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HomeMy WebLinkAboutOrdinance 4488 ORDINANCE NO. 4488 " . AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $6,620,000 OF HOTEL AND RESTAURANT GROSS RECEIPTS TAX REFUNDING BONDS, SERIES 2003, BY THE CITY OF FAYETTEVILLE, ARKANSAS FOR THE PURPOSE OF REFUNDING THE CITY'S OUTSTANDING HOTEL AND RESTAURANT GROSS RECEIPTS TAX BONDS, SERIES 1998; AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE PURSUANT TO WHICH THE SERIES 2003 BONDS WILL BE ISSUED AND SECURED; AUTHORIZING THE EXECUTION AND DELIVERY OF AN OFFICIAL STATEMENT PURSUANT TO WHICH THE SERIES 2003 BONDS WILL BE OFFERED; AUTHORIZING THE EXECUTION AND DELIVERY OF A BOND PURCHASE AGREEMENT PROVIDING FOR THE SALE OF THE SERIES 2003 BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT PROVIDING FOR THE REDEMPTION OF THE SERIES 1998 BONDS; AUTHORIZING THE EXECUTION AND DELIVERY OF A CONTINUING DISCLOSURE AGREEMENT; AND PRESCRIBING OTHER MATTERS RELATING THERETO WHEREAS, the City of Fayetteville, Arkansas (the "City") is authorized under the provisions of the Advertising and Promotion Commission Act, Arkansas Code Annotated (1997 Repl.) §§26-75-601 et seq. (as from time to time amended, the " Act"), to issue its bonds secured by and payable from the revenues derived by the City from the one percent (1 %) tax (the "Tax") levied by the City pursuant to Ordinance No. 2310 adopted by the City on March 1, 1977, as subsequently amended, upon the gross receipts or gross proceeds (i) derived from renting, leasing or otherwise furnishing hotel or motel accommodations for profit within the boundaries of the City and (ii) of restaurants, cafes, cafeterias, delis, drive-in restaurants, carry-out restaurants, concession stands, convenience stores, grocery store-restaurants, caterers and similar businesses within the boundaries of the City engaged in the business of selling prepared food for on-premises or off-premises consumption; and WHEREAS, pursuant to the provisions of Ordinance No. 4038, duly adopted by the City on June 3, 1997, there was submitted to the qualified electors of the City the question of the issuance of not to exceed $6,950,000 in principal amount of bonds pursuant to the Act, said bonds to be secured by a pledge of and lien upon the City's receipts of the Tax (the "Tax Receipts"); and WHEREAS, at a special election held August 5, 1997, a majority of the qualified electors of the City voting on the aforementioned question approved the issuance of the bonds and the corresponding pledge of the Tax Receipts to the payment thereof; and WHEREAS, pursuant to the Act and the results of the aforementioned election, the City issued its City of Fayetteville, Arkansas Hotel and Restaurant Gross Receipts Tax Bonds, Series 1998, dated November 1, 1998 (the "Series 1998 Bonds'), for the purpose of financing a portion of the costs of constructing the Fayetteville Town Center (the "1998 Project"); and WHEREAS, the Series 1998 Bonds were originally issued in the aggregate principal amount of $6,950,000, of which $6,620,000 presently remains outstanding; and WHEREAS, the City has also, pursuant to the Act and an ordinance duly adopted by the City, previously issued its $2,675,000 City of Fayetteville, Arkansas Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 1995, dated October 1, 1995 (the "Series 1995 Bonds"), of which $700,000 in principal amount presently remains outstanding, for the purpose of financing the construction and equipping of convention facilities; and WHEREAS, the City has now determined that debt service savings can be realized with respect to the Series 1998 Bonds by issuing its Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 2003 (the "Series 2003 Bonds"), for the purpose of refunding the Series 1998 Bonds; and WHEREAS, the payment of debt service on the Series 2003 Bonds will be secured by a pledge of the Tax Receipts on a junior and subordinate basis to the pledge of Tax Receipts securing the payment of debt service on the Series 1995 Bonds; and NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas that: Section 1 . Under the authority of the Constitution and laws of the State of Arkansas, including particularly Amendment 65 to the Constitution of the State of Arkansas and the Act, there is hereby authorized the issuance of bonds of the City to be designated as "Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 2003" (the "Series 2003 Bonds"). The Series 2003 Bonds shall be issued in the original aggregate principal amount of not to exceed Six Million Six Hundred Twenty Thousand Dollars ($6,620,000), shall mature not later than October 1, 2015, and shall bear interest at the rates specified in the Bond Purchase Agreement. The average yield on the Series 2003 Bonds as a whole shall not exceed 3.75% per annum. The proceeds of the Series 2003 Bonds will be utilized to finance a portion of the cost of redeeming the Series 1998 Bonds, to establish a debt service reserve for the Series 2003 Bonds or purchase a surety bond for reserve purposes, to pay a premium for bond insurance, if deemed 2 economically beneficial, and to pay printing, underwriting, legal and other expenses incidental to the issuance of the Series 2003 Bonds. The Series 2003 Bonds shall be issued in the forms and denominations, shall be dated, shall be numbered, shall mature, shall be subject to redemption prior to maturity, and shall contain such other terms, covenants and conditions, all as set forth in the Trust Indenture submitted to this meeting. The Mayor is hereby authorized and directed to execute and deliver the Series 2003 Bonds in substantially the form thereof contained in the Trust Indenture submitted to this meeting, and the City Clerk is hereby authorized and directed to execute and deliver the Series 2003 Bonds and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Series 2003 Bonds to be accepted and authenticated by the Trustee. The Mayor is hereby authorized to confer with the Trustee, Stephens Inc., Fayetteville, Arkansas (the "Underwriter'), and Kutak Rock LLP, Little Rock, Arkansas ("Bond Counsel"), in order to complete the Series 2003 Bonds in substantially the form contained in the Trust Indenture submitted to this meeting, with such changes as shall be approved by such persons executing the Series 2003 Bonds, their execution to constitute conclusive evidence of such approval. Section 2. In order to pay the principal of and interest on the Series 2003 Bonds as they mature or are called for redemption prior to maturity, there is hereby pledged all of the Tax Receipts. This pledge of Tax Receipts is made on a junior and subordinate basis to the prior pledge of Tax Receipts securing repayment of the Series 1995 Bonds. The levy and collection of the Tax shall not be discontinued or reduced while any of the Bonds are outstanding unless sufficient funds are on deposit with the Trustee under the Trust Indenture to redeem the Series 2003 Bonds in full. The City covenants and agrees that all Tax Receipts will be accounted for separately as special funds on the books of the City, and all Tax Receipts will be deposited and will be used solely as provided in the Trust Indenture. Section 3. To prescribe the terms and conditions upon which the Series 2003 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 (the "Trust Indenture"), by and between the City and Bank of Oklahoma, N. A., Tulsa, Oklahoma (the "Trustee"), and the City Clerk is hereby authorized and directed to execute and acknowledge the Trust Indenture and to affix the seal of the City thereto, and the Mayor and the City Clerk are hereby authorized and directed to cause the Trust Indenture to be accepted, executed and acknowledged by the Trustee. The Trust Indenture is hereby approved in substantially the form submitted to this meeting, including, without limitation, the provisions thereof pertaining to the pledge of Tax Receipts and the terms of the Series 2003 Bonds. The Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Trust Indenture in substantially the form submitted to this meeting, with such changes 3 as shall be approved by such persons executing the Trust Indenture, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Trust Indenture in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 4. There is hereby authorized and approved a Preliminary Official Statement of the City, including the cover page and appendices attached thereto, relating to the Series 2003 Bonds. The Preliminary Official Statement is hereby "deemed final" by the City within the meaning of U.S. Securities and Exchange Commission Rule 15c2-12. The distribution of the Preliminary Official Statement is hereby approved. The Preliminary Official Statement, as amended to conform to the terms of the Bond Purchase Agreement, including Exhibit A thereto, and with such other changes and amendments as are mutually agreed to by the City and the Underwriter, is herein referred to as the "Official Statement," and the Mayor is hereby authorized to execute the Official Statement for and on behalf of the City. The Official Statement is hereby approved in substantially the form of the Preliminary Official Statement submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Official Statement in substantially the form of the Preliminary Official Statement submitted to this meeting, with such changes as shall be approved by such persons, the Mayor's execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Preliminary Official Statement is on file with the City Clerk and is available for inspection by any interested person.) Section 5. In order to prescribe the terms and conditions upon which the Series 2003 Bonds are to be sold to the Underwriter, the Mayor is hereby authorized and directed to execute a Bond Purchase Agreement on behalf of the City, to be dated as of the date of its execution (the "Bond Purchase Agreement'), by and between the City and the Underwriter, and the Bond Purchase Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Underwriter and Bond Counsel in order to complete the Bond Purchase Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Bond Purchase Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Bond Purchase Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 6. In order to provide for the redemption of the Series 1998 Bonds, the Mayor is hereby authorized and directed to execute an Escrow Deposit Agreement to be 4 dated as of the date of its execution (the "Escrow Agreement'), by and between the City and Bank of Oklahoma, N.A., as escrow trustee (the "Escrow Trustee"), and the Mayor is hereby authorized and directed to cause the Escrow Agreement to be executed by the Escrow Trustee. The Escrow Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Underwriter, the Escrow Trustee and Bond Counsel in order to complete the Escrow Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Escrow Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Escrow Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 7. In order to provide for continuing disclosure of certain financial and operating information with respect to the Tax and the City in compliance with the provisions of Rule 15c2-12 of the U. S. Securities and Exchange Commission, the Mayor is hereby authorized and directed to execute a Continuing Disclosure Agreement to be dated as of the date of its execution (the "Continuing Disclosure Agreement'), by and between the City and the Trustee, and the Mayor is hereby authorized and directed to cause the Continuing Disclosure Agreement to be executed by the Trustee. The Continuing Disclosure Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Trustee, the Underwriter and Bond Counsel in order to complete the Continuing Disclosure Agreement in substantially the form submitted to this meeting, with such changes as shall be approved by such persons executing the Continuing Disclosure Agreement, their execution to constitute conclusive evidence of such approval. (Advice is given that a copy of the Continuing Disclosure Agreement in substantially the form authorized to be executed is on file with the City Clerk and is available for inspection by any interested person.) Section 8. In order to secure lower interest rates on the Series 2003 Bonds, the Underwriter has proposed that the City consider the purchase of a policy of bond insurance with a portion of the proceeds of the Series 2003 Bonds, which policy would guarantee the payment of the principal of and interest on the Series 2003 Bonds when due. If deemed economically advantageous by the Mayor, upon the advice of the Underwriter, the Mayor is hereby authorized to execute an insurance commitment and to do any and all things necessary to accomplish the delivery of a bond insurance policy with respect to the Series 2003 Bonds. Section 9. The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and directed to do any and all things necessary to effect the issuance, sale, execution and delivery of the Series 2003 Bonds and to effect the execution and delivery 5 of the Trust Indenture, the Bond Purchase Agreement, the Official Statement, the Escrow Agreement, the Continuing Disclosure Agreement and a Tax Regulatory Agreement relating to the tax exemption of interest on the Series 2003 Bonds, and to perform all of the obligations of the City under and pursuant thereto. The Mayor and the City Clerk are further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof. Section 10. The provisions of this Ordinance are hereby declared to be severable, and if any section, phrase or provision shall for any reason be declared to be illegal or invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or provisions of this Ordinance. Section 11. All ordinances, resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. PASSED and APPROVED this the 20w day of May, 2003. ea APPROVED: •N , 1 j D COODY, Mayor A ' Sondra Smith, City Clerk 6 NAME OF FILE: Ord. No. 4488 CROSS REFERENCE: Item # Date Document 1 1 05/20/03 Ord. No. 4488 2 05/01 /03 Staff Review Form w/attachments: draft ordinance memo to Steve Davis memo to mayor/city council draft Trust Indenture 3 05/24/03 memo to Steve Davis 4 05/24/03 Affidavit of Publication NOTES: Z NORTWEST ARKANSV EDITION A kavas Demomtt IV 05azeW AFFIDAVIT OF PUBLICATION I , , do solemnly swear that I am Lega Clerk of the Arkansas Democrat-Gazette newspaper, printed and published in Lowell , Arkansas, and that from my own personal knowledge and reference to the files of said publication , the advertisement of: Oa, was inserted in the regular editions on '* Publication Charge : $ 56 L32Z Subscribed and sworn to before me this day of .32003. Notary Publi sew M Commission Expires: TAMMY ""EN My on p WASHINGTON COGN" MY Commission E)0� 11 05 p11 Please do not pay from Affidav An invoice will be sent. RECEIVED MAY 2 8 2003 U„ ;:F FAYETTEVILLE CITY CLERK'S OFFICE 212 NORTH EAST AVENUE P.O. BOX 1607 • FAYEfTEVII I E, ARKANSAS 72702 • (501) 442-1700 - ORDINANCE NO. 4488 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF NOT TO EXCEED $6,620,000 OF HOTEL AND RESTAURANT GROSS RECEIPTS TAX REFUNDING BONDS, SERIES 2003, BY THE CITY OF FAYETTEVILLE, ARKANSAS FOR THE PURPOSE OF - REFUNDING THE CITY'S TAX BONDS. SERIES 1993 RESTAURANT THE EXECUTION REC 0f FayeftWile TAX BONDS, SERIES 1998: AUTHORIZING THE SANTTO AND HTHESDELIVERY OF A TRUST I WILL B IIS PUD AND TO WHICH THE SERIES 2003 BONDS WILLBEISSUED ANDSECURED; AUTHORIZING THE IX E30NDS v ANDD E OFFERED: E AN OFFICIAL STATEMENT PURSUANT TO WHICH THE SERIES 2003 BONDS WILL M OFFERED: ING FOR THE THE LE OF T HE AJJD S203DELIVERY OF : BOND PURCHASE AGREEMENT PROVIDING FOR THE SALE OF THE SERIES 2003 BONDS;PROVIDING AUTHORIZING THE IDECUTIONREDEMPTION AND THE OF 19 ESCROW DEPOSIT AGREEMENT PROVIDING FOR THE OF A CONTINUING OF THE SERIES 1998 BONDS; AUTHORIZING THE OTHER AT AND DELIVERY OF A CONPNUING DISCLOSURE AGREEMENT, AND PRESCRIBING OTHER MATTERS RELATING THERETO WHEREAS, the City of FayOneMle. Arkansas (the 0011y") is,aulfnrized under Lha provisions of the Advertising and Prommon Commission Ac. Arkansas Code Annotated (1997 Repl.) §§26-75601 at seq. (ea from lime to time amended the 'Actl, to Issue its bonds secured by and payable from the revenues derived by the GN from the one.percent (1%) tax (the Tax) laded by the City pursuant to Ordinance No. 2310 adopted by the City on March 1, 1977, as subsequently amended. upon the gross receipts or gross Proceeds 0 blamed from Matig, leasing Or Othewse fumishi g hotel or metal aa0mrtedatkxs fa prefil wnhm the bO ndarios Of the City and n of restaurants, miss, colelenas, data dr'rvain resfaunvtts, carry-out IMISIUMIS, concession stands, convenience stores, grocery store- restaurants, caterers and similar businesses within the boundaries of the City engaged in the business • of selling prepared food foron-premises or off-premises consumption; and WHEREAS, Pursuant to RIe Provisions of Ordvwtce No. 4038, duly adapted by the Gry on June 3, 1997, there was suichmedto the qualfied elections of the City ft question 01 the issuance of not to exceed $6,950,000 n principal anrhant of bonds pursuant to the Act, Said bonds to be seared by a Pledge Of and lien upon the CiNs receipts of the Tax (the '7ax Receiptsl; and WHEREAS, at a special election held August 5. 1997, a majority of the quail dactore of the cry voting On the aforementioned question approved the issuance of the bonds and the corresponding pledge of the Tax Receipts to the payment Moral and WHEREAS, grsuent to the Act and the mass of the aforementioned election, the Dry issued its City Of Fayetteville, Afkarsas Hotel and Restaurant Gress Receipts Tax Bonds, Sarles 1998, dated November 1, 1998 (the 'Senm 1998 Bonet, for the purpose of financing a portion of the costs of constructing the Fayetteville Town Center (the -1998 Pnfiectl; and WHEREAS, Rte Series 1998 Bands were originally issued in the aggregate panipai amount a $6.950.000, of which $6,620,000 preamity remains onstanding: and WHEREAS, the City has also, pursuant to the Act and an Ordinarhra duty adopted by the Ciry, previously Issued its $2,675,000 City of Fayettevilie, Arkansas Hole and Restaurant Gross Receipts Tax Refunding Bonds, Series 1995, dated October 1, 1995 (Re "Sedes 1995 Bo ds'):of which $700,000 in Principal anent Presently remains onstanding, Is the Purpose of financing the ca¢Lvcuon and mopping of convention facilities: and WHEREAS, the Gry has now delemtlned that debt service savings ran be realized with respect to the Sense 1998 Bonds by asuig As Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 2003 ghe 'Senes 2003 Dorsal, for the W noose of refunding the Senes 1998 Bonds; and WHEREAS, the payment of debt service on the Series 2003 Bonds will be seared by a pledge of Me Tax Receipts on a junior aro Subordinate basU t0 the pledge Of Tax RacaPk securing the payment n of debt service on the Series 1995 Bonds: and NOW, THEREFORE, BE IT ORDAINED by the Cry Cotnci of the City of FayenaAle, Arkansas that Section 1. Under the authority of the ConstltuWn and laws of the State of Arkansas, Including I Parttcukriy Amendment 65 to the Constitution of the State of Arkansas and tire Act, there is hereby authorized Ne mivance of bonds of the City to be designated as -Hotel and Restaurant Grew Fleceipts Tax Refunding Bonds, Spies 2003' (the 'Smes 2003 Randal. The Series 2003 Echols shat be issued • n the Original aggragate Principal amount of not in exceed Six Millon Su Hun clad Twenty Thousand I Oolars ($6,620,000), shat mature rot later than October 1, 2015, and slat bear interest at the rates specified in the Bond Purchase Agreement The average yield on the Series 2003 Bonds as a wade shall rot exceed 3.75% per annum. The proceeds of the Series 2003 Bonds volt be uWzed to Mance h a portion Of the cost of remaining the Series 1998 Bonds. to establish a debt service reserve for the Series 2003 Boras Of arrows a surety bond far reserve prromm, to pay a prennum far boo l insurance, if deaned wonomicahy beneficial, and to pay printing, underwriting, legal and other expenses inadental to the issuance of Ne Series 2003 Bonds. The Sense 2003 Bonds shall be issued in the forms and denominations, shall be dated, shall be numbered, steal mature, shall b r subject t0 redemption prior to maturity, and shat contain such other terms, covenants and Whill"S, ag as set forth In the Trust Indenture summed t0 this rmaefig• I . The Maya is hereby authorized and directed to "BOWS and deFrer the Series 2003 Bondsin substantially the tone thereof contained In the Trust Indenture Submitted to this meeting, and the City Clerk Is hereby authorized and directed to execute and deliver the Series 2003 Bonds and to affix the seal of the City thereto, end the Mayor and City Clerk we hereby authorized and directed, to cause the Serres 2003 Bunds to be accepted and authenticated by the Trustee. The Mayor is hereby authorized to border wily the Trustee. Stephens Inc., FayemAe, Arkansas (the - ndaxnter7, and Kutak Rock LLP, I Rock, Afkarreas ('Bohol Counsel, In oder to complete Me Series 2003 Bonds in substantially We toren contained in the Trust Indenture submittetl to this meeting, with Such changes as shall be approved by Such persons executing the Series 2003 Bons, their execution to constitute conclusive evidahce of arch approve. Section 2. In order to pay the principal of and Merest on the Series 2003 Bonds as May mean e or one called lar rnemPtbn Prior to rtetal thea is hereby pledged all of the Tax pesetas. The pledge of Tax Receipts is made an a jumior and subordinate basis to Ne prior pledge of Tax Receipts assuring ( repayment of the Series 1995 Bands. The levy and collection of the Tax shall not be discontinued or reduced while any of the Bonds are outstanding unless suMkAent funs are on deposit with the Trustee under the Trust Indenture to redeem ire Series 2003 Bods in full. The City payments and agrees that e0 Tax Receipts will be amounted for separately, as special funds m the books of the Gry, and el Tax Receipts will be deposted and will ho used so* as Provided in Me Trust Intervals. Section 3. To prescribe the terms end conditions upon which the Sense 2003 Bonds are to be executed authenticated, issued, accepted, held and seared the Mayor Is hereby authorized and directed to execute and ackrovAedge a Trust Indenture (Me 'Tnst IrWenturel, by and between the City antl Bank of Oklahoma, NA., Tulsa, Okeems (the 'Trusteal, end the Gry Cleric is hereby sumpfeed and directed to execute antl acN GwkKIMo the Test Indenture and to afro the seal T the Gry thereto, and the Mayor and the City Clerk Bre hereby authorized and directed to cause the Trust Indenture to be accepted, executed and acknoMeciged by the TwErms. The Trust Indenture is hereby approved in substantially the forth Submitted to this meel Including, without Irritation, the ProvIle s thereof Pertainin910 the pledge of Tax Receipts and Ns terms of the Series 2003 Bonds. The Mayor is hereby I uftdzed to Cana with firsTrustee, MO Underwriter fer aBond Counsel in order t0 complete We That fortune in substantially the form stbmittn to this meating, with such Gmanges as shall ho approved by such persons executing the Trust Indenture, mar execution to constitute coWuslve evidence of Such approval. (Advice Is given that a copy of the Trust Indenture In Subsimtletly the form eutho izeci to ho exacutn i5 an rile with the Gry Clerk antl Is evalable fa inspection by arty, marected person.) Section 4. There a hereby authorized and approved a Preliminary Of c al Statement of the City. I including Ne cover Page and appendices anaaed thereto, renting to Ne Senile 2003 Bonds. The Pre immary Official Statement S hereby 'seemed final' by the City within the meaning of U.S. Securities and Exchange Commission Fria 15c2-12. The distribution of the Pmimrary Oficial Statement is hereby t approved. The Preliminary Oficia Statarri as amended to Conform to the tarts a the Bond Purchase Agreement, involing Exhibit A thereto. and with such other changes and amendments as are mutually agreed to by the Ciry and the UnENWITI i5 herein referretl to as the 'Official Statement; and t the Mayor Is hereby euthodzed to execute the Official Statement for and on behalf of the Gry. The Olfidal Statement IS hereby approved in Substantially the form of the Preliminary Official Statement submitted to INS meeting, and the Maya is hereby auRhonzed to confer with the Trustee, the Underwriter and Bond Course n oder to complete the Official Statement in Subatantiay the form of the Pretmibery Offda Statement submitted to this meeting, with such changes as shell be approved by such persons, the Mayors exeaaim to constitute conclusive evidence of such approval. (Advice Is given that a copy of the Preliminary Official Statement Is on file with the City Clerk and Is available for inspection by any Interested person.) Section 5. In order to prawnee the tams and conditions upon which the Series 2003 Bonds are to be Said b de Unermilc. the Mayor b hereby auMObz9d and dracled to execute a Bond Purchase Agreement an behalf of the Gry, to t» dated as of the date of Its executtorn (the 'Bond Purchase Agreernal by and between the Cry and the Underwriter, and the Bao Punches Agreement a hereby approves in substantial y the toren submitted to this meeting, and the Mayor is hereby authorized to canto with the Underwriter and Bond Counsel in atler to complete the Bond Purchase Agreement in • substantiaty the form submitted to this meeting, with Stash Charges as shell be approved by such persons executing the Bond Purchase Agreement, Mw SwCUlan to constitute evidence of such approve. (Advice is given that a copy of rhe Bond Purchase Agreement In substantiary the torn authorized to ho executed Is on to with the Gry Clerk anis avalable for inspection by any Interested person.) Section 6. In order, to Provide for the redemption of the Series 1936 Bonds, the Mayor is hereby sudhorizeld end directed to execute an Esci Deposit Agreement to ho dated as of the data of he execution (the 'EsaOw Agrearnentl, by an between the City and Dank of ONahorl NA., a5 Sammy trustee (the -Escmw Trusteal, and Ne Mayor is hereby authorized and directed to cause the Escrow Agreement to ho executed by the Escrow Trustee. The Escrow Agreement Is hereby approved n subssMkly the form Submitted to this meeting, antl the Mayor Is hereby authorizetl to confer wily the lndavrtlter, the Escrow Trustee and Bond Cuff" In order W complete iia Essaw Agreement In substmikly Re form Subrined to MIS meeting, with Such changes as 9a1 be approved by such persons axecu4rg the ESCrow Agreement, their execution to mnstrum conclusive evidence of sucih approval. (Advice Is given that a copy of the Escrow Agreement In subwentiey,the farts authorized io be executed is an lila with tie City Clerk ab a evadable for inspection by any interested person.) Section 7. In ordef to provide fa conilairg disclosure of contain financial and! Operating information with respect to the Tax and the City in compliance with the Provisions of Rue 1502-12 0f 0-9 U. S. Secu iDes and Exchange Commission, the Maya Is hereby authorized and directed to execute a Continuing Disclosure Agreement to be dated as of the date of its execurtim (the 'Continuing Disclosva Agreemmtlk by and between ire City and the Trustee. and the Mayor Is hereby aunwrized and directed b Cahse Rho CpnMung Dlstloare Agreement to be executed by the Trustee. The Continuing g Diaccesure Agreements is hereby approved In Substantially ria forth submitted to this mewing, and the Mayo 5 hereby authorized to confer wily the Trustee, Ne Underwriter and Bond Counsel n order 10 complete the Continuing Disclosure Agreement in substands the form submitted to this mewing, with such flanges as shall be approved by Such persons executing the Continuing Disaosure Agreement, their exepbon to wnstitute 00nchava syserce of such approval. (Advice Is given that a copy of the Contrua g Disclosure Agrmmenb In shbscarmly the form athonzed • to be (Oeduted is m Ne with the City Clerk and a avaWe for inspection by any interested person.) Section 8. In other to secure lower interest rates on the Senes 2003 Bons, the Underwriter has Proposed that Ne City consider the purchase of a policy of bond Insurance with a.potion of Ne Proceeds of the Saks 2003 Bonds. which Policy wait guarantee the payment of the principal Of and interest On the Series 20D3 Bons when due. 11 deemed aboxxonkaty advantageous by the May, upon the advice of the Undawnta, the Mayan is hereby authorized to wasum an insurance commitment an to der a v and at things necessary to acmnprsh Ra delivery of a bond insurance policy with respect to Rhe Series 2003 Bonds. Section 9. The Mayor and Cry Clerk, for and on behalf of the City, are hereby aulb prem and crashed to do cry and en ttirgs necessary to effect the seance, sae. execution and delivery of the Serine 2003 Bonds and re affect the axexRiorh end delivery of Ne Thal Indenture, the Bond purchase Agreement, the Oficial Statement, t e Escrow Agreement, the Cementing Disclosure Agreement and a Tax Regulatory Agreement relating to the tax exemption of interest on the Series 2003 Bonds, and to perform al of Ne obligations of the City under and pursuant thereto. The Mayor and the City Clerk ere further authorized end directed, for and on belall of the Ciry, to SwCute all Papers, documents, certificates and other instruments that may ho required Ic ire carrying an of such a thonty Of to evidence the exercise thereof. Section 10. The provision of this Ordinaboo she hereby doomed to be severable, aro it any section, phrase a provision shall for any reason be declared to be illegal or Invalid. such decaratjpn shall not affect the validity of the remember of the sectors, phrases Or prowabns of this Ordinance. Section 11. M oNinences, resokAio and pans Rereof n c ffict heruMth ale hereby repealed to le Want of such confict. PASSED and APPROVED this the 20th day of May, 2003. APPROVED: DAN GOODY. Mayer ATTEST: Scridmi nm, Gary Clerk :._ 1 I FAYETTEVtLLE THE CITY OF FAYETTEVIEEE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Steve Davis Finance and Internal Services From: Clarice Buffalohead-Pearman City Clerk's Division Date: 5/28/2003 Re: Ordinance No. 4488 Attached hereto is an executed copy of the above ordinance passed by the City Council May 20, 2003, authorizing the issuance and sale of Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series 2003; and authorizing the execution of an Official Statement; Bond Purchase Agreement, Escrow Deposit Agreement and a continuing Disclosure Agreement. This information has been recorded in the city clerk's office and will be microfilmed for archives. Also attached is a copy of the Affidavit of Publication. If anything else is needed please let the city clerk's office know. /cbp Attachment(s) cc: Nancy Smith, Internal Auditor FAYETTEALLE THE CITY OF FAYETTEVILLE, ARKANSAS Item # 9. Hotel & Restaurant Bonds (Series 2003) : Additional Information : The Preliminary Official Statement, Trust Indenture, Bond Purchase Agreement, Escrow Deposit Agreement, and Continuing Disclosure Agreement documents that are related to this Agenda Item are available for your review in the City Clerk's Office. 113WESTMOUNTAIN 72701 479-521-7700 FAX 479-575-8257 oRb STAFF REVIEW FORM 5 /Z,o� ZOo3 XX AGENDA REQUEST • • >o'^� �� ���� CONTRACT "REVIEW GRANT REVIEW For the Fayetteville City Council Meeting of : May 20, 2003 . FROM : Stephen Davis Finance & Internal Services Div. Finance & Internal Services Name Division Department ACTION REQUIRED : Approval of an ordinance authorizing the issuance and sale of not to exceed $6,620,000 of Hotel and Restaurant Gross Receipts Tax Refunding Bonds, Series, 2003. COST TO CITY : Cost of issuance is deducted from bond proceeds Cost of this request Program Category / Project Name Account Number Funds Used to Date Program / Project Category Name Project Number Remaining Balance Fund Name BUDGET REVIEW : V Budgeted Item Budget Adjustment Attached Budget Ma ger Date CONTRACT /GRANT/LEASE REVIEW : 1�J la, o Accounting Man ger D� Internal Auc} for D � � 5III �3 City Attorney Date Purchasing Manager Date STAFF RECOMMENDATION : Cross Reference Division Head Date New Item : Yea 'r7 No Department Director Date Previous Ord/Res# : F e S . 43 - 03 ARE� � Z r( Orig . Contract Date (, i+inance . & Internal Services Dir . Date 5 Orig . Contract Number- Fo3 Chief d" , nisirative Officer Date Mayor Date