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HomeMy WebLinkAbout5754 RESOLUTION NO 5,754 A RESOLUTION AUTHORIZING AN AGREEMENT BETWEEN THE CITY OF LITTLE ROCK AND THE ARKANSAS STATE BOARD OF FINANCE FOR FINANCIAL ASSISTANCE IN CONSTRUCTION OF TOURIST MEETING AND ENTERTAIN- MENT FACILITIES PURSUANT TO THE PROVISIONS OF ACT 763 , ACTS OF ARKANSAS OF 1977; AND FOR OTHER PURPOSES BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS . SECTION 1. The City Manager, acting for and on behalf of the City of Little Rock, Arkansas , is hereby authorized and directed to enter into an Agreement with the State Board of Finance for financial assistance to construct tourist meeting and entertainment facilities, all pursuant to the provisions of Act 763 , Acts of Arkansas of 1977 . A copy of said Agreement is attached hereto as Exhibit "A" and made a part hereof the same as though set out herein word for word. Said agreement was duly executed by the Governor of the State of Arkansas and attested by the Secretary of State on June 23, 1977 . SECTION 2 . This Resolution shall be in full force and effect from and after its adoption. ADOPTED: July 5, 1977 ATTEST: APPROVED: City Cle Mayor A G R E E M E N T This Agreement made and entered into this �1 day of �1_44 / 19 '77 by and between the State Board of Finance, an Agency/of the State of Arkansas (hereinafter called "STATE") and the City of Little Rock, Arkansas , a city of the first class organized and existing pursuant to the laws of the State of Arkansas (hereinafter called "CITY") ; W I T N E S S E T H: WHEREAS, the 1977 General Assembly of the State of Arkansas enacted Act 763 entitled "An Act Providing For State Assistance To Cities And Counties In The Acquisition Of Tourist Meeting And Entertainment Facil- ities And For Other Purposes" , which Act authorized financial assistance to qualifying cities and counties for constructing and/or securing tourist meeting and entertainment facilities; and WHEREAS, the CITY is desirous of constructing such tourist meeting and entertainment facilities and has made appropriate application to the STATE for financial assistance for such construction, which application contained all the required information, statistical data surveys and exhibits as set out in said Act 763; and WHEREAS, the STATE, in keeping with the provisions of said Act 763 held a public hearing on June 23, 1977 on the CITY ' S application and following such public hearing made the following findings and determi- nations : a) That the tourist meeting facilities and tourist entertainment facilities as proposed by the CITY'S application are determined to be eligible facilities and the financing of such eligible facilities through a combination of General Obligation Bonds of the CITY and State assistance under said Act 763 is in the best interest of the CITY and the STATE and the application is approved. b) That the additional state sales and income tax to be derived from the tourist meeting facilities under stabilized operations is -2- estimated to be 3. 79 million dollars annually. c) That no determination or estimate is made as to the amount of additional sales and income tax to be generated by the tourist entertainment facilities, however, such facilities will generate additional sales and income tax to the State of Arkansas . d) The investment multiplier for computing additional state sales and income tax is fixed at 4X . e) That the STATE assistance shall be two-thirds (2/3) of the additional state sales and income tax revenues estimated to be gene- rated by the facilities annually, but in no case shall such exceed eighty (80%) percent of the total annual debt service on General Obli- gation Bonds issued to finance the facilities . NOW THEREFORE, THE -PARTIES HERETO MUTUALLY AGREE AS FOLLOWS: I CITY hereby covenants and agrees that it will, subject to the approval of the qualified electors , issue General Obligation Bonds for the purpose of constructing tourist meeting and entertainment facilities in the City of Little Rock . The annual debt service require- ments for the bonds shall be certified to the STATE annually by the Director of Finance of the CITY. II The STATE hereby covenants and agrees to pay to the CITY for debt service on the CITY'S General Obligation Bonds to be issued as provided in Paragraph I hereof commencing in the calendar year 1981 an amount equal to two-thirds (2/3) of the additional income tax and sales tax herein and from time to time found to be generated by said tourist meeting and entertainment facilities as described in the CITY' S appli- cation, but not more than eighty (80%) percent of the annual debt service requirements on said General Obligation Bonds . The CITY' S application for STATE assistance is attached hereto as Exhibit "A" and made a part • .. -3- hereof as though set out herein word for word. III The STATE hereby covenants and agrees that it will certify to the State Treasurer the amount of assistance to be paid CITY which the STATE has agreed to pay and direct said Treasurer to make quarterly payments to said CITY from the "City-County Tourist Facilities Aid Fund" heretofore established pursuant to the provisions of Section 5 of said Act 763. It is understood by the parties hereto that the CITY will recertify at the beginning of each two year term that this Agree- ment is extended, if any, for the STATE ' S consideration and determination, the additional sales and income tax to be generated by the said tourist meeting and entertainment facilities of the CITY during the ensuing term all for the purpose of computing the amount of STATE assistance to be paid CITY for said ensuing term. IV Payment of such assistance funds by STATE shall be made to a Trustee to be designated by the holders of the General Obligation Bonds and said Trustee shall apply all such funds received from said City-County Tourist Facilities Aid Fund to the payment or redemption of such General Obli- gation Bonds and to the payment of interest thereon. CITY covenants that any remaining funds received from STATE after retirement of said bonds shall be returned forthwith to the State Treasurer. V Payment of such funds as provided for in Section II hereof is subject to approval by and appropriation of the General Assembly of the State of Arkansas and nothing herein contained shall be construed to be a demand of the General Assembly to make any appropriation pursuant to said Act 763 or to prohibit the General Assembly from amending or repealing the Act at any time. VI The term of this Agreement shall be for two years commencing January 1, 1981, but subject to approval of the General Assembly, • -4- may be extended from time to time for additional terms , which additional terms shall not exceed two years each . THIS AGREEMENT executed in duplicate originals this rY day of p 19 C)I / / 7 STATE BOARD OF FI NCE BY -1,N-elt (x)17, , A TEST: 2 CITY OF LITTLE ROCK, ARKANSAS ATTEST: tnt ct. 2 �. y�►.�