HomeMy WebLinkAboutOrdinance 46080
ORDINANCE NO, 4608
AN ORDINANCE FORMING THE HIGHWAY 71 EAST
SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PURSUANT TO AMENDMENT 78 OF THE ARKANSAS
CONSTITUTION AND AUTHORIZING THE PREPARATION
OF A PROJECT PLAN
WHEREAS, the City Council after 15 day published notice has held a public
hearing at which all interested parties were given the opportunity to express their views
on the proposed creation of the Highway 71 East Square Redevelopment District Number
One of Fayetteville, Arkansas and its proposed boundaries; and
WHEREAS, prior to publication, a copy of said notice was sent by first-class
mail to the chief executive officer of all local governmental and taxing entities having the
power to levy taxes on property located within the proposed Highway 71 East Square
Redevelopment District Number One of Fayetteville, Arkansas, and to the school board
of any school district which includes property located within the proposed Highway 71
East Square Redevelopment District Number One of Fayetteville, Arkansas; and
WHEREAS, the City Council has designated the boundaries of the proposed
Highway 71 East Square Redevelopment District Number One, of Fayetteville, Arkansas.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, AR.KANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby
establishes the boundaries of the Highway 71 East Square Redevelopment District
Number One of Fayetteville, Arkansas as set forth on the map attached hereto as Exhibit
"A" and incorporated herein.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby
names the District the following name for identification purposes: Highway 71 East
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby
creates the Highway 71 East Square Redevelopment District Number One of Fayetteville,
Arkansas as of September 20, 2004.
Section 4: That the City Council hereby finds that the real property within the
Highway 71 East Square Redevelopment District Number One of Fayetteville, Arkansas,
will be benefited by the redevelopment project by eliminating or preventing the
development or spread of blighted, deteriorated, or deteriorating areas, or discouraging
the loss of commerce, or employment, or increasing employment, or any combination
thereof.
Section 5: That the City Council of the City of Fayetteville, Arkansas hereby
creates a separate and special fund into which shall be deposited all tax increment
revenues, and all other revenues designated by the City for the benefit of the Highway 71
East Square Redevelopment District Number One of Fayetteville, Arkansas. All project
costs shall be paid from this fund. This fund shall be known as the Highway 71 East
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 6: That the City Council of the City of Fayetteville, Arkansas hereby
authorizes the preparation of a Redevelopment Project.
PASSED and APPROVED this 17`h day of August, 2004.
By:
ATTEST:
APPROVED:
COODY, Mayor
�U•
: FAYETTEVILLE:
By: La .dur C M uI ;z•..y g
SONDRA SMITH, City Clerk %,9s4 RKgNS;:�J�
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NAME OF FILE: Ordinance No. 4608
CROSS REFERENCE:
Ram # Date Document
-1
08/17/04
Ord.4608
2
06/24/04
memo to mayor & city council
3
copy of Notice of Public Hearing from Hugh Earnest
4
copy of Notice of Public Hearing
5
map of Hwy 71 East Square Redevelopment District
6
draft ordinance
7
copy of map
8
copy of public hearing from Hugh Earnest
y
copy of Notice of Public Hearing
10
copy of memo to mayor, city council, Hugh Earnest, Steve
Davis, Tim Conklin
11
Icopy
of Determining the Borders
12
copy of memo to mayor, city council, Hugh Earnest, Steve
Davis, Tim Conklin
13
1copy of TIF District map
14
copy of memo to mayor and city council
15
copy of TIF Bonds
16
draft ordinance
17
copy of map
18
copy of Notice of Public Hearing from Hugh Earnest
19
copy of memo to mayor, city council, Hugh Earnest, Steve
Davis, Tim Conklin
20
copy of Notice of Public Hearing
21
copy of Determining the Borders
22
copy of memo to mayor, city council, Hugh Earnest, Steve
Davis, Tim Conklin
23
copy of memo to mayor and city council
24
copy of map
25
Affidavit of Publication
26
large map of TIF District
8
FAYETTEVI LLE
THE CITY OF FAYETTEVIEEE. ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID wHITAKER, Assr. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT
TO: Dan Coody, Mayor
City Council
Hugh Earnest, Chief Administrative Officer
CC: Honorable Gordon Wilbourn
FROM: Kit Williams, City Attorney a.,,f
DATE: June 24, 2004
RE: TIF District Establishment
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Gordon Wilbourn and I have discussed general legal issues
surrounding establishing a redevelopment district and financing
improvements, acquisitions and demolitions within such district using TIF
(Tax Incremental Financing) bonds. I have provided a couple of detailed
legal memos to you on this subject.
We can do nothing further until the City Council or Administration
presents a concrete development district/plan for analysis and consideration.
This is a new law so legal analysis will always be somewhat limited,
especially if concepts involving complicated property concepts such as
future interests in land are involved. We will wait for any proposal that
might be provided.
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FAYETTEVILLE
•
THE CITY OF FAYETTEVILLE, ARKANSAS
Dear Property Owner:
July 12, 2004
Notice of Public Hearine
The City of Fayetteville staff has been working hard to facilitate the redevelopment of the abandoned
Mountain Inn in Fayetteville's downtown area.
The developers, along with city officials, several attorneys and investment bankers have been focusing on
the creation of a Tax Increment Financing District (TIF) over the past several months: The TIF re-
development option was made available recently by a constitutional amendment and accompanying state
legislation. It has also received prominent mention in the recently completed Downtown Master Plan as
one of the principal options to be considered in downtown redevelopment. For their part, the developers
have been successful in securing new market tax credits along with support for financing from private
sources. Success in securing alternative financing sources has certainly been encouraging, however the
difficultly in redeveloping the site of the Mountain Inn demands that all avenues for funding assistance be
explored. A TIF district is certainly one of those options..
As we open this discussion, it is important to note that a TIF does not call for new taxation or an increase
in the tax rate. Rather, it simply applies the incremental increase due to added value or inflation to a
project or projects that will be accepted and approved by the Fayetteville City Council. That step, namely
the discussion and possible approval of the project plan, will occur only after the creation of the District
itself.
All parties are now ready to proceed in requesting the Fayetteville City Council to establish a District of
sufficient size to be able to secure an Incremental assessment that can assist in this crucially important
downtown redevelopment. The first step in this process will be the preliminary introduction of the
ordinance that would create the district on July 200'to be followed by a Public Hearing now scheduled at
6:30 P.M. on July 271h for all concerned parties to thoroughly discuss the creation of the district.
You have been identified as a property owner in the proposed district and we are taking this opportunity
to inform you of the dates of these important discussions. We have placed on the city web site a map of
the proposed district along with copies of the relevant state statutes. We will also have available in the
City. Planning Office hard copies of the proposed district and the applicable state laws.
Please do not hesitate to contact any one of the individuals listed with any questions or concerns that you
may have as we all begin discussions on this exciting and challenging project.
Hugh Earnest 575-8330
Tim Conklin 575-8265
S"cc reelly, y(p�
lugs h Eamest
CAO
113 WEST MOUNTAIN 72701 479-521-7700
FAX 479-575-8257
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that, pursuant to Arkansas Code Annotated §14-168-305,
a public hearing will be conducted on July 27, 2004 at 6:30 p.m. in the City
Administration Building, Room 326, 113 W. Mountain, Fayetteville, Arkansas, and that
at said hearing all interested parties will be afforded a reasonable opportunity to express
their views on the proposed creation and the proposed boundaries of a redevelopment
district in the downtown area.
This Public hearing is to provide opportunity for the public to express views on the
proposed creation of a redevelopment district and it's proposed boundaries.
All interested parties may appear and be heard at the public hearing. A copy of the
proposed boundaries and other pertinent data is open and available for inspection in the
Office of City Planning (575-8267), 125 West Mountain Street, Fayetteville, Arkansas.
All interested parties are invited to review the information.
Interpreters or TDD for hearing impaired are available for all public meetings. 72 hour
notice is required. For further information or to request an interpreter, please call 575-
8330.
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ORDINANCE NO.
NWk.91 ECLS�
5c�uw-e Reae�elop.
Ckk1
AN ORDINANCE FORMING THE HIGHWAY 71 EAST
SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PURSUANT TO AMENDMENT 78 OF THE ARKANSAS
CONSTITUTION AND AUTHORIZING THE PREPARATION
OF A PROJECT PLAN
WHEREAS, the City Council after 15 day published notice has held a public
hearing at which all interested parties were given the opportunity to express their views
on the proposed creation of the Highway 71 East Square Redevelopment District Number
One of Fayetteville, Arkansas and its proposed boundaries; and
WHEREAS, prior to publication, a copy of said notice was sent by first-class
mail to the chief executive officer of all local governmental and taxing entities having the
power to levy taxes on property located within the proposed Highway 71 East Square
Redevelopment District Number One of Fayetteville, Arkansas, and to the school board
of any school district which includes property located within the proposed Highway 71
East Square Redevelopment District Number One of Fayetteville, Arkansas; and
WHEREAS, the City Council has designated the boundaries of the proposed
Highway 71 East Square Redevelopment District Number One, of Fayetteville, Arkansas.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby
establishes the boundaries of the Highway 71 East Square Redevelopment District
Number One of Fayetteville, Arkansas as set forth on the map attached hereto as Exhibit
"A" and incorporated herein.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby
names the District the following name for identification purposes: Highway 71 East
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby
creates the Highway 71 East Square Redevelopment District Number One of Fayetteville,
Arkansas as of September 20, 2004.
Section 4: That the City Council hereby finds that the real property within the.
Highway 71 East Square Redevelopment District Number One of Fayetteville, Arkansas,
will be benefited by the redevelopment project by eliminating or preventing the
i
development or spread of blighted, deteriorated, or deteriorating areas, or discouraging
the loss of commerce, or employment, or increasing employment, or any combination
thereof.
Section 5: That the City Council of the City of Fayetteville, Arkansas hereby
creates a separate and special fund into which shall be deposited all tax increment
revenues, and all other revenues designated by the City for the benefit of the Highway 71
East Square Redevelopment District Number One of Fayetteville, Arkansas. All project
costs shall be paid from this fund. This fund shall be known as the Highway 71 East
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 6: That the City Council of the City of Fayetteville, Arkansas hereby
authorizes the preparation of a Redevelopment Project.
PASSED and APPROVED this 3`d day of August, 2004.
ATTEST:
By:
SONDRA SMITH, City Clerk
By:
APPROVED:
DAN COODY, Mayor
`�
:._, 1^?;
�,
-'`
tl
�'--
•
FAYETTEVII
THE CITY OF FAYETTEVILLE, ARKANSAS
Dear Property Owner:
JIJE
July 12, 2004
Notice of Public Hearine
The City of Fayetteville staff has been working hard to facilitate the redevelopment of the abandoned
Mountain Inn in Fayetteville's downtown area.
The developers, along with city officials, several attorneys and investment bankers have been focusing on
the creation of Tax Increment Financing District (TIF) over the past several months. The TIF re-
development option was made available recently by a constitutional amendment and accompanying state
legislation. It has also received prominent mention in the recently completed Downtown Master Plan as
one of the principal options to be considered in downtown redevelopment. For their part, the developers
have been successful in securing new market tax credits along with support for financing from private
sources. Success in securing alternative financing sources has certainly been encouraging, however the
difficultly in redeveloping the site of the Mountain Inn demands that all avenues for funding assistance be
explored. A TIF district is certainly one of those options..
As we open this discussion, it is important to note that a TIF does not call for new taxation or an increase
in the tax rate. Rather, it simply applies the incremental increase due to added value or inflation to a
project or projects that will be accepted and approved by the Fayetteville City Council. That step, namely
the discussion and possible approval of the project plan, will occur only after the creation of the District
itself
All parties are now ready to proceed in requesting the Fayetteville City Council to establish a District of
,sufficient size to be able to secure an Incremental assessment that can assist in this crucially important
downtown redevelopment. The first step in this process will be the preliminary introduction of the
ordinance that would create the district on July 20'" to be followed by a Public Hearing now scheduled at
6:30 P.M. on July 27t° for all concerned parties to thoroughly discuss the creation of the district
You have been identified as a property owner in the proposed district and we are taking this opportunity
to inform you of the dates of these important discussions. We have placed on the city web site a map of
the proposed district along with copies of the relevant state statutes. We will also have available in the
City.Planning Office hard copies of the proposed district and the applicable state laws.
Please do not hesitate to contact any one of the individuals listed with any questions or concerns that you
may have as we all begin discussions on this exciting and challenging project.
Hugh Earnest. 575-8330
Tim Conklin 575-8265
F
'ely, ames Ao(�"
CAO
113 WEST MOUNTAIN 72701 47"21-7700
FAX 479-575-8257
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that, pursuant to Arkansas Code Annotated §14-168-305,
a public hearing will be conducted on July 27, 2004 at 6:30 p.m. in the City
Administration Building, Room 326, 113 W. Mountain, Fayetteville, Arkansas, and that
at said hearing all interested parties will be afforded a reasonable opportunity to express
their views on the proposed creation and the proposed boundaries of a redevelopment
district in the downtown area.
This Public hearing is to provide opportunity for
the public
to express views on the
proposed creation of a
redevelopment district and it's
proposed
boundaries.
All interested parties may appear and be heard at the public hearing. A copy of the
proposed boundaries and other pertinent data is open and available for inspection mi the
Office of City Planning (575-8267), 125 West Mountain. Street, Fayetteville, Arkansas.
All interested parties are invited to review the information.
Interpreters or TDD for hearing impaired are available for all public meetings. 72 hour
notice is required. For further information or to request an interpreter, please call 575-
8330.
I 4?
FAYETTEVI LLE
THE CITY OF FAYETTEVILLE. ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
LEGAL DEPARTMENT
TO: Dan Coody, Mayor
City Council
Hugh Earnest, Chief Administrative Officer
Steve Davis, Finance & Internal Services Director
Tim Conklin, Community Planning & Engineering Svs. Director
FROM: Kit Williams, City Attorney
DATE: May 11, 2004
RE: Amendment 78 City and County Redevelopment
A.C.A. §14-168-301 to 322 Community Redevelopment Generally
The citizens of Arkansas passed Amendment 78 to the Arkansas
Constitution in November 2000. Amendment 78, City and County
Government Redevelopment, .had been submitted to the voters by the State
Legislature. It empowered cities and counties to form redevelopment districts
and issue bonds for "redevelopment projects."
" `(R)edevelopment project' means an undertaking for
eliminating, or preventing the development or spread of,
slums or blighted, deteriorated, or deteriorating areas,
for discouraging. the loss of commerce, industry, or
employment, or for increasing employment, or any
combination thereof, as may be defined by the General
Assembly."
The last phrase in the definition gives the legislature very broad
authority to further define "redevelopment project."
The bonds for "redevelopment projects" could be financed by whatever .
increase occurs in the property taxes as a result of increases in property values
within the district. The schools, county, library, etc. would continue receiving
the same amount of tax money before the establishment of the district, but
would see no increase during the life of this district. The amount above the
level of property taxes paid when the district was formed could be pledged and
used to pay off bonds used to finance improvements to eliminate or prevent
blighted or deteriorated areas.
The legislature was given power in Amendment 78 to "provide for
implementation of this section by law."
In the 2003 legislative session, the General Assembly repealed the
existing Arkansas Community Redevelopment Financing Act and enacted the
Community Redevelopment Act (A.C.A. §14-168-301 et. seq.) to implement
Amendment 78's provisions. This act covers 15 pages in the Arkansas Code
with extensive definitions, explanations of powers, requirements for creating
districts and project plans, and how to divide property taxes and finance bonds.
I will attempt to give you an overview of this law (which is so new that there
are no Court decisions clarifying or explaining its meaning).
TIF {Tax Increment Financing A.C.A. §14-168-305 (e)) can be used to
finance improvements for a "redevelopment project" within a "redevelopment
district." A.C.A. §14-168-301 (12) and (13). As explained earlier, the increase
in property tax revenues after the redevelopment district was formed could be
pledged to pay tax increment bonds which would help fmance redevelopment
projects. The entities receiving property taxes (schools, county, library, etc.)
would not see declining revenues from this redevelopment district, but also
would see no increase.
CREATING A REDEVELOPMENT DISTRICT
The City Council may upon its own initiative or upon request of affected
property owners or the Fayetteville. Planning Commission designate boundaries
of a proposed redevelopment district. A public hearing is required after proper
newspaper publication, fifteen days before such hearing. The City must also
send letters to the County Judge, Public School Superintendent and School
Board, Library Director and Library Board, Fire and Police Pension Boards and
any other taxing entity that could be affected by tax incremental fmancing
informing them of the possible redevelopment district formation and their right
to be heard.
0
DETERMINING THE BORDERS
OF A REDEVELOPMENT DISTRICT
The major issue in such public hearing would likely be the proper
boundaries for the redevelopment district. The wider the district, the more
property and buildings will be affected — more revenue to the redevelopment
district, less money to the schools and county.
But how large can or should a redevelopment district be? The City
Council must answer the "should" part of this question. I will only discuss the
legal implications (or the "can" part).
A "redevelopment district' must be a contiguous geographic area in
which a "redevelopment project' is undertaken. A.C.A. §14-168-301. The
City Council must make a finding:
"that the real property within the redevelopment
district will be benefited by eliminating or
preventing the development or spread of slums
or blighted, deteriorated, or deteriorating areas, or
discouraging the loss of commerce, industry, or
employment, or increasing employment, or any
combination thereof." A.C.A. § 14-168-305 (c) (4).
Therefore, if the Mountain Inn renovation, redevelopment, or removal
and replacement is the primary "redevelopment project' goal, the City Council
would need to provide factual reasons to support the required statutory finding
that removing or rehabilitating this blighted structure will benetrt every
property within the designated "redevelopment district."
I do not think that anyone could argue that all the buildings between
Center Street and Mountain Street from College Avenue to the alley behind the
Bank of America would not be benefited from the redevelopment of the
Mountain Inn. They are all at some risk from fire damage as long as the
Mountain Inn remains in its blighted condition. From a legal point of view, I
believe that the immediate neighboring structures across Center Street up to the
Continuing Education Center are close enough to be legally benefited from the
rehabilitation of the Mountain Inn.
I also believe that buildings across College Avenue from the old County
Courthouse maybe all the way to Rock Street could benefit from the removal or }
rehabilitation of the Mountain Inn which is very visible from all these buildings
along College Avenue.
Once you get beyond this area, there may be legal questions about
whether more distant property would actually be benefited from the
rehabilitation of the Mountain Inn. The Old Ozark Theater building and 70 N.
College are probably close enough, but government buildings (Sheriff's Office
and Jail) are buffers for northern expansion of the district along College
Avenue. Similarly, it could be difficult to justify northern expansion on the
west side of College past Meadow Street and especially past Spring Street.
Extending the district on the west side of College Avenue South past the
Federal Building, may be problematic since the massive Federal Court building
and grounds may be determined to block most effects of the redevelopment of
the currently blighted Mountain Inn.
The fmding of the City Council based upon statements and facts
presented at the public hearing should be entitled to deference by a Court if we
are sued by taxing entities or citizens unhappy with the size, location or
purpose of the redevelopment district. However, my advice is to make certain
that all property within your adopted districts border clearly "will be benefited"
by the project.
FAYETTEVI LLE
THE CITY OF FAYETTEVIEEE, ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDENCE
LEGAL DEPARTMENT
TO: Dan Coody, Mayor
City Council
Hugh Earnest, Chief Administrative Officer
Steve Davis, Finance & Internal Services Director
Tim Conklin, Community Planning & Engineering Svs. Director
FROM: Kit Williams, City Attorney %
DATE: May 219 2004r-
RE: East Square Redevelopment Project
The proposed East Square Redevelopment Project to assist in the
replacement of the blighted Mountain Inn and Courts Building with a large, )
upscale hotel and convention center (with some commercial and 18 condos thrown
in) would greatly enhance the immediate surrounding downtown area. It seems
like this is the precise type of project envisioned by the voters and legislators when
passing Amendment 78 and A.C.A. §14-168-301 et. seq. (The Act).
We do need to look very carefully at the statutory definitions and powers
granted in the Community Redevelopment Chapter of Title 14, Local Government
(The Act) to ensure the City has legal power to accomplish whatever
redevelopment project you might wish to attempt. My memo of May I Vh
discussed a "redevelopment district" and how the City Council could determine
the proper borders of such district (property that would be benefited by the
project). 'This memo will examine. how Tax Incremental Financing (TIF) money
be used in a "redevelopment project."
Normally tax dollars such as Tax Increment Financing may only be used to
finance public works or improvements. There is much language in the Act about
using TIF for public works: "construction of public works and improvements",
"public facilities, public housing", "construction of public facilities", "other public
improvements" and "any capital improvements of a public nature." However, the
broad definition of "redevelopment project' in A.C.A. §14-168-301 and
Amendment 78 appears to grant even more leeway for TIF revenue.
Under the "Powers" section (A.C.A. §14-168-304) the city can "Construct
capital improvements to be leased or sold to private entities in connection with the
goals of the redevelopment project." Included within the definition of "Project
costs" are: "(i) Capital costs, including, but not limited to, the actual costs of the
construction of public works or improvements, new buildings, structures and
fixtures, the demolition, alteration, remodeling, repair, or reconstruction of
existing buildings ...."
"Project costs" specifically include "real property assembly costs" a
"redevelopment project may include ...(t)he acquisition of land and
improvements, if any within the redevelopment district and clearance of the land
so acquired ...." A.C.A. §14-168-301 (13).
This tax increment financing could certainly be used for any necessary
demolition because the statutory definition of "redevelopment project" also
includes the language:
"together with such site improvements necessary
for preparation of any sites and making any land or
improvements required in the project area available,
by sale or by lease, ... for development, redevelopment
or rehabilitation by private enterprise for commercial
or industrial uses ...." (emphasis added).
Thus demolition and removal of debris would appear very appropriate
expenditures of tax incremental funds as part of a land preparation for construction
of a replacement building by private enterprise. However, I could find no
absolutely specific and clear reference in the definition authorizing TIF financing
for the construction of privately owned buildings. The definition speaks of
"construction of capital improvements ... designed to alleviate deteriorating
conditions or a blighted area or designed to increase or enhance the development
of commerce ...." But does this mean tax dollars can supplement the construction
costs of building a new privately owned building? I believe that answer may be
"yes" for further reasons stated later. However, I would be more comfortable
legally is the TIF money was only used for acquisition and clearing expenses or
public improvements. Using TIF• money to demolish and clear the site rather than
to help build a privately owned commercial structure not only is much more
traditional and accepted urban renewal, it also avoids issues of obtaining taxpayer
benefits for taxpayer revenue that would be inherent if taxes were invested in
construction of private property.
The . very broad definition and authority 'given by the people through
Amendment No. 78 to the legislature to define "redevelopment project" was
seemingly extended to the City Council by the very last clause in the statutory
definition:
"(E) Any other projects the local governing
body deems appropriate to carry out the
purposes of this subchapter."
act."
The General Assembly listed seven (7) purposes when they passed this
"(b) The General Assembly declares the purpose
of this act to be as follows: (1) To create a viable
procedure by which a local government may
finance redevelopment projects that improve the
community; (2) To create a more stable and adequate
source of funds for local governments to construct
improvements and finance rehabilitation of distressed
and blighted areas; and (3) To benefit the people of
this state, for the increase of their commerce, welfare,
and prosperity, and for the improvement of their
living conditions; (4) To provide new employment
opportunities; (5) To prevent, arrest, and alleviate blight
and decay in communities; (6) To increase the supply
of housing available. at low rentals; and (7) To improve
the tax base and to improve the general economy of the
State of Arkansas by providing additional and alternative
means for local governments to finance public facilities
and residential, .commercial, and industrial development
and revitalization, all to the public benefit and good, in
the manner provided in this act."
This last clause in the definition and the lengthy and broad purposes in the
Act's preamble seem to give the City Council great leeway in determining what a
worthy "redevelopment project" is. The legislature also stated: "it is the intent of
the General Assembly that it (the Act) is to be broadly construed to effect its
purpose." A.C.A. §14-168-301.
Thus, it seems that the proposed East Square Redevelopment meets the
statutory definitions for eligibility for tax incremental financing. Now it is your
policy decision about the advisability of going forward or not.
-
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July 7, 2004
L]
FAY]ETi EVILLE
THE CITY OF FAYETTEVIEEE, ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
DEPARTMENTAL CORRES
NCE
TO: Dan Coody, Mayor
City Council
FROM: Kit Williams, City Attorney
DATE: July 29, 2004
RE: Redevelopment District and TIF bonds
GENERAL FACT SHEET
LEGAL DEPARTMENT
1. "(T)he real property within the redevelopment district (must) be
benefited by eliminating (blight) ...." A.C.A. §14-168-305 (c)(4).
2. "The boundaries of a redevelopment district may be modified from
time to time by ordinance of the local government." A.C.A. § 14-168-305 (f).
3.
"Upon creation
of the redevelopment district, (the
City
Council) shall
cause the
preparation of a
project plan :... " A.C.A. § 14-168-306
(a).
4. The City Council "shall hold a public hearing at which interested
parties are allowed a reasonable opportunity to express their views on the
proposed project plan." A.C.A. § 14-168-306 (e).
5.
The project
plan's "approval shall be by
ordinance which
contains a
finding
that the plan is
economically feasible." A.C.A.
§ 14-168-306
(f).
6. "The local governing body may adopt by ordinance an amendment to
a project plan." A.C.A. § 14-168-307 (a).
TIF BONDS
A. "Every bond issued ... shall recite on its face that it is a special
obligation bond payable solely from the tax increment and other revenues
pledged for its repayment." A.C.A. §14-168-314 (c).
B. "To increase the security and marketability of redevelopment bonds
or notes, the local government may:
(1) Create a lien for the bondholders upon any public
improvements or public works financed by the bonds; or
(2) Make such covenants and do any and all such actions ...
which tend to make the bonds or notes more marketable ...."
A.C.A. §14-168-318.
C. TIF Bonds would initially be debts supported only by incremental
millage tax payments from the County Collector. The City Council could grant
liens (mortgages) on infrastructure improvements and could even pledge "other
revenues" to make the TIF bonds more marketable. That would seem to run
counter to the attractiveness of tax incremental financing by tying up city
general revenue and could lead to legal problems in this developing area of a
brand new law.
ORDINANCE NO.
AN ORDINANCE FORMING THE HIGHWAY 71 EAST
SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PURSUANT TO AMENDMENT 78 OF THE ARKANSAS
CONSTITUTION AND AUTHORIZING THE PREPARATION
OF A PROJECT PLAN
WHEREAS, the City Council after 15 day published notice has held a public
hearing at which all interested parties were given the opportunity to express their views
on the proposed creation of the Highway 71 East Square Redevelopment District Number
One of Fayetteville, Arkansas and its proposed boundaries; and
WHEREAS, prior to publication, a copy of said notice was sent by first-class
mail to the chief executive officer of all local governmental and taxing entities having the
power to levy taxes on property located within the proposed Highway 71 East Square
Redevelopment District Number One of Fayetteville, Arkansas, and to the school board
of any school district which includes property located within the proposed Highway 71
East Square Redevelopment District Number One of Fayetteville, Arkansas; and
WHEREAS, the City Council has designated the boundaries of the proposed
Highway 71 East Square Redevelopment District Number One, of Fayetteville, Arkansas.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby
establishes the boundaries of the Highway 71 East Square Redevelopment District
Number One of Fayetteville, Arkansas as set forth on the map attached hereto as Exhibit
"A" and incorporated herein.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby
names the District the following name for identification purposes: Highway 71 East
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby
creates the Highway 71.East Square Redevelopment District Number One of Fayetteville,
Arkansas as of September 20, 2004.
Section 4: That the City Council hereby finds that the real property within the
Highway 71 East Square Redevelopment District Number One of Fayetteville, Arkansas,
will be benefited by the redevelopment project by eliminating or preventing the
development or spread of blighted, deteriorated, or deteriorating areas, or discouraging
the loss of commerce, or employment, or increasing employment, or any combination )
thereof.
Section 5: That the City Council of the City of Fayetteville, Arkansas hereby
creates a separate and special fund into. which shall be deposited all tax increment,
revenues, and all other revenues designated by the City for the benefit of the Highway 71
East Square'Redeveloprnent District Number One of Fayetteville, Arkansas. All project
costs shall be paid from this fund. This fund shall be known as the Highway 71 East
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 6: That the City Council of the City of Fayetteville, Arkansas hereby
authorizes the preparation of a Redevelopment Project.
PASSED and APPROVED this 3nd day of August, 2004.
APPROVED:
By.
DAN COODY, Mayor
ATTEST:
By:
SONDRA SMITH, City Clerk
�YETTEv11
THE CITY OF FAYETTEVILLE, ARKANSAS
Notice of Public Hearing
The City. of Fayetteville staff has been working hard to facilitate the redevelopment of the abandoned
Mountain Jim in Fayetteville's downtown area.
The developers, along with city officials, several attorneys and investment bankers have been focusing on
the creation of a Tax Increment Financing District (TIF) over the past several months: The,TIF re-
development option was made available recently by a constitutional amendment and accompanying state
legislation. It has also received prominent mention in: the recently completed Downtown Master Plan as
one of the principal options to be considered in downtown redevelopment. For their part, the developers
have been successful in securing new market tax credits along with support for financing from private
sources. Success in securing alternative financing sources. has certainly been encouraging, however -the
difficultly in redeveloping the site of.the'Mountain hin demands thatall avenues for`funding assistance be
explored_ A T]F district is certainly one of those options. -
As we open this discussion, it is important to note that a.TlF does not call for new taxation or an increase
in the tax rate. Rather, it simply applies the incremental increase due to added value or inflation to a.
project or projects that will`be accepted and approved by the Fayetteville City Council. That step, namely
the discussion and possible approval of the project.plan; will occur only after the creation of the District
itself.
All parties are now ready. to proceed in requesting the Fayetteville' City Council to establish a District of
sufficient size, to be able to sectire an Incremental assessment that can assist in this crucially important
downtown redevelopment. The.first step in this process will be -the preliminary introduction of the
ordinance that would create the district on, July 20s'to be:followed by. Public Hearing now scheduled at
6:30 P Mon Jnly2T° for all concerned partiesto thoroughly. discuss:the creation'of the district -
You have been identified as a property owner in the -
proposed district and we are taking this opportunity
to inform you of the dates of these important discussions_. We have placed,on the city web site a map of
the proposed district along with copies of the relevant state statutes.. We will also have available.in the
City -Planning Office hard copies of the proposed district and the applicable state laws.
Please do not hesitate to contact any one of the individuals'listed,with any questions or concerns that you
may have as we all begin discussions on this exciting and challenging project_
S' c ely,
ug�;
CAO
•
FAYETTEVI L LE
THE CITY OF FAYETTEVILLE, ARKANSAS
Krr WILLIAMS, CITY ATTORNEY
DAVID WHITAKER; ASST. CITY ATTORNEY
DEPARTMENTAL CORRESPONDEN
•
LEGAL DEPARTMENT
TO: Dan Coody, Mayor
City Council
Hugh Earnest, Chief Administrative Officer
Steve Davis, Finance & Internal Services Director
Tim Conklin, Community Planning & Engineering Svs. Director
FROM: Kit Williams, City Attorney
DATE: May 11, 2004
RE: Amendment 78 City and County Redevelopment
A.C.A. §14-168-301 to 322 Community Redevelopment Generally
The citizens of Arkansas passed Amendment 78 to the Arkansas
Constitution in November 2000. Amendment 78, City and County
Government Redevelopment, had been submitted to the voters by the State
Legislature. It empowered cities and counties to form redevelopment districts
and issue bonds for "redevelopment projects."
" `(R)edevelopment project' means an undertaking for
eliminating, or preventing the development or spread of,
slums or blighted, deteriorated, or deteriorating areas,
for discouraging the loss of. commerce, industry, or
employment, or for increasing employment, or any
combination thereof, as may be defined by the General
Assembly."
The last phrase in the definition gives the legislature very broad
authority to further define "redevelopment project."
The bonds for "redevelopment projects" could be financed by whatever.
increase occurs in the property taxes as a result of increases in property values
NOTICE OF PUBLIC HEARING
NOTICE IS -HEREBY GIVEN that, pursuant to Arkansas Code Annotated §14-168-305,
a public hearing will be conducted on July 27, 2004 at 630 p.m. in the City
Administration Building, Room 326,.113 W. Mountain, Fayetteville, Arkansas, and that
at said hearing all interested parties will be afforded a reasonable opportunity to express
.their views on the proposed creation and the proposed boundaries of a redevelopment
district in the downtown area.
This Public hearing is to provide opportunity for
the public
to express views on the
proposed creation of a
redevelopment district
and
it's
proposed
boundaries.
All interested parties may appear and be heard at the public hearing. A copy of the
proposed boundaries and other pertinent data is open and available for inspection in the
Office of City Planning (575-8267), 125 West Mountain. Street, Fayetteville, Arkansas.
All interested parties are invited to review the information.
Interpreters or TDD for hearing impaired are available forallpublic meetings. 72 hour
notice is required. For further information or to request an interpreter, please call 575-
8330.
within the district. The schools, county, library, etc.would continue receiving
the same amount of tax money before the establishment of the district, but
would see no increase during the life of this district. The amount above the
level of property taxes paid when the district was formed could be pledged and
used to pay off bonds used to finance improvements to eliminate or prevent
blighted or deteriorated areas.
The legislature was given power in Amendment 78 to "provide for
implementation of this section by law."
In the 2003 legislative session, the General Assembly repealed the
existing Arkansas Community Redevelopment Financing Act and enacted the
Community Redevelopment Act (A.C.A. §14-168-301 et. seq.) to implement
Amendment 78's provisions. This act covers 15 pages in the Arkansas Code
with extensive definitions, explanations of powers, requirements for creating
districts and project. plans, and how to divide property taxes and finance bonds.
I will attempt to give you an overview of this law (which is so new that there
are no Court decisions clarifying or explaining its meaning).
TIF {Tax Increment Financing A.C.A. §14-168-305 (e)) can be used to
finance improvements for a "redevelopment project" within a "redevelopment
district." A.C.A. §14-168-301 (12) and (13). As explained earlier, the increase
in property tax revenues after the redevelopment district was formed could be
pledged to 'pay tax increment bonds which would help finance redevelopment
projects. The entities receiving property taxes (schools, county, library,. etc.)
would not see declining revenues from this redevelopment district, but also
would see no increase.
CREATING A REDEVELOPMENT DISTRICT
The City Council may upon its own initiative or upon request of affected
Property owners or the Fayetteville Planning Commission designate boundaries
of a proposed redevelopment district. A public hearing is required after proper
newspaper publication, fifteen days before such hearing. The City must also
send letters to the County Judge, Public School Superintendent_ and School
Board, Library Director and Library Board, Fire and Police Pension Boards and
any other taxing entity that could be affected by tax incremental fmancing
informing them of the possible redevelopment district formation and their right
to be heard.
DETERMINING THE BORDERS
OF A REDEVELOPMENT DISTRICT
The major issue in such public hearing would likely be the proper
boundaries for the redevelopment district. The wider the district, the more
property and buildings will be affected — more revenue to the redevelopment
district, less money to the schools and county.
But how large can or should a redevelopment district be? The City
Council must answer the "should" part of this question. I will only discuss the
legal implications (or the "can" part).
A "redevelopment district' must be a contiguous geographic area. in
which a "redevelopment project' is undertaken. A.C.A. §14-168-301. The
City Council must make, a finding:
"that the real property within the redevelopment
district will be benefited by eliminating or
preventing the development or spread of slums
or blighted, deteriorated, or deteriorating areas,, or
discouraging the loss of commerce, industry, or
employment, or increasing employment,. or any
combination thereof." A.C.A. § 14-168-305 (c) (4).
Therefore, if the Mountain Inn renovation, redevelopment, or removal
and replacement is the primary "redevelopment project' goal, the City Council
would need to provide factual reasons to. support the required statutory fmding
that removing or rehabilitating this blighted structure will benefit every
property within the designated "redevelopment district" _
I do not think that anyone could argue, that all the. buildings between
Center Street and Mountain Street from College Avenue to the alley behind the.
Bank of America would not be benefited from the redevelopment of the
Mountain _ Inn. They are all at. some risk . from fire damage as long as die.
Mountain Inn remains in its blighted condition.. From a legal point of view, I
believe that the immediate neighboring structures across Center Street up to the
Continuing Education Center are close enough to be legally benefited from the
rehabilitation of the Mountain Inn.
I also believe that buildings across College Avenue
from
the
old County
Courthouse maybe
all
the
way to Rock
Street could
benefit
from
the
removal
or
rehabilitation of the Mountain Inn which is very visible from all these buildings
along College Avenue.
Once you get beyond this area, there may be legal questions about
whether more distant property would actually be benefited from the
rehabilitation of the Mountain Inn. The Old Ozark Theater building and 70 N.
College are probably close enough, but government buildings (Sheriff's Office
and Jail) are buffers for northern expansion of the district along College
Avenue. Similarly, it could be difficult to justify northern expansion on the
west side of College past Meadow Street and especially past Spring Street.
Extending the district on the west side of College Avenue South past the
Federal Building, may be problematic since the massive Federal Court building
and grounds may be determined to block most effects of the redevelopment of
the currently blighted Mountain Inn.
The fmding of the City Council based upon statements and facts
presented at the public hearing should be entitled to deference by a Court if we
are sued by taxing entities or citizens unhappy with the size, location or
purpose of the redevelopment district. However, my advice is to make certain
that all property within your adopted districts border clearly "will be benefited"
by the project.
0
THE CITY OF FAYEITEVIIEE. ARKANSAS
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, ASST. CITY ATTORNEY
LEGAL DEPARTMENT
DEPARTMENTAL CORRESPONDEN
TO: Dan Coody, Mayor
City Council
Hugh Earnest, Chief Administrative Officer
Steve Davis, Finance & Internal Services Director
Tim Conklin, Community Planning & Engineering Svs. Director
FROM: Kit Williams, City Attorney
DATE: May 21, 2004
RE: East Square Redevelopment Project
The proposed East Square Redevelopment Project to assist in the
replacement of the blighted Mountain Inn and Courts Building. with a, large,
upscale hotel and convention center (with some commercial and 18 condos thrown
in) would greatly enhance the immediate surrounding downtown area. It seems
like this is the precise type of project envisioned by the voters and legislators when
passing Amendment 78 and A.C.A. §14-168-301 et. seq. (The Act).
We do need to look very carefully at the statutory definitions and powers
granted in the Community Redevelopment Chapter of Title 14, Local Government
(The Act) to ensure the City has legal power to accomplish whatever
redevelopment project you might wish to attempt. My memo of May II's
discussed a "redevelopment district" and how the City Council could determine
the proper borders of such district (property that would be benefited by the
project). This memo will examine how Tax Incremental Financing (TIF) money
be used in a "redevelopment project."
Normally tax dollars such as Tax Increment Financing may only be used to
finance public works or improvements. There is much language in the Act about
using TIF for public works: "construction of public works and improvements",
"public facilities, public housing", "construction of public facilities", `other public
improvements" and "any capital improvements of a public nature." However, the
broad definition of "redevelopment project" in A.C.A. §14-168-301 and
Amendment 78 appears to grant even more leeway for TIF revenue.
Under the "Powers" section (A.C.A. §14-168-304) the city can "Construct
capital improvements to be leased or sold to private entities in connection with the
goals of the redevelopment project." Included within the definition of "Project
costs" are: "(i) Capital costs, including, but not limited to, the actual costs of the
construction of public works or improvements, new buildings, structures and
fixtures, the demolition, alteration, remodeling, repair, or reconstruction of
existing buildings ...."
"
" Project costs" specifically include "real property assembly costs" a
redevelopment project may include ...(t)he acquisition of land and
improvements, if any within the redevelopment district and clearance of the land
so acquired ...." A.C.A. §14-168-301 (13).
This tax increment financing could certainly be used for any necessary
demolition because the statutory definition of "redevelopment project" also
includes the language:
"together with such site improvements necessary
for preparation of any sites and making any land or
improvements required in the project area available,
by sale or by lease, ... for development, redevelopment
or rehabilitation by private enterprise for commercial
or industrial uses ...." (emphasis added).
Thus demolition and removal of debris would appear very appropriate
expenditures of tax incremental funds as part of a land preparation for construction
of a replacement building by private enterprise. However, I could find no
absolutely specific and clear reference' in the definition authorizing TIF financing
for the construction of privately owned buildings. The definition speaks of
"construction of capital improvements ... designed to' alleviate deteriorating
conditions or a blighted area or designed to increase or enhance the development
of commerce ...." But does this mean tax dollars can supplement the construction
costs of building a new privately owned building? I believe that answer may be
"yes" for further reasons stated later. However, I would be more comfortable
legally is the TIF money was only used for acquisition and clearing expenses or
public improvements. Using TIF money to demolish and clear the site rather than
to help build a privately owned commercial structure not only is much more
traditional and accepted urban renewal, it also avoids issues of obtaining taxpayer
benefits for taxpayer revenue that would be inherent if taxes were invested in
construction of private property.
The very broad definition and authority given by the people through
Amendment No. 78 to the legislature to define "redevelopment project" was
seemingly extended to the City Council by the very last clause in the statutory
definition:
"(E)- Any other projects the local governing
body deems appropriate to carry out the
purposes of this subchapter."
act."
The General Assembly listed seven (7) purposes when they passed this
"(b) The General Assembly declares the purpose
of this act to be as follows: (1) To create a viable
procedure by which a local government may
finance redevelopment projects that improve the
community; (2) To create a more stable and adequate
source of funds for local governments to construct
improvements and finance rehabilitation of distressed
and blighted areas; and (3) To benefit the people of
this state, for the increase of their commerce, welfare,
and prosperity, and for the.improvement of their
living conditions; (4) To provide new employment
opportunities; (5) To prevent, arrest, and alleviate blight
and decay in communities; (6) To increase the supply
of housing available at low rentals; and (7) To improve
the tax base and to improve. the general economy of the
State of Arkansas by providing additional and alternative
means for local governments to finance public facilities
and residential, commercial, and industrial development
and revitalization, all to the public benefit and good, in
the manner provided in this act."
This last clause in the definition and the lengthy and broad purposes in the
Act's preamble seem to give the City Council great leeway in determining what a
worthy "redevelopment project" is. The legislature also stated: "it is the intent of
the General Assembly that it (the Act) is to be broadly construed to effect its
purpose." A.C.A. §14-168-302.
Thus, it seems that the proposed East Square Redevelopment meets the
statutory definitions for eligibility for tax incremental financing. Now it is your
policy decision about the advisability of going forward or not.
L
KIT WILLIAMS, CITY ATTORNEY
DAVID WHITAKER, Assr. CITY ATTORNEY
LEGAL DEPARTMENT
TO: Dan Coody, Mayor
City Council
FROM: Kit Williams, City Attorney
DATE: July 29, 2004
RE: Redevelopment District and TIF bonds
GENERAL FACT SHEET
1. "(T)he real property within the redevelopment district (must) be
benefited by eliminating (blight) ...." A.C.A. § 14-168-305 (c)(4).
2. "The
boundaries of a
redevelopment district may be
modified
from
time to time by
ordinance of the
local government." A.C.A. §14-168-305
(f).
3.
"Upon creation
of the redevelopment district, (the
City
Council) shall
cause the
preparation of a
project
plan ...." A.C.A. §
14-168-306
(a).
4. The City Council "shall hold a public hearing at which interested
parties are allowed a reasonable opportunity to express their views on the
proposed project plan." A.C.A. §14-168-306 (e).
5. The project plan's "approval shall be by ordinance which contains a
finding that the plan is economically feasible." A.C.A. § 14-168-306 (f).
6. "The local governing body may adopt by ordinance an amendment to
a project plan." A.C.A. § 14-168-307 (a).
TIF Bonds
A. "Every bond issued ... shall recite on its face that it is a special
obligation bond payable solely from the tax increment and other revenues
pledged for its repayment." A.C.A. § 14-168-314 (c).
B. "To increase the security and marketability of redevelopment bonds
or notes, the local government may:
(1) Create a lien for the
bondholders upon
any
public
improvements or public
works financed
by
the
bonds;
or
(2) Make such covenants and do any and all such actions ...
which tend to make the bonds or notes more marketable ....'
A.C.A. §14-168-318.
C. TIF Bonds would initially be debts supported only by incremental
millage tax payments from the County Collector. The City Council could grant
liens (mortgages) on infrastructure improvements and could even pledge "other
revenues" to make the TIF bonds more marketable. That would seem to run
counter to the attractiveness of tax incremental financing by tying up city
general revenue and could lead to legal problems in this developing area of a
brand new law.
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FAYETTEALLE 10
THE CITY OF FAYETTEVILLE, ARKANSAS
City Clerk Division
113 West Mountain
Fayetteville, AR 72701
Telephone: (479) 575-8323
DEPARTMENTAL CORRESPONDENCE
To: Kit Williams
City Attorney �pQ
From: Clarice Buffalohead-Pearman�J `
City Clerk Division
Date: August 23, 2004
Re: Ordinance No. 4608
The City Council on August 17, 2004, passed an ordinance allowing the formation of the Highway 71 East
Square Redevelopment District No. 1. I have attached a copy of said ordinance.
This ordinance will be recorded in the city clerk's office and microfilmed. If anything else is needed please
let the clerk's office know.
Attachment(s)
cc: Nancy Smith, Internal Auditor
iiffl0 •' •` a � °
AFFIDAVIT OF PUBLICATION
I, do solemnly swear that I am
Lejal Clerk of the Arkansas Democrat-Gazette/Northwest Arkansas
Times newspaper, printed and published in Lowell, Arkansas, and that
from my own personal knowledge and reference to the files of said
publication, that advertisement of:
�D was inserted in the regular editions on
Po# 043(p
** Publication Charge: $ /i7 , 41
Subscribed and sworn to before me this
Z4 day of _ AT, 2004.
My Commission Expires: o745VA013
** Please do
not
pay
from Affidavit.
An invoice
will
be
sent.
Official Seal
SEAN-MICHAEL ARGO
Notary Public -Arkansas
WASHINGTON COUNTY
My Commission Expires 07-25-2013
212 NORTH EAST AVENUE • P.O. BOX 1607 • FAYETTEVILLE, ARKANSAS 72702 • (501) 442-1700
0
r�
ORDINANCE FORMING .THE HIGHWAY 71 FAST
ARE REDEVELOPMENT DISTRICT NUMBER. ONE
SLAM TO AMENDMENT 78 OF THE ARKANSAS
STITILMON AND AUTHORRMG THE PREPARATION
IBIIBABr the City Councl alter 15 day Published notice
hall a pudic heersig at whim as Yitah"ned Parties were gNon the 00130rlunity to express their Ns
Me PrOPOSOO creation of the Highway 71 Fast Square Redevelopment District Numrr One
eaaWlle, Aikanses and its Proposed boundanes; and
� vm IV PUDICsi t, a copy of said notice was sent by fired -Class maul to the chef a
of atl Iocau govemmanta and tawng entities having the Pourer to"�as on =party
the Pmposed Highway 71 Fast Square Redevelopment Distract Number One of Fay
as, and to the achod board of any school district which indudes PrOP" bcated wi hin'
Highway 71: Fast Squaw RedmIOPnrent District Number One of FayeaeWlle, Arkanaas; f
BA89 the City Council has designated the bounders of the Proposed Highway 71 East
dopment District Number One, of Fayetteville, Aransas,
TNBRBFORB. Be IT OR ENUEED By THE CRT COUNCIL OF THE CRT OF 1
LE Aarr.ue...
Coved of the Oty of Fayetevee, AM1arts113 hereby estato;shres the bawd
lasre Reda+abpment District Nurnber One of Fayetteville, Arkansas as WE
4o as Ex bit -A- anal incorporated herein. Exhibit'A' may he viewed at the
n 2: That the City Council of the City of Faybdaylle, Arkansas hereby rams the DiNnor the nae far bdlfificafim PurPes: Highway 71 Fast Square Redlopmstrict Number 1
ettmasaroeM Di
eWlle, Arkansas.
n 3: That the City Council of the City of Fayetteville, Arkansas hereby Orontes the Highway 71 E
a Redevelopment District Number One of Fays"WHO, Arkansas as of September 20, 2004.
s 4: That the Oty Caundl hereby, finds trot Me reel PrOPerty within the Highway 71 East SO,
abpment District Number One of Fey9tleWlle. Arkansas, will be benefited by the redavabpm
by eliminating Or Preventing the development or spread of blighted, deteriorated, or daenom
7 dis . uraging Me I= of commerce, a emPloyment, a increasing deployment. a arty con
15: That fhe OEY Council of the City of FayM WAe, Ark2nsas hereby agates a separate and sI
d into which shall be deposited all tax Incromern reyenoss, and ell other revenues designatod
y far the benefit of the Highway 71 Fast Square Redevelopment DiSal Number One
Mlle, Arkatess. All PrOlect Costs shall be paid from Nis fund. This fund anal be known as
ry 71 East Square Redevdlopment District Number One of Fayetswile, AnOnsss,
i 0: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the prepeuMI
valoinment Project.
ID Mel APPROVED this 17M day Of August. 2004.