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HomeMy WebLinkAbout5931 RESOLUTION NO 5,931 A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE, ON BEHALF OF THE CITY OF LITTLE ROCK, A LETTER AGREEMENT FOR THE PAY- MENT OF CERTAIN SUMS OF MONEY IN LIEU OF TAXES; AND FOR OTHER PURPOSES WHEREAS , American Falcon Service , Inc . , (hereinafter referred to as "Falcon") has submitted to the City of Little Rock, (hereinafter referred to as "City") a proposal under the terms of which it offers to make a payment of money in lieu of taxes on certain lands, buil- dings and improvements owned by the City and leased by it to Falcon , which taxes would be due if Falcon and not the City were the owner of said property; and WHEREAS , the Board of Directors finds that the said proposal is fair and reasonable and should be accepted. NOW THEREFORE , BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS . SECTION 1. The Mayor and City Clerk are hereby authorized and Idirected to execute onbehalf of the City the attached Letter Agree- ment identified as Exhibit "A" hereto and made a part hereof the same as though set out herein word for word wherein American Falcon Service , Inc . commits to make payments of money annually to the City of Little Rock in lieu of taxes on certain lands , buildings 1 and improvements owned by the City of Little Rock and leased to said American Falcon Service , Inc . under an Act 9 Revenue Bond issue project. SECTION 2 . This Resolution shall be in full force and effect from and after its adoption. ADOPTED: April 18, 1978 %elk. ":::• 11411/4j1IL" ATTEST: APPROVED: City Cler Mayor EXHIBIT "A" City of Little Rock City Hall Little Rock, Arkansas Attention: City Manager Gentlemen: The City of Little Rock, Arkansas (the "City") proposes to issue Industrial Development Revenue Bonds under the provisions of Act No. 9 of the First Extraordinary Session of the Sixty-Second General Assembly of the State of Arkansas, approved January 21 , 1960, as amended ("Act No. 9") , in an amount of $1 ,000,000 (the "Bonds") for the purpose of financing the cost of the constructing and equipping of manufacturing facilities (the "Project") on land owned by the City and under the jurisdiction of the Little Rock Airport Commission. The Bonds will be issued as Series A Bonds and will be dated April 1 , 1978, and will be in the principal amount of $1,000,000. Subsequent series, if and when authorized, sold and delivered, will rank on a parity of security with the Bonds of previously issued series of the total authorization. The Project is being leased by the City to the undersigned by a Lease and Agreement dated as of the date of the Series A Bonds, which will be recorded in the office of the Circuit Clerk and Ex Officio Recorder of Pulaski County, Arkansas (the "Lease and Agreement") . The Bonds of the City will be secured by a pledge of all revenues derived from the Project including particularly the lease rentals paid under the Lease and Agreement between the City and the undersigned and secured by a mortgage lien on and security interest in the Project. In recognition of the City's desire for additional revenues to induce the City to proceed with the issuance of the Bonds for the purpose indicated, which will inure to the benefit of the undersigned, to compensate the City for police protection, fire protection and other municipal services (for which there would be no tax payament required since the leased premises are --"e xempt from ad valorem taxes) and for other valuable considerations, the receipt of which is hereby acknowledged by the undersigned, the undersigned agrees with the City as follows: 1 . The undersigned will pay to the City (at the offices of the Director of Finance, City Hall, Little Rock, Arkansas 72201) the following amounts in lieu of taxes on the dates specified: (1) On July 1, 1978, the sum of $2,500. • . I -2- (2) On July 1, 1979, and on each subsequent July 1, the sum of $5,000; provided, however, the annual payment in lieu of taxes due July 1, 1978, and subsequent annual payments in lieu of taxes shall be adjusted to reflect changes in the Cost of Living (hereinafter defined) over the preceding three-year period. As used herein the term "Cost of Living" shall mean the changes measured by the "Consumer Price Index for Urban Wage Earners and Clerical Workers" (1967=100) published by the Bureau of Labor Statistics of the United States Department of Labor for the most recent period (the "Consumer Price Index") . If the publication of this Consumer Price Index is discontinued, comparable statistics on the Cost of Living published by an agency of the United States shall be used. The change in annual payament shall be computed as follows: (a) The Base Year is the year in which this Agreement or the immediately preceding three-year period commences, whichever is later. (b) The current year is the year in which the current three- year period commences. (c) The annual payment in lieu of taxes shall be decreased or increased by the percentage which the Consumer Price Index for the current year bears to the Consumer Price Index for the Base Year. The annual payment, as so adjusted, shall be the payment in lieu of taxes for each year of the current three-year period. (d) If and when subsequent series of bonds are authorized, sold and delivered as provided above the undersigned will negotiate with the City and enter into an appropriate additional agreement for payment in lieu of taxes on account of facilities financed from the proceeds of such subsequent series. 2. If by reason of a change in the Constitution, a change by the Supreme Court of the State of Arkansas in its interpretation of the Constitution or otherwise, the undersigned is required to pay any ad valorem taxes to the State of Arkansas, Pulaski County, the City, School Districts and/or other political subdivisions of the State of Arkansas, the undersigned may deduct the aggregate of any such payments and any interest, penalties, legal or court costs associated therewith from the amount herein agreed to be paid and need only pay the difference to the City. 3. The agreement herein made by the undersigned shall terminate and be of no further force and effect from and after the date that the Lease and Agreement shall terminate for any reason. If such termina- tion shall be at a point constituting a portion of a year, the under- signed shall pay for the year in which termination occurred that propor- tion of the specified annual payment that the number of days in such year that the undersigned was Lessee prior to the termination bears to 365 days. The reference to "year" shall mean the twelve (12) months beginning July 1 of each year and ending June 30 of the following year. J ' 4. The Agreement shall be binding upon the successors and assigns of the undersigned, but no assignment shall be effective to relieve the undersigned of any of its obligations hereunder unless expressly authorized and approved in writing by the City. If the foregoing is acceptable, please so indicate by executing the acceptance set forth below and returning one copy to the undersigned, whereupon this instrument shall constitute a valid and binding contract between the undersigned and the City. DATED AND EXECUTED THIS .211 day of -3(7.\-o.,..1.- 1-3(7.\-o.,..1.- 1 , 1972. Sincerely yours, AMERICAN FALCON SERVICE, INC. 11 " ATTEST: . By C)(3-1A431-------- // it n Title V;,t: By /!' , i V� i:t,L( i Title �� �:1A k (SEAL) ACCEPTED: CITY OF LITTLE ROCK, ARKANSAS I ATTEST: By Title Mayor By Title City Clerk (SEAL) • Nem