HomeMy WebLinkAboutOrdinance 3224 ORDINANCE NO . 3224 ,87 F�gF��Fp
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AN ORDINANCE AUTHORIZING THE ISSUANCE OF44PILES TP4
CAPITAL IMPROVEMENT BONDS TO PROVIDE FUND$ 4yJD � A �3
PORTION OF THE COST OF ACQUIRING , CONST#{IAiSLa PQyD
EQUIPPING AN ARTS CENTER ; AUTHORIZING THE EXECUPd �j� DTI
DELIVERY OF A BOND PURCHASE AGREEMENT PROVIDING F QR
SALE OF THE BONDS ; AUTHORIZING THE EXECUTION ND
CDELIVERY OF A TRUST INDENTURE SECURING THE BONDS ;
�j PRESCRIBING MATTERS RELATED THERETO ; AND DECLARING AN
EMERGENCY
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QW WHEREAS , By Ordinance No . 3206 duly adopted by the Board of
Directors ( the " Board " ) of the City of Fayetteville , Arkansas
S ( the " City " ) on August 28 , 1986 ( the " Election Ordinance " ) ,
i
there was submitted to the qualified electors of the City the
question of issuing , under Amendment 62 to the Constitution of
Arkansas ( " Amendment 62 " ) , as implemented by Act 871 - of the
General Assembly of the State of Arkansas for the year 1985 ( the
" Act " ) , sales tax capital improvement bonds in principal amount
not to exceed $ 4 , 000 , 000 ( the " bonds " ) to provide funds to pay a
portion of the costs of acquiring , constructing and equipping an
arts center in joint venture with the University of Arkansas
( the " Project " ) ; and
WHEREAS , the Election Ordinance also provided for the pledge
of twenty percent ( 20 % ) of the City ' s portion of a one percent
( A ) local sales tax levied by Washington County , Arkansas ( the
" Sales Tax " ) to secure repayment of the bonds ; and
WHEREAS , at a special election held October 7 , 1986 , a
majority of the qualified electors of the City voting on the
question approved the issuance of the bonds and the pledging
thereto of twenty percent ( 200 ) of - the City ' s portion of the
Sales Tax ; and
WHEREAS , the City , has determined to sell and issue its
$ 3 , 770 , 000 Sales Tax Capital Improvement Bonds , Series 1986 ( the
" Bonds " ) , as permitted under Amendment 62 and the Act ; and
WHEREAS , the City has reserved in the Indenture ( hereinafter
defined ) securing the Bonds certain rights to subsequently issue
additional bonds , which with the Bonds may not exceed $ 4 , 0000000
in aggregrate principal amount , for the purpose of providing
financing to complete the Project , if necessary ; and
LIBER1209 PAGE 302
WHEREAS , the City has made arrangements for the sale of the
Bonds to A . G . Edwards & Sons , Inc . of St . Louis , Missouri ( the
" Purchaser " ) , and in connection therewith has prepared and
distributed a Preliminary Official Statement , dated October 27 ,
1986 ( the " Preliminary Official Statement " ) ; and
WHEREAS , there has been submitted to the City by the
Purchaser a Bond Purchase Agreement ( the " Bond Purchase
Agreement " ) providing for the purchase of the Bonds ; and
WHEREAS , a final Official Statement , dated November 7 , 1986 ,
( the " Official Statement " ) has been prepared and will be
distributed in connection with the offer and sale of the Bonds ;
and
WHEREAS , copies of the Preliminary Official Statement ,
Official Statement , Bond Purchase Agreement , and Indenture have
been presented to and are before the Board at this meeting .
NOW THEREFORE , BE IT ORDAINED by the Board of Directors of
the City of Fayetteville , Arkansas , that :
Section 1 . In addition to the terms defined in the preamble
to this Ordinance , the following words and terms used in this
Ordinance shall have the following meanings unless the context
clearly states another or different meaning or intent :
" County " means Washington County , Arkansas .
" Levying Ordinance " means Ordinance No . 81 - 27 adopted by the
County on June 18 , 1981 ; as amended by Ordinance No . 83 - 16
adopted by the County on May 12 , 1983 , under which a one percent.
( 1% ) local sales tax has been levied on the retail sale of goods
within the County , the collection of which tax commenced in
November of 1981 , following approval of the voters in accordance
with the laws of the State .
" Indenture " shall mean the Trust Indenture dated as of
November 151 1986 between the City and the Trustee which
provides for the issuance of the Bonds .
" Pledged Receipts " means twenty percent ( 20 % ) of all
proceeds derived by the City from its portion of the one percent
( 1 % ) local sales tax levied by the County pursuant to the
Levying Ordinance .
" Project " means the capital improvement project of the City
consisting of a new arts center to be acquired , constructed and
equipped in part with proceeds of the Bonds as provided in the
Indenture .
" Purchaser " shall mean A . G . Edwards & Sons , Inc . , of St .
Louis , Missouri .
- 2 -
IIBER1209PAGE 303
" Trustee " means MCIlroy Bank & Trust , of Fayetteville ,
Arkansas , together with its successor and any other corporation
which may at any time be substituted in its place pursuant to
the Indenture .
Section 2 . All actions heretofore taken by the City in
connection with the offer and sale of the Bonds , including the
preparation and distribution of the Preliminary Official
Statement , the preparation of the Official Statement and
preparation of the Indenture are hereby in all respects ratified
and approved .
Section 3 . There is hereby authorized and directed the
acceptance of the offer by the Purchaser , pursuant to the Bond
Purchase Agreement , to purchase the Bonds at a price of
$ 3 , 694 , 600 ( 98 . 0 °% of the principal amount thereof ) , plus accrued
interest thereon from November 15 , 1986 to the date of delivery
thereof . The Bond Pu chase Agreement is hereby approved in
substantially the form exhibited at this meeting , and the Mayor
or the Assistant Mayor of the City is hereby authorized to
execute , acknowledge , and deliver the Bond Purchase Agreement
and the City Clerk is hereby authorized to attest the same and
to affix the seal of the City thereto . Any changes to the Bond
Purchase Agreement may be approved by any officers of the City
executing such document , their execution and delivery to
constitute conclusive evidence of such approval .
Section 4 . To provide a portion of the funds for the
acquisition , constructing , and equipping of the Project there is
hereby authorized the issuance of bonds of the City under
Amendment 62 and the Act , to be designated " City of
Fayetteville , Arkansas Sales Tax Capital Improvement Bonds ,
Series 1986 " in aggregate principal amount of $ 3 , 770 , 000 . The
Bonds shall be issued in the forms and denominations set forth
in the Indenture , shall be dated as of November 15 , 1986 , shall
be numbered as provided in the Indenture ; shall mature annually
on November 15 of each year commencing November 15 , 1987 , as set
forth in Schedule A hereto ( which schedule is incorporated
herein by this reference ) ; shall bear interest payable
semiannually on May 15 and November 15 of each year commencing
May 15 , 1987 , at the rates set forth in the Indenture and in
Schedule A hereto ; shall be subject to redemption prior to
maturity upon the terms and conditions set forth in the
Indenture ; and shall be sold to the Purchaser for the price
specified in Section 3 of this Ordinance .
Section 5 . The Bonds shall be special obligations of the
City and , except to the extent payable from bond proceeds or
moneys from the investment thereof , shall be payable solely from
Pledged Receipts received by or on behalf of the City , and
delivered to the Trustee pursuant to the Indenture . Except as
specifically provided herein and in the Indenture , the Bonds
shall not constitute a debt or liability of the City within the
meaning of any constitutional or statutory limitation .
- 3 -
LIBER 1209 PAGE 304
Section 6 . The Bonds shall be executed on behalf of the
City by the facsimile signature of the Mayor and the City Clerk
of the City , in the manner provided in the Indenture . If any of
the officers who shall have signed or sealed any of said bonds
shall cease to be such officer of the City , for bonds so signed
and delivered as have been actually authenticated by the Trustee
or delivered by the City , such bonds nevertheless shall be
deemed authenticated , issued , and delivered with the same force
and effect as though the person or persons who signed or sealed
such bonds had not ceased to be an officer or officers of the
City , or any such bonds may be signed and sealed on behalf of
the City by such persons who , at the actual date of the
execution of such bonds , shall be the proper officers of the
City , although at the nominal date of such bonds , any person so
signing and sealing shall not have been such officer of the
City .
Section 7 . The Indenture is hereby approved in
substantially the form exhibited at this meeting , and the Mayor
or the Assistant Mayor of the City is hereby authorized to
execute , acknowledge , and deliver the Indenture and the City
Clerk is hereby authorized to attest the same and to affix the
seal of the City thereto . Any changes to the Indenture may be
approved by any officers of the City executing such document ,
their execution and delivery to constitute conclusive evidence
of such approval .
Section 8 . The Board hereby approves the preparation of ,
and ratifies and confirms the use by the Purchaser of the
Preliminary Official Statement and the Official Statement , and
the Mayor or the Assistant Mayor is hereby authorized and
directed to execute and deliver the Official Statement for and
on behalf of the City .
Section 9 . Rose Law Firm , a Professional Association , of
Little Rock , Arkansas , is hereby confirmed as Bond Counsel with
respect to the issuance of the Bonds , the fees and expenses of
which firm shall be a cost of the Project .
Section 10 . The Mayor or Assistant Mayor and City Clerk of
the City are hereby empowered to execute and deliver the Bonds
and all documents , certificates , and other instruments which may
be required under the terms of the Indenture or Bond Purchase
Agreement and which are appropriate to effect the purposes of
this Ordinance .
Section 11 . All ordinances or resolutions of the City in
conflict herewith are hereby repealed to the extent of such
conflict .
Section 12 . This Ordinance is necessary for the preservation of
the health and safety of the citizens of the City , accordingly , an
emergency is hereby declared and this Ordinance shall be immediately
effective . LIBfR12nopALE305
- 4 -
Adopted this 6th day of November , 1986 .
CITY OF FAYETTEVILLE , ARKANSAS
By :
Mayor
IafTE $
f
. 5 - 119ER 1209 PAGE 306
Schedule A
$ 3 , 770 , 000
City of Fayetteville , Arkansas
Sales Tax Capital Improvement Bonds
Series 1986
Maturity Schedule
Year Rate of
November 15 Amount Interest
1987 $ 30 , 000 4 . 25 %
1988 35 , 000 4 . 75
1989 45 , 000 5 . 00
1990 50 , 000 5 . 20
1991 75 , 000 5 . 40
1992 1000000 5 . 60
1993 1000000 5 . 75
1994 125 , 000 5 . 90
1995 135 , 000 6 . 00
1996 135 , 000 6 . 15
1997 155 , 000 6 . 30
1998 170 , 000 6 . 45
1999 195 , 000 6 . 60
2000 225 , 000 6 . 75
2001 260 , 000 6 . 90
2007 11935 , 000 7 . 10
- 6 - LIBER1209PAGE307
1
CERTIFICATE OF RECORD " I, Alma Kollmeyer, Circuit Clerk and
Ex-ol F.in Reeei e:r for County,
State Of Arkansas ( Ark.iso do hcrrtby cn .ify thal this in-
City Of Fayetteville f SS slit: %v .,as Iliad for record in my office
I Suzanne as i::dicntcd hereon and the same is now
C. Ke!iile:ry, City Clerk and duly recorded r,iih the acknowledgement
Ex-Ofi'iCiO recorder for the C_ fy ,of Fayetteville, and cert:iicato thereon in Record Book and
do hereby cerilf)' that the ;ir:ne`:e=1 or fore. Page as indicated thereon.
got !] is Of record ID my off
;, ice and the same ap. IN WITNESS WHEREOF, I have hereunto
Pears in Ordi]7atlre Re50liltiOn book set my hand and affixed the seal of said
LX - VV at 7a.Qe 8� Witness my Court on the date indicated hereon.
hand and seal this ____ __play of Alma Kollmeyer
19 Circuit Clerk and
_ Ex-officio Re order
Cit Clerk and Ex-Offli 0 Recorde t "
by / r
l
Legal ilutiees
ORDINANCE NO. 3224
AN OR D INA N C E
' AUTHORIZING THE IS-
SUANCE OF SALES, TAX STATE of ARKANSAS
CAPITAL IMPROVEMENT
BONDS TO. PROVIDE es.
FUNDS TO PAY A POR'
. TION OF - THE CPST OF �, .^,•,.eau -'+�h' •1P'on,
ACQUIRING, CONSTiUC-
TING AND EQUIPPING AN
A' R T S C E N T E R j - -L rl - hereby Ceflt(V that 1
AUTHORIZING THE Ex- - ; WEST ARK 'SASTINf ES. a dally newspaper
E C U 'T I O N A N D �`���- �- .
DELIVERY OF A BOND Northwest AI'kanse5 Timet, MOB., Nov, 11, 1986 • 11A .�' rlvllcge. and being not less than four pages of
PURCHASE AGREEMENT FAYETTEVILLE, ARKANSAS a fixed place Of business and at a fixed Idallyl
PROVIDING FOR THE Legal Notices { - Legal NO11CBS of Fayetteville. County of Washington, Arkansas
SALE OF THE BONDS - '
AUTHORIZING THE EX- Section 3. There is hereby Sectmn 12. Thfs ordinance a months. circulated and distributed from an
,E C U T 1 O N 'A N D authorized and directed the isnecessary for the preser- ubscribers and readers generally of all classes
DELIVERY INDENTURE FSECURI)ST NG the acceptance
Purchaser,fha offer by varlon a the neat of and safe- Inite price for each copy, or a fixed price per
THE BONDS; PRESCRIB- the Bond Purchase Agree pursuant to accordnglflzens emerge the City, what is considered the value of the publication.
• ING MATTERS RELATED meet, to purchase the Bontls Is hereby declared and _
•THERETO; AND DECLAR- at a rid cash for thein talnciptions to t fifty percent
Price of xrinci675 ordinance snail be immedi- ' id cash for their subscriptions to the newspaper
ING AN EMERGENCY (98.0% o} the principal etely effective. p p per
, ' WHEREAS, By Ordinance amount thereof), plus aC- Adopt" this 6th day of ' zed news dealers over a period of at least six
No. 3206 duty adopted by the trued interest thereon from November, 1986. ' aper publishes an average of more than forty
Board of Directors (the November 15, 1986 to the CITYOF FAYETTEVILLE',
"Board") of the City of date of delivery thereof. The ` . ARKANSAS _
Fayetteville, Arkansas (the Bond Purchase Agreement - By: Paul R. Noland
"City") On August 28, 1986 is hereby approved lit Mayor
(the "Election Ordinance"), Substantially . The form ex- ATT9ST : gal notice hereto attached In the matter Of
there was submitted to the hibited at This meeting. and By : Susanne Kennedy
qualified electors of me CITY the Mayor or the Assistant City Clerk c _
the question of Issuing, Mayor of the City 15 hereby Schedule A J
under Amendment 62 to the authorized to execute, ac. 53,770,000 _ -
Conslltution Of Arkansas knowledge, and deliver the City of Fa"ttevllle,`
("Amendment 6Y'), as im- Bond Purchase Agreement , 'Arkansas /
plementetl by ACT 871 of the and the Clfy Clerk is hereby . Sales-Tax Capital ily issue of said newspaper for
General Assembly of the authorized . t0 attest the Improvement Bonds ' S;
State of Arkansas for the same and to affix the seal of Series 1986
Year 1985 (the "Act"), Sales the City Thereto . Any Maturity Sthedule , y
tax capital Improvement manges to the Bond Pur. Year l/Z'/t ! p lC _
bonds In
Rate of a da • of 19
Principal amount chase Agreement may be NOV. 15 Amount Interest
not to exceed S4,W0,000'(the approved by any officers of 1987 - 5 30,000 4.25%
"bonds") to Provide funds to the City executing such 194435,000 1'JS a day of 19
Pay a Portion of the costs of tlocumenT, their execution T989 45,000 5:00
acquiring, constructing and and delivery to constitute 1990 50,000 5:30
equipping an arts center in conclusive evidence Of sato 1991 75,000 5;40 day of 19 j
Joint venture with the Uni. approval. 1992 175,000 SS.AO i
verity Of 'Arkansas (the Section 60
4. To provitle a 1993 . 1001075 S:7S
"_project") ; and portion of the funds for the 1994 125,000 890 "_, n the
WHEREAS, the Election acquisition, constructing, Ives 135,000 6:75
Ordinance also provided for and equipping Of the Project 1996 135,750 6.15
the pledge of twenty Percent there is hereby authorized 1997 1$51000 6.30
(20%) of the City's portlon of the Issuance of bonds Of the 1998 170,000 6.45
a one percent 11%) local City under Amendment 62 ! 1999 . 195,000 6.60 bef0fe me n IhIS da f
safes tax levied by Washing. and the Act, to be designated 2000 '� .225,750 6A5
ton County, Arkansas (the "City of Fayetteville. 2751 , 260,000 +6,90 lI
"Sales lax") to secure Arkansas Sales Tax Capital 01 ;'' - 'l'\Aly/I/I
repayment of the bonds; and Improvement Bonds, Series ,7007 1,935,750 7.10
WHEREAS, at a special 1986" in aggregate principal
election held October 7, 1986, amount of 53,770,000. The '- -' ``" ` ! / C .Q!}
a majority Of The qualified Bonds shall be Issued in the Not Pill PubllC
electors Of the City voting on forms and denominations
the question approved the set forth in the Indenture, '
issuance of The bonds and shall be dated as of
be OMy Commission Expires:
tYPerrc of x(20%) of the CI- Numbered as provided in the
tY's portion of the Sales Tax; 'Indenture; shall mature an. `J
.add nually on November 15 of
WHEREAS, the City, has each year commenting
determined to Sell and Issue 'November 15'1 1987• as set
Its 53,770,075 Sales Tax Capi- 'forth in Schedule A hereto
tal Improvement Bonds, (which schedule is Incor- A
Series 1986 (the "Bontls"), 'Porated herein by this refer. ,
as ' permlrted under 'ence) ; shall bear interest Fees for Printing _ $ 23 ,f
Amendment 62 and the Act; "Payable semiannually on
add . -M6y 15 and November 15 of
- WHEREAS, the City has 'each year commencing May COSI Of Proof _. J
reserved in the Indenture '15, 1987, at the rates set forth
(hereinafter defined) recur- 7n the Indenture and in Total 1• '
ing the Bonds certain rights Schedule 'A hereto; shall be
to subsequently Issue adds- Subject to redemption prior
tlonal bonds, Which with the 40 maturity upon the terms
Bonds may not exceed and conditions set forth in 1
$4,000,000 in aggregrate the Indenture; and shall bel 1
principal amount, for the 'Sold to the Purchaser for thei
sur pose of fete the
Project,
price Specified to section 7 of
ing to complete the project, •P ice 5pe ante
if necessary; and Section S. The' -Bonds shall
' WHEREAS, the City has be SPecial obligations of the
made arrangements for the City and, except To the ex.
ale, of the Bonds to A.G. tent payable from bond pro,
`dwaros 8 Sons, Inc. of Sf, ceeds or moneys from the
'_Oui S, Missouri (The "Pur- investment Thereof, snail be
:haser"), 'antl In connection Payable solely from Pletlged
herewith has prepared and Receipts received by or on
listributed a Preliminary behalf of the City, and
)fficl8l Statement, dated delivered 10 the Trustee pur-
300ber 27, 1986 (the "Pre. scant To The Indenture. Ex-
iminary official state- sept assProvided - — - — _- -
�_ c��Ica�lY .
r:•M E KNSA& lKeie` �. • Dods shall not con-
beetl' submitted to the City stltute a debt or IIabllity of '
by the Purchaser a Bond the-City within the meaning
Purchase Agreement (the of any constitutional or stat-
"Bond Purchase • Agree- ,u tory limitation.
- ment") providing for the Section 6. The Bonds shalt
purchase of the Bonds; and be executed on behalf 044he
WHEREAS, a final Of. City by the facsimile
ficial Statement, dated signature of the Mayor ,and
November 7, 1986, (the "Of- the City Clerk of the City, in
ficial Statemem") has been the manner provided in the
Prepared and will be Indenture. If any of the of-
distributed In connection fleets who shall have signed
with the offer and sale of the or sealed any of said bonds
Bonds; and I • shall cease to be such officer
- WHEREAS, copies of the of the City, for* bondsso
Preliminary Official State. - signed and del lvbred as have -
ment, Official Statement, been actually authenticated
Bond Purchase Agreement, . by the Trustee or delivered
and Indenture have- been - by the `C1ty,: such bonds
presented to and are before nevertheless shall be deem-
the Board atthismeeting. . . ad authenticated, Issued,
NOW THEREFORE, BE and delivered with the same
I7 'ORDAINED by the Board force and effect as through'
of Directors of the City of the person or persons who
Fayetteville, Arkansas, signed or sealed such bonds
that: . I, had not ceased to be an of-
Section 1. In addition to ' ficer or officers of the City,
the • terms defined in the or any such bonds may be -
preamble to this Ordinance, signed and sealed on behalf
the following words and of the City by-such persons
terms used In this Ordinance who, at the actual date of the
shall have the following execution of- such bonds,
meanings unless the context shall be the proper officers
clearly states another or dif- of the City, although at the
terent meaning oeintent: nominal date of such bonds; )
"County" means Wash. any person so•signing and -
IngtonCounly, Arkansas. sealing shall not have been
" Levying Ordinance" such officer of the City. 1
means Ordinance No. 81.77 Section 7. The Indenture is ( ',•,
adopted by the County on hereby approved in substan- ' )
June 18, 1981, as amen ad by tially the form exhibited at
Ordinance No. 83.16 atlopted this Meeting, and the Mayor
by the County on May 17, or.the Assistant Mayor of the
1983, under which a one per. City Is-hereby authorized to
cent ( 1%) local sales tax has execute; acknowledge, and
been levied on the retail sale deliver the Indenture and
Of goods within the County, the City Clerk Is hereby
the collection of which tax authorized to attest the
commenced In November of same and to affix the seal of
1981, following approval of the City theretos Any
the Voters In accordance changes to the Indenture
with the laws of The State. ,may be approved by any of-
"Indenture" shall mean 'ficers of the City executing
the Trust Indenture dated as 'such document, their execu-
of November 15, 1986 be- '-tion and delivery to con.
tween -the City and the -stltute conclusive evidence
Trustee which provides for ' Of such approval.
the issuance of the Bonds. Section 8. The Board
" Pledged Receipts " .hereby approves the
means twenty percent (70%) ' preparation of, and ratifies
Of all proceeds derived by" and confirms the use by the
the City from Its Portion of 'Purchaser of the Preliml-
the one percent (1%) local 'nary Official Statement and !
sales tax levied by the Coun- -the Official Statement, and
ty Pursuant to the Levying 'the Mayor or the Assistant
Ocdinaece. 'Mayor is hereby authorized
"'Protect",means the capi. and directed to execute and
tal Improvement protect of 'deliver the Official State-
the City consisting of a new -meet for and.on behalf of the
arts center to be acquired, 'City.
constructed and equipped In Section 9. Rose Law Firm,
Part with proceeds of the a Professional Association,
Bonds as provided in the In. of Little Rock, Arkansas, is
denture. hereby confirmed as Bond
"Purchaser" shall mean Counsel with respect to the
A. G. Edwards 6 Sons, Inc., Issuance of the Bonds, the
Of St. Louts, Missouri. ' • fees and expenses of which
"Trustee" means Mcitroy firm shall be a cost of the
Bank 8 ' Trust, of Fayet. Project.
teville, Arkansas, together Section 10. The Mayor or
with Its successor and any Assistant Mayor and City
other corporation which Clerk of the City are hereby
may at any time be empowered to execute and
'Substituted In Its place pur. deliver the Bonds and all
suant to the Indenture. documents, certificates, and
Section 7. All actions other Instruments which .
heretofore taken by the City may be required under the
in connection with the offer terms of the Indenture or
and sale Of the Bonds, in. Bond Purchase Agreement '
eluding the preparation and and Which are appropriate
distribution of the Preliml- to effect the purposes of this
nary Official Statement, the Ordinance.
Preparation of the Official Section 11. All ordinances
. Statement and preparation or resolutions of the City In
Of the Indenture are hereby conflict herewith are hereby
In all. respects ratified and repeated to the extent of
approved. such conflict.
