HomeMy WebLinkAboutOrdinance 3920 ORDINANCE NO. 3920
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF HOTEL AND
RESTAURANT GROSS RECEIPTS TAX REFUNDING BONDS, SERIES
19959 BY THE CITY OF FAYEITEVILLE, ARKANSAS FOR THE
PURPOSE OF REFUNDING THE CITY'S OUTSTANDING CONTINUING
EDUCATION CENTER REVENUE BONDS, SERIES 1979;
AUTHORIZING THE SALE OF THE SERIES 1995 BONDS AND
PROVIDING FOR PARITY BONDS; PROVIDING FOR THE PAYMENT
OF THE PRINCIPAL OF AND PREMIUM, IF ANY, AND INTEREST ON
THE SERIES 1995 BONDS; ESTABLISHING THE PRINCIPAL
MATURITIES, INTEREST RATES AND PRICE OF THE SERIES 1995
BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS , the City of Fayetteville, Arkansas (the "City") owns convention facilities
known as the Continuing Education Center (the "Convention Facilities") which are leased to the
Board of Trustees of the University of Arkansas; and
WHEREAS, under the authority of Ordinance No. 2310, duly adopted and passed
March 1 , 1977, as amended by Ordinance No. 2315 , approved on March 15 , 1977, the City
established a City Advertising and Promotion Commission (the "Commission") and levied a tax
upon the gross receipts of hotels, motels, restaurants, cafes, cafeterias and other establishments
selling food for on-premises consumption in the City pursuant to Act No. 185 of 1965 , as
amended ("Act No. 185 "); and
WHEREAS, the City issued its Continuing Education Center Revenue Bonds, Series
1979 (the " 1979 Bonds"), under the authority of Act No. 185 and Act No. 380 of 1971 ("Act
No. 380") and particularly under Ordinance No. 2567 of the City, duly adopted and passed
October 22, 1979 , of which $3, 165 ,000 principal amount is outstanding prior to October 1 ,
1995 ; and
WHEREAS , the Commission has recommended to the City Council of the City, and the
City Council has determined, that in order to achieve debt service savings, it is in the best
interest of the City to refund the outstanding 1979 Bonds; and
WHEREAS, the City is authorized under the Advertising and Promotion Commission
Act, Ark. Code Ann. (1987 & Supp. 1993) §§26-75-601 through 618, as amended (the "Act")
and the City-County Tourist Meeting and Entertainment Facilities Assistance Law, Ark. Code
Ann. ( 1987 & Supp. 1993) §§ 14- 171-201 through 217, as amended (the "Tumback Law") to
issue and sell revenue bonds for the purpose of refunding the 1979 Bonds; and
.t - - . ! amount is ousslandmg prior to defeasance of the 1979 Bonds 1995 Bands of the Prehmmary
' October 1, 1995; and and for their redemption on Official Statement in substan.
n October 1; 1995.
WHEREAS, the Commission tially the form exhibited at -
has recommended to the City Section 2. Issuance and ( thistheCity(describing the City,
Council of the City, and the. Sale ' of Series 1995 the Commission. the Conven-
. City Council has determined. Bonds. That under the au- lion Facilities, the Series
that in order to achieve debt thority of the Constitution .and 1995 Bontls, and the Indenture
service savings, it is in the laws of the Stale of Arkansas, 'and setting tooth such other
best interest o is the ing to re- ; including particularly the Act information as may be deter-
Bonds;
the outstanding 1979 and the Turnback Law. City of informineti be necessary or lie-
_ Bonds; and . Fayetteville, Arkansas Hotel sirable. CQ ��yy
and
urant Gross Re.
OpDINANCE NO. 3920 ' "WHEREAS, the Adve ti au- ceipts Tax aRefuntl ng Bonds, Section 5. Trust lnden. R E C E I V E M
Ihorizetl under the Advertising Series 1995, are hereby au tura. That to Prescribe the
AN ' ORDINANCE PRO. and Promotion Commission Ihorized in the total principal lerms`and conditions upon
VIDIND FOR THE IS. Act, Ark. Code Ann. ( 1987 8 amount of $2,675,000; the which the Series 1995 Bonds r ' 995
SUANCE OF HOTEL AND SuPP 1993) §§26-75-75-601 .S
e executed authenti.
RESTAURANT GROSS through 618, as amended (the are necessary i 10 provide softy cat d,are to ssued,accepted heltl, _ _ f,' 95
RECEIPTS TAX REFUND- Act ) and the City-County tient funds, together with oth- and secured, the Mayor is F� MANCE DEPh
IN G ' BONDS, . SERIES Tourist Meeting and Enter- er funds available, to pay the hereby authorized and direct-
19951 BY THE CITY OF tainment Facilities Assis- cost of accomplishing the re- ed to execute and acknowl-
FAYETTEVILLE, ARKAN. tante Law, Ark. Code Ann. funding of the9979 Bontls; as-. edge a Trust Indenture by and
. SAS FOR THE PURPOSE ( 1987 8 Supp. 1993) §§i4- lablish a debt service reserve between the City and Bank of
OF REFUNDING THE 171 -201 through 217, as for the Series 1995 .Bonds; Oklahoma N.A., as Trustee.
CITY'S OUTSTANDING amended (the Turnback Law) and pay the costs of issuing
' 'and the City Clerk is hereby
CONTINUING EDUCA. to issue antl sell revenue the $arias 1995 Bonds. The authorized land Jerk is to ex-
' TION CENTER REVENUE bonds for the purpose of re- Series 1995 Bonds shall be ecule and acknowledge the STATE OF ARKANSAS l
' BONDS, SERIES 1979; funtling the 1979 Bonds; and sold to Llama Company (the; Indenture antl to affix the seal
OF TH t21ND THE SALE 'Purchaser') pursuant to the In the City theretoffi and she ss.
AU THE SERIES SALE WHEREAS, to secure funds terms and conditions of a Mayor. and City Clerk..are County of Washington
BONDS AND PROVIDING necessary (together with the Bond Purchase Agreement in hereby authorized and direct-
FOR PARITY BONDS; moneys in the bond fund and substantially the form exhibit- etl to cause the Indenture to �I (�
' PROVIDING FOR THE bond reserve fund established ,etl at this ,meeting, upon the , be accepted, executed. and �n7 `` "n� Co
PAYMENT OF THE PRIN• and maintained for the 1979 terms and conditions set forth acknowletlged by the Trustee: I
CIPAL OF AND PpEMI• Bonds) to refund the 19ve therein. The Mayor is hereby The Indenture is hereby ap- iffy that I am the publisher of THE NORTHWEST ARKANSAS
UM, IF ANY, AND INTER. Bunds to establish a reserve authorized to execute the proved in substantially the newspaper having a sewed class mailing privilege, and being not less lh
EST ON THE SERIES fund and to finance the print- Bond Purchase Agreement on form submitted substantially
to This lythe
1995 BONDS; ESTAB. ing, legal, underwriting, and behalf of the City, an execul- ing, including, without limits.most. five columns each, published at a fixed place of business and at a fixed
LISHING THE PRINCI• other costs incidental to the be copy of which shall ee tiled tion, the
PAL MATURITIES, IN. issuance of revenue bonds for with the permanent records of denture Provisions of the In- continuously in (lie City of Fayetteville, County of Washington, Arkansi
TEREST RATES AND this purpose, the City has lie- the City. pertaining to the aperiod of twelve months, circulated and distributed from an established
PRICE OF THE SERIES ter me to issue refunding maintenance of the City's Ho- to subscribers and readers generally of all classes in the City and County to
1995 BONDS; PRESCRIB- revenue bonds in an ag- Section 3. Details of Ser- ' tel and Restaurant Gross Re-
ING OTHER MATTERS cei Is Tax at the rate of not for each copy, or a fixed price per annum, which price was fixed at what
gregale principal amount of 108..1995 Bonds. That the ,.less than 1 %, the operation of
RELATING THERETO; $2.675.000 Hotel and Restau. Series 1995 Bonds shall ma. the Convention Facilities, the value of the publication, based upon the news value and service value it
AND DECLARING AN rand nant soss Receipts Tax Re- lure on October 1 of the years deposit and handling of reve- least fifty percent of the subscribers thereto have paid cash for ti1c'fr sub
EMERGENCY. g Bonds. Series 1995 1996 through 2004, inclusive, nues, and the terms of the Ser- newspaper or its agents or through recognized news dealers over a peri
(the 'Series 1995 Bonds); and in the amounts, shall bear in- ies 1995 Bonds. The Mayor is
WHEREAS, the City of latest payable semiannually hereby authorized to center months; and that die said newspaper publishes an average of more than fo
Fayetteville, Arkansas (the WHEREAS, the City has de- 'on April Rand October 1 of with the Trustee and others in
City') owns convention facto- lermined to issue the Series each yeari commencing April order to complete the Inden- matter.
ties known as tl� Continuing 1995 Bonds under and pursu. 1, 1996, at the rales, and shall ture and to execute and deliv.
Educalion Center (the 'Con- ant to a Trust Indenture to be be sold at the Prices all as set ' er the same on behalf of the I further certify that the legal notice hereto attached in
venlion Facilities') which are dated as of September 1 , 1995. forth below;
leased to the Board of Trus- (the 'Indenture') by and bet- Date (October 1 ) 1996...Prin. City in substantially the form - ��
lees of the University of ween the City and Bank of Ok- cipal Amount' $245,000...Cou- Presentwith d 10 this
sanges as shall be
Arkansas; and lahoma N.A. , Tulsa, Oklaho- Pon 4,250%...Yield 100.00% approved by him, his execu-
ma, as Trustee (the 'Trustee"), Date (October 1 ) 1997.,.Prin- • tion to constitute conclusive
WHEREAS, ' under the au. a farm of which has been pre. cipal Amount $255.0()0...Cou- evidence Of such a was published in ti1e regular daily issue of said newspaper for
thority of Ordinance No. 2310. sented to and is before this Pon 4.500%.,.Yield 100.00% approval.
duly adopted. and meeting; and - - consecutive insertions as follows:
March t , 1977. 3 amended. apro by cipal (October
$2651998 Prin- Section 6..000.�.Cou- Delivery of Docuiments.
Ordinance No. 2315, approved WHEREAS, a form of Pre- pon 4.750%...yield 100.00% That the Mayor and the City The first insertion on the VO day
on March 15, 1977, the City ltha ary Ofli tial Stalemant Date (October 1 ) 1999...Prin- Clerk are hereby authorized
established a C tCommissing (the 'Pre;mi naryg the
cipal Amount $280,000...Cou- and directed to do any and all
and Pro Statement' offetin pon 4900% Yield 100.00% g Y
(the 'Commission') and levietl res 1995 Bontls for sale has Date (October 1 ) 2000...Prin- things necessary to effect the the second insertion On the day
a tax upon the gross receipts been presented to and is be- cipal Amount $295.000...Cor. execution and delivery of the
of hotels; motels, restaurants, fore this meeting. .000% Bond Purchase Agreement,
Pon (Octo ...Yield 100.00% the Indenture, the instructions the third insertion on the day
cafes, cafeterias and other Date (October 1 ) 2001 ...Prin- 1° the Trustee for the Series
establishments selling tiotl NOW, THEREFORE, BE IT cipal Amount $310,000...Cou- 1979 Bonds. and a Tax Regu-
1 lor on'premises consumption Cou0A1of the Cit the City pon 5. 100%...Yield 100.00% )story Agreement providing for and the fourth insertion on the day
the City pursuant to d ( No. y of Fayette- Date (October 1 ) 2002...Prin- the exclusion of interest on
18518 1965, as amended ('Act villa, Arkansas: cipal Amount $325,000...Cou- the Series 1995 Bonds from
No. 185');'.antl pon 5 150%.-Yield 100.00% federal income taxation, and
Section 1 . Refunding of Date (October 1 ) 2003...Prin- the performance of all obland
its C EAS, the City issued 1878 It
Authorized. cipal Amount $340.000...Cou- tions performance
the Citynee under each
its Continuing Education Bonds bther Ccefunconng 0i the 1979 pun 5.200%.).Yield 100.00% such agreement. the issuance,
Center Revenue Bontls, Series pshed. The Dale (October 1 ) 2004...Prin- execution, sale, and delivery
1979 (the '1979 Bands'), un- Mayor antl Cily Clerk are cipal Amount $360.000...Cou- of the Series 1995 Bontls, the -Pdbhs
der the authority of Act No. hereby authorizetl to lake or pon 5.250%...Yield 100.00% distribution of the Preliminary
185 and Act No. 380 or 1971 cause to be taken all action
necessary to accomplish y Official S Statement and e p 1-
('Acl No. 380') and particular- Y plish the Section 6. Preliminary ficial Statement and the er-
ly antler of
No. 2567 refunding and to execute all Official Statement. Thal lormance of all acts of wha-
of the Cily, duly adopted antl required documents• includ- there is•hereby authorized the lever nature necessary to el-
passed of
22, 1979, of ing without limitation instruc. preparation and distribution lett and carry out the aulhori.
which $3165,000 principal lions to the Trustee for the to various prospective and ac. ty conferred hereby.
1979 Bonds providing for the dual purchasers of the Series -
Section 7. Taz'Exempt
,. Obligations. The Series such holtling shall root affect
1995 Bonds are hereby desig. the valitlily of the remainder
nated as a *Qualified Tax-Ex- of this ortlinance. .
I empl Obligation' within the " .°
meaning of Section 265(b)(3) Section , l2. Conflicts Re.
n - • of the Internal ,Revenue Code pealed, That all ordinances Swom to and subscribed before me on this
Of 1986, as amended (the andparfs of ordinances in .
'Code'). The City represents conflict herewith are hereby
that the aggregate Principal repealed to the extent of such /)')'� 1—( A 14 J
amount of its Qualified Tax- conflict -
Exempt Obligations (exclud-
. . ing 'Private Activity Bonds' Section ere Emergency. .,
within the meaning of Section That it is hereby ascertained
141 0l the Code which are not and
declared 'that the refund
'Qualilietl 501(c)(3) Bonds' ing must be accomplished as
within the meaning of Section soon as possible in order to
145 of the Code), including lower the interest cost on obli-
I : those of its subordinate anti. gations payable from reve- My Commission Expires:
'. ties, issued in calendar year; nues of the Hotel and Restau-
1995 is not expected;. to 9lrant Gross Receipts Tax with
,, exceed $10,000,000,`1 `�5..1'the resulting saving beingavaila
' Section. S. Clerli File{•Commssionle /or tourithe sm ac8v.
. . o Ocuments.:7hat the Cit ,ities 'adequate for the needs
YS
I Clerk is hereby authorized. of the City and its inhabitants,
and directed to file in the of-., without which the life, health, Fees for Printing $ ✓i7(U ' ` V
. . tics of the City Clerk as a part safety, and welfare thereof are
Of the minutes of the meetings
at which this Ordmance, iisi fundng scan,benaccomplshetl d that the re. Cost of proof $
adopted. for inspection by:anyt;on)y by the issuance of, the
interested person a copy of4gSeries ' 1995 Bonds. It is, ' Total $
the Bond Purchase. Agree-KthereforeJ,dedlared that an
oi
mens the Indenture and!theemergency'exists and Ihis.Or-
. Prebminary Olbctal State-iidmancebeing'necessaryfor
ment in,lhe.forms preserole dto5rflhe;inlmetllate ,preservation of
�rIng. C. L,'Cy I th,�Im . Qttthaipublic•psees. health. and i
safety'. shall lake effect and be .
Section B. Powerarof Bntorced from and after its
_ , Commission. That the Pow-r4 Passage.
era and authority, of the Cm '
mission under the Act andahe Atlppled: August 29 1995 - -
. Turnback Lew antl prior ortli- .nances of the .gppROVED.
lions of;ihe:C mlmissioan n taken )Fred B:,Hanrta Jr,t Mayor
or to be .taken thereunder with ATTEST'
:
respect lo ,the SOriesS.1995 . ha el Paul, City Clerk •
Bonds,. are .hereby. ralified; 1 -
,00nfirmad, and continuetl.. - - -
1 Section to."
No Rights -
DoIII Serleerif ,Bonds
De livered.lThetilhis. Ortli=
nance shall.'noI create any
I right of any kindantl no right
' of any kind shalfarise herif
eu
liar or PursuanYhereI until
- the Seriesh995- Bontls .author- _
' bed by this Ortlinance shall '-
- be issued and delivered.: ', _ -
Section 11, Severablllty .'i
"'-That the provisions of thls Or•y
„udinar(.9 are ,hereby)decllill .
- to vi seperatil§fend II eny"��,
proviswn shall for any re"9sdrtlzFi
ba held 111egal'.,o .+ q•n.,,
ord • 39 : 0
- - ilk
-i7g4/
i
WHEREAS , to secure funds necessary (together with the moneys in the bond fund and
bond reserve fund established and maintained for the 1979 Bonds) to refund the 1979 Bonds to
establish a reserve fund and to finance the printing, legal, underwriting, and other costs
incidental to the issuance of revenue bonds for this purpose, the City has determined to issue
refunding revenue bonds in an aggregate principal amount of $2 ,675 ,000 Hotel and Restaurant
Gross Receipts Tax Refunding Bonds, Series 1995 (the "Series 1995 Bonds"); and
WHEREAS, the City has determined to issue the Series 1995 Bonds under and pursuant
to a Trust Indenture to be dated as of September 1 , 1995 (the "Indenture") by and between the
City and Bank of Oklahoma N.A. , Tulsa, Oklahoma, as Trustee (the "Trustee") , a form of
which has been presented to and is before this meeting; and
WHEREAS , a form of Preliminary Official Statement (the "Preliminary Official
Statement") offering the Series 1995 Bonds for sale has been presented to and is before this
meeting.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of
Fayetteville, Arkansas:
Section 1. Refunding of 1979 Bonds Authorized. That the refunding of the 1979
Bonds be accomplished. The Mayor and City Clerk are hereby authorized to take or cause to
be taken all action necessary to accomplish the refunding and to execute all required documents,
including without limitation instructions to the Trustee for the 1979 Bonds providing for the
defeasance of the 1979 Bonds and for their redemption on October 1 , 1995 .
Section 2. Issuance and Sale of Series 1995 Bonds. That under the authority of the
Constitution and laws of the State of Arkansas, including particularly the Act and the Turnback
Law, City of Fayetteville, Arkansas Hotel and Restaurant Gross Receipts Tax Refunding Bonds,
Series 1995 , are hereby authorized in the total principal amount of $2,675 ,000, the proceeds of
the sale of which are necessary to provide sufficient funds, together with other funds available,
to pay the cost of accomplishing the refunding of the 1979 Bonds, establish a debt service
reserve for the Series 1995 Bonds, and pay the costs of issuing the Series 1995 Bonds. The
Series 1995 Bonds shall be sold to Llama Company (the 'Purchaser") pursuant to the terms and
conditions of a Bond Purchase Agreement in substantially the form exhibited at this meeting,
upon the terms and conditions set forth therein. The Mayor is hereby authorized to execute the
Bond Purchase Agreement on behalf of the City, an executed copy of which shall be filed with
the permanent records of the City.
Section 3. Details of Series 1995 Bonds. That the Series 1995 Bonds shall mature
on October 1 of the years 1996 through 2004, inclusive, in the amounts, shall bear interest
payable semiannually on April 1 and October 1 of each year, commencing April 1 , 1996, at the
rates, and shall be sold at the prices all as set forth below:
-2-
Date Principal
(October 1) Amount Coup n Yield
1996 $ 2459000 4.250% 100.00 %
1997 255 ,000 4.500 100.00
1998 2652000 4.750 100.00
1999 280,000 4.900 100.00
2000 295 ,000 5.000 100.00
2001 310,000 5 . 100 100.00
2002 325 ,000 5 . 150 100.00
2003 340,000 5 .200 100.00
2004 3609000 5 .250 100.00
Section 4. Preliminary Official Statement. That there is hereby authorized the
preparation and distribution to various prospective and actual purchasers of the Series 1995
Bonds of the Preliminary Official Statement in substantially the form exhibited at this meeting,
in the name of the City, describing the City, the Commission, the Convention Facilities, the
Series 1995 Bonds, and the Indenture and setting forth such other information as may be
determined to be necessary or desirable.
Section 5. Trust Indenture. That to prescribe the terms and conditions upon which
the Series 1995 Bonds are to be executed, authenticated, issued, accepted, held , and secured,
the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture by
and between the City and Bank of Oklahoma N.A. , as Trustee, and the City Clerk is hereby
authorized and directed to execute and acknowledge the Indenture and to affix the seal of the
City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the
Indenture to be accepted, executed, and acknowledged by the Trustee. The Indenture is hereby
approved in substantially the form submitted to this meeting, including , without limitation, the
provisions of the Indenture pertaining to the maintenance of the City's Hotel and Restaurant
Gross Receipts Tax at the rate of not less than 1 % , the operation of the Convention Facilities,
the deposit and handling of revenues, and the terms of the Series 1995 Bonds. The Mayor is
hereby authorized to confer with the Trustee and others in order to complete the Indenture and
to execute and deliver the same on behalf of the City in substantially the form presented to this
meeting, with such changes as shall be approved by him, his execution to constitute conclusive
evidence of such approval.
Section 6. Execution and Delivery of Documents. That the Mayor and the City
Clerk are hereby authorized and directed to do any and all things necessary to effect the
execution and delivery of the Bond Purchase Agreement, the Indenture, the instructions to the
Trustee for the Series 1979 Bonds, and a Tax Regulatory Agreement providing for the exclusion
of interest on the Series 1995 Bonds from federal income taxation , and the performance of all
obligations of the City under each such agreement, the issuance, execution, sale, and delivery
of the Series 1995 Bonds, the distribution of the Preliminary Official Statement and an Official
-3.
Statement, and the performance of all acts of whatever nature necessary to effect and carry out
the authority conferred hereby.
Section 7. Tax-Exempt Obligations. The Series 1995 Bonds are hereby designated
as a "Qualified Tax-Exempt Obligation" within the meaning of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended (the "Code") . The City represents that the aggregate
principal amount of its Qualified Tax-Exempt Obligations (excluding "Private Activity Bonds"
within the meaning of Section 141 of the Code which are not "Qualified 501(c)(3) Bonds" within
the meaning of Section 145 of the Code), including those of its subordinate entities, issued in
calendar year 1995 is not expected to exceed $ 10,000,000.
Section 8. Clerk to File Documents. That the City Clerk is hereby authorized and
directed to file in the office of the City Clerk, as a part of the minutes of the meetings at which
this Ordinance is adopted, for inspection by any interested person , a copy of the Bond Purchase
Agreement, the Indenture, and the Preliminary Official Statement in the forms presented to the
City Council at this meeting.
Section 9. Powers of Commission. That the powers and authority of the Commission
under the Act and the Turnback Law and prior ordinances of the City and all actions of the
Commission taken or to be taken thereunder with respect to the Series 1995 Bonds, are hereby
ratified, confirmed, and continued.
Section 10. No Rights Until Series 1995 Bonds Delivered. That this Ordinance shall
not create any right of any kind and no right of any kind shall arise hereunder or pursuant hereto
until the Series 1995 Bonds authorized by this Ordinance shall be issued and delivered.
Section 11. Severability. That the provisions of this Ordinance are hereby declared
to be separable and if any provision shall for any reason be held illegal or invalid, such holding
shall not affect the validity of the remainder of this Ordinance.
Section 12. Conflicts Repealed. That all ordinances and parts of ordinances in
conflict herewith are hereby repealed to the extent of such conflict.
Section 13. Emergency. That it is hereby ascertained and declared that the refunding
must be accomplished as soon as possible in order to lower the interest cost on obligations
payable from revenues of the Hotel and Restaurant Gross Receipts Tax with the resulting saving
being available to the City and Commission for tourism activities adequate for the needs of the
City and its inhabitants, without which the life, health, safety, and welfare thereof are
jeopardized, and that the refunding can be accomplished only by the issuance of the Series 1995
-4-
Bonds. It is, therefore, declared that an emergency exists and this Ordinance being necessary
for the immediate preservation of the public peace, health, and safety shall take effect and be
enforced from and after its passage.
Adopted: August 29, 1995.
APPROVE
Fred B. Hanna, Jr., Mayor
ATTES
Traci Paul, City Clerk
( SEAL )
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