and 25 WHEREAS, the Board of Directors of the City of Little Rock, Arkansas, has received 26 the Urban Land Institute's report on the University Corridor, which demonstrates that there 27 exists in the City a need for capital improvements in the University Corridor area of the City, 28 and the Board of Directors has determined that the Project is located in this area and that the 29 accomplishment of the Project will benefit the economic vitality of the University Corridor 30 area; and [PAGE I OF 41 o.di..:., , Election f., HLR, LLC Revenue bonds 0 0 1 WHEREAS, Amendment 65 to the Arkansas Constitution prohibits the issuance of 2 the Bonds to finance the cost of the Project without the consent of a majority of qualified 3 electors voting on the question at an election held in accordance with state law; and 4 WHEREAS, the purpose of this Ordinance is to submit to the electors of the City the 5 question of approving the issuance of the Bonds at a special election called for that purpose, 6 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF 7 THE CITY OF LITTLE ROCK, ARKANSAS THAT: 8 Section 1. There be, and there is hereby, called a special election to be held on 9 Tuesday, July 9, 2002, at which election there shall be submitted to the electors of the City the 10 question of issuing Capital Improvement Revenue Bonds by the Public Facilities Board in the 11 principal amount of $19,000,000. Neither the State of Arkansas nor any political subdivision 12 or agency of the State of Arkansas, including the City, shall be obligated to pay the Bonds or 13 the interest thereon, and neither the faith and credit nor the taxing power nor any revenues 14 of the State of Arkansas, the City, or any other political subdivision or agency thereof is 15 pledged to the payment of principal or interest on the Bonds. The Project shall not be exempt 16 from property taxation. 17 Section 2. The question shall be placed on the ballot for the election in substantially 18 the following form: 19 A proposal to issue capital improvement revenue bonds under the Arkansas 20 Constitution, Amendment 65, and the Public Facilities Boards Act in the principal 21 amount of $19,000,000 to finance the cost of capital improvements to the hotel 22 and related facilities located at 925 South University Avenue, Little Rock, 23 Arkansas. No revenues of the State of Arkansas, the City of Little Rock, or any 24 other political subdivision shall be used to pay the revenue bonds. The hotel shall 25 not be exempt from property taxation. 26 FOR revenue bond issue in the principal amount of $19,000,000 for capital 27 improvements to the hotel and related facilities located at 925 South University 28 Avenue, Little Rock, Arkansas .................................................... ........... Q 29 AGAINST revenue bond issue in the principal amount of $19,000,000 for capital 30 improvements to the hotel and related facilities located at 925 South University 31 Avenue, Little Rock, Arkansas ............................... ................................ a [PAGE 2 OF 41 Orce Eledinanct for MR, LLC Revenue bonds • • 1 Section 3. The City Clerk is hereby authorized and directed to give notice of the 2 election by one publication in a newspaper having general circulation within the City not 3 less than ten days prior to the election. 4 Section 4. The election shall be held and conducted and the vote canvassed and the s results declared in the same manner provided for special municipal elections under the 6 election laws of the State as then in effect, and only qualified voters of the City shall have the 7 right to vote at the election. 8 Section 5. The results of the election shall be proclaimed by the Mayor. The 9 Proclamation shall be published one time in a newspaper having general circulation within 10 the City. The Proclamation shall advise that the results as proclaimed shall be conclusive 11 unless suit is filed in the Circuit Court in Pulaski County within 30 days after the date of 12 publication. 13 Section 6. A certified copy of this Ordinance shall be given to the Pulaski County 14 Board of Election Commissioners so that the necessary election officials and supplies may be 15 provided. 16 Section 7. All costs of this election shall be the sole and exclusive responsibility of 17 HLR, LLC, and to the extent that the City has to make any payments for the cost of this is election, any such sums shall be immediately reimbursed by HLR, LLC, upon presentment 19 of a bill for such costs by the City. 20 Section 8. Severability. In the event any title, section, paragraph, item, sentence, 21 clause, phrase, or word of this ordinance is declared or adjudged to be invalid or unconsti- 22 tutional, such declaration or adjudication shall not affect the remaining portions of the 23 ordinance which shall remain in full force and effect as if the portion so declared or 24 adjudged to be invalid or unconstitutional was not originally a part of the ordinance. 25 Section 9. Repealer. All laws, ordinances, resolutions, or parts of the same not 26 otherwise specifically repealed herein that are inconsistent with the provisions of this 27 ordinance are hereby repealed to the extent of such inconsistency 28 Section 10. Emergency Clause. The Board of Directors hereby determines that the 29 City of Little Rock is in dire need of accomplishing and providing essential capital 30 improvements in the mid -town area of the City; that an appropriate way to provide such 31 capital improvements is by the issuance of revenue bonds as authorized by the Arkansas (PAGE 3 OF 41 ordmn nee Eledion fo, HLR, LLC Revenue bands 1 2 3 4 5 6 7 8 9 10 11 12 • • Constitution, Amendment 65, and the Public Facilities Boards Act; that Amendment 65 requires the electorate to approve the issuance of bonds of this nature, even when neither City tax receipts, nor other City revenues, will be used to repay the bonds; that this election should occur as soon as possible in order to improve the economic viability of the mid -town area that this project will accomplish; and, therefore, this ordinance should be given immediate effect so that the election may be held and the essential capital improvements may be acquired, constructed, and equipped as soon as possible. Therefore, an emergency is hereby declared to exist and this ordinance being necessary for the immediate preservation of the public health, safety, and welfare shall be in full force and effect from and after its passage and approval. PASSED: May 21, 2002. ATTEST: APPROVED: 13 14 15 A istant City Clerk ataki S. Knight 16 APPROVED AS TO LEGAL FORM: 17 19 Thomas M. Carpenter, City Attorney 20 21 22 23 24 // 25 // 26 27 // 28 29 30 // 31 /// 32 // [PACE 4 OF 41 El divenm EleRion for HLR, LLC Revenve bonds 0 0 [i�ublicafion dnstructions: Publish one time in a newspaper having general circulation in City of Little Rock on or before Friday, June 28, 2002. Request newspaper to mail four original proofs of publication to Nadine Roller, 120 East Fourth Street, Little Rock, AR 72201. NOTICE OF SPECIAL ELECTION NOTICE IS HEREBY GIVEN that a special election will be held in the City of Little Rock, Arkansas, on July 9, 2002, at which there will be submitted to the qualified electors of the City the following question: A proposal to issue capital improvement revenue bonds under the Arkansas Constitution, Amendment 65, and the Public Facilities Boards Act in the principal amount of $19,000,000 to finance the cost of capital improvements to the hotel and related facilities located at 925 South University Avenue, Little Rock, Arkansas. No revenues of the State of Arkansas, the City of Little Rock, or any other political subdivision shall be used to pay the revenue bonds. The hotel shall not be exempt from property taxation. Vote on the question by placing an ' ' in one of the following squares, either for or against: FOR revenue bond issue in the principal amount of $19,000,000 for capital improvements to the hotel and related facilities located at 925 South University Avenue, Little Rock, Arkansas .....................0 AGAINST revenue bond issue in the principal amount of $19,000,000 for capital improvements to the hotel and related facilities located at 925 South University Avenue, Little Rock, Arkansas............................................................... ..............................0 The polls will be open at 7:30 a.m. and close at 7:30 p.m. at the following polling places: Precinct Ward CITY OF LITTLE ROCK, ARKANSAS By: i,ll �Glft�1 UJim Dailey, Mayor OFFICIAL BALLOT SPECIAL ELECTION IN THE CITY OF LITTLE ROCK, ARKANSAS ON JULY 9, 2002 A proposal to issue capital improvement revenue bonds under the Arkansas Constitution, Amendment 65, and the Public Facilities Boards Act in the principal amount of $19,000,000 to finance the cost of capital improvements to the hotel and related facilities located at 925 South University Avenue, Little Rock, Arkansas. No revenues of the State of Arkansas, the City of Little Rock, or any other political subdivision shall be used to pay the revenue bonds. The hotel shall not be exempt from property taxation Vote on the question by placing an ' X' in one of the following squares, either for or against: FOR revenue bond issue in the principal amount of $19,000,000 for capital improvements to the hotel and related facilities located at 925 South University Avenue, Little Rock, Arkansas .....................0 AGAINST revenue bond issue in the principal amount of $19,000,000 for capital improvements to the hotel and related facilities located at 925 South University Avenue, Little Rock, Arkansas............................................................... ..............................0 CERTIFICATE STATE OF ARKANSAS} COUNTY OF PULASKI) SS CITY OF LITTLE ROCK} I Nancy Wood, City Clerk within and for the City aforesaid, do hereby certify that the foregoing is a true and correct copy of Ordinance No. of the Ordinances of the City of Little Rock, Arkansas, entitled: `AN ORDINANCE CALLING AND SETTING A DATE FOR SPECIAL ELECTION TO REFER TO A VOTE OF THE PEOPLE THE QUESTION OF ISSUING CAPITAL IMPROVEMENT REVENUE BONDS UNDER THE ARKANSAS CONSTITUTION, AMENDMENT 65, AND THE PUBLIC FACILITIES BOARDS ACT TO FINANCE CAPITAL IMPROVEMENTS OF A PUBLIC NATURE FOR HOTEL PURPOSES; PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY." ; passed by the Little Rock Board of Directors of said City on May 21' 2001, said ordinance now appearing of record in the City Clerk's Office. IN WITNESS WHEREOF, I have hereunto set my hand and seal of office on this '79 day of pia N , 2002. Nancy od, Ci Clerk City of Little Rock, Arkansas RECEIVED PULASKI COUNTY U LOL- ELECTION COMMISSION TY� JE4 _j PEABODY HOTEL GROUP For more information, contact: Marty Belz, Chairman of the Board /CEO Peabody Hotel Group (901) 762 -5423 FOR IMMEDIATE RELEASE Peabody Hotel Group Plans $19 Million Renovation to Little Rock Hilton Proposal hinges on special election for revenue bonds LITTLE ROCK, Ark. (May 14, 2002) — A proposed $19 million renovation to the Little Rock Hilton would serve as a major investment in the revival of the University Avenue Corridor, according to Marty Belz, chairman of the board and chief executive for the Peabody Hotel Group, which would manage the property. The proposed renovation of the hotel at 925 South University Avenue adjacent to I -630 hinges on voter approval of a city ordinance that would issue capital improvement revenue bonds to finance the project. These bonds would not cost taxpayers any money or put city finances at risk. Revenues generated from the hotel itself would pay for the bonds. No property tax reductions will be granted for the hotel. "The renovation of the Little Rock Hilton will promote the revitalization of the midtown area as recommended in the Urban Land Institute Report recently commissioned by the city," Belz said. "It will also serve as another example of the Peabody Hotel Group's strong commitment to economic growth in Central Arkansas." –More- 5118 Park Avenue, Suite 245, Memphis, Tennessee 381 t7 901.762.5400 fax. 901.762.5464 Little Rock Hilton l " May, 14 2002 Page 2 of 2 A If the City Board of Directors approves the ordinance on May 21, a citywide special election on the issuance of the bonds will be held July 9. The Peabody Hotel Group will pay for all costs of the special election. The capital improvement revenue bonds are expected to be issued by the Little Rock Residential Housing and Public Facilities Board, which was established in the late 1970s. The Public Facilities Board can issue bonds for hotels with voter approval. Bonds can be issued for other capital improvements — such as housing, hospitals, colleges or water and sewer systems — without voter approval. "After the tragedies of September 11th and the economic downturn for the travel and lodging industry which followed, private financing for a hotel project of this magnitude and in this location is not economically feasible," Belz said. "These tourism bonds, paid for by revenues from the hotel, will insure a quality hotel on the University corridor in mid -town Little Rock. The Hilton is both convenient and important to Park Plaza and University Mall, University of Arkansas at Little Rock, St. Vincent Health System, University of Arkansas for Medical Sciences, the Boys Club, the YWCA, as well as many neighborhoods. The renovations won't cost taxpayers one dime. But, without the revenue bond financing, the project won't happen." After renovation, the Hilton, which opened in December 1978, would feature 268 guest rooms, four suites, 14,000 square feet of meeting space and a full- service restaurant. The plan also calls for a remodeled lobby, a refurbished courtyard and other exterior enhancements.