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2003827646
83/25/2883 81:13:41 RN
Filed 8 Recorded in
Official Records of
CAROLYN STALEY
ORDINANCE NO. 18,845 PULASKI COMM
CIRCUIT /COUNTY CLERK
Fees $14.08
AN ORDINANCE TO ESTABLISH A PROCEDURE FOR NOTIFICATION
OF THE LITTLE ROCK SCHOOL DISTRICT PRIOR TO THE ISSUANCE
OF INDUSTRIAL DEVELOPMENT REVENUE BONDS; TO DECLARE AN
EMERGENCY; AND FOR OTHER PURPOSES.
WHEREAS, the City is authorized to attract industry and, in doing so, to use
industrial development revenue bonds as one of the means to provide incentives for the
location of such industries, and
WHEREAS, these bonds are sometimes issued with agreements for payments in
lieu of ad valorem property taxes (PILOT), and the PILOT agreements could conceivably
impact the revenue available to the local school districts, and
WHEREAS, Act 1629 of 2001 contains provisions which require at least ten (10)
days notice to the superintendents of local school districts before PILOT agreements or
commitments are made to issue industrial development revenue bonds, and to never let
an PILOT agreement be lower than thirty five percent (35 %) of what would be required if
the property were subject to ad valorem property taxes unless the Director of the
Department•of Economic Development and the Chief Fiscal Officer of the State approve a
lesser amount, and
WHEREAS, the Board of Directors of the City of Little Rock, Arkansas, in
conjunction with the Little Rock School Board, wishes to have closer cooperation and
communication in these matters than the requirements of state law,
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
o.din,nce
Notifiaeon pw,durc of school distdRS on ind.,,W revenue bond issues
[PAGE 1 OF 31
0
1 Section 1. The City Manager shall give prompt written notification to the
2 Superintendent and President of the Little Rock School District, and any other school
3 district that may be affected, of any request for the issuance of industrial development
4 revenue bonds, or the execution of a payment in lieu of taxes (PILOT) agreement, made on
5 behalf of a company located within the corporate limits of the City, or that wishes to locate
6 within the corporate limits of the City.
7 Section 2. Such notice shall outline the terms of any proposed PILOT agreement,
S and shall request a review and recommendation from the school district as to the issuance
9 of the industrial development revenue bonds, and the impact of any PILOT agreement.
10 Section 3. As a condition to the approval of the issuance of industrial
11 development revenue bonds, the City shall require any company that seeks the issuance of
12 any such bonds to contact the involved school district and to present to it information
13 relevant to the request for the issuance of such bonds.
14 Section 4. The requirements and conditions set forth in this ordinance are
15 supplemental to any and all conditions required by state law.
16 Section 5. Severability. In the event any title, section, paragraph, item, sentence,
17 clause, phrase, or word of this ordinance is declared or adjudged to be invalid or
18 unconstitutional, such declaration or adjudication shall not affect the remaining portions
19 of the ordinance which shall remain in full force and effect as if the portion so declared or
20 adjudged invalid or unconstitutional was not originally a part of the ordinance.
21 Section 6. Repealer. All resolutions, bylaws, and other matters inconsistent with
22 this resolution are hereby repealed to the extent of such inconsistency.
23 Section 7. Emergency. The issuance of industrial development revenue bonds after
24 proper consideration of the impact upon local school district, and the receipt of a recommendation
25 from the district, particularly as to the terms of any proposed PILOT payments, and the impact that
26 such payments may have on the revenues available to the school district, is essential to preserve the
[PAGE 2 OF 31
Ordinance
Notification procedure of school districts on industrial revenue bond issues
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public health, safety and welfare, an emergency is, therefore, declared to exist and this ordinance
shall be in full force and effect from and after the date of its passage.
PASSED: MARCH 18, 2003
APPROVED:
7 Nanc W004, city Clerk
8 APPROVED AS TO LEGAL FORM:
9
1 o C.6 d
11 Thomas M. Carpenter, C y Attorney
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[PAGE 3 OF 3]
ordinance
Notification procedure of school districts on industrial revenue bond issues
Jimml
liley, Mayor