HomeMy WebLinkAboutOrdinance 4646ORDINANCE NO. 4 6 4 6
AN ORDINANCE ADOPTING THE PROJECT PLAN FOR THE HIGHWAY
71 EAST SQUARE REDEVELOPMENT DISTRICT, FINDING THE PLAN
IS ECONOMICALLY FEASIBLE AND AUTHORIZING THE ISSUANCE
OF TAX INCREMENT FINANCING BONDS TO FUND THE
IMPROVEMENTS OUTLINED IN THE PLAN
WHEREAS, on July 27, 2004, the Fayetteville City Council held a Public
Hearing concerning the creation of the Highway 71 East Square Redevelopment District;
and
WHEREAS, on August 17, 2004, the City Council passed Ordinance No. 4608
creating the Highway 71 East Square Redevelopment District and authorized preparation
of a Redevelopment Project Plan; and
WHEREAS, the City with input from the proposed redevelopers of a Twenty -
Two Million Dollar hotel project to be constructed after removal of the blighted
Mountain Inn has prepared a proposed Project Plan attached as Exhibit "A'; and
WHEREAS, the Project Plan includes:
(a) The kind, number and location of all public works or
improvements within the district including the acquisition of real
property, demolition of blighted/vacant buildings, and sale of the
cleared land to the redevelopers;
(b) an economic feasibility study;
(c) a detailed list of estimated project costs;
(d) a description of financing including tax increment bonds;
(e) a certification of the county tax assessor of the base value, ad
valorem rate, debt service ad valorem rate, and ad valorem rate for
the redevelopment district;
(f) no other funds are expected to be deposited into the special funds;
(g) a map showing existing uses and conditions of real property in the
district;
(h) a map of proposed improvements and uses in the district;
(i) no zoning changes are anticipated;
0) reference to the Downtown Master Plan;
0 0
(k) non -project costs include financial advice, bond costs, economic
forecasting;
(I) no persons are anticipated to be displaced;
(m) the amount of TIF indebtedness;
(n) the amount of tax increment estimated to be generated by the
project;
(o) no other revenues are anticipated to be used to secure the tax
increment financing.
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
finds that the Project Plan for the Highway 71 East Square Redevelopment District
(attached as Exhibit A) is economically feasible.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby
adopts the Project Plan for the Highway 71 East Square Redevelopment District and
determines it has complied with all requirements set forth in A.C.A. §14-168-306.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby
approves and authorizes the issuance of the tax increment financing bonds as outlined in
the Project Plan in the amount, interest rates, duration, etc. stated within the Project Plan.
PASSED and APPROVED this 7`h day of December, 2004.
VF
;FAYETTEVILLE;
f
ATTEST:
APPROVED:
City of racJ, etteville, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
11/10/2004
0 •
z
Takle of Contents
Introduction 3
Phase 1 5
"Process of removing blight in the former Mountain Inn area -Catalyst Project"
Phase II 11
"City Streetscape Improvements —First 10 Year Project"
Economic Feasibility Study Exhibit 1
Existing Uses and Conditions Map Exhibit 2
City of Fayetteville, AR Ordinance No. 4608 Exhibit 3
Assessor's Certification Exhibit 4
TIF Financing Strategies Exhibit 5
Amendment 78 Exhibit 6
Local Demographics Exhibit 7
District Map and Legal Description Exhibit 8
Existing Conditions of Blight Exhibit 9
Downtown Master Plan Exhibit 10
E1
city of a�etteville, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
Introduction:
Plan documents have been prepared that are related to a proposed redevelopment of certain land
areas and specific project parcels in the Highway 71 East Square Redevelopment District as adopted
by the Fayetteville City Council on August 17, 2004, with the ordinance effective September 20,
2004. The Project Plan is specifically designed to benefit the City of Fayetteville in the removal of
designated blight coupled with the reinvestment in infrastructure to benefit the project area and the
City of Fayetteville as a whole. The geographical boundaries of the Highway 71 East Square
Redevelopment District are illustrated below:
The redevelopment district anticipates incremental growth in tax collections to exceed $35 million
over a twenty five year period beginning in 2004 and ending in 2029 (see Economic Feasibility
Study, Exhibit # 1). The Highway 71 East Square Redevelopment District Project Plan outlines the
public purposes and investments that are targeted in the redevelopment district. The purpose ofthe
district is to encourage the commercial and residential redevelopment of real property, thereby
preventing the spread of blighted, deteriorated and deteriorating areas, and discouraging the loss of
commerce, industry and employment.
The Project Plan once adopted may be adjusted over time by the Fayetteville City Council in order
to ensure the return to the public is invested in a manner that will ensure economic vitality in the
district, as well as the district's impact on the City of Fayetteville.
There are initially two specific phases for the public investments to be made in the Highway 71 East
Square Redevelopment District. They are:
1. Phase I -Process of removing blight in the former Mountain Inn area -Catalyst Project
2. Phase II — City Streetscape Improvements — First 10 Year Project
The "catalyst" project in the district is the redevelopment of the blighted Mountain Inn area (see
Section One). East Square, LLC, (The Developer) is proposing a $ 22.5 million investment into a
destination hotel/meeting space condominium project. Approximately $19 million of the proposed
redevelopment is from private investments. An additional $3.5 million for the public purpose of
eliminating the existing blight will be secured by Tax Increment Bonds issued by the redevelopment
district. No TIF proceeds will be used for the construction of the buildings of the proposed project
but will be limited strictly to public purposes allowed under the law for redevelopment districts.
The Fayetteville City Council has adopted the Dover Kohl Downtown Master Plan (see Exhibit # 10)
that has as its focus improvements in much of the area now included in the approved TIF District.
The adopted Downtown Master Plan identified as a clear priority the removal of the "eyesore" of the
denigrated Mountain Inn.
In addition to the catalyst project the Highway 71 East Square Redevelopment District Project Plan
will also include a number of streetscape improvements in the district (see Section Two).
EI
0
City of ragetteville, Ar�Cansas
PHASE 1 (Catalyst Project)
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
IMPROVEMENT RECOMMENDATIONS
Section One - Removal ofBlikht
Phase I of the project plan (the area identified as the Mountain Inn Project) for the Highway 71 East
Square Redevelopment District targets the removal of blight as defined in Arkansas Statute 14-168-
301. It reads as follows:
(3)(A) 'Blighted area" means an area in which the structures, buildings, or improvements, by
reason of dilapidation, deterioration, age or obsolescence, inadequate provision for access,
ventilation, light, air, sanitation, or open spaces, high density of population and
overcrowding or the existence of conditions which endanger life or property, are detrimental
to the public health, safety, morals, or welfare.
(B) "Blighted area" includes any area which, by reason of the presence of substantial number of
substandard, slum, deteriorated or deteriorating structures, predominance of defective or
inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or
usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements,
diversity of ownership, tax on special assessment delinquency exceeding the fair value of the
land, defective or unusual conditions of title, or the existence of conditions which endanger
life or property by fire and other causes, or any combination of such factors, substantially
impairs or arrests the sound growth of a city, retards the provision of housing
accommodations, or constitutes an economic or social liability and is a menace to the public
health, safety, morals, or welfare in its present condition and use, or any area which is
predominantly open and which because of lack of accessibility, obsolete platting, diversity of
ownership, deterioration of structures or of site improvements, or otherwise, substantially
impairs or arrests the sound growth of the community.
The recently adopted "Downtown Master Plan"
contemplates specific key projects necessary for a fully
revitalized downtown area. The Mountain Inn was
identified as #3 in the list of immediate projects. The
Downtown Master Plan states: "A key opportunity for infill
development is the redevelopment of the Mountain Inn.
The hotel, fronting College Avenue, has been vacant for a
number of years. The existing structure is an eyesore ... the
location of the Mountain Inn among several other
Downtown landmarks and historic structures offers the
opportunity to create a taller building - a new landmark -
which signals the revival of downtown".
GI
For many years the remnants of the once premier lodging
facility formerly known as the Mountain Inn have been
decaying with little hope for a change in its blighted condition.
In its day, the hotel was considered the destination of choice for
travelers in the Fayetteville area as well as the hosting of other
community traditions including Sunday brunch, regular
business meetings, club events and wedding parties.
Unfortunately, the hotel through a series of unsuccessful ventures became an inconsistent host and
ultimately an outdated lodging facility. During the same period that the Mountain Inn lost its luster
the Fayetteville downtown area went into a period of degradation and many business operators,
vendors and customers left the area. After years of wasting away, concerned citizens, local
government leaders and developers came together to revitalize the historic Fayetteville downtown
square as well as neighboring Dickson Street. This rebirth has been ongoing for the past fifteen
years with the vast majority of the significant building in the Downtown/Dickson Street area being
revived to support the business, cultural and entertainment center it has become.
In recent years multiple redevelopment projects have transformed parts of the downtown/Dickson
Street area into a hub of culture, commerce and entertainment for northwest Arkansas. New
construction and redevelopment projects of note that have emerged include: The Campbell Bell
Building, The Ozark Theatre Building, The Three Sisters, UARK Bowl, The Bank Of Fayetteville
Building, The Walton Arts Center, The Ozark Brew Pub, Camall Hall, The Ice Plant Building,
Rollston Building, Cooper House, Pyeatt Building, Campbell Terrace, Laundry Building, Bakery
Building, Collier's Drug, The Old Post Office Building, The Town Center and the recently
completed new Fayetteville Public Library. Some of the redevelopments are pictured below:
0
0
Noticeably absent from this regenerative trend has
been the Mountain Inn with its broken windows
and boarded -up doorways sitting on its prominent
position at the crest of Archibald Yell/College
Avenue. Unfortunately, now, the once bustling
hotel's only visitors consist of vandals, transients
and the local police force.
Now with its neighbors alive with activity, the former Mountain Inn and other participating spaces
will be transformed into a destination facility that will be unsurpassed in the Fayetteville market.
The planned development project will incorporate
a 144 room full -service hotel, 18 condominiums,
12,500 sq. ft. conference/meeting space, three
restaurants, a day spa, exercise center, boutique
shops, a 300 space multi -story parking garage and
a rooftop botanical garden with observation deck.
The project in its entirety is known as the East
Square Redevelopment Project.
The project's centerpiece is a planned full service
national Flagship hotel. The hotel will serve the
mid -to -high end of the business traveler, short
duration vacationer and meeting/event attendees.
With a thoroughly defined design concept, the
stylish hotel will offerthe highest level of comfort
and service along with the intrigue of its inviting
amenities. The twelve -story main structure of the
new hotel will be built on the existing site of the
1960's addition to the historic Mountain Inn.
Condominiums will be built on the upper Floors of
the new structure.
The architecturally pleasing section ofthe historic
inn's arcade which faces Center Street will be
preserved to accommodate pedestrian accessible boutique shops along the north/south lower level
arcade and will house the day spa and function space on the upper floors. Banquet and conference
facilities will be arranged in the northeast section ofthe complex with a multi -purpose ballroom and
multiple flexible "break-out" meeting spaces. The planned botanical garden will be the crown jewel
of the facility positioned on the rooftop of the main hotel building.
The project will combine complementary architecture, functional access, technological amenities
and comfortable furnishings of subtle ambience to satisfy visitors with the facility.
The proposed subject property is anticipated to be complete and operational in or near the Spring of
2006. No rezoning is required for the project.
The project is located one block east of the heart of the downtown business district. It is
conveniently located less than five minutes from the University of Arkansas, a short walk to the
Fayetteville Town Center, within walking distance of the Dickson Street entertainment district, the
University of Arkansas, the Walton Arts Center and approximately ten minutes from the 1-540
north/south corridor. The following map illustrates the development's location:
Mountair
The Tax Increment Bonds to be issued by the Highway 71 East Square Redevelopment District
will finance certain allowable public purposes as outlined by the enabling legislation Arkansas Code
Annotated 14-168-301 through 14-168-323, Redevelopment District, Chapter 168, Community
Redevelopment Generally, Subchapter 3, Community redevelopment — Creation and procedures.
Specifically as described in 14-168-301(13A-E):
"(13)(A) "Redevelopment project' means an undertaking for eliminating or preventing the
development or spread of slums or deteriorated, deteriorating, or blighted areas, for discouraging the
loss of commerce, industry, or employment, or for increasing employment, or any combination
thereof.
(B) A redevelopment project may include one (1) or more of the following:
(i) The acquisition of land and improvements, if any, within the redevelopment district and clearance
of the land so acquired; or
(ii) The development, redevelopment, revitalization, or conservation of the project area whenever
necessary to provide land for needed public facilities, public housing, or industrial or commercial
development or revitalization, to eliminate unhealthful, unsanitary, or unsafe conditions, to lessen
density, mitigate or eliminate traffic congestion, reduce traffic hazards, eliminate obsolete or other
0 r
uses detrimental
to the public
welfare, or otherwise remove or prevent the spread
of blight or
deterioration; or
(C) The financial or other assistance in the relocation of persons and organizations displaced as a
result ofcarrying out the redevelopment project and other improvements necessary for carrying out
the project plan, together with such site improvements as are necessary for the preparation of any
sites and making any land or improvements acquired in the project area available, by sale or by
lease, for public housing or for development, redevelopment, or rehabilitation by private enterprise
for commercial or industrial uses in accordance with the plan;
(D) The construction of capital improvements within a redevelopment district designed to alleviate
deteriorating conditions or a blighted area or designed to increase or enhance the development of
commerce, industry, or housing within the redevelopment district; or
(E) Any other projects the local governing body deems appropriate to carry out the purposes of this
subchapter;"
In particular the public purposes of Phase I improvements financed by Tax Increment financing
include acquisition costs, asbestos remediation, demolition expenses, reclamation expenditures,
waste recycling and site work on the site of the former Mountain Inn area. The expenditures are as
follows:
Expenditures
1 *Real Property Assembly costs:
765-01940-000,765-01930-000
765-01938-000
765-01939-000
765-01929-000
2 "Demolition & Site Preparation:
1,200,000.00
500,000.00
500,000.00
413,000.00
216139000.00
887,000.00
3,500,000.00
* No Condemnation procedures will be utilized for the Mountain Inn Project
** Demolition and Site Preparation expenditures include the following:
A. Resolution of access issues
B. Resolution of utilities as needed
C. Water/sewer system upgrades as required
D. Layout & engineering
E. Asbestos and other environmental remediation
0
The following aerial photograph delineates the Mountain Inn Project site:
Historic
Fapade
Parking
Garage
10
Meeting
Facilities
New
Main
Bldg.
Upon the completion of the removal of blight the Developer will purchase the raw land of the project
site at the established appraised fair market value.
Other
The project plan provides for temporary replacement parking (up to 25 spaces) or funds for said
parking as allowed in 14-168-301. Definitions (C) "The financial or other assistance in the
relocation of persons and organizations displaced as a result of carrying out the redevelopment
project and other improvements necessary for carrying out the project plan."
Direct Economic Impacts
-Approximately 125 new jobs will be created in connection with the catalyst project
-Construction jobs estimated at 55
-Increase in demand in consumer goods during construction period
-Improved Property Values upon removal of blight
-Tourism attraction drawing tourist dollars to Fayetteville
-Adjunct to convention/meeting space for attracting additional conventions, etc.
-Creates a catalyst for additional redevelopment along College/Archibald Yell
-Promotes additional downtown living, thereby adding vitality to Fayetteville's downtown economy
-New tax revenues (estimated on catalyst project only):
I) Sales tax of approximately $153,750 annually
2) HMR tax collections of approximately $60,000 annually
«amity of r,etteviiie, ArLansas
PHASE II (First 10 Year Plan)
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
IMPROVEMENT RECOMMENDATIONS
Section Two — Streetscape Improvements
The purpose of this report is to provide recommendations for public work improvements that
would be a part of the Highway 71 East Square Redevelopment TIF District Project Plan. These
proposed recommendations were developed using the Downtown Master Plan and the
Downtown Dickson Street Enhancement Project as a guide.
PROPOSED TYPICAL SECTIONS:
lY �.o �
MILL �NINIAA�R
AS IM
�- + WSTI, VARIES I-6.
WY/'/CA( /iN/aLi ILV/�Q_C/iQ35=3ry'�].'LQa�'
IT
k
J
Z
M�
PLAN
V/F'W
The following is a summary of improvements for the typical section that will be applied to
identified streets within the improvement district:
i Replacement of existing sidewalk with a uniform six foot wide sidewalk that would meet
12
ADA requirements.
➢ Replacement of existing curb & gutter with historic type "stand-up" curb.
➢ Installation of a double band of concrete pavers adjacent to curb.
➢ Installation of trees at intervals of 30 feet including underground irrigation.
➢ Installation of decorative street lights at intervals of 120 feet with underground electrical
supply.
➢ Provide a minimum of two inch asphalt overlay.
➢ Replace existing drainage structures and storm pipes as necessary.
Below is a conceptual photograph of College Avenue that was contained in the Downtown
Master Plan that illustrates the type of enhancements that are recommended.
Downtown Master Plan Conceptual Photograph of College Avenue
PROPOSED IMPROVEMENT CORRIDORS:
Portions of the major corridors within the Improvement District have been selected to be
improved to the Typical Section in conjunction with the redevelopment project. These portions
are listed below and are shown on a map on the following page.
➢ College Avenue — Between Mountain Street and Maple Street.
➢ School Avenue— Between TIF Southern Boundary (South of 7`h Street) and Prairie
Street.
➢ Mountain Street— Between College Avenue and Downtown Square.
➢ Center Street— Between College Avenue and Downtown Square.
➢ Block Street — Between Downtown Square and Spring Street. This street portion will
also require the replacement of the water and sewer lines located under the street due to
the age of the infrastructure that was installed before 1915.
0 a
13
Downtown Square — This includes the replacement of the existing deteriorating
sidewalks around the square.
Ln FnvE rfE ❑� IF TI
SI IL'D 11L
rLr
DCFSOrc
J! ❑OC
Cv�r.oc'
�.> "?Er
Proposed Improvement Corridors
The following are the associated costs to improve the identified corridors to the improved typical
cross sections:
Street
Street Segment
*Unit Cost
per L.F.
Length
(L.F.)
Cost
From
To
College Avenue
Mountai
n
Maple
$930.00
2.980
$17713400.00
Center Street
College
East
$930.00
450
$418,500.00
Mountain Street
College
East
$930.00
450
$418,500.00
Downtown Square
N/A
N/A
$930.00
1,200
$I 1 I61000.00
Block Avenue
Center
Spring
$930.00
680
$864,900.00
School Avenue
Prairie
TIF
Boundary
$930.00
1.190
$1 , 1 06,700.00
TOTAL ESTIMATED COST $6,696,000.00
* The unit cost per Linear Feet of Street Enhancement was derived from the actual costs
of the Downtown Dickson Street Enhancement Project.
As previously stated, it
will be necessary
to replace
the
water and sewer lines under Block
Avenue prior to the street improvements
due to the
age
of the utility lines. These replacements
have been estimated to
cost
$420,000.00.
Total Estimated Cost for Street/Sidewalk Enhancements - $69696,000.00
Estimated Costs for Block Avenue Water & Sewer Replacements - �420.000.00
TOTAL ESTIMATED COST- $7,116,000.00
14
Total Anticipated Expenditures:
Phase 1 - Process of removing blight in the former Mountain Inn area -Catalyst Project:
$3,500,000 (based upon 2004 dollars)
Phase 11— City Streetscape Improvements — *First 10 Year Project:
$7,116,000 (based upon 2004 dollars)
$10,616,000 Total (based upon 2004 dollars)
*Financing and related improvements will be phased in as revenues from the growth of incremental
property taxes warrant them.
17
The purpose of this study is to estimate the cash flows that will accrue to the Highway 71 East
Square Redevelopment Tax District (ESRD) in Fayetteville, Arkansas as a result of the tax
increment financing project that has the redevelopment of the Mountain Inn as its centerpiece.
The ESRD encompasses 443 parcels in the central part of Fayetteville, running along US
Highway 71 B from Maple Street to south of the Mill District. The ESRD centers on the
Fayetteville Square, the Mountain Inn, and the Old Courthouse. The desired renovation of the
Mountain Inn spurred the formation of the ESRD, as private developers were unwilling under
the current economic environment to attempt the project. Further, the redevelopment is seen as
key to improving local property values and fostering economic activity in the central corridor of
the city. Tax increment financing (TIF) was chosen as the appropriate tool for this private/public
partnership.
Researchers at the Center for Business and Economic Research (CBER) in the Sam M. Walton
College of Business at the University of Arkansas were asked to project the revenues that tax
increment financing will provide for the ESRD. The methodology employed was as follows.
First, a copy of the property ownership report for the East Square Redevelopment District was
obtained from City of Fayetteville staff. This report included the identification of and 2003
assessed valuation numbers for the 459 parcels included in the Highway 71 East Square
Redevelopment District. Supplementing this information, CBER researchers used the
Washington County Assessor's online property search database to obtain the 2004 assessment
values for the same 459 parcels. CBER researchers then gathered historical data on assessment
value growth rates in other parts of Fayetteville for comparison purposes. Research was
conducted on the growth in property values in TIF districts in Tulsa. Oklahoma to assist in the
determination of reasonable expectations for growth rates.
The collected data show that 148 of the parcels in the ESRD are classified as Commercial
Improved, 95 of the parcels are classified as Residential Improved, 116 of the parcels are exempt
from property taxes (either as local or federal government properties or churches), and the
remaining 100 parcels are a mix of commercial and residential vacant properties, public services,
and miscellaneous usages. A total of 342 of the identified parcels had non -zero assessment
values in 2004.
In 2003, the total assessed value of the parcels in the ESRD was $16,691,61. In 2004, the year -
on -year growth rate of the assessed value was 12.9%, while the median assessment growth rate
was 10 percent. Of the relevant 342 parcels, 49 parcels had assessment growth rates of less than
10 percent, 208 had assessed values that grew at 10 percent, and 85 parcels had assessment
growth rates of more than 10 percent. Only 6 parcels in the ESRD had lower assessments in
2004 than in 2003
In order to form a basis of comparison, the parcels that have addresses along Dickson Street in
Fayetteville were examined. A substantial amount of private and public investment has gone
into the redevelopment of Dickson Street in recent years and examining recent annual
assessment increases might provide a fair indication of what assessment values might do in the
ESRD after investments have been made. According to data from the Washington County
Assessor's Office,
W
in 2004 the average growth rate in assessed value on Dickson Street was 12.8 percent. The
median growth rate was 10 percent. In 2003 the median growth rate of the assessed value of
parcels on Dickson Street was 8.3 percent, while in 2002 and 2001 the median growth rates were
9.1 and 10.0 percent respectively.
In Tulsa, Oklahoma, tax increment financing has been used in five districts. Oklahoma's TIF
legislation differs from that of Arkansas in that both property and sales tax increments are
available for revenues for the districts. The successes of the TIF districts in Tulsa have varied.
Those that have been most successful have attracted a large retail anchor to the district or have
been tied to a specific redevelopment project. Most Tulsa TIF districts have been unable to meet
their projected increases in property tax and sales tax. This experience demonstrates that
planners should use conservative estimates in their calculations for projected revenue.
Based on all of the previous information, CBER researchers have developed a plausible revenue
scenario for the ESRD. This scenario takes into consideration that owner -occupied residential
property assessment growth is capped at 5 percent, that properties owned and occupied by
residents over the age of 65 have frozen property assessments, and that all other property
assessment growth is capped at 10 percent. Only new construction is assessed at its full value.
In order to provide a conservative estimate of the revenue that will be generated in the TIF
district, the following assumptions are made. In 2005 and 2006, assessed property values will
grow at 8 percent, unless they are frozen or capped at 5 percent. From 2007-2029, property
values grow at 10 percent, unless they are frozen or capped at 5 percent. These revenue
estimates do not capture the growth in assessments that will result from new construction, and as
such, likely underestimate the true revenues that are likely to accrue to the TIF district. Table I
presents the revenue estimates by year that are derived from the listed assumptions. Figure I
illustrates the growth path of the increment and the full assessment that is estimated for 2030.
$200,000,0001 Assessed Value M ESRO Parcels
$180,000,000 Frozen Assessment $176.755,WAI
� Increment I I
$041.u_u_u_u_u_u_u_u.,u_uru_u_u_u_u_u_uru�u_u�u_u_u_u_u_1
200520062097 200820092010201120122013201e2015 M162017201820192MO=I 2022=3202e 202520M 2022202820292030
0
10
IS
City of ragetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.1
Economic Feasibility Study
P 0
16
An Economic Forecast of Assessment Values in ,
the Highway 71 East Square Redevelopment District
Produced for the City of Fayetteville, Arkansas
SAM A
Mw
xLTON
ofNIVERSf AD T7 Q A S COLLEGE of BUSINESS
Center for Business and Economic Research
Center for Business and Economic Research
Reynolds Center Building 217
Sam M. Walton College of Business
1 University of Arkansas
Fayetteville, Arkansas 72701-1201
(479) 575-415 1
Contact: Dr. Jeffery T. Collins, Director
September 2004
19
Weighted Estimates by Property Taxation Classification
Total Available Increment: $1,212,113,026
Total Available Yield: $35,466,427
Net Present Value of Total Available Yield: $20,508,103
Ye r 2005 0 001 2008MMUMEM
Frozen Assessment $ 16.732.831 $ 16,732,831 $ 16.732.831 $ 16.732,831 $ 16,732,831
Total Assessment $ 17.964,708 $ 19,294.581 $ 21,084.090 $ 23,051,530 $ 25,214,645
Assessment Growth Rate 7.4% 7.4% 9.3% 9.3% 9.4%
Increment $ 1,231,877 $ 2,561,750 $ 4,351,259 $ 6,318,699 $ 8,481,814
Available Yield $ 36,045 $ 74,957 $ 127,318 $ 184.885 $ 248.178
PV of Available Yield $ 34.995 $ 70,654 $ 116.514 $ 164.268 $ 214,080
ear OJ 20119 0J2 013 20,1.4
Frozen Assessment $ 16,732,831 $ 16,732,831 $ 16,732,831 $ 16,732,831 $ 16,732,831
Total Assessment $ 27,592,949 $ 30,207,904 $ 33,083,116 $ 36,244,550 $ 39,720,762
Assessment Growth Rate 9.4% 9.5% 9.5% 9.6% 9.6%
Increment $ 10,860,118 $ 13,475,073 $ 16,350.285 $ 19511.719 $ 22.987,931
Available Yield $ 317,767 $ 394,281 $ 478,409 $ 570.913 $ 672,627
PV of Available Yield $ 266,125 $ 320,586 $ 377,661 $ 437,557 $ 500.498
a 5 16 0 1 28 019
Frozen Assessment $ 16,732,831 $ 16,732.831 $ 16,732.831 $ 16,732,831 $ 16,732.831
Total Assessment $ 43,543.162 $ 47.746,297 $ 52,368,166 $ 57,450,562 $ 63.039,456
Assessment Growth Rate 9.6% 9.7% 9.7% 9.7°% 9.7%
Increment $ 26,810,331 $ 31,013,466 $ 35,635,335 $ 40,717,731 $ 46,306,625
Available Yield $ 784A70 $ 907,454 $ 1,042,690 $ 1.191,401 $ 1,354,932
PV of Available Yield $ 566,718 $ 636,470 $ 710,021 $ 787,656 $ 869.679
iea0 MENTONI02ilN 2023 024
Frozen Assessment $ 16,732,831 $ 16,732,831 $ 16,732,831 $ 16,732.831 $ 16.7329831
Total Assessment $ 69,185,410 $ 75,944,039 $ 83,376,514 $ 91,550119 $ 100,538,861
Assessment Grawth Rate 9.7% 9.8% 9.8% 9.8% 9.8%
Increment $ 52,452,579 $ 59,211,208 $ 66,643,683 $ 74,817,288 $ 83,806.030
Available Yield $ 1,534,762 $ 1,732,520 $ 1,949,994 $ 2,189,154 $ 2,452,164
PV of Available Yield $ 956,413 $ 1,048,203 $ 1,145,416 $ 1,248,444 $ 1,357,704
ear 02 2026 0 • 08 029
Frozen Assessment 2025 2026 2027 2028 2029
Total Assessment $ 16,732,831 $ 16,732,831 $ 16,732.831 $ 16,732,831 $ 16,732,831
Assessment Growth Rate $ 110,424,142 $ 121,295.501 $ 133,251,421 $ 146,400,231 $ 160,861.085
Increment 9.8% 9.8% 9.9% 9.9% 9.9%
Available Yield $ 93,691,311 $ 104,562,670 $ 116,518,590 $ 129,667,400 $ 144,128,254
PV of Available Yield $ 2,741,408 $ 3,059,504 $ 3,409,334 $ 3,794,068 $ 4,217,193
0
zo
City of Fayetteville, ArLansas
HIGHWAY 71 EAST -SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.2
Existing Uses and Conditions Map
•
Highway 71 East Square
Redevelopment District
Land uw
c WMLRCWt BULDIx (Ono
co .n
',W c
CXaUMFWPAL WNIFkNTW
i wu
Ml sines iux0.eD
iH
Fwut Ku LS
-M D
O,Wof .1 rl.14. ]pp
0 1Y SO 140.«,
21
22
City of rayettevilie, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.3
City of Fayetteville, AR
Ordinance No. 4608
Formation of the 71 East Square Redevelopment District No. 1
U
23
ORDINANCE NO.46N
AN ORDINANCE FORMING -THE HIGHWAY 71 EAST
SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PURSUANT TO AMENDMENT 78 OF THE. ARKANSAS
CONSTITUTION ANDAUTIIORIZING THEPREPARATION
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
Fast Square Redeveloptrtcnt 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,'f]HEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY'OF FAYETI'EVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby
establishes the boundaries of the Highway 71 last 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: Thal 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 17a' day of August, 2004.
APPROVED:
ATTEST:
t t••
24
•
zs
City of rayettevilie, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.4
Assessor's Certification
•
October 1, 2004
Mr. Hugh Earnest
City of Fayetteville
113 W. Mountain
Fayetteville AR 72701
Dear Mr. Earnest,
Please accept this letter and its attachments as the assessor's certification required by
ACA 14-168-306(b)(i) for the approval ofthe Redevelopment District Project Plan.
The assessed value of all real property within the redevelopment district subject to ad
valorem taxation, also known as the Base Value as of January 1, 2004, is:
16,616,684.
The current total millage rate of WaslningtonCounly, the Fayctteville School District, and
the City or Fayetteville, also known as the Total Ad Valorem Rate, is:
52.96.
The portion of the total ad valorem rate that was, at January 1, 2001, pledged to the
payment of debt service by the Fayetteville School District, also known as the Debt
Service Ad Valorem Rate, is:
23.7.
The total ad valorchn rate less the debt service ad valorem rate, also known as the
Applicable Ad Valorem Rate, is:
29.26.
Attached! is the certification from the Fayetteville School District of the debt service ad
valorenn rate, a copy of the most recent millage ordinance detailing levied ad valorem
millage rates for all taxing entities in Washington County with the pertinent items marked
with an asterisk, and a report from the assessor's database detailing the appmised and
assessed vcilue ofeach parcel in the redevelopment district along with totals for die entire
district.
Sincerely,
Lee Arun Kizzar
0 9
Fayetteville TIF district
PARCEL ID
Tvoe
Total Appraised
Total Assessed
765-01638-000
CI
136,600
26.488
765-01639-000
CI
12518DO
20.020
765-01640-000
RI
141,850
22.719
765-0164 1 -000
CV
43.700
6,435
765-01642-000
CIA
64,100
91724
765-01643-000
CI
696,850
125,070
765-01644-000
CI
1,358,6DO
182.559
765-01645-000
ET
0
0
765-01646-000
CI
210.950
35,9D5
765-01647-000
CI
275.950
49207
765-01648-000
EX
0
0
765-01649-000
EX
0
0
765-01650-000
CI
379.000
71258
765-01651-000
CI
576.450
98,927
765-01652-000
CV
66.000
16.819
765-01780-000
EX
0
0
765-01781-000
CI
282.450
44,165
765-01782-000
CI
268,800
45,133
765-01783-000
CI
188.650
31,812
765-01784-000
CI
70.900
12,999
765-01785-000
CM
61.450
8,514
765-01786-000
CI
284,600
23,995
765-01787-000
RI
136.300
17-804
765-01788-000
CI
223,100
25,109
765-017M000
CI
263,05D
34,738
765-01790-000
RI
68,200
9295
765-01791-000
RI
90.200
9,020
765-01792-000
CI
92.95D
15.656
765-01793-000
RI
73.000
10.7D4
765-01794-000
ET
0
0
765-01795-000
ET
0
0
765-01796-000
CI
144,100
21.912
765-01797-000
CI
146,300
19,005
765-01798-000
CI
168,950
25267
765-01799-000
CI
193,000
31257
765-01800-000
ET
0
0
765-01801-ODO
ET
0
0
765-01802-000
CI
226.500
37,180
765-01803-000
CI
184200
26,312
765-01804-000
CI
33%OOD
48.532
765-01SD6-000
CI
173,850
33297
765-01807-000
PS
5,211,350
1/042270
765-01808-000
CI
1687350
28,882
765-01809-000
PS
144,750
28,950
765-01810-000
CI
1,077,000
152,757
765-01811-000
CI
1,2962DO
206,492
765-01812-000
CI
290t3OO
58,060
765-01813-000
CM
471850
6,710
765-01814-000
CI
380200
73,871
765-01815-000
CM
55,600
10,978
765-01820-000
CI
6,4DO,ODO
1,280,000
765-01821-000
CI
6,190,1DO
1.086,591
765-01827-000
CI
171,100
32,990
765-01828-000
CI
199,850
38.338
765-01829-000
CI
141,800
4712
765-01830-000
CI
580.000
67.696
765-01831-000
CI
2402300
44.573
765-01832-000
CI
169,100
31,746
765-01832-001
CI
100.100
18,633
10/112004
• 0
PARCELID
Type
Total Appraised
Total Assessed
765-01833-000
CI
163,700
22,537
765-01834-000
CI
405,400
64,106
765-01835-000
CV
396.900
75.533
765-01835-001
C6
1,953.100
299207
765-01836-000
CI
4,000.000
77010W
765-01837-WO
CV
64,850
11,231
765-01816-000
CI
409,4W
80,993
765-01817-000
ET
0
0
765-01846-000
CI
722,150
127,470
765-01847-000
CI
702.950
140,590
765-01848-M
CI
2,500,000
461,627
765-01849-000
ET
0
0
765-01850-000
ET
0
0
765-01851-000
ET
0
0
765-01852-000
ET
0
0
765-01853-000
EX
0
0
765-01638-000
CI
455.400
84.885
765-01839-M
CI
982,300 -
122,694
765-01840-000
cm
89,000
17,270
765-01841-0W
CI
68.150
12.112
765-01842-000
EX
0
0
765-01843-OW
CI
B5.250
14,143
765-01844-000
CI
67.100
11.168
765-01844-001
CI
67,000
11,140
765-01845-000
CI
275.950
52.573
765-01918-000
CI
1.975,950
377,706
765-01919-000
CI
244,900
34.120
765-01920-000
CI
238.800
45.485
765-01924-000
CI
236,850
47,370
76"1925-000
CI
481.400
7%671
795-01926-000
EX
0
0
765-01928-OW
EX
0
0
765-01929-000
ET
0
0
765-01955-M
RV
22,500
3,168
76"1930-WO
CI
389.750
77,950
765-OIM-000
CI
527,600
59,068
765-01933-000
CI
432,4W
725758
765-01935-000
CI
4,380.500
849,736
765-01938-000
CI
167.550
30,468
765-01939-000
CI
334.850
62,062
765-01854-000
ET
0
0
765-01855-000
ET
0
0
765-01948-000
CI
332,700
61.576
76541949-000
CI
239.160
44,959
765-01950-000
CI
260.950
52.190
765-01952-000
ET
0
0
765-01953-000
ET
0
0
765-01940-OW
CI
668,400
1191577
765-01940-001
CI
230,800
451485
765-01941-OW
EX
0
0
765-01942-OW
CI
341,350
68.2M
765-01943-000
CI
470.250
90,167
765-01944-OW
CI
109,650
14.715
765-01945-000
CI
175,450
23,695
765-01946-WO
EX
0
0
765-01947-000
EX
0
0
765-01954-000
CI
151,150
26,609
765-01927-000
CI
717,7W
129,031
765-01958-000
EX
0
0
765-01956-000
RI
72.550
12,913
765-019594)00
EX
0
0
765-01960-000
EX
0
0
1011/2004 2
PARCEL ID
Type
Total Appraised
Total Assessed
765-01961-000
EX
0
0
765-01962-000
EX
0
0
765-01963-000
EX
0
0
765-01964-000
EX
0
0
765-01965-000
EX
0
0
765-01985-000
ET
0
0
765-01965-001
CI
1,219.550
225,577
765-01986-000
EX
0
0
765-01967-000
EX
0
0
765-01988-000
EX
0
0
765-01989-000
EX
0
0
765-01990-000
EX
0
0
765-01993-000
ET
0
0
765-01991-000
CI
392,300
69,398
765-01992-ODO
ET
0
0
765-01966-000
CI
404,750
79,325
765-01967-000
CI
98,20D
10,496
765-01968-000
CV
69.000
13.365
765-01969-000
CV
34,500
6.698
765-01970-000
CV
34.500
6.6B8
765-01971-000
CV
23,000
4,455
765-01972-000
CI
1,294,050
130,545
765-01975-000
EX
0
0
765-01976-000
ET
0
0
765-01977-000
ET
0
0
765-01978-000
ET
0
0
765-01979-000
ET
0
0
765-01980-000
ET
0
0
765-01981-000
ET
0
0
765-01982-000
ET
0
0
765-02070-000
CR
359.500
52,773
765-02071-000
PS
1,750
350
765-02072-000
EX
0
0
765-02073-000
EX
0
0
765-01903-000
ET
0
0
765-01984-000
ET
0
0
765-02076-000
RI
66,250
10,427
765-02074-000
RI
50,900
5,8D8
765-02075-000
RV
22,500
2,860
765-02077-000
RI
132.800
10,962
765-02078-000
RI
61,650
7,765
765-02080-000
RI
35,650
6,303
765-02M-000
RI
47,950
7,222
765-02082-000
CI
153,200
24,915
765-02083-000
RI
51,800
7444
765-02084-000
RI
35,850
5,477
765-02085-000
RI
57.050
87065
765-02086-000
CV
26.500
3,795
765-02087-000
CV
43,700
51754
765-02088-000
CI
160250
211607
765-02088-001
CI
34,950
42791
765-02092-000
RV
100
20
765-02093-000
RV
500
100
765-02093-001
RI
61,100
61901
765-02094-000
CI
79,250
13.607
765-02095-000
RV
17.500
2,464
765-02103-000
RV
17.500
2,402
765-02096-000
RI
51,200
9,812
765-02097-000
CV
23,50D
41312
765-02098-000
CV
80.050
147674
765-02099-000
CV
52,150
9.559
765-02104-000
EX
0
0
10/UNN 3
PARCELID
Twe
Total Appraised
Total Assessed
765-02106-000
RI
49,650
7.072
765-02134-WO
CI
131730D
18.733
765-02135-000
RI
112.800
16,574
765-02137-000
RI
66.100
6.195
765-02138-000
CM
18.550
3.663
765-02139-OW
RI
110150
8,900
765-02140-000
RI
83,600
9,708
765-02108-000
Cf
44,850
6,787
765-02112-090
RI
58,100
7.579
765-02113-000
RV
20,000
2231
765-02114-000
RV
6250
1250
765-02115-000
RM
19.350
3,069
765-02116-000
CI
231,950
41.599
765-02118-000
RV
10,000
1.408
765-02119-000
RI
68,250
7,424
765-02120-000
RI
54,OOD
6,499
765-02121-000
RI
67,950
107013
765-02123-M
RV
26,250
5.250
765-02124-000
CI
98,900
15A73
765-02127-ODO
RV
3t,250
2,603
765-02128-000
RI
66,850
8,309
765-02129-000
RV
33,750
4.752
765-02130-ODO
CI
324,750
64,146
765-02133-M
CV
34,250
5,445
765-02100-M
RI
46,o00
7,951
765-02102-000
RV
15,000
2,059
765-029MOOO
RI
44.050
6,119
765-02981-000
CI
732Z%
12,474
765-02982-000
RI
43,450
6.363
765-02963-000
RM
1Q500
1.485
765-02984-000
RI
22,250
2.922
765-02985-000
RI
36.250
6,450
765-02986-000
RI
37,500
4.936
765-02987-000
RI
33.850
5,048
765-02968-000
RI
72,950
10221
765-02989-000
RI
26,250
4,147
765-02990-M
RM
10,300
1,496
765-02991-M
RI
23.60D
4,276
765-04325-OW
CM
5a,300
7,309
765-04319-ODO
CI
113200
22,418
765-04320-000
CI
499,050
60,117
765-04321-000
CI
342,150
65.670
765-04322-M
CM
97,850
16,632
765-04323-000
CM
40,350
6.765
765-04324-000
CM
52,2DO
6,428
765-04310.0DO
CI
98,250
19,437
765-04312-ODO
RI
165,500
23,568
765-04313-000
RI
157,A00
18,569
765-04314-000
RI
61000
8,910
765-04315-M
CI
160.700
32,140
765-04316-O00
RI
167ASO
24,518
765-04317-000
RI
149,050
21,411
765-04318-M
CI
228,050
",318
765-04448-M
EX
0
0
765-04449-000
CI
134.350
28,345
765-04450-000
CI
334.600
64,162
765-04451-000
EX
0
0
765-04452-000
CI
261,200
44,602
765-04453-000
EX
0
0
765-04459-000
EX
0
0
765-04454-000
EX
0
0
765-04455-ODO
EX
0
0
1011i2004
i 0
PARCEL ID
Twe
Total Appraised
Total Assessed
765-04456-000
EX
0
0
765-04457-000
EX
0
0
765-04458-000
EX
0
0
765-04467-000
EX
0
0
765-04461-000
EX
0
0
765-04462-000
EX
0
0
765-04463-000
EX
0
0
765-04464-000
EX
0
0
765-04465-000
£X
0
0
765-04466-000
EX
0
0
765-05445-000
EX
0
0
765-05441-000
CI
11300,650
159.654
765-05441-001
EX
0
0
765-05442-000
RI
69.500
13,288
765-05442-001
RV
26,400
4.543
765-05443-000
RV
14.400
2.475
765-05444-000
RI
56.700
10,780
765-05445-000
RI
55.750
10.582
765-05467-000
EX
0
0
765-05447-000
CV
271950
23298
765-05448-000
CI
230.650
46,130
765-05448-001
EX
0
0
765-05449-000
CI
77.200
12.864
765-05450-000
EX
0
0
765-05451-000
CR
107,300
18.336
765-05452-000
RM
22,500
3,9D0
765-05453-000
RI
41.150
7,689
765-05454-000
CR
76.250
8.965
765-05455-000
EX
0
0
765-05456-000
CV
51800
825
765-05457-000
EX
0
0
765-05458-000
CI
73.600
12,758
765-05459-000
EX
0
0
765-05460-000
EX
0
0
765-05461-000
EX
0
0
765-05465-000
CI
107,850
17,827
765-05466-000
EX
0
0
765-05468-000
CI
250.850
46,884
765-05498-000
EX
0
0
765-05499-000
EX
0
0
765-05500-000
EX
0
0
765-05531-000
CI
69,850
13.970
765-05501-000
CI
110.700
14.542
765-05501-001
EX
0
0
765-05602-000
CV
42.550
4,455
765-05504-000
ET
0
0
765-05505-000
EX
0
0
765-05506-001
EX
0
0
765-05506-002
EX
0
0
765-05507-000
IV
45,750
8,852
765-05508-000
CI
28.700
4.994
765-05509-000
II
418,350
80,553
765-05528-000
CI
14.550
2,910
765-05478-000
RI
44.250
7,036
765-05479-000
CI
205.000
31,163
765-05481-000
CM
16,350
2,563
765-05462-000
RI
67.750
100854
765-05487-000
CI
93,50D
15,928
765-05492-001
EX
0
765-05510-000
CI
103.350
16,541
765-05511-000
CI
83.300
16,613
765-05522-000
IV
36.550
4,378
A u
PARCEL ID
Yvon
Total Appraised
Total Assessed
765-05523-000
II
366,850
73,370
765-05523-001
EX
0
0
765-05525-001
CV
17,800
2,640
765-06380-000
RI
62.100
11.571
765-06382-000
RI
49.850
9,515
765-06381-000
RV
12,600
1,683
765-07060-000
CI
69,850
11.826
765-07061-000
RI
20,650
2,898
765-07062-000
RI
86,900
12,396
765-07063-000
RI
33,150
5.577
765-07064-000
RV
15,000
1,760
765-07065-ODO
RI
45.150
5,218
765-07066-000
RI
33,70D
5.302
765-07067-000
RV
10,500
1,232
765-07068-000
RV
10.500
4232
765-07069-000
RI
40.900
6.896
765-07070-000
RI
32.750
5,OD5
765-07100-000
RI
57,7D0
8,036
765-07099-000
RI
497500
6,992
765-07087-000
CI
267,550
43.987
765-07088-OW
CI
116,550
22,156
765-07089-000
RM
14,250
t,749
765-07090-000
RI
36,400
47950
765-07091-000
RI
66.450
9,961
765-07092-000
RI
507400
62835
765-07093-000
RI
41.000
4A60
765-07094-000
RI
57,450
926A
765-07095-ODO
RI
29,500
3,861
765-070W000
RV
100
20
765-0707-000
RI
41,800
6,842
765-07098-000
RI
37450
5,657
765-07125-000
CV
10,500
1,850
765-07126-000
FX
0
0
765-07128-000
RI
13,250
2,650
765-07129-000
Rl
59,000
7.770
765-07130-000
RV
18,750
2,200
765-07131-000
RI
56,500
7,030
765-07979-000
CI
246,350
47,539
765-07960-000
CI
163250
31,635
765-08245-WO
EX
0
0
765-08247-000
EX
0
0
765-08248-000
CI
189.500
37,900
765-08249-000
RI
106,300
13,388
765-08249-001
CV
18,900
2,970
765-08250-000
RI
55.000
5,941
765-07969-000
Al
107,260
18.260
765-07972-000
RI
110.350
17241
765-07973-000
CI
187,850
37445
765-07975-000
CI
308,200
55,873
765-07976-000
CI
100,350
201070
765-07978-000
CR
205,OOD
38,885
765-07984-000
RI
111250
i9,360
765-07987-000
CI
11007,700
196,118
765-079WOOO
EX
0
0
765-08077-000
CI
2,05%2DO
4111840
765-08079-000
PS
3000
61080
765-08082-000
CV
92,450
1Q,824
765-08083-000
CI
525.300
92,398
765-08084-000
CV
77,050
93020
765-08088-000
CV
16,900
1,130
765-ON89-000
EX
0
0
765-08239-OW
RI
54,850
9,174
1011=04
0
PARCEL ID
Type
Total Aowalsed
Total Assessed
765-00240-000
RI
60,100
8.565
765-11664-000
RI
139.450
14,041
765-11723-000
EX
0
0
765-11724-000
EX
0
0
765-11724-001
EX
0
0
765-11731-000
EX
0
0
765-11731-001
Ctd
60.200
10,353
765-11731-010
EX
0
0
765-12671-000
ET
0
0
76542672-000
CI
133.600
26.068
765-12673-000
CI
266.600
50.850
765-12674-000
RI
71,350
127455
765-12675-000
CM
27.500
5,500
765-1267&000
RI
98,350
18,150
765-12681-000
ET
0
0
765-12682-000
ET
0
0
765-12684-000
EX
0
0
765-1268&000
CI
493.100
94.373
765-12687-000
RV
23,000
3.575
765-1268&000
RI
128.350
14,286
765-12689-000
EX
0
0
765-12689-001
RV
1,000
200
765-12691-000
EX
0
0
765-12710-004
CI
170.293
27,080
765-12710-005
CI
199,308
31,702
765-12710-006
CI
68.680
10,929
765-12710-007
CI
26.076
41145
765-12710-009
CI
65,008
10.340
765-12710-010
CI
22.648
3.6D3
765-12710-011
CI
11.386
1.815
765-12711-000
ET
0
0
765-12712-000
ET
0
0
765-12713-000
ET
0
0
765-12714-000
ET
0
0
765-12715-000
CI
1,724,950
247,592
765-12716-000
EX
0
0
765-12718-000
CV
12,800
1.188
765-12720-000
CV
19,200
1,782
765-12721-000
CV
14,700
1,364
765-12722-000
CM
26.000
2.552
765-12724-000
EX
0
0
765-12766-000
RV
149400
2,298
765-12767-000
RV
16,000
2,574
765-12768-000
RV
187000
2,574
765-12781-000
CR
49,900
8,723
765-12782-000
CI
74,150
112H
765-12783-000
CM
17.150
2.013
765-12785-000
CI
467.700
88.717
765-12789-000
CV
28.350
41455
765-12791-000
CM
36,150
52786
765-12792-000
RI
111.600
21,043
765-12793-000
RI
47,650
8.148
765-12794-000
RV
19.200
3,300
765-20935-020
CI
371,646
70,528
765-22032-000
RI
420,119
78.887
765-22033-000
RI
359,032
64,170
765-22034-000
RI
3847607
72.198
765-22035-000
RI
465,242
93,048
765-22036-000
CI
316,192
49280
765-22037-000
CI
145,374
24,640
765-22038-000
CI
859,361
141,680
765-22039-000
CI
293.367
49280
101112004 7
PARCEL ID
TYDe
Total Appraised
Total Assessed
765-22040-000
cl
252,856
43,120
765-12795-000
RV
13,60D
2,145
765-12796-000
RV
87000
1,375
765-12797-000
RI
58,000
8,050
765-22538-ODO
CI
457,60D
91,520
765-22539-000
cl
4767000
952DO
765-22540-000
RI
239,850
47,970
765-22541-000
RI
228,8D0
46,760
765-22542-000
Al
184.50D
36,900
765-22543-000
RI
114,400
22.880
765-22544-000
RI
114,400
22,880
765-22545-000
RI
1477650
29,530
765-22546-000
cl
553,550
110,710
765-22547-000
cl
439.150
87,830
765-22536-GOO
cl
339.500
67.9D0
765-22537-000
cl
394,850
78,970
765-22548-000
cl
0
0
765-12811-ODD
RI
24.80D
4.290
765-17377-000
EX
0
0
765-20935-010
cl
11436,854
273,665
765-12764-000
EX
0
0
765-12764-001
cl
307,800
25,454
765-12764-002
cl
436,250
80,680
765-12765-000
RV
14,400
2288
765-12709-000
ET
0
0
765-12710-001
cl
320,142
50,912
765-12710-002
cl
194,534
30,943
765-12710-003
cl
146,175
23,243
95,167,9Do 16,818,684
1011120D4
35
City of ragetteville, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
r _
` r5
• ...III''' ,
EXHIBIT No.5
TIF Financing Strategies
0
36
EXHIBIT No.5
TIF Financing Strategies
General Tax Increment Financing Information
Tax increment finance ("TIF") is a type of public finance that the Arkansas General Assembly added
to the powers of municipalities and counties by Amendment 78 to the Arkansas Constitution.
Amendment 78 empowers municipalities and counties to create "redevelopment districts" that can
issue bonds the repayment of which is secured by ad valorem tax payments made by owners of
taxable real property in the district.
The real property within the district receives an increased assessed value due to the public
improvements and private reinvestment. Public improvements are financed by the proceeds of the
bonds issued and sold by the district. The district pledges to the payment of its bonds that portion of
the ad valorem tax that is otherwise levied by the city or county that formed the district (the amount
of which is increased by the value of the public and private improvements within the district). That
is, the district pledges the tax on the increment in value of the real property within its boundaries
before and after the improvements. TIF bonds are secured by the existing municipal and county tax
levied against the increase in assessed value. There is no new tax levied.
TIF's are generally used as a tool for economic development available to municipalities to promote
industry and redevelopment of real property, and to eliminate blight. Projects are funded by using
taxes collected in the district itself, without raising the taxes of residents outside the district. This
concept is referred to as "redevelopment from within." A TIF financing raises funds for
redevelopment and acts to stimulate revitalization without using general revenues of municipality.
TIF uses tax-exempt financing to encourage growth and redevelopment within the district, which in
turn stimulates economic growth outside the district. TIF captures, during its life, the increased tax
revenue that results when private investment is stimulated. These tax receipts are called the "tax
increment." As private investment adds to the tax base within the district, the increment is directed
back to pay for the public investment projects. When the bonds are paid off, the tax receipts
generated by the tax increment goes back into the general tax revenues or can be dedicated to
additional projects within the district.
Financine of Estimated Project Costs
The proposed project costs for improvements within the Highway 71 East Square Redevelopment
District are as follows:
TIF Bond Proceeds
Private Investments
Financing Timetable
Phase I
$ 3,500,000.00
$ 19,000,000.00
2004-2005
Phase 11
$ 7,116,000.00
2004-2029
• 0
District Indebtedness
37
It is anticipated that tax-exempt bonds will be issued by the Highway 71 East Square Redevelopment
District due to the public nature and purposes of the proposed improvements. The amount of
indebtedness to be incurred pursuant to the Highway 71 East Square Redevelopment District Project
Plan is projected to provide bond proceeds as follows:
Phase I - Process of removing blight in the former Mountain Inn area -Catalyst Project:
$3,500,000 (based upon 2004 dollars)
Phase 11 — City Streetscape Improvements — First 10 Year Project:
$7,116,000
(based
upon
2004 dollars)
$10,616,000
Total
bond
proceeds (based upon 2004 dollars)
Other Costs
Other costs relating to the issuance of bonds may include, among other things, reserve funds,
capitalized interest, feasibility studies, accounting, financial advisory, legal and underwriting fees.
Any initial bonds and subsequent financings will be subject to allowable financing parameters as
determined by bond underwriting requirements, debt service coverage ratios, projections of
incremental growth in assessed values, interest rates and other requirements of the capital markets.
Professional Services
In accordance with Arkansas Code Annotated 14-168-304 (see Exhibit No. 7). Powers Generally, a
district may "(3) Issue redevelopment bonds and notes and to pledge tax increments and other
redevelopment revenues for repayment of them; (15) Designate one (1) or more official or
employee of the local government to make decisions and handle the affairs of redevelopment
districts created pursuant to this subchapter; and (19) Do al I things necessary or convenient to carry
out the powers granted in this subchapter". The district may engage as may be necessary
professional advisors, consultants, attorneys and other TIF specialists to carry out the project plan
and related financings. The Mayor of the City of Fayetteville or others as may be assigned by the
Mayor may engage professionals to specifically meet the desired results of the Project Plan.
Application of District Revenues
All tax increment collected for the established twenty-five year period will be used to cover district
indebtedness including initial bonded debt and additional bonds that may be issued as district
revenues permit. Excess revenues shall retire the district's indebtedness or fund additional projects
as may be approved by the City Council in accordance.with bond covenants and obligations.
Interest Earnines
All interest earnings will be used towards debt service obligations on issued Tax Increment
Financing bonds/notes. Earnings may be applied to the payment of Capitalized Interest and any
prepayment of debt obligations as may be permitted.
• 0
Wbi
city of rayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.6
Amendment 78
•
39
EXHIBIT No.6
Arkansas Code Annotated 14-168-301 through 14-168-323
Redevelopment District
Chapter 168
Community Redevelopment Generally
Subchapter 3
Community redevelopment —Creation and procedures
14-168-301. Definitions.
As used in this act subchapter. unless the context otherwise requires:
(1) "Applicable ad valorem rate' means the total ad valorem rate less the debt service ad valorem rate;
(2) "Base value' means the assessed value of all property within a redevelopment district subject to ad valorem
taxation, as of the most recent assessment preceding the formation of the redevelopment district;
(3)(A) "Blighted area" means an area in which the structures, buildings, or improvements, by reason of dilapidation,
deterioration, age or obsolescence, inadequate provision for access. ventilation, light, air, sanitation, or open spaces,
high density of population and overcrowding or the existence of conditions which endanger life or property, arc
detrimental to the public health. safety, morals, or welfare.
(B) "Blighted area' includes any area which, by reason of the presence of a substantial number of substandard, slum,
deteriorated or deteriorating structures, predominance of defective or inadequate street layout. faulty lot layout in
relation to size, adequacy, accessibility, or usefulness. unsanitary or unsafe conditions. deterioration of site or other
improvements. diversity of ownership, tax on special assessment delinquency exceeding the fair value of the land,
defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and
other causes. or any combination of such factors. substantially impairs or arrests the sound growth of a city, retards
the provision of housing accommodations. or constitutes an economic or social liability and is a menace to the public
health, safety, morals. or welfare in its present condition and use, or any area which is predominantly open and
which because of lack of accessibility. obsolete platting. diversity of ownership. deterioration of structures or of site
improvements, or otherwise, substantially impairs or arrests the sound growth of the community;
(4) "Current value" means the assessed value of all property within a redevelopment district subject to ad valorem
taxation, as of the most recent assessment after the formation of the redevelopment district:
(5) "Debt service ad valorem rate' means that portion of the total ad valorem rate that has been, at January, I. 2001,
pledged to the payment of debt service on bonds issued by any taxing unit in which all or any part of the
redevelopment district is located;
(6)(A) "Incremental value', for any redevelopment district. means the difference between the base value and the
current value.
(B) The incremental value will be positive if the current value exceeds the base value, and the incremental value will
be negative if the current value is less than the base value;
(7) "Local governing body" means the city council, city board of directors. county quorum court. or any other
m
legislative body governing a local government in the State of Arkansas;
(8) "Local government" means any city or county in the State of Arkansas;
(9)(A) "Project costs" means expenditures made in preparation of the project plan and made, or estimated to be
made, or monetary obligations incurred, or estimated to be incurred, by the local government, which are listed in the
project plan as costs of public works or improvements within a redevelopment project district, plus any costs
incidental thereto.
(B) Project costs include. but are not limited to:
(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. structures, and fixtures, environmental remediation, parking and landscaping, the acquisition of
equipment, and site clearing, grading, and preparation;
(ii) Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to
pay for project costs, all costs of issuance, and any redemption premiums. credit enhancement, or other related costs;
(iii) Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the local
government of real or personal property within a redevelopment district for consideration which is less than its cost
to the local government;
(iv) Professional service costs, including, but not limited to, those costs incurred for architectural, planning,
engineering, and legal advice and services;
(v) Imputed administrative costs, including, but not limited to, reasonable charges for the time spent by local
government employees in connection with the implementation of a project plan;
(vi) Relocation costs, including, but not limited to, those relocation payments made following condemnation and job
training and retraining;
(vii) Organizational costs, including, but not limited to, the costs of conducting environmental impact and other
studies, and the costs of informing the public with respect to the creation of redevelopment project areas and the
implementation of project plans;
(viii) The amount of any contributions made in connection with the implementation of the project plan;
(ix) Payments made, in the discretion of the local governing body, which are found to be necessary or convenient to
the creation of redevelopment areas or the implementation of project plans; and
(x) That portion of costs related to the construction of environmental protection devices, storm or sanitary sewer
lines, water lines, or amenities or streets or the rebuilding or expansion of streets, the construction, alteration,
rebuilding, or expansion of which is necessitated by the project plan for a district, whether or not the construction,
alteration, rebuilding, or expansion is within the area;
(10) "Project plan' means the plan which shall be adopted by a local governing body for a redevelopment project as
described in p 14-168-308;
(11) "Real property" means all lands, including improvements and fixtures on them and property of any nature
appurtenant to them or used in connection with them and every estate, interest, and right, legal or equitable. in them,
including terms for years and liens by way ofjudgment, mortgage, or otherwise, and the indebtedness secured by the
liens;
(12) "Redevelopment district" means a contiguous geographic area within a city or county in which a redevelopment
0 •
41
project will be undertaken, as defined and created by ordinance of the local governing body;
(I3)(A) "Redevelopment project' means an undertaking for eliminating or preventing the development or spread of
slums or deteriorated, deteriorating, or blighted areas. for discouraging the loss of commerce, industry. or
employment. or f'or increasing employment, or any combination thereof.
(Q) A redevelopment project may include one (I ) or more of the following:
(i) The acquisition of land and improvements, if any, within the redevelopment district and clearance of the land so
acquired: or
(ii) "I'he development, redevelopment, revitalization, or conservation of the project area whenever necessary to
provide land for needed public facilities, public housing. or industrial or commercial development or revitalization,
to eliminate unhealthful. unsanitary, or unsafe conditions, to lessen density, mitigate or eliminate traffic congestion.
reduce traffic hazards. eliminate obsolete or other uses detrimental to the public welfare. or otherwise remove or
prevent the spread of blight or deterioration; or
(c)The financial or other assistance in the relocation of persons and organizations displaced as a result of camping
out the redevelopment project and other improvements necessary for carrying out the project plan. together with
such site improvements as are necessary for the preparation of any sites and making any land or improvements
acquired in the project area available, by sale or by lease, for public housing or for development, redevelopment, or
rehabilitation by private enterprise for commercial or industrial uses in accordance with the plan:
(D) The construction of capital improvements within a redevelopment district designed to alleviate deteriorating
conditions or a blighted area or designed to increase or enhance the development of commerce, industry. or housing
within the redevelopment district; or
(E) Any other projects the local governing body deems appropriate to carry out the purposes of this subchapter;
(14) "Special fund" means a separate fund for a redevelopment district established by the local government into
which all tax increment revenues and other pledged revenues are deposited and from which all project costs are paid;
(15) "Tax increment' means the incremental value ofa redevelopment district multiplied by the applicable ad
valorem rate;
(16) 1111'axing unit' means any city, county, school district, or community college district; and
(17) "Total ad valorem rate" means the total millage rate of all county, city, school, or other local general property
taxes levied on all taxable property within a redevelopment district in a year. History. Acts 2001, No. 1197, § 2.
14-168-302. Construction.
The General Assembly declares that this subchapter is necessary for the welfare of this state and its inhabitants, and
it is the intent of the General Assembly that it is to be broadly construed to effect its purpose. History. Acts 2001,
No. 1197, § 3.
14-168-303. Powers supplemental.
The powers conferred by this subchapter are in addition and supplemental to the powers conferred upon local
governments and improvement districts by the General Assembly relating to the issuance of bonds. History. Acts
2001. No. 1197. § 4.
14-168-304. Powers generally.
In addition to any other powers conferred by law, a local government may exercise any powers necessary and
42
convenient to carry out the purpose of this subchapter, including the power to:
(1) Create redevelopment districts and to define the boundaries of redevelopment districts
(2) Cause project plans to be prepared. to approve the project plans. and to implement the provisions and effectuate
the purposes of the project plans;
(3) Issue redevelopment bonds and notes and to pledge tax increments and other redevelopment revenues for
repayment of them;
(4) Deposit moneys into the special fund for any redevelopment project district;
(5) Enter into any contracts or agreements, including agreements with bondholders, determined by the local
governing body to be necessary or convenient to implement the provisions and effectuate the purposes of project
plans;
(6) Receive from the federal government or the state loans and grants for, or in aid of. a redevelopment project and
to receive contributions from any other source to defray project costs;
(7)(A) Exercise the right of eminent domain to condemn property for the purposes of implementing the project plan.
(B) The rules and procedures set forth in §§ 18-15-301 - 18-15-307 shall govern all condemnation proceedings
authorized in this subchapter:
(8) Make relocation payments to such persons. businesses, or organizations as may be displaced as a result of
carrying out the redevelopment project;
(9) Clear and improve property acquired by it pursuant to the project plan and construct public facilities on it or
contract for the construction, development, redevelopment, rehabilitation, remodeling, alteration, or repair of the
property;
(10) Cause parks, playgrounds. or water. sewer. or drainage facilities, or any other public improvements, including,
but not limited to. fire stations. community centers, and other public buildings, which it is otherwise authorized to
undertake, to be laid out, constructed, or furnished in connection with the redevelopment project;
(11) Lay out and construct, alter, relocate, change the grade of, make specific repairs upon, or discontinue public
ways and construct sidewalks in, or adjacent to, the redevelopment project;
(12) Cause private ways, sidewalks, ways for vehicular travel, playgrounds, or water, sewer, or drainage facilities
and similar improvements to be constructed within the redevelopment project for the particular use of the
redevelopment district or those dwelling or working in it;
(13) Construct any capital improvements of a public nature. as such term is defined in § 14-164-303(a)(2), as now or
hereafter amended;
(14) Construct capital improvements to be leased or sold to private entities in connection with the goals of the
redevelopment project;
(15) Designate one (1) or more official or employee of the local government to make decisions and handle the affairs
of redevelopment districts created pursuant to this subchapter;
(16) Adopt ordinances or bylaws or repeal or modify such ordinances or bylaws or establish exceptions to existing
ordinances and bylaws regulating the design, construction, and use of buildings within the redevelopment district;
(17) Sell, mortgage, lease, transfer, or dispose of any property, or interest therein, acquired by it pursuant to the
project plan for development, redevelopment, or rehabilitation in accordance with the project plan;
(18) Invest project revenues as provided in this subchapter; and
43
(19) Do all things necessary or convenient to cam, out the powers granted in this subchapter. History. Acts 2001.
No. 1197. § 5.
14-168-305. Creation of district.
(a)'I'he local governing body, upon its own initiative or upon request of affected property owners or upon request of
the city or county planning commission, may designate the boundaries of a proposed redevelopment district.
(b)(1) The local governing body shall hold a public hearing at which interested parties are afforded a reasonable
opportunity to express their views on the proposed creation of a redevelopment district and its proposed boundaries.
(2)(A) Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least
fifteen (15) days prior to the hearing.
(13) Prior to this publication, a copy of the notice shall be 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
redevelopment district and to the school board of any school district which includes property located within the
proposed redevelopment district.
(c)'I'he local governing body shall adopt an ordinance which:
(I ) Describes the boundaries of a redevelopment district sufficiently definite to identify with ordinary and reasonable
certainty the territory included in, which boundaries may create a contiguous or noncontiguous district;
(2) Creates the redevelopment district as of a date provided in it;
(3)(A) Assigns a name to the redevelopment district for identification purposes.
(I3) The name may include a geographic or other designation, shall identify the city or county authorizing the district.
and shall be assigned a number, beginning with the number one (1).
(C) Each subsequently created district shall be assigned the next consecutive number; and
(4) Contains findings that the real property within the redevelopment district will be benefitted 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.
(d)(1) No county shall establish a redevelopment district. any portion of which is within the boundaries of a city.
(2) Provided, however, that one (1) or more local governments through interlocal agreement may join in the creation
of a district. the boundaries of which lie in one (1) or more local governments.
(e)(1) The ordinance shall establish a special fund as a separate fund into which all tax increment revenues and other
revenues designated by the local government for the benefit of the redevelopment district shall be deposited, and
from which all project costs shall be paid.
(2) Such special fund may be assigned to and held by a trustee for the benefit of bondholders if tax increment
financing is used.
(1)(1) The boundaries of the redevelopment district may be modified from time to time by ordinance of the local
government.
(2) Provided, however, that in the event any bonds, notes or other obligations are outstanding with respect to the
redevelopment district. any change in the boundaries shall not reduce the amount of tax increment available to secure
9 .
such tax increment financing. I Iistory. Acts 2001. No. 1197, § 6.
14-168-306. Project plan - Approval.
(a)(I) Upon the creation of the redevelopment district, the local governing body shall cause the preparation of a
project plan for each redevelopment district, and such project plan shall be adopted by ordinance of the local
governing body.
(2) This process shall conform to the procedures set forth in this section.
(b) Each project plan shall include:
(1) A statement listing the kind, number. and location of all proposed public works or improvements within the
district or, to the extent provided, outside the district;
(2) An economic feasibility study; '
(3) A detailed list of estimated project costs;
(4) A description of the methods of financing all estimated project costs, including the issuance of tax increment
bonds, and the time when the costs or monetary obligations related thereto are to be incurred:
(5) A certification by the county tax assessor of the base value, total ad valorem rate, debt service ad valorem rate.
and applicable ad valorem rate for the redevelopment district:
(6) The type and amount of any other revenues that are expected to be deposited to the special fund of the
redevelopment district;
(7) A map showing existing uses and conditions of real property in the district;
(8) A map of proposed improvements and uses in the district;
(9) Proposed changes of zoning ordinances;
(10) Appropriate cross-references to any master plan, map, building codes, and city ordinances affected by the
project plan;
(11) A list of estimated nonproject costs; and
(12) A statement of the proposed method for the relocation of any persons to be displaced.
(c) if the project plan is to include tax increment financing, the tax increment financing portion of the plan shall set
forth:
(1) The amount of indebtedness to be incurred pursuant to this subchapter;
(2) An estimate of the tax increment to be generated as a result of the project;
(3) The method for calculating the tax increment, which shall be in conformance with the provisions of this
subchapter, together with any provision for adjustment of the method of calculation;
(4) Any other revenues, such as payment -in -lieu -of -taxes revenues, to be used to secure the tax increment financing;
and
(5) Any other provisions as may be deemed necessary in order to carry out any tax increment financing to be used
for the redevelopment project.
• 0
1,
(d) If less than all of the tax increment is to be used to fund a redevelopment project or to pay project costs or retire
tax increment financing. the project plan shall set forth the portion of the tax increment to be deposited in the special
fund of the redevelopment district. and provide for the distribution of the remaining portion of the tax increment to
the taxing units in which the district lies.
(e)(1) The local governing body shall hold a public hearing at which interested parties are afforded a reasonable
opportunity to express their views on the proposed project plan.
(2)(A) Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least
fifteen (15) days prior to the hearing.
(13) Prior to this publication, a copy of the notice shall he 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
redevelopment district and to the school board of any school district which includes property located within the
proposed redevelopment district.
(3) The hearing may be held in conjunction with the hearing set forth in § 14-168-305(b)(1)
(4) Prior to publication. a copy of the notice shall be sent by first-class mail to the chief executive officer of all local
governments or entities having the power to levy taxes on property within the district and to the school board of any
school district which includes property located within the proposed redevelopment district.
(t)(1) Approval by the local governing body of a project plan must be within one (1) year after the date of the county
assessors certification required by subdivision (b)(5) of this section.
(2) The approval shall be by ordinance which contains a finding that the plan is economically feasible. I-listory. Acts
2001. No. 1197. § 7.
14-168-307. Project plan - Amendment.
(a) The local governing body may adopt by ordinance an amendment to a project plan.
(b)(1) Adoption of an amendment to a project plan shall be preceded by a public hearing held by the local governing
body as provided in § 14-168-306(e)(I ), at which interested parties shall be afforded a reasonable opportunity to
express their views on the amendment.
(2)(A) Notice of the hearing shall be published in a newspaper of general circulation in the city or county once a
week for two (2) consecutive Weeks. The first such publication shall be fifteen (15) days prior to the hearing.
(l3) Prior to publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all local .
governments or entities having the power to levy taxes on property within the district and to the school board of any
school district which includes property located within the proposed district.
(c)(1) One (1) or more existing redevelopment districts may be combined pursuant to lawfully adopted amendments
to the original plans for each district.
(2) Provided that the local governing body finds that the combination of the districts will not impair the security for
any bonds previously issued pursuant to this subchapter. History. Acts 2001, No. 1197, § 8.
14-168-308. Termination of districts.
(a) No redevelopment district may be in existence for a period longer than twenty-five (25) years, unless, pursuant to
amendment of the redevelopment plan, additional bonds have been issued and would not be fully paid until alter the
date which is twenty-five (25) years from the date ol'creation of the district.
• 0
es
(b) The local governing body may set a shorter period for the existence of the district. and may also provide that no
bonds shall have a final maturity on a date later than the termination date of the district.
(c) Upon termination of the district, no further ad valorem tax revenues shall be distributed to the special fund of the
district.
(d)(1) The local governing body shall adopt, upon the expiration of the time periods set forth in this section. an
ordinance terminating the redevelopment district.
(2) Provided, however, that no district shall be terminated so long as bonds with respect to the district remain
outstanding. History. Acts 2001, No. 1197. § 9.
14-168-309. Costs of formation.
(a) The local government may pay; but shall have no obligation to pay, the costs of preparing the project plan or
forming the redevelopment district.
(b) If the local government elects not to incur those costs, they shall be made project costs of the district and
reimbursed from bond proceeds or other financing, or may be paid by developers, property owners. or other persons
interested in the success of the redevelopment project. History. Acts 2001, No. 1197. § 10.
14-168-310. Overlapping districts.
The boundaries of any redevelopment districts shall not overlap with any other redevelopment district. History. Acts
2001. No. 1197, § 11.
14-168-311. Valuation of real property.
(a)(1) Upon and after the effective date of the creation of a redevelopment project district, the county assessor of the
county in which the district is located shall transmit to the county clerk, upon the request of the local governing
body, the base value, total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the
redevelopment district and shall certify to it.
(2)(A) The assessor shall undertake, upon request of the local governing body, an investigation, examination. and
inspection of the taxable real property in the district and shall reaffirm or revalue the base value for assessment of
the property in accordance with the findings of the investigation, examination. and inspection.
(B) The assessor shall determine, according to his or her best judgment from all sources available to him or her, the
full aggregate value of the taxable property in the district, which aggregate valuation, upon certification thereof by
the assessor to the clerk, constitutes the base value of the area.
(b)(1)(A)(i) The assessor shall give notice annually to the designated finance officer of each taxing unit having the
power to levy taxes on property within each district of the current value and the incremental value of the property in
the redevelopment district.
(ii) The assessor shall also determine the tax increment by applying the applicable ad valorem rate to the incremental
value.
(B) The notice shall also explain that the entire amount of the tax increment allocable to property within the
redevelopment district will be paid to the special fund of the redevelopment district.
(2) The assessor shall identify upon the assessment roll those parcels of property which are within each existing
district specifying on it the name of each district. History. Acts 2001, No. 11977 § 12.
47
14-168-312. Division of ad valorem real property tax revenue.
(a) for so long as the redevelopment district exists, the tax assessor shall divide the ad valorem tax revenue
collected, with respect to taxable property in the district. as follows:
( I ) The assessor shall determine for each tax year:
(A)'I'he amount of total ad valorem tax revenue which should be generated by multiplying the total ad valorem rate
times the current value;
(13)'I'he amount of ad valorem tax revenue which should be generated by multiplying the applicable ad valorem rate
times the base value;
(C)The amount of ad valorem tax revenue which should be generated by multiplying the debt service ad valorem
rate times the current value: and
(I))'rhe amount of ad valorem revenue which should be generated by multiplying the applicable ad valorem rate
times the incremental value;
(2) The assessor shall determine from the calculations set forth in subdivision (a)(1) of this section the percentage
share of total ad valorem revenue for each according to subdivisions (a)(1)(f3) - (D) of this section, by dividing each
of such amounts by the total ad valorem revenue figure determined by the calculation in subdivision (a)(] )(A) of this
section: and
(3) On each date on which ad valorem tax revenue is to be distributed to taxing units, such revenue shall be
distributed by:
(A) Applying the percentage share determined according to subdivision (a)(] )(D) of this section to the revenues
received and distributing such share to the taxing entities entitled to such distribution pursuant to current law;
(13) Applying the percentage share determined according to subdivision (a)(1)(C) of this section to the revenues
received and distributing such share to the taxing entities entitled to such distribution by reason of having bonds
outstanding; and
(C) Applying the percentage share determined according to subdivision (a)(1)(D) of this section to the revenues
received and distributing such share to the special fund of the redevelopment district-
(b) In each year for which there is a positive tax increment, the county treasurer shall remit to the special fund of the
redevelopment district that portion of the ad valorem taxes that consists of the tax increment-
(c) Any additional moneys appropriated to the redevelopment district pursuant to an appropriation by the local
governing body and any additional moneys dedicated to the fund from other sources shall be deposited to the
redevelopment district fund by the treasurer of the local government.
(d) Any funds so deposited into the special fund of the redevelopment district may be used to pay project costs,
principal and interest on bonds, and to pay for any other improvements of the redevelopment district deemed proper
by the local governing body.
(e) Unless otherwise directed pursuant to any agreement with bondholders, moneys in the fund may be temporarily
invested in the same manner as other municipal funds.
(f) If less than all of the tax increment is to be used for project costs or pledged to secure tax increment financing as
provided in the plan for the redevelopment project, the assessor shall account for such fact in distributing the ad
valorem tax revenues. History. Acts 2001, No. 1197, vv' 13.
M
14-168-313. Payments in lieu of taxes and other revenues.
(a) The local governing body may elect to deposit in the special fund of the redevelopment district all or any portion
of the local government's share of payments in lieu of taxes on property within the redevelopment district.
(b) Other revenues to be derived from the redevelopment project may also be deposited in the special fund at the
direction of the local governing body. History. Acts 2001. No. 1197. § 14.
14-168-314. Bonds generally.
(a)(1) Bonds may be issued for project costs which may include interest prior to and during the carrying out of a
project and for a reasonable time thereafter, with such reserves as may be required by any agreement securing the
bonds and all other expenses incidental to planning, carrying out, and financing the project.
(2) The proceeds of bonds may also be used to reimburse the costs of any interim financing entered on behalf of the
redevelopment district.
(b) Bonds issued under this subchapter shall be payable solely from the tax increment or other revenues deposited to
the credit of the special fund of the redevelopment district and shall not be deemed to be a pledge of the faith and
credit of the local government.
(c) Every bond issued under this subchapter 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. History. Acts 2001, No. 119T § 15.
14-168-315. Redevelopment bonds or notes - Authority to issue.
For the purpose of paying project costs or of refunding notes issued under this subchapter for the purpose of paying
project costs. the local governing body may issue redevelopment bonds or notes payable out of positive tax
increments and other revenues deposited to the special fund of the redevelopment district. I listory. Acts 2001, No.
1197, § 16.
14-168-316. Redevelopment bonds or notes - Authorizing resolution.
(a) Redevelopment bonds and notes shall be authorized by ordinance of the local governing body
(b)( I ) The ordinance shall state the name of the redevelopment project district, the amount of bonds or notes
authorized, and the interest rate to be borne by the bonds or notes.
(2) The ordinance may prescribe the terms. form, and content of the bonds or notes and such other matters as the
local governing body deems useful, or it may include by reference the terms and conditions set forth in a trust
indenture or other document securing the redevelopment bonds. History. Acts 2001, No. 1197, § 17.
14-168-317. Redevelopment bonds or notes - Terms, conditions, etc.
(a)(1) Redevelopment bonds or notes may not be issued in an amount exceeding the estimated aggregate project
costs. including all costs of issuance of the bonds or notes.
(2) The redevelopment bonds and notes shall not be included in the computation of the constitutional debt limitation
of a local government.
(b)(1) The bonds or notes shall mature over a period not exceeding twenty-five (25) years from their date of issuance
or a period terminating with the date of termination of the redevelopment district, whichever period terminates
earlier.
(2) The bonds or notes may contain a provision authorizing their redemption, in whole or in part, at stipulated prices,
at the option of the local government on any interest payment date and, if so, shall provide the method of selecting
the bonds or notes to be redeemed.
49
(3) The principal and interest on the bonds and notes may be payable at any place set forth in the resolution, trust
indenture, or other document governing the bonds.
(4) The bonds or notes shall be issued in registered form.
(5) The bonds or notes may be in any denominations.
(6) Each such bond or note is declared to be a negotiable instrument.
(c) The bonds or notes may be sold at public or private sale.
(d) Insular as they are consistent with subdivision (a)(I) and subsections (b) and (c) of this section, the provisions of
§§ 14-169-220 and 14-169-221 relating to procedures for issuance. form. contents. execution, negotiation, and
registration of municipal bonds and notes are incorporated by reference therein.
(c)( I ) The bonds may be refunded or refinanced and refunding bonds may be issued in any principal amount.
(2) Provided. that the last maturity of the refunding bonds shall not be later than the last maturity of the bonds being
refunded. History. Acts 2001. No. 1197. § 18.
14-168-318. Redevelopment bonds or notes - Security - Marketability.
To increase the security and marketability of redevelopment bonds or notes, the local government may:
(1) Create a lien for the benefit of 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, not inconsistent with the Arkansas Constitution. which
may be necessary or convenient or desirable in order to additionally secure the bonds or notes. or which tend to
make
the bonds or notes more marketable according to the best judgment of the local governing body. History. Acts 2001,
No. 1197, § 19.
14-168-319. Redevelopment bonds or notes - Special fund for repayment.
(a) Redevelopment bonds and notes are payable out of the special fund created for each redevelopment district under
this subchapter.
(b)(1)'rhe local governing body shall irrevocably pledge all or part of the special fund to the payment of the bonds
or notes.
(2) The special fund, or the designated part thereof. may thereafter be used only for the payment of the bonds or
notes and their interest until they have been fully paid.
(c) A holder of the bonds or notes shall have a lien against the special fund for payment of the bonds or notes and
interest on them and may bring suit, either at law or in equity, to enforce the lien. History. Acts 2001. No. 1 197, §
20.
14-168-320. Redevelopment bonds or notes - Tax exemption.
Bonds and notes issued under this subchapter, together with the interest and income therefrom, shall be exempt from
all state, county, and municipal income taxes. History. Acts 2001, No. 1197. § 21.
14-168-321. Excess funds.
50
(a) Moneys received in the special fund of the district in excess of amounts needed to pay project costs may be used
by the local governing body for other purposes of the district or for any other lawful purpose of the local governing
body.
(b) Upon termination of the district. all amounts in the special fund of the district may be used by the local governing
body for any lawful purpose. History. Acts 2001, No. 1197. § 22.
14-168-322. Impact reports.
The Assessment Coordination Department, in cooperation with other state agencies and local governments, shall
make a comprehensive impact report to the Governor and to the General Assembly at the beginning of each
biennium as to the economic. social. and financial effect and impact of community redevelopment financing
projects. History. Acts 2001, No. 1197, § 23.
14-168-323. Value of assessed property in a redevelopment district.
(a) If state funding to a school district is calculated with regard to the value of assessed property located in the
school district. the incremental value of real property within a redevelopment district shall not be included in the
assessed value of the real property within the school district for purposes of computing school district funding if the
real property is located within the redevelopment district and within the school district and the assessed value of the
real property increases above the base value.
(b) Subsection (a) of this section shall apply for each school year during which the tax increment for real property
within the redevelopment district is distributed pursuant to § 14-168-312. History. Acts 2003 (2nd Ex. Sess.), No.
43, § I.
•
Y'
City of Fayettevi11e, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.7
Local Demographics
52
EXHIBIT No.7
Local Demographics Summary
Economic strength continues to be the mainstay of the Northwest Arkansas MSA. Recently named
as the top ranking MSA in the country by the Milken Institute, NWA is now gathering much
attention for its regional economy. Fayetteville continues to experience robust growth along with
the rest of Northwest Arkansas. Fayetteville is still considered the city of choice for living mainly
because of its reputation for offering a superb quality of life. One highlight Fayetteville offers are
the attractions associated with the University of Arkansas including sporting events and cultural
activities. Fayetteville also is known in the region for its entertainment district located primarily
along Dickson Street which connects the historic areas of town and the university campus. There
has been a tremendous surge in demand for downtown/urban style living in Fayetteville near the
heartbeat of culture for northwest Arkansas.
Economic impact from the University of Arkansas in Fayetteville continues to be a major factor.
Beginning in 1871 when the University of Arkansas was created with a major land-grant under the
Morrill Land -Grant College Act the campus population has been ever increasing. On April 11, 2002
the University of Arkansas announced that it had been the recipient of the largest gift in the history
of American public higher education. The Walton Family Charitable Support Foundation of
Bentonville, AR committed $300 million to establish and endow an undergraduate honors college
and endow the graduate school. $177 million will be targeted towards students, $82 million towards
faculty, and $41 million towards library, technology, and other support areas. At the time, the
University was in the midst of six -year campaign targeting to raise $500 million. As a result of the
Walton's gift, the University decided to revise its parameters, upping the goal to raising $900 million
by June 2005. As of Fall, 2003 the campaign had raised $770 million. Chancellor John White said
in his annual State of the University address in September 2002 that over the next decade the
University would spend $642 million on building construction and improvement. Many of these
facilities and projects are necessary to the University's vision, as they have stated a goal of having
22,500 students by the year 2010. Current enrollment is just over 16,000.
The Fayetteville -Springdale -Rogers corridor gained notoriety when the 2000 Census indicated that
the area was the sixth fastest growing MSA in the country over the last 10 years. The population
jumped from approximately 211,000 to 31 1,000. Most notably during that time Wal-Mart Stores,
whose headquarters are in Bentonville, a sister city and north of Fayetteville, increased their sales
from $26 billion to $191.billion. Besides Wal-Mart, two other corporate giants call Northwest
Arkansas home. Tyson Foods, which had been a $7 billion sales giant, increased to $23 billion in
sales in 2002 with the takeover of IBP. JB Hunt Trucking, also headquartered in the MSA, has
annual sales in the $2-2.5 billion range. All three of these companies had phenomenal success during
the 1990s and are significant factor in the growth of the area. This bustling corner of the state's saga
has not escaped the media's attention as it has received write-ups in several national publications
thus aiding growth in yet another way.
53
Economic Overview of the Fayetteville -Springdale -Rogers MSA
Overview
The two -county area of Northwest Arkansas has experienced unprecedented economic and
population growth since the 1990's. A dominant driver behind the growth has been the success of
Wal-Mart, as it grew to become the world's largest retailer. Along the way, Wal-Mart has
encouraged its vendors to be accessible to the company which directly translated into the opening of
offices within Benton or Washington County for Fortune 500 and other companies. The resulting
high quality job creation has spawned a boom in the commercial real estate market, as the demand
for office space has increased and as the population growth has created the need for more retail
shops, restaurants, entertainment facilities and service providers. A corresponding escalation has
occurred in the construction of residential housing.
Wal-Mart has not been the only driver of growth in Northwest Arkansas. Tyson Foods has also
grown rapidly during the same period, becoming the world's largest "protein" company. The
Northwest Arkansas area has long been the home base of several large trucking companies. JB Flunt
has become one of the largest providers of logistics services in North America and Willis Shaw
Express is a major provider of transportation of refrigerated and frozen food products.
Fayetteville is also home to the University of Arkansas, a major research university, which is
steadily improving its national rankings. Some academic areas have reached the top tier nationally.
In 2002, the University of Arkansas was the recipient of a $300 million challenge grant from the
Wal-Mart Foundation, the largest grant ever given to a public university in the U.S. The university
has accelerated its quest for excellence and at the same time is pursuing a goal of increasing its
enrollment, to a total of 22,500 students by 2010.
The following pages provide some economic highlights of the Fayetteville -Springdale -Rogers MSA.
Ire
National Perspective
In June of 2003, the Milken Institute released an update of its `Best Performing Cities" rankings,
which is intended to rank U.S. cities on two counts: leading the nation in economic performance
overall and in job creation. The components of the index include job, wage and salary and
technology growth. Using these criteria, the Fayetteville -Springdale -Rogers MSA ranked as the
number one regional economy in the United States.
Top 20 Best Performing Cities
Composite Index
2003
Rank,
Rank
Year Ago
Metro
Inde
1
2
23
3
Fayetteville -Springdale -Rogers, AR
Las Vegas. NV -AZ
100.00
120.00
3
37
Fort Myers -Cape Coral, FL
123.08
4
12
West Palm Beach -Boca Raton, FL
13&77
5
1
San Diego, CA
149.23
6
7
San Luis Obispo .4tascadero. CA
15LQ8
7
16
Laredo, TX
180.31
8
9
Brmvnsville-Harlingen-San Benito, TX
183.38
9
5
McAllen -Edinburg -Mission, TX
186.46
10
50
Monmouth -Ocean, NI
186.46
11
48
Anchorage, AK
194.15
12
20
Raleigh-Dutham-Chapel Hill, NC
197.23
13
41
Chico -Paradise. CA
206.46
14
4
Ventura, CA
207.38
15
18
Sacramento, CA
210.46
16
33
Houma LA
215.08
17
15
Vallejo -Fairfield -Napa, CA
219.08
18
36
San Antonio, TX
223.08
19
28
Washington. DC-N1D-VA-WV
226.15
20
11
Riverside -San Bernardino. CA
228.92
Sws e: NiMm Iusn=e
Ll
Unemn/ovment Rate
55
The unemployment rates for the U.S. and for the state of Arkansas have followed the same general
trend and the levels have been fairly close.The unemployment rate for the Fayettevil le -Springdale -
Rogers MSA has consistently been significantly lower than both. It has been at the three percent or
under level since the second half of 1998.
Unemployment Rates, Seasonally Adjusted
6.5
5.5
m 4.5
u
m
a
3.5
2.5
1.5
Cb% Ci cp CP 41 00 00 00 O^ O^ O^ Off' Off' Off' 00 00 00 Oa Oa
HOC O°� fed HOC O°� e ez SO O°\ Fed SOc O°� e ez SOc Oe: fed )0 Oe\ e e )°c
U.S. 4Arkansas — Fay-Spr-Rog MSA
Source: Bureau of LOW Slaustes, Seasonal ACjusMenl By
UA Center for Business and Emnumc Fesea cn
56
Non -Farm Employment
The monthly establishment -based employment survey conducted by the Bureau of Labor Statistics
shows that, on a seasonally adjusted basis, total non -farm employment in both the U.S. and Arkansas
are at levels about 105 percent of the level in June of 1998. The Fayetteville -Springdale -Rogers
MSA has experienced a noticeably larger increase in employment. Currently, the level isjust about
125 percent of the level of June 1998.
Non -Farm Employment Relative to June 1998
Seasonally Adjusted
1.30
1.10
0.90
00 °° °O p° pro a° °O po po po p0 p° p� p� p° pti pti pro Ory p� O� p� p� pa pa
U.S. 4Arkansas ^—Fay-Spr-Rog MSA
Source. Bureau of Labor Statistics, Seasonal Adjustment by
UA Center for Business and Economic Reseash
57
Sector Employment
Sector employment in the region has shown varying trends. Manufacturing employment has
declined since 1998, but by a lesser amount than nationally or in the state. Construction, trade -
transportation -utilities and services have shown significant gains in the past six years.
FayettevilleSpringdale-Rogers MSA Sector Employment Relative to June 1998,
Seasonally Adjusted
1.5
IA-
1.3- • �~
1.2
1.1 -
1
0.9
construction —Manufacturing Trade, Transportation, & Utilities Services
Bounce. Bureau of Lawr Stausecs, Seasonal AtlNs"enl by UA Center for Business and Economic Rates"
Buiidinp Permits
While there is some monthly volatility in the monthly data compiled by the United States Census
Bureau, the strong upward trend in the value of building permits in Northwest Arkansas since the
Fall of 1998 is evident. Over the last two years, this growth trend has accelerated. In fact, the value
of residential building permits in the area has equaled or exceeded the value of those in the Little
Rock metropolitan area, an area that currently has a population almost double that of the
Fayetteville -Springdale -Rogers MSA.
60,000
50,000
40.000
30,000
20,000
10,000
Fayetteville -Springdale -Rogers MSA Residential Building Permits, Seasonally
Adjusted Value in $ Millions,
Source: Bureau of Me census, Seasonal Adjustment by UA Center tar Business and Economic Research
59
Population Projections
In June of 2003. the Center for Business and Economic Research released updated population
projections for Arkansas, its counties and its metropolitan areas. The Fayetteville -Springdale -
Rogers MSA is projected to experience a doubling of its population by the year 2025.
Population Projections for Fayetteville -Springdale -Rogers MSA
un center for eu.ineea and economic Bewares
—Baseline
Lower
Bound
Upper
Bound
•
City of rayettevil1e, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.8
District Map and Legal Description
Highway 71 East Square " ` ' ''`^ST
°I a In
Redevelopment District # �`: V'
y ( Q M r
o
w l
I w � �a S+ •I_�
logo A
,� = w BOLES ST Iw i• ALL_EY99 / -ai argon,
• �� • •.a ♦.•. 15.a i
aaaA T to
9AT�•ALEY 333 N
� .!
f SUTTON ST Igod at
an mw
go If a
0 +Y
1 DICKSON ST ON
16
•�J'� • w
r W.
. � a � •d # M � �� ' � CONNER ST
Oft
R .■ 'A �lT . at �w '• �y 1 • j. allot
�i a . • Ill ■ ' y /// A SPRING ST ) Ulf •ill
h M•G n' •• • 'wJ'e I ja aI/la
ww • • o
' � 3 � \ • � i MEADOW ST1 � i w ° i •
aloof
•• a I •
,3 0
CENTE,• ♦ 111110,
i• u ' �• •
r
see
11
••r4
i•WI••
MWNTAIN
me
as
'D tad
an
•
u I
�T
P
..VP
C sMST
I 6TH ST~ i
CENTERSTII y I
fair I
ST �nP 1 MOUNTAIN ST-
MOUNTAIN ST • I
AUEY.n) A o L
,s • � J
113`a
N
fsouTN ST .�sout ♦� yLti l e
c�'me i �'�'i III • A .l � = � •` • 9° ��'a�F t
AIr Mop,
0 Sr
• • ■ 3a
Legend
BOUNDARY
W+E
_ Building (1998)
— Hwy 71 B S
0 500 1,000 2pW
Fcet
61
62
Highway 71 East Square Redevelopment District
A part of the Northwest Quarter (NW'/.) and a part of the Southwest Quarter (SW%) of Section 15, a part
of the Northeast Quarter (NE/4) and a part of the Southeast Quarter (SE%) of Section 16, and a part of
the Northwest Quarter (NW'/.) of the Northeast Quarter (NEYa) of Section 21, all within Township 16 North,
Range 30 West, and being more specifically described as follows: Beginning at the Northwest corner of
said Section 15; thence South 87" 17' 27' East 249.668 feet, within the right-of-way of Maple Street;
thence South 01' 47' 40" West 20.003 feet; thence South 02' 42' 16' West 174.001 feet; thence North
87' 17' 32' West 25.0 feet; thence South 02` 43' 09" West 133.515 feet; thence North 85' 27' 59' West
6.224 feet; thence South 02` 42' 49" West 75.089 feet; thence South 87" 10' 49" East 21.222 feet; thence
North 02' 42' 08' East 86.052 feet; thence South B7" 17' 23' East 42.0 feet: thence South 02' 42' 09"
West 181.078 feet; thence South 09' 38' 06' East 53.252 feet; thence South 02' 42' 31" West 88.117
feet; thence South 87' 17' 25" East 6.578 feet; thence South 02' 42' 34' West 118.249 feet; thence North
87" 17' 19" West 6.405 feet; thence South 02' 42' 33' West 178.179 feet; thence North 87" 17' 29' West
48.246 feet; thence South 02' 36' 09" West 140.177 feet; thence South 87" 17' 25' East 18.0 feet; thence
South 02' 42' 21' West 8.749 feet; thence South 87" 17' 21" East 66.367 feet; thence South 020 42' 47"
West 250.57 feet; thence South 87' 10' 22" East 588.485'feet, within the right-of-way of Dickson Street;
thence South 02" 47' 49" West 193.929 feet; thence North 8r 17' 30" West 60 feet; thence South 02" 47'
53" West 60 feet; thence North 87' 12' 10" West 178.5 feet; thence North 02" 47' 24" East 6.8 feet;
thence North 87" 12' 11" West 72.75 feet; thence South 02" 47' 49" West 108.121 feet; thence North 87"
12' 11" West 135.25 feet; thence North 02" 47' 60' East 63.132 feet thence North 87' 17' 31' West 12.0
feet; thence South 02' 47' 50" West 76.7 feet; thence North 87" 17' 28" West 57.931 feet; thence South
02° 47' 50" West 217289 feet; thence South 27' 30' 47" West 23.922 feet; thence South 02" 42' 33" West
170.585 feet; thence North 87° 17' 24' West 50.0 feet; thence South 02" 52' 40" West 163.672 feet;
thence South 87° 17' 27' East 64.825 feet; thence South 02' 42' 33' West 150.0 feel; thence North 87"
11, 17" West 11.476 feet; thence South 02" 42' 48' West 448.801 feet; thence South 40" 00' 30" East
36.203 feet; thence South 02' 43' 58" West 419.838 feet, within the right-of-way of Washington Avenue;
thence North 87" 10' 22' West 209244 feet, within the right-of-way of Rock Street; thence South 02" 43'
58" West 546.724 feet, within an alley; thence North 87' 10' 22" West 210.365 feet, within the right-of-way
of South Street; thence South 02" 43' 57' West 66.685 feet, within the right-of-way of College Avenue;
thence North 87" 10' 22" West 518.584 feet, within the right-of-way of South Street; thence South 02' 43'
58" West 353.985 feet, within the right-of-way of East Avenue; thence North 87' 10' 22" West 266.896
feet, within the right-of-way of Fourth Street; thence South 02' 43' 58" West 336.999 feet, within the right-
of-way of Block Avenue; thence North 87" 10' 16" West 762.561 feet; thence South 02" 43' 58" West
983.02 feet, within the right-of-way of Locust Avenue; thence North 87" 00' 49' West 312.479 feet; thence
North 46' 44' 23" West 92.814 feet; thence North 87' 00' 48' 1Wesl 306.778 feet; thence South 02" 54' 17'
West 40,0 feet; thence South 73" 33' 26" East 16.52 feet; thence South 02" 02' 57" West 27.743 feet;
thence North 71" 09' 03' West 403.805 feet; thence North 02' 49' 30" East 106.161 feet; thence South
82" 59' 29' West 25.111 feet; thence North 02" 49' 31" East 118.176 feet; thence North 80" 43' 37" East
39.444 feet; thence North 74' 49' 51" East 31.257 feet; thence North 02" 09' 42" East 195.911 feet;
thence North 85' 34' 21" West 67.073 feet; thence North 00" 24' 18" East 106.401 feet; thence South 87'
10' 22" East 370.524 feet, within the right-of-way of Sixth Street; thence North 02" 44' 00" East 52.635
feet; thence North 01' 46' 36' East 62.183 feet thence North 05" 19' 32" West 48.42 feet; thence North
10" 47' 29" West 37.114 feet; thence North 14° 03' 53" West 218.89 feet; thence North 02" 26' 34" Fast
76.273 feet; thence North 09" 56' 28" West 61,522 feet; thence North 14" 03' 08" West 181.254 feet;
thence South 86" 57' 21" East 122.461 feel; thence South 66" 13' 30' East 64.306 feet; thence South 87°
10' 16' East 323.255 feet; thence North 02" 43' 59" East 149.989 feet, within the right-of-way of School
Avenue; thence South 87" 10' 15' East 350.602 feet; thence North 02` 43' 52' East 5.751 feet; thence
South 86' 50' 33" East 227.568 feet; thence South 02' 41' 24" West 54.443 feet; thence South 87" 10'
16" Fast 160.561 feel; thence North 020 41' 25' East 2228.846 feet, within the right-of-way of Church
Avenue; thence South 87' 10' 23" East 642.95 feet, within the right-of-way of Spring Street; thence North
020 43' 58" East 608.315 feet, within the right-of-way of East Avenue; thence South 87" 10' 21" East
170.883 feet, within the right-of-way of Dickson Street; thence North 02' 44' 13" East 1333.608 feet,
within the right-of-way of Highland Avenue; thence South 87" 02' 57" East 347.732 feet, within the right-
of-way of Maple Street, to the Point of Beginning and containing 144.467 acres, more or less.
0
City of Fayetteville, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.10
Downtown Master Plan
NAME OF FILE: Ordinance No. 4646
wlEx. A
CROSS REFERENCE:
Item # Date Document
1
12/07/04
memo to City Council
2
draft ordinance
3
memo to Gary Dumas
4
email to Tim Conklin re: Project Plan
5
memo to Mayor & City Council from Bob Wright
6
copy of Project Plan
7
copy of Exhibit No. 1, Economic Feasibility Study
8
copy of Exhibit No. 2, Existing Uses & Conditions Map
9
copy of Exhibit No. 3, Formation of the 71 East Square
Redevelopment District No. 1
10
copy of Exhibit No. 4, Assessor's Certification
11
copy of Exhibit No. 51 TIF Financing Strategies
12
copy of Exhibit No. 6, Amendment 78 (amendment not
attached)
13
copy of Exhibit 7, Local Demographics
14
copy of Exhibit 8, District Map and Legal Description
15
copy of Exhibit 9, Existing Conditions of Blight
16
Affidavit of Publication
17
18
19
20
21
22
23
24
25
NOTES:
D��
... � IGENDA REQUEST FORM •
FOR: COUNCIL MEETING OF DECEMBER 7, 2004
FROM:
Hugh Earnest, Chief Administrative Officer
Tim Conklin, Community Planning & Engineering Svs. Director
Kit Williams, City Attorney
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
/z/-7/ay
v co �ee6
#ewy 7/ Tif
J7)7SVri of
cyan
An Ordinance Adopting The Project Plan For The Highway 71 East Square Redevelopment
District, Finding The Plan Is Economically Feasible And Authorizing The Issuance Of Tax
Increment Financing Bonds To Fund The Improvements Outlined In The Plan
APPROVED FOR AGENDA:
Hugh arnest
Chief Administrative Officer
Sfepl en Davis
Finance & Internal Services Director
Tim Conklin
Community Planning &
Engineering Svs. Director
KirVV'illiams
City Attorney
�. oy
Date
/1- 30 -
Date
// 30_
Date
It - 3a -0y
Date
/Ove-
Datee
�.� �f �► v-�. /s� nod �nj �i/so%�
� rl
Lo
�ti
ORDINANCE NO.
AN ORDINANCE ADOPTING THE PROJECT PLAN FOR THE HIGHWAY
71 EAST SQUARE REDEVELOPMENT DISTRICT, FINDING THE PLAN
IS ECONOMICALLY FEASIBLE AND AUTHORIZING THE ISSUANCE
OF TAX INCREMENT FINANCING BONDS TO FUND THE
IMPROVEMENTS OUTLINED IN THE PLAN
WHEREAS, on July 27, 2004, the Fayetteville City Council held a Public
Hearing concerning the creation of the Highway 71 East Square Redevelopment District;
and
WHEREAS, on August 17, 2004, the City Council passed Ordinance No. 4608
creating the Highway 71 East Square Redevelopment District and authorized preparation
of a Redevelopment Project Plan; and
WHEREAS, the City with input from the proposed redevelopers of a Twenty -
Two Million Dollar hotel project to be constructed after removal of the blighted
Mountain Inn has prepared a proposed Project Plan attached as Exhibit "A'; and
WHEREAS, the Project Plan includes:
(a) The kind, number and location of all public works or
improvements within the district including the acquisition of real
property, demolition of blighted/vacant buildings, and sale of the
cleared land to the redevelopers;
(b) an economic feasibility study;
(c) a detailed list of estimated project costs;
(d) a description of financing including tax increment bonds;
(e) a certification of the county tax assessor of the base value, ad
valorem rate, debt service ad valorem rate, and ad valorem rate for
the redevelopment district;
(f) no other funds are expected to be deposited into the special funds;
(g) a map showing existing uses and conditions of real property in the
district;
(h) a map of proposed improvements and uses in the district;
(i) no zoning changes are anticipated;
0) reference to the Downtown Master Plan;
(k) no non -project costs are anticipated;
(1) no persons are anticipated to be displaced;
(m) the amount of TIF indebtedness;;
(n) the amount of tax increment estimated to be generated by the
project;
(o) no other revenues are anticipated to be used to secure the tax
increment financing.
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
finds that the Project Plan for the Highway 71 East Square Redevelopment District
(attached as Exhibit A) is economically feasible.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby
adopts the Project Plan for the Highway 71 East Square Redevelopment District and
determines it has complied with all requirements set forth in A.C.A. §14-168-306.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby
approves and authorizes the issuance of the tax increment financing bonds as outlined in
the Project Plan in the amount, interest rates, duration, etc. stated within the Project Plan.
PASSED and APPROVED this 7 h day of December, 2004.
ATTEST:
By:
SONDRA SMITH, City Clerk
By:
APPROVED:
DAN COODY, Mayor
��11.41"�, .0
BOB WRIGHT
CREWS AND ASSOCIATES
STATEMENT FOR THE RECORD
11-30-04
Mr. Mayor and members of the City Council
(!A� CJ
As you know, we have been retained by the city to serve as Financial Advisor on this
important project. Over the past several months, we have been working through a series
of possible fmancial scenarios focusing on the monies needed to address the proposed
Project Plan for the Highway 71 East Square Redevelopment District. As Mr. Earnest
noted in the cover memo summarizing this project, one possibility includes the issuance
of a certain type of bond that would result in an upfront yield of some $6.8 million
dollars. As he also stated, these numbers and the yield available over time awaits a
careful review by us.
Our position at this time is simply that we are in the process of detailing a number of
funding options for the city that maximizes the use of the Increased Assessed Valuation
collected for these much needed public projects. We are prepared to say that the monies
needed for the Phase I acquisition, demolition and site preparation of the Mountain Irm
site can be secured at this time. The second phase of the project as detailed in the Project
Plan will be undertaken in the future when monies are available. We will have a detailed
report to the council by your second meeting in December.
City of ragetteville, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
e
Table of Contents
Introduction 3
Phase 1 5
"Process ofremoving blight in theformerMountain Inn area-Ca&4VProjed"
Phase II 11
"CitySlredscapelmprovements—First 10 YearProjecl"
Economic Feasibility Study Exhibit 1
Existing Uses and Conditions Map Exhibit 2
City of Fayetteville, AR Ordinance No. 4608 Exhibit 3
Assessor's Certification Exhibit 4
TIF Financing Strategies Exhibit 5
Amendment 78 Exhibit 6
Local Demographics Exhibit 7
District Map and Legal Description Exhibit 8
Existing Conditions of Blight Exhibit 9
Downtown Master Plan Exhibit 10
uses detrimental to the
public
welfare,
or otherwise remove or prevent the
spread
of blight or
deterioration; or
(C) The financial or other assistance in the relocation of persons and organizations displaced as a
result of carrying out the redevelopment project and other improvements necessary for carrying out
the project plan, together with such site improvements as are necessary for the preparation of any
sites and making any land or improvements acquired in the project area available, by sale or by
lease, for public housing or for development, redevelopment, or rehabilitation by private enterprise
for commercial or industrial uses in accordance with the plan;
(D) The construction of capital improvements within a redevelopment district designed to alleviate
deteriorating conditions or a blighted area or designed to increase or enhance the development of
commerce, industry, or housing within the redevelopment district; or
(E) Any other projects the local governing body deems appropriate to carry out the purposes of this
subchapter;"
In particular the public purposes of Phase I improvements financed by Tax Increment Financing
include acquisition costs, asbestos remediation, demolition expenses, reclamation expenditures, .
waste recycling and site work on the site of the former Mountain Inn area. The expenditures are as
follows:
1 *Real Property Assembly costs:
765-01940-000,765-01930-000 $ 1,200,000.00
765-01938-000 $ 500,000.00
765-01939-000 $ 500,000.00
765-01929-000 $ 413,000.00
2 **Demolition & Site Preparation:
$ 2,613,000.00
$ 887,000.00
$ 39500,000.00
* No Condemnation procedures will be utilized for the Mountain Inn Project
** Demolition and Site Preparation expenditures include the following:
A. Resolution of access issues
B. Resolution of utilities as needed
C. Water/sewer system upgrades as required
D. Layout & engineering
E. Asbestos and other environmental remediation
II
City of Fayetteville, ArLansas
PHASE II (First 10 Year Plan)
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
IMPROVEMENT RECOMMENDATIONS
Section Two — Streetscape Improvements
The purpose of this report is to provide recommendations for public work improvements that
would be a part of the Highway 71 East Square Redevelopment TIF District Project Plan. These
proposed recommendations were developed using the Downtown Master Plan and the
Downtown Dickson Street Enhancement Project as a guide.
PROPOSED TYPICAL SECTIONS:
taMS. PA ERS --
i
���,_t �j Y fi ci
:lill'llF,w,ZII-T4 . }{FP, i''I+iFltI, I dd
^r
� z
x
0
1 � i
PLAN VIEW
The following is a summary of improvements for the typical section that will be applied to
identified streets within the improvement district:
➢ Replacement of existing sidewalk with a uniform six foot wide sidewalk that would meet
116
ADA requirements.
➢ Replacement of existing curb & gutter with historic type "stand-up" curb.
➢ Installation of a double band of concrete pavers adjacent to curb.
➢ Installation of trees at intervals of 30 feet including underground irrigation.
➢ Installation of decorative street lights at intervals of 120 feet with underground electrical
supply.
➢ Provide a minimum of two inch asphalt overlay.
➢ Replace existing drainage structures and storm pipes as necessary.
Below is a conceptual photograph of College Avenue that was contained in the Downtown
Master Plan that illustrates the type of enhancements that are recommended.
Downtown Master Plan Conceptual Photograph of College Avenue
PROPOSED IMPROVEMENT CORRIDORS:
Portions of the major corridors within the Improvement District have been selected to be
improved to the Typical Section in conjunction with the redevelopment project. These portions
are listed below and are shown on a map on the following page.
➢ College Avenue —Between Mountain Street and Maple Street.
➢ School Avenue—
Between TIF Southern Boundary
(South
of 7"
Street) and Prairie
Street.
➢ Mountain Street — Between College Avenue and Downtown Square.
➢ Center Street— Between College Avenue and Downtown Square.
➢ Block Street — Between Downtown Square and Spring Street. This street portion will
also require the replacement of the water and sewer lines located under the street due to
the age of the infrastructure that was installed before 1915.
➢ Downtown Square —This includes the replacement of the existing deteriorating
sidewalks around the square.
0[
IL NE7�7
BE
In°
Proposed Improvement Corridors
13
The following are the associated costs to improve the identified corridors to the improved typical
cross sections: .
Street
Street Segment
*Unit Cost
per L.F.
Length
L.F.
Cost
From
To
College Avenue
Mountai
n
Maple
$930.00
22980
$2,7719400.00
Center Street
College
East
$930.00
450
$418,500.00
Mountain Street
College A
East
$930.00
450
$418,500.00
Downtown Square
N/A
N/A
$930.00
1,200
$1
116 000.00
Block
Avenue
Center
S rin
$930.00
680
$864 900.00
School Avenue
Prairie
TIF
Boundary
$930.00
1,190
$1,1067700.00
TOTAL ESTIMATED COST $6,6969000.00
* The unit cost per Linear Feet of Street Enhancement was derived from the actual costs
of the Downtown Dickson Street Enhancement Project.
As previously stated, it will be necessary to replace the water and sewer lines under Block
Avenue prior to the street improvements due to the age of the utility lines. These replacements
have been estimated to cost $42000.00.
Total Estimated Cost for Street/Sidewalk Enhancements - $6,6969000.00
Estimated Costs for Block Avenue Water & Sewer Replacements - �420.000.00
TOTAL ESTIMATED COST- $79116,000.00
14
Total Anticipated Expenditures:
Phase I - Process of removing blight in the former Mountain Inn area -Catalyst Project:
$3,500,000 (based upon 2004 dollars)
Phase 11— City Streetscape Improvements — *First 10 Year Project:
$7,116,000 (based upon 2004 dollars)
$10,616,000 Total (based upon 2004 dollars)
*Financing and related improvements will be phased in as revenues from the growth of incremental
property taxes warrant them.
I
16
An Economic Forecast of Assessment Values in
the Highway 71 East Square Redevelopment District
Produced for the City offayetteville, Arkansas
SAM A
&=M ifON
UNIVERSITY COLLEGE Pf BUSINESS
fARKANSAS
Centerfor Business and Economic Research
Center for Business and Economic Research
Reynolds Center Building 217
Sam M. Walton College of Business
1 University of Arkansas
Fayetteville, Arkansas 72701-1201
(479)575-4151
Contact: Dr. Jeffery T. Collins, Director
September 2004
17
The purpose of this study is to estimate the cash flows that will accrue to the Highway 71 East
Square Redevelopment Tax District (ESRD) in Fayetteville, Arkansas as a result of the tax
increment financing project that has the redevelopment of the Mountain Inn as its centerpiece.
The ESRD encompasses 443 parcels in the central part of Fayetteville, running along US
Highway 71 B from Maple Street to south of the Mill District. The ESRD centers on the
Fayetteville Square, the Mountain Inn, and the Old Courthouse. The desired renovation of the
Mountain Inn spurred the formation of the ESRD, as private developers were unwilling under
the current economic environment to attempt the project. Further, the redevelopment is seen as
key to improving local property values and fostering economic activity in the central corridor of
the city. Tax increment financing (TIF) was chosen as the appropriate tool for this private/public
partnership.
Researchers at the Center for Business and Economic Research (CBER) in the Sam M. Walton
College of Business at the University of Arkansas were asked to project the revenues that tax
increment financing will provide for the ESRD. The methodology employed was as follows.
First, a copy of the property ownership report for the East Square Redevelopment District was
obtained from City of Fayetteville staff. This report included the identification of and 2003
assessed valuation numbers for the 459 parcels included in the Highway 71 East Square
Redevelopment District. Supplementing this information, CBER researchers used the
Washington County Assessor's online property search database to obtain the 2004 assessment
values for the same 459 parcels. CBER researchers then gathered historical data on assessment
value growth rates in other parts of Fayetteville for comparison purposes. Research was
conducted on the growth in property values in TIF districts in Tulsa, Oklahoma to assist in the
determination of reasonable expectations for growth rates.
The collected data show that 148 of the parcels in the ESRD are classified as Commercial
Improved, 95 of the parcels are classified as Residential Improved, 116 of the parcels are exempt
from property taxes (either as local or federal government properties or churches), and the
remaining 100 parcels are a mix of commercial and residential vacant properties, public services,
and miscellaneous usages. A total of 342 of the identified parcels had non -zero assessment
values in 2004.
In 2003, the total assessed value of the parcels in the ESRD was $16,691,61. In 2004, the year -
on -year growth rate of the assessed value was 12.9%, while the median assessment growth rate
was 10 percent. Of the relevant 342 parcels, 49 parcels had assessment growth rates of less than
10 percent, 208 had assessed values that grew at 10 percent, and 85 parcels had assessment
growth rates of more than 10 percent. Only 6 parcels in the ESRD had lower assessments in
2004 than in 2003
In order to form a basis of comparison, the parcels that have addresses along Dickson Street in
Fayetteville were examined. A substantial amount of private and public investment has gone
into the redevelopment of Dickson Street in recent years and examining recent annual
assessment increases might provide a fair indication of what assessment values might do in the
ESRD after investments have been made. According to data from the Washington County
Assessor's Office,
lF69
in 2004 the average growth rate in assessed value on Dickson Street was 12.8 percent. The
median growth rate was 10 percent. In 2003 the median growth rate of the assessed value of
parcels on Dickson Street was 8.3 percent, while in 2002 and 2001 the median growth rates were
9.1 and 10.0 percent respectively.
In Tulsa, Oklahoma, tax increment financing has been used in five districts. Oklahoma's TIF
legislation differs from that of Arkansas in that both property and sales tax increments are
available for revenues for the districts. The successes of the TIF districts in Tulsa have varied.
Those that have been most successful have attracted a large retail anchor to the district or have
been tied to a specific redevelopment project. Most Tulsa TIF districts have been unable to meet
their projected increases in property tax and sales tax. This experience demonstrates that
planners should use conservative estimates in their calculations for projected revenue.
Based on all of the previous information, CBER researchers have developed a plausible revenue
scenario for the ESRD. This scenario takes into consideration that owner -occupied residential
property assessment growth is capped at 5 percent, that properties owned and occupied by
residents over the age of 65 have frozen property assessments, and that all other property
assessment growth is capped at 10 percent. Only new construction is assessed at its full value.
In order to provide a conservative estimate of the revenue that will be generated in the TIF
district, the following assumptions are made. In 2065 and 2006, assessed property values will
grow at 8 percent, unless they are frozen or capped at 5 percent. From 2007-2029, property
values grow at 10 percent, unless they are frozen or capped at 5 percent. These revenue
estimates do not capture the growth in assessments that will result from new construction, and as
such, likely underestimate the true revenues that are likely to accrue to the TIF district. Table 1
presents the revenue estimates by year that are derived from the listed assumptions. Figure 1
illustrates the growth path of the increment and the full assessment that is estimated for 2030.
orn
MOSZIIei0'I)M00 MEM10MI1 2042M13MI42015 NIB Nn M10 NUNN 31] =3 MNM]5202fi OMEMM=
City Of rayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.2
Existing Uses and Conditions Map
Cry �F r�jllq,
HIGHR'11 71EAS"I-SQUUkREREUE\ELOPUE\1 UISIRICI
:P,RUJ ECrT. Pli.\\.rn's. _;.-'P" r
zz
City of rayetteville, ArLansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
a
EXHIBIT No.3
City of Fayetteville, AR
Ordinance No. 4608
Formation of the 71 East Square Redevelopment District No. 1
23
ORDINANCE NO.4608
AN ORDINANCE "FORMING 'I -HE HIGHWAY 71 EAST .
SQUARE REDEVELOPMENT DISTRICT NUMBER ONE
PURSUANT TO AMENDMENT 78 OF THE ARKANSAS
CONSTITUTION ANDAUTHORIZING THEPREPARATION
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 proposedcreation 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 l• 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 ofFayetteville, 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
24
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 ofFayetteville, Arkansas. All project .
costs shall be paid from this fund. This fund shall be known as the Highway 71 Past.
Square Redevelopment District Number One of Fayetteville, Arkansas.
Section 6: That the City Council of the City ofFayettevillq Arkansas hereby
authorizes the preparation of a Redevelopment Project...
PASSED and APPROVED this 171° day of August, 2004.
APPROVED:. .
By: r
ATTEST:
By:
ONDRA SMrM. City Clerk .'
DAN COODY, Mayon
G\Iy o�c..G,p
9 3,
YErrEVILLE •..
F all
hMInNM\4
0
25
City of rayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.4
Assessor's Certirication
October 1, 2004
Mr. Hugh Earnest
City of Fayetteville
113 W. Mountain
Fayetteville AR 72701
Dear Mr. Earnest,
Please accept this letter and its attachments as the assessor's certification required by
ACA 14-168-306(b)(5) for die approval of the Redevelopment District Project Plan.
The assessed value of alf real property within the redevelopment district subject to ad
valorem taxation, also known as the Rase Value as of January 1, 2004, is:
16,616,684.
The current total millage rate of Washington County, the Fayetteville School District, and
the City of Fayetteville, also known as the Total Ad Valorem Rate, is:
52.96.
The portion of the iota] ad valorem rate that was, at January 1, 2001, pledged to.the .
payment of debt service by the Fayetteville School District, also known as the Debt
Service Ad Valorem Rate, is:
23.7.
The total ad valorem rate less. the debt service ad valorem rate, also known as the .
Applicable Ad Valorem Ratei is:
29.26.
Attached is the certification fmm the Fayetteville School District of the debt service ad
valorem rate, a copy of the most recent village ordinance detailing levied ad valorem
village rates for all taxing entities in Washington County with the pertinent items marked
with an asterisk, and a report Liam die assessor's database detailing the appraised and
assessed value ofeach panel in the redevelopment district along with totals for die entire
district.
Sincerely,
Lee Ann Kizzar
•
FayetL%vBeTV distt U
PARCELID
Tme
Total ApWaisad
Total Assessed
765 01838-000
CI
138A00
26,438
765-01639-000
cl
125,800
20,020
765.01640-000
RI
141ASO
22,719
76541641-WO
CV
43,700
SA35
765-01642-000
GM
64.100
9,724
766.01643-0W
GI
699,850
12V70
76501544-000
cl
1,358,800
182,559-
765.01645-M
ET
0
0
765-016464W
GI
210,950
3SA06
765-01547-000
cl
275,950
48,207
765-016484000
EX.
0
0
765-01849-000
EX
0
0
765 016%000
CI
370,000
71,266
765.01551-OW
GI
578,450
99 927
76"1652-000
CV
86,000
/8,8i9
765-01780-000
EX.
. 0
0
M-01781-000
GI
282450
44,16.5
765-01762-000
cl
2681800
45,/33
765-01783-000
cl
188m50
31,812
765-01784-OW
cl
70,900
i2.999
765-01786-000
CM
614450
8,514
765.01768-000
cl
2849600
23.906
765-017874WO
RI
138,300
i7,604
766-01788-000
cl
223,f00
26,108
765-01769-000
CI
263,050
34r730
765-0i790-0W
RI
68,2W
97295
765-01791-0=
RI
90r=W
OX20
765-01792-WO
CI
92,950
IV56
765b1797-OW
RI
73000
i0,704
766-01794-000
ET
0
0
765-01795-000
ET
0
0
76541798-WO
CI
t44,100
211O12
766-01707-OW.
cl
146,300
19,005
765-MTQMBO
GI
168,950
25r267
765-01799-WO
CI
1935000
31,257
765-01800-OW
ET
0
0
795-0180"00
E.T
0
0
765-01802-OW
CI
228,500
s7,180
765-01803-000
cl
164,200
26,312
765-019044WO
GI
339POO
48,532
765-01806-000
CI
17-3,850
UA97
766-01807-000
P6
5,211,360
1,042,270
765.0180&000
Cl
166,350
28,882
T85-01809-000
P8
144,750
28,950
766-01810-000
cl
11077,000
152757
765-01811-000
Ci
1,299,200
2.08,492
765-01812-009
GI
200,300
58,0
765-0181"00
CM
47,850
6,710
765-01814-W0.
cl
380,200
73,871
765-0181"00
cm
55,6W
10,S78
765-01820-ON
cl
B,40o,090
11260000
765-01821-000
CI
8,190,100
1,086,591
765-01827-000
cl
171,100
32,990
765-01828-000
cl
199,850
38,338
M-W829-000
cl
14118W
26;12
766-01830-000
cl
580,OW
67,696
765-01831-OW
cl
240,300
44,573
765-01832-000
Ci
169,100
31,746 ,
765-01832-001
cl
10g100
18,833
1011l2004 i
PARCEL 10
TWO
Taal Aapsaised
Total Assessed
785-0IM-000
CI
183,T00
2ZS37
765-01834-000
CI
406,400
64,106
765-01035-000
cV
396,900
75,533
765-01835-001
CB
1,953,100
289,207
765-01836-000
CI
41000AM
770,000
765-01837-000
cV
84,850
11,231
786-01818-M
cl
449,400
80,093
765-01817-000
ET
0
0
76MI848-000
cl
722,150
127,470
T85-01847-000
cl
702,950
1400590 -
766-01848-000
cl
2,5oopo
461AN
765-01849-000
ET
0.
0
785-01850-000
ET
0
0
766-0185t-000
£T
0
0
T86-01852-m
£T
0
0
765-01853-000
EX
0
0 -
7&-01838-000
cl
455400
84.835
765-01839-000
cl
992,900
122)894
765-0184"00
cM
89,000
17VO
765-01841-000
cl
68,160
12,112
765-01842-000
EX
0
- 0 '
765-01843-000
cl
8S,250
14.143 . -
785-01844-00o
cl
67,f00
11.168
76"1844-001
cl
67,440
11,140
705-01846-000
cl
276096D
62.673
765-01916-000
cl
1,975,950
377.706 -
765-019194)00
cl
244,900
34,120
765-01920-000
cl
238,804
45,485
765-01924-000
cl
238„850
47,370
765-01926-M
cl
491,400
79,071
TMO1926-000
EX
0
0
786-OWS- 00
EX
0
6
765-01929-000
£T
0 .
0. -
T65-01955-004
KV
22,504
3,168
765-01930-000
cl
389,760
77,050
7655-01932-000
cl
%7,800
59668 -
785-01933-000
cl
432,4oO
72,758 -
ms-01935-000
cl
.4,380,500
$0,736 -
765-01938-040
cl
167,550
3OA88 -
765-01939-000
cl
334,850
62,002
795-01854-000
ET
0
:.O
7MO1856-ow
£T
0
-.0 -
765-01948-000
cl
332,700
61,576
76SO194MO
cl
239,I50
44,959
76&01950-000
cl
250,9SO
52,190
76S-01952-000
ET-
O
.0 1
765-01953-0o0
ET
0
0
765-01940-000
cl
868,400
119.677
76"1940-001
cl
230AO
4SA85
765-01941-000
EX
0
0
765-01942-000
cl
341,360
68,2m
766-01943-000
cl
470ASO
90,167
7MOID44-000
cl
160,650
14,715
76&01046-090
cl
175,450
23)895
7MO040-000
£x
0
0
765-01947-000
EX
0
0
766-0195"00
el
15E,150
2BA09 -
765-01927-000
cl
717,700
129,031
765-0195MDO
EX
0
0 -
765-01958-004
RI
72,550
12,913
765-01959-090
eX
0
0
76"196o-000
EX
0
0 -
PARCEL ID TWO Tdat Appraised Total Assessed
765-01961-000 EX 0 0
765-01962-000 EX 0 0
765-01983-000 EX 0 0
765-01984-000 EX 0 0
765-01985-000 EX 0 0
765-01985-000 ET 0 0
765-01985-001 CI 1,219,850 225,877
765-01088-000 EX 0 0
765-019874= EX 0 0
785-01988-000 EX. 0 0
765-01989-000 EX 0 0
785-01990-000 EX - 0 0 _
765-01093-000 ET - 0 0
765-01991-000 CI 392t300 69,3k
785-01992-000 ET 0 0
765-01988-000 CI 484,750 79,325
785-01987-000 CI 98t200 10,485
765-01988-0D1) CV 69,0o0 13,365
. - 765-01969-000 CV 34,500 8,688
765-01970-M CV 34,500 8,888
785-019T1-000 CV 23t000 4,455
76541972-000 CI 1,294,050 130,545
765-019T5.000 EX 0 0
76"1976-000 ET 0 0
765-01977-000 ET 0 0
765-01978-OW ET 0 0
785-01979-000 ET 0 0
765-01980-000 ET D 0
M-01981-o00 ET o 0
. 765-01082-000 FT 0 0
. 765-0207G-M CR 359t500 52,773
7654)2071-OW PS- 1,M0 350
765-020T2-000 IX 0 0
.. - 765-02073.ON EX 0 0
765-01983-000 ET - 0 0
M-01984-ODD. ET
785-0207"00 RI 88,250 10,427
' 785-0207"00 RI 50,9o0 5,808
-. 7654=5.000 RV 22,500 2,880
765-02077-000 RI 132AOU 1Q862
765-02078-000 RI 81t850 7,785
785-02080-000 RI 35,650 8t303
- 785402081-000 RI 47AW 7,222
76.54=82.000 CI 153y200 24,918
M-02083-000 RI 51,800 7,444
785-02084-000 RI 36,850 5,477 .
_ 7654M85.000 RI S7,o50 80065
765-D2088-o00 CV 28tso0 3,795
M64=87-000 CV 43,700 50754
765-02088-M CI t80A60 21,807
765-02088-001 CI 34,880 4,791 .
765-02092-000 RV 100 2D
765-02093-000 RV 500 100
78S-02093-001 RI B1,100 stool
765-02094.000 CI 70�2m 137807
766-02005-000 RV 17,500 2,464
765-02103-000 RV 17,500 2,402
765-020964300 RI 51,2 a 9,812
78542097.800 CV 2375o0 1 4,312
M-02098-OW CV 80,o50 14,874
M-02099-M CV 52,/50 9,559
766-02104-M EX 0 0
1olll2004 . - - 3
PARCELID
Type
Total Amobed
Totd Asseesed
765-0210"00
RI
491650
7,072
7654)2134-000
CI
131,300
18,733
78642135-000
Ri
1 t2,806
iSA74
766-02137-000
RI
66,100
61195
765-02138-000
cm
18,550
3An
766-0209-000
RI
110,750 _
8,900
7654)2t404)00
RI
83,800
9,708
76542108-000
cl
44,850
67787
76542112-000
RI
69,100
7,579
768-02113-000
RV
20,000
2,231
765-02114-M
RV
6250
1250
766-02M-000
RM
19,350
3,069
76542118.000
cl
2.31,250
41,599
765-02118-000
RV
10,QOo
1,468
765-02119-000
RI
68250
71424.
765-02120-M
RI
- 64,000
6,499
76541212t-000
Rl
67,95a
10,013
765-02123-M
RV
26250
5250
765-02124000
cl
98,800
15,473
765-02127-000
RV
31260
21603
765-021294M
RI
6aaaw
84302
765-02129-a00
- RV
.339750
41752
765.02130-Q00
cl
324,750
64,146 .
765-M33-000
cV
34,250
SA45
Mri-MO04M
Al
46,000
71951'
765-02to2-000
RV
15,000
2,059
765-02980-M'
Ri
44900
6,119
7654rM000
CI
73250
12,474 -
7654=2-000
RI
43,450
6,363 '
785-02961a00
AM
f0,50o
IA85
765-0299d-000
RI
2212W
2,922
765-02985-000
RI
368250
8,450 -
76942986-000
RI
.37,50a
41936
785-a2987-000
RI
33,850
91048
765-02M-M
Ri.
72o960
10221
M412969-000
RI
26,250
4,147
765-02990-000
RM
10,300
11496
785-02991-000
RI
23,600
4278
765-04325-000
cm
68,300
7,309
765-04319-000
cl
11320o
22,419 _
765414320-OW
cl
499;05o
609117 -
766-04321-000
CI
342,160
65,670
78S.U322-000
cu
97,650
16)832 ..
768-U 23-606
cm
4o,350
6785 -
7654432"W
cm
52,20a
6,428
785-04310-000
cl
98260
199437 -
765434312-000
RI
165,500
23AM
765-04313-000
RI
157,400
18,559
78544314-000
Ri
619100
8,910
766-04316-000
cl
160,700
32,140
765-0d316-000
RI
167ASO
74,516
765-04317-000
RI
149A50
21i4ll
76544378-000
cl
228,050.
44,318
765-04448-000
Pal
0
0
765-0444"AO
cI
134,350
2SA45.
766-04450-000
cl
334,600
641162
765-0445t-000
Ell
0
0
765-04452-000
cl
26120D
u,602
765-044534=
Ex
0
0
766-04459-060
Ell
a
0
766-04454-000
EX.
a
0
765-04455-090
EX
0
a
PA.RCrL 10
TWO
Total AnOrelsed
ToWI Assessed
765-04458-000
PX
0 - -
0
765-04457-000
EX. -
0
0
165-04458-000
EX
0
p
765-04487-000
EX
0
0
765-04481-000 -
EX
0
0
' 76544482-000
EX
0
0
765-0448343M
EX
0
0
- 765-W484.000
EX
0
0
78504465-000
EX
0
0
785-04468-=
EX -
0
0
76&05448-OW
EX
0
0
765-05441-0DO
cl
.1300,65p
159OU
765 05441-001
EX
0
0
765-05442-0OD
RI
- 69,500
13288
765-05442-001
RV -
- - 2B,AOO
4.54.3
765 05448-000
RV
140400
2,475
765-05444-000
RI
580700
10,76p
7654YJ445-M
RI
550756
10,582.
765-05467-000
EX
0
0
765415A47-000
CV
- MAW
23,298
_
785-06448-000.:
cl
.23OA60
46,130
' 765-05448-0Ot -
EX
. 765-OWO-000 -
cl
77,200
12A54
M M450-000
EX
0
0
. 765-05451-000
CR_
10T,300
1s,338
785 05462-000
RM
22,600
3,900
- 765-05453-000
RI
41,i 50
7,689
7O&OUS000O
CR -
7s,260
8,86fi
- 765-05455-000
EX .
0
0
785-05456-OW -
CV
52800
825
76546457-M
EX
.0
0
765-05458-006
Cl
73 B00
12,758
766-05469-000
-EX
0
0
. 766-05480-000 .
'. EX
0
0
.. .. .. 76545481-000. - ..
EX
0
0
765-05466-000
Cb._--.�
107,850
17A27
- 7$50546"00
EX `. ...
0
0
- 765-05488fi00.
CI`
250ASO
46,864
M054118-000
EX
0
0
76545499-000
EX ....
0
0
- 765-05600-000 - -
EX
0
- 0
_ 785-05531-000
cl
,89,850
ISA70
- 766-05501-000 _
Cl
- 110,700
14A42
. 785-05502-M
CV
42,550
4,455
. 765-05504-000
- ET
0
0
765-05505-000 .. '
. EX
0
0
765-05608-001
EX
0
0
' 765-MOS-002
EX
0
0
765-05507-000
IV-
450750
8,852
76545608-M
CI
28,700
4,994
765-0550"00
0.:
418,350
80553
765-05 00
CI
14,550
2,910
.765-05478-0D0
RI
44,250
7,036
_ 765-05479-000
CI
205AOD -
31,163
765 05481-000
CM
ts,360
2.583
765-05482-000
RI
67,750
10,854
785-Ob487-0DO
CI
93,500
- 15,928
765-05492-00t
EX
0 .
76545510.006
cl
103,350
Is,541
78545511-0DO
CI
83,300
16.613
765-05522-000
IV
38,55p
4.378
10It P2004 5
PARCi=i- 10
Type
Total AOma"d
Total Assessed
765-05523-000 -
0
366,850
73,370
765-05523-001
EX
0
0
765-05525-001
CV
17,800'
2,850
7664)83804)00
RI
62,100
11,571
785-06382-000
RI
49.&M
8,515
78SM381. M
RV
12800
1,883
765W080A00
Ci
mm
111826
766-07681-000.
RI
20„660
2,898
765VO62-M
RI
86,900
12.396
765-07083-M
RI
33,i50
5877
765.07084-M
RV
15,000 -
1,780
76UT0654M
RI
45,150
5,218
76507086-0W
Rl
33.700
5,302
766VO67-000
RV
lo.500
1,232
765b7068-00o
RV
lo,5o6
1,232
785-07689-m
Rl
40,900
6886
765-07070-M
RI -
32,750
6,005
76547100-000
RI
57.700
8836
76507099-000
RI -
49,500
8,992
- 765 070874M
CI
287550 _
43887
785-070894)60
ICI
- IISA 6
22,158
765-07088.0N
RM
14,260
tj48
786.07090-M
RI
387400
4,860
7654Y7091-000
RI
66,450
9,981-
765-07002-000
RI
50,400
80835
- 785-07003-006
RI
41,000
4,460
785-070944)00
RI
67;450
9,638
755-07095-000 -
RI
29.500
3861
785-07098.OW
RV
100
20
. .765-07097-000 '..
RI
- 41,800
8842
786-07098-060.
RI
37,450
5857
765-071254XO
CV
10,500
1.650
7655-07t254)00.
EX
0
0
. - 785-07t2&0W...
Rl
13,256
2866
785-m29-000
Rl
59,Wo
7,770
. 785-071304000
RV
18,760
2,200
765-0131-000
RI
'56.500
7830
. 76547979-000
CI
246,350
47,539
785-07990-000
Cl-
163,Z%
sips
7850820-M -
EX
0:
0
786-08247-0001
£X
-p
p
765.08248-M
GI
.169,500-.
37,900
. - 7854)8249-000-.
RI
t08,306
13,388
765.08749-001
CV
i6,900
- 2,970
M-08266-060
RI
66,000
5,941
M07960-000
RI
107,250.
- 18,260
765-077n-m
RI -
110,350
17,241
785-07973-M .
Cl
187850
37,445
- 765479754=
CI
308,206
55873
765-079784M
CI
100.360
20,o70
765-07978-000
OR
205A00
38.885
765-079844W
RI
/1t,ZrD
19V360
. 785-07987-ow
CI
11007.M
198.11a
76647988.060
EX
0
0
765-08077-000
CI
2,059,200
411840
765.08076-000
PS
30AGO
5880
765.086824=
CV
.92,450
10824
76"80B3.000
41
525,300
02,388
_
76"8084-000
CV
77,050
9,=
765-08088-000
CV
16,900
1,130
765-08089.000
- EX
0
0
765-08239-M
RI
54,850
9074
PARCEL tt7
TVpe
Total ApMlsad
Total Assass®d
765-OMO-000
RI
60.100
- 6,565
765-11M4-060
RI
139,450
14,041
765-11723-000
EX
0
0
765-1172.4-NO
Ex
0
0
765-t17247001
EX
0
0
76&1173f-000
EX
0
0
765-t1731-001
cm
60,200
10,353
765-11731-010
EX
0
0
765r12871-000
ET
0
0
765-12872-000
GI
133AGO
28,088
765-126734000
CI
266.600
50,050
765-12874-000
RI
71.350
127455
76&12175-000
CM
27,600
57500
76542878-000
RI
98,350
18,f50
765-1288t-000
ET
0
- 0
765-12612-M
ET
0
0 -
. 766-12884-000
EX
0
0
765-12686-000
CI
493,100
94,373
- 76542817-000
RV
23,000
3,575
765-me -000
RI
128,350
14,286
- 7MI2889-000
EX
0
0
76&i2889-O0t
RV
t,000
200
765-12681.000
EX
.0
0
766-12710-004
cl
17020S
277a60
785-t27i0405
CI
199,308
.31,702
76s12710-006
CI
680680
1OA"
' 765-12710-007
CI
28,076
4,f45
765-12710-009
Cl.
65,008
10,340
765-127t0-010
- CI
22,646
3,603
' 765-12710.011.
CI
91;388
1,815
765-12711-000
ET
0.
0
765.12712-000.
ET
- 0
0
76542713.000,
ET
- 0
0
. 705=12714 M,
ET
. 0
0
762SA2715-000
CI
11724,950
247,592
.-765-1274000.
EX
- . 0
0
.765-12718-000
CV -
12A00
1,188
. 765-12720-000
CV
19200
1,782
766-12721-000
CV
14,700
1,384
765-12722-000
CM
26,000
2,552
765-12724-000
EX
0
0
765-12766-000
RV'
14,400
29288
785-12767-000
RV
is;000
2,574 '
.. 765-12768400
RV
16,000
2,574
76542781-000
- CR
49.900
8,723
76St2782-000..
CI
74;150
11A08.
765-12783-000
CM
17,154
2,013
765-127a&000
CI
467,700
88,717 -
766,12789-000
CV
'28,350
4,455
765-12791-000
CM
387150
5,786
765-12792-000
RI
1i1,600
21,043
765-12793-000
RI
47A50
8,148
76s-12794-000
RV
19,200
3,300
7as-2093.5-020
CI
371A46
70,528
195-22012-000
RI
420,119
78,887
765-=33-000
RI
359,032
64,170
765.22034-000
RI
384AOT
72,f88
766-22035-000
RI
465242
93,048
765-22038-M
CI
315,192
491280
765-22037-000
CI
145,374
24,640
765-22058-000
CI
859561
141,680
765-220 "00
CI
285,387
49,280
,
10112004 T
PARCEL 16
Tvoo
Total Anlxeised
Talal As aasod
765-220d t�-000
cl252,85f1
765-12795-000
RV
13,6M
2,145
765-12796-OW
RV
Apoo
1375
765-12797-000
RI
58,Oo0
8,050
765-22538-000
cl
457,600
91,52f1
765.22339-000
CI
4180000
95,200
765-22540-000
RI
239,8S0.
47,970
75522541-000
RI -
228,800
45,780
765-22542-000
0
184,500
36,900
76522543-000
Po .
114,400
22,880
766-22644-M
lb
114,A00
22,830
76522545-000
RI
147,854
29,530
766-22546-000
CI
553,550
110,710
M22547-0QO
CI. - `.
438,150
97AW
785-22536-M
CI
3390500
67,900
7&S225S7-000
G -
394,B50
78,970
765-22646-000
d
0
- 0.
765-12.Btt-000
R1
24AW
4,290
76547377-000*
FX-
0
-0'
766-20935-01a
id
.11438,8Er4..
273r665
765-12764-M
EX` .
0
0.
765-12764-001
d ' ..
S67B0o
25,45d
765-12M-m
cl -
a1a,2so
9o,e96
7654276MOO
RV
114,400
2,288
765-12709-000
FT
.0
0
765-1271MI
CI
320,142
S0,012
765-12710-002
d _
194,534
30,M,
765-12710-003
d
148,175
2S,243
- ti 40749D0
191Dlo* 4
35
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.5
TIF Financing Strategies
36
EXHIBIT No.7
TIF Financing Strategies
General Tax Increment Financing Information
Tax increment finance ("TIF") is a type ofpublic finance that the Arkansas General Assembly added
to the powers of municipalities and counties by Amendment 78 to the Arkansas Constitution.
Amendment 78 empowers municipalities and counties to create "redevelopment districts" that can
issue bonds the repayment of which is secured by ad valorem tax payments made by owners of
taxable real property in the district.
The real property within the district receives an increased assessed value due to the public
improvements and private reinvestment. Public improvements are financed by the proceeds of the
bonds issued and sold by the district. The district pledges to the payment of its bonds that portion of
the ad valorem tax that is otherwise levied by the city or county that formed the district (the amount
of which is increased by the value of the public and private improvements within the district). That
is, the district pledges the tax on the increment in value of the real property within its boundaries
before and after the improvements. TIF bonds are secured by the existing municipal and county tax
levied against the increase in assessed value. There is no new tax levied.
TIF's are generally used as a tool for economic development available to municipalities to promote
industry and redevelopment of real property, and to eliminate blight. Projects are funded by using
taxes collected in the district itself, without raising the taxes of residents outside the district. This
concept is referred to as "redevelopment from within." A TIF financing raises funds for
redevelopment and acts to stimulate revitalization without using general revenues of a municipality.
TIF uses tax-exempt financing to encourage growth and redevelopment within the district, which in
turn stimulates economic growth outside the district. TIF captures, during its life, the increased tax
revenue that results when private investment is stimulated. These tax receipts are called the "tax
increment." As private investment adds to the tax base within the district, the increment is directed
back to pay for the public investment projects. When the bonds are paid off, the tax receipts
generated by the tax increment goes back into the general tax revenues or can be dedicated to
additional projects within the district.
Financing of Estimated Project Costs
The proposed project costs for improvements within the Highway 71 East Square Redevelopment
District are as follows:
TIF�Bond Proceeds Pnvaie lnveslments� Financing Timetable.
Phase I $ 3.500,000:00 $ �19,000,000.00 2004-2005
Phase 11 $ 7,116,000.00 2004-2029
37
District Indebtedness
It is anticipated that tax-exempt bonds will be issued by the Highway 71 East Square Redevelopment
District due to the public nature and purposes of the proposed improvements. The amount of
indebtedness to be incurred pursuant to the Highway 71 East Square Redevelopment District Project
Plan is projected to provide bond proceeds as follows:
Phase I - Process of removing blight in the former Mountain Inn area -Catalyst Project:
$3,500,000 (based upon 2004 dollars)
Phase lI — City Streetscape Improvements — First 10 Year Project:
$7,116,000 (based upon 2004 dollars)
$10,616,000 Total bond proceeds (based upon 2004 dollars)
Other Costs
Other costs relating to the issuance of bonds may include, among other things, reserve funds,
capitalized interest, feasibility studies, accounting, financial advisory, legal and underwriting fees.
Any initial bonds and subsequent financings will be subject to allowable financing parameters as
determined by bond underwriting requirements, debt service coverage ratios, projections of
incremental growth in assessed values, interest rates and other requirements of the capital markets.
Professional Services
In accordance with Arkansas Code Annotated 14-168-304 (see Exhibit No. 7). Powers Generally, a
district may "(3) Issue redevelopment bonds and notes and to pledge tax increments and other
redevelopment revenues for repayment of them; (15) Designate one (1) or more official or
employee of the local government to make decisions and handle the.affairs of redevelopment
districts created pursuant to this subchapter; and (19) Do all things necessary or convenient to carry
out the powers granted in this subchapter". The district may engage as may be necessary
professional advisors, consultants, attorneys and other TIF specialists to carry out the project plan
and related financings. The Mayor of the City of Fayetteville or others as may be assigned by the
Mayor may engage professionals to specifically meet the desired results of the Project Plan.
Application of District Revenues
All tax increment collected for the established twenty-five year period will be used to cover district
indebtedness including initial bonded debt and additional bonds that may be issued as district
revenues permit. Excess revenues shall retire the district's indebtedness or fund additional projects
as may be approved by the City Council in accordance with bond covenants and obligations.
Interest Earnings
All interest earnings will be used towards debt service obligations on issued Tax Increment
Financing bonds/notes. Earnings may be applied to the payment of Capitalized Interest and any
prepayment of debt obligations as may be permitted.
a;��ANxuwrr;
39
EXHIBIT No.7
Arkansas Code Annotated 14-168-301 through 14-168-323
Redevelopment District
Chapter 168
Community Redevelopment Generally
Subchapter 3
Community redevelopment —Creation and procedures
14-168-301. Definitions.
As used in this act subchapter, unless the context otherwise requires:
(1) "Applicable ad valorem rate' means the total ad valorem rate less the debt service ad valorem rate;
(2)'Base value" means the assessed value of all property within a redevelopment district subject to ad valorem
taxation, as of the most recent assessment preceding the formation of the redevelopment district;
(3)(A) "Blighted area" means an area in which the structures, buildings, or improvements, by reason of dilapidation,
deterioration, age or obsolescence, inadequate provision for access, ventilation, light, air, sanitation, or open spaces,
high density of population and overcrowding or the existence of conditions which endanger life or property, are
detrimental to the public health, safety, morals, or welfare.
(B) "Blighted area" includes any area which, by reason of the presence of a substantial number of substandard, slum,
deteriorated or deteriorating structures, predominance of defective or inadequate street layout, faulty lot layout in
relation to size, adequacy, accessibility, or usefulness, unsanitary or unsafe conditions, deterioration of site or other
improvements, diversity of ownership, tax on special assessment delinquency exceeding the fair value of the land,
defective or unusual conditions of title, or the existence of conditions which endanger life or property by fire and
other causes, or any combination of such factors, substantially impairs or arrests the sound growth of a city, retards
the provision of housing accommodations, or constitutes an economic or social liability and is a menace to the public
health, safety, morals, or welfare in its present condition and use, or any area which is predominantly open and
which because of lack of accessibility, obsolete platting, diversity of ownership, deterioration of structures or of site
improvements, or otherwise, substantially impairs or arrests the sound growth of the community;
(4) "Current value' means the assessed value of all property within a redevelopment district subject to ad valorem
taxation, as of the most recent assessment after the formation of the redevelopment district;
(5) "Debt service ad valorem rate" means that portion of the total ad valorem rate that has been, at January 1, 2001,
pledged to the payment of debt service on bonds issued by any taxing unit in which all or any part of the
redevelopment district is located;
(6)(A) "Incremental value", for any redevelopment district, means the difference between the base value and the
current value-
(B) The incremental value will be positive if the current value exceeds the base value, and the incremental value will
be negative if the current value is less than the base value;
(7) "Local goveming'body" means the city council, city board of directors, county quorum court, or any other
HIJ
legislative body governing a local government in the State of Arkansas;
(8) "Local government" means any city or county in the State of Arkansas;
(9)(A) "Project costs" means expenditures made in preparation of project plan and made, or estimated to be
made, or monetary obligations incurred, or estimated to be incurred, by the local government, which are listed in the
project plan as costs of public works or improvements within a redevelopment project district, plus any costs
incidental thereto.
(B) Project costs include, but are not limited to:
(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, structures, and fixtures, environmental remediation, parking and landscaping, the acquisition of
equipment, and site clearing, grading, and preparation;
(ii) Financing costs, including, but not limited to, all interest paid to holders of evidences of indebtedness issued to
pay for project costs, all costs of issuance, and any redemption premiums, credit enhancement, or other related costs;
(iii) Real property assembly costs, meaning any deficit incurred resulting from the sale or lease as lessor by the local
government of real or personal property within a redevelopment district for consideration which is less than its cost
to the local government;
(iv) Professional service costs, including, but not limited to, those costs incurred for architectural, planning,
engineering, and legal advice and services;
(v) Imputed administrative costs, including, but not limited to, reasonable charges for the time spent by local
government employees in connection with the implementation of a project plan;
(vi) Relocation costs, including, but not limited to, those relocation payments made following condemnation and job
training and retraining;
(vii) Organizational costs, including, but not limited to, the costs of conducting environmental impact and other
studies, and the costs of informing the public with respect to the creation of redevelopment project areas and the
implementation of project plans;
(viii) The amount of any contributions made in connection with the implementation of the project plan;
(ix) Payments made, in the discretion of the local governing body, which are found to be necessary or convenient to
the creation of redevelopment areas or the implementation of project plans; and
(x) That portion of costs related to the construction of environmental protection devices, storm or sanitary sewer
lines, water lines, or amenities or streets or the rebuilding or expansion of streets, the construction, alteration,
rebuilding, or expansion of which is necessitated by the project plan for a district, whether or not the construction,
alteration, rebuilding, or expansion is within the area;
(10) "Project plan" means the plan which shall be adopted by a local goveming body for a redevelopment project as
described in § 14-168-308;
(11) "Real property" means all lands, including improvements and fixtures on them and property of any nature
appurtenant to them or used in connection with them and every estate, interest, and right, legal or equitable, in them,
including terms for years and liens by way of judgment, mortgage, or otherwise, and the indebtedness secured by the
liens;
(12) "Redevelopment district" means a contiguous geographic area within a city or county in which a redevelopment
174
41
project will be undertaken, as defined and created by ordinance of the local governing body;
(13)(A) "Redevelopment project" means an undertaking for eliminating or preventing the development or spread of
slums or deteriorated, deteriorating, or blighted areas, for discouraging the loss of commerce, industry, or
employment, or for increasing employment, or any combination thereof.
(B) A redevelopment project may include one (1) or more of the following:
(i) The acquisition of land and improvements, if any, within the redevelopment district and clearance of the land so
acquired; or
(ii) The development, redevelopment, revitalization, or conservation of the project area whenever necessary to
provide land for needed public facilities, public housing, or industrial or commercial development or revitalization,
to eliminate unhealthful, unsanitary, or unsafe conditions, to lessen density, mitigate or eliminate traffic congestion,
reduce traffic hazards, eliminate obsolete or other uses detrimental to the public welfare, or otherwise remove or
prevent the spread of blight or deterioration; or
(C) The financial or other assistance in the relocation of persons and organizations displaced as a result of carrying
out the redevelopment project and other improvements necessary for carrying out the project plan, together with
such site improvements as are necessary for the preparation of any sites and making any land or improvements
acquired in the project area available, by sale or by lease, for public housing or for development, redevelopment, or
rehabilitation by private enterprise for commercial or industrial uses in accordance with the plan;
(D) The construction of capital improvements within a redevelopment district designed to alleviate deteriorating
conditions or a blighted area or designed to increase or enhance the development of commerce, industry, or housing
within the redevelopment district; or
(E) Any other projects the local governing body deems appropriate to carry out the purposes of this subchapter;
(14) "Special fund" means a separate fund for a redevelopment district established by the local government into
which all tax increment revenues and other pledged revenues are deposited and from which all project costs are paid;
(15) "Tax increment" means the incremental value of a redevelopment district multiplied by the applicable ad
valorem rate;
(16) "Taxing unit" means any city, county, school district, or community college district; and
(17) "Total ad valorem rate" means the total millage rate of all county, city, school, or other local general property
taxes levied on all taxable property within a redevelopment district in a year. History. Acts 2001, No. 1197, § 2.
14-168-302. Construction.
The General Assembly declares that this subchapter is necessary for the welfare of this state and its inhabitants, and
it is the intent of the General Assembly that it is to be broadly construed to effect its purpose. History. Acts 2001,
No. 1197, § 3.
14-168-303. Powers supplemental.
The powers conferred by this subchapter are in addition and supplemental to the powers conferred upon local
governments and improvement districts by the General Assembly relating to the issuance of bonds. History. Acts
2001, No. 1197, § 4.
14-168-304. Powers generally.
In addition to any other powers conferred by law, a local government may exercise any powers necessary and
42
convenient to carry out the purpose of this subchapter, including the power to:
(1) Create redevelopment districts and to define the boundaries of redevelopment districts;
(2) Cause project plans to be prepared, to approve the project plans, and to implement the provisions and effectuate
the purposes of the project plans;
(3) Issue redevelopment bonds and notes and to pledge tax increments and other redevelopment revenues for -
repayment of them;
(4) Deposit moneys into the.special fund for any redevelopment project district;
(5) Enter into any contracts or agreements, including agreements with bondholders, determined by the local
governing body to be necessary or convenient to implement the provisions and effectuate the purposes of project
plans;
(6) Receive from the federal government or the state loans and grants for, or in aid of, a redevelopment project and
to receive contributions from any other source to defray project costs;
(7)(A) Exercise the right of eminent domain to condemn property for the purposes of implementing the project plan.
(B) The rules and procedures set forth in §§ 18-15-301 - 18-15-307 shall govern all condemnation proceedings
authorized in this subchapter;
(8) Make relocation payments to such persons, businesses, or organizations as may be displaced as a result of
carrying out the redevelopment project;
(9) Clear and improve property acquired by it pursuant to the project plan and construct public facilities on it or
contract for the construction, development, redevelopment, rehabilitation, remodeling, alteration, or repair of the
property;
(10) Cause parks, playgrounds, or water, sewer, or drainage facilities, or any other public improvements, including,
but not limited to, fire stations, community centers, and other public buildings, which it is otherwise authorized to
undertake, to be laid out, constructed, or famished in connection with the redevelopment project;
(11) lay out and construct, alter, relocate, change the grade of, make specific repairs upon, or discontinue public
ways and construct sidewalks in, or adjacent to, the redevelopment project;
(12) Cause private ways, sidewalks, ways for vehicular travel, playgrounds, or water, sewer, or drainage facilities .
and similar improvements to be constructed within the redevelopment project for the particular use of the
redevelopment district or those dwelling or working in it;
(13) Construct any capital improvements of a public nature, as such term is defined in § 14-164-303(a)(2), as now or
hereafter amended;
(14) Construct capital improvements to be leased or sold to private entities in connection with the goals of the
redevelopment project;
(15) Designate one (1) or more official or employee of the local government to make decisions and handle the affairs .
of redevelopment districts created pursuant to this subchapter;
(16) Adopt ordinances of bylaws or repeal or modify such ordinances or bylaws or establish exceptions to existing
ordinances and bylaws regulating the design, construction, and use of buildings within the redevelopment district;
(17) Sell, mortgage, lease, transfer, or dispose of any property, or interest therein, acquired by it pursuant to the
project plan for development, redevelopment, or rehabilitation in accordance with the project plan;
(I8) Invest project revenues as provided in this subchapter; and
� t
INA
43
(19) Do ail things necessary or convenient to tarty out the powers granted in this subchapter. History. Acts 2001,
No. It 97, § 5.
14-168-305. Creation of district.
(a) The local governing body, upon its own initiative or upon request of affected property owners or upon request of
the city or county planning commission, may designate the boundaries of a proposed redevelopment district.
(b)(1) The local governing body shall hold a public hearing at which interested parties are afforded a reasonable
opportunity to express their views on the proposed creation of a redevelopment district and its proposed boundaries.
(2)(A) Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least
fifteen (15) days prior to the hearing.
(B) Prior to this publication, a copy of the notice shall be 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
redevelopment district and to the school board of any school district which includes property located within the
proposed redevelopment district.
(c) The local governing body shall adopt an ordinance which:
(1) Describes the boundaries of a redevelopment district sufficiently definite to identify with ordinary and reasonable
certainty the territory included in, which boundaries may create a contiguous or noncontiguous district;
(2) Creates the redevelopment district as of a date provided in it;
(3)(A) Assigns a name to the redevelopment district for identification purposes.
(B) The name may include a geographic or other designation, shall identify the city or county authorizing the district,
and shall be assigned a number, beginning with the number one (1).
(C) Each subsequently created district shall be assigned the next consecutive number; and
(4) Contains findings that the real property within the redevelopment district will be benefitted 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.
(d)(1) No county shall establish a redevelopment district, any portion of which is within the boundaries of a city.
(2) Provided, however, that one (1) or more local governments through interlocal agreement may join in the creation
of a district, the boundaries of which lie in one (1) or more local governments.
(e)(1) The ordinance shall establish a special fund as a separate fund into which all tax increment revenues and other
revenues designated by the local government for the benefit of the redevelopment district shall be deposited, and
from which all project costs shall be paid.
(2) Such special fund may be assigned to and held by a trustee for the benefit of bondholders if tax increment
financing is used.
(f)(I) The boundaries of the redevelopment district may be modified from time to time by ordinance of the local
government.
(2) Provided, however, that in the event any bonds, notes or other obligations are outstanding with respect to the
redevelopment district, any change in the boundaries shall not reduce the amount of tax increment available to secure
� r
MAI
such tax increment financing. History. Acts 2001, No. 1197, § 6.
14-168-306. Project plan - Approval.
(a)(1) Upon the creation of the redevelopment district, the local governing body shall cause the preparation of a
project plan for each redevelopment district, and such project plan shall be adopted by ordinance of the local
governing body.
(2) This process shall conform to the procedures set forth in this section.
(b) Each project plan shall include:
(1) A statement listing the kind, number, and location of all proposed public works or improvements within the
district or, to the extent provided, outside the district;
(2) An economic feasibility study;
(3) A detailed list of estimated project costs;
(4) A description of the methods of financing all estimated project costs, including the issuance of tax increment
bonds, and the time when the costs or monetary obligations related thereto are to be incurred;
(5) A certification by the county tax assessor of the base value, total ad valorem rate, debt service ad valorem rate,
and applicable ad valorem rate for the redevelopment district;
(6) The type and amount of any other revenues that are expected to be deposited to the special fund of the
redevelopment district;
(7) A map showing existing uses and conditions of real property in the district;
(8) A map of proposed improvements and uses in the district;
(9) Proposed changes of zoning ordinances;
(10) Appropriate cross-references to any master plan, map, building codes, and city ordinances affected by the
project plan;
(11) A list of estimated nonproject costs; and
(12) A statement of the proposed method for the relocation of any persons to be displaced-
(c) If the project plan is to include tax increment financing, the tax increment financing portion of the plan shall set
forth:
(1) The amount of indebtedness to be incurred pursuant to this subchapter;
(2) An estimate of the tax increment to be generated as a result of the project;
(3) The method for calculating the tax increment, which shall be in conformance with the provisions of this
subchapter, together with any provision for adjustment of the method of calculation;
(4) Any other revenues, such as payment -in -lieu -of --taxes revenues, to be used to secure the tax increment financing;
and
(5) Any other provisions as may be deemed necessary in order to carry out any tax increment financing to be used
for the redevelopment project.
P
45
(d) If less than all of the tax increment is to be used to fund a redevelopment project or to pay project costs or retire
tax increment financing, the project plan shall set forth the portion of the tax increment to be deposited in the special
fund of the redevelopment district, and provide for the distribution of the remaining portion of the tax increment to
the taxing units in which the district lies.
(e)(1) The local governing body shall hold a public hearing at which interested parties are afforded a reasonable
opportunity to express their views on the proposed project plan.
(2)(A) Notice of the hearing shall be published in a newspaper of general circulation in the city or county at least
fifteen (15) days prior to the hearing.
(B) Prior to this publication, a copy of the notice shall be 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
redevelopment district and to the school board of any school district which includes property located within the
proposed redevelopment district. -
(3) The hearing may be held in conjunction with the hearing set forth in § 14-168-305(b)(1)
(4) Prior to publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all local
governments or entities having the power to levy taxes on property within the district and to the school board of any
school district which includes property located within the proposed redevelopment district.
(f)(1) Approval by the local governing body of a project plan must be within one (1) year after the date of the county
assessor's certification required by subdivision (b)(5) of this section.
(2) The approval shall be by ordinance which contains a finding that the plan is economically feasible. History. Acts
2001, No. 1197, § 7.
14-168-307. Project plan - Amendment.
(a) The local governing body may adopt by ordinance an amendment to a project plan
(b)(1) Adoption of an amendment to a project plan shall be preceded by a public hearing held by the local governing
body as provided in § 14-168-306(e)(1), at which interested parties shall be afforded a reasonable opportunity to
express their views on the amendment.
(2)(A) Notice of the hearing shall be published in a newspaper of general circulation in the city or county once a
week for two (2) consecutive weeks. The first such publication shall be fifteen (15) days prior to the hearing.
(B) Prior to publication, a copy of the notice shall be sent by first-class mail to the chief executive officer of all local
governments or entities having the power to levy taxes on property within the district and to the school board of any
school district which includes property located within the proposed district.
(c)(1) One (1) or more existing redevelopment districts may be combined pursuant to lawfully adopted amendments
to the original plans for each district.
(2) Provided that the local governing body finds that the combination of the districts will not impair the security for
any bonds previously issued pursuant to this subchapter.History. Acts 2001, No. 1197, § 8.
14-168-308. Termination of districts.
(a) No redevelopment district may be in existence for a period longer than twenty-five (25) years, unless, pursuant to
amendment of the redevelopment plan, additional bonds have been issued and would not be fully paid until after the
date which is twenty-five (25) years from the date of creation of the district.
46
(b) The local governing body may set a shorter period for the existence of the district, and may also provide that no
bonds shall have a final maturity on a date later than the termination date of the district.
(c) Upon termination of the district, no further ad valorem tax revenues shall be distributed to the special fund of the
district.
(d)(1) The local governing body shall adopt, upon the expiration of the time periods set forth in this section, an
ordinance terminating the redevelopment district.
(2) Provided, however, that no district shall be terminated so long as bonds with respect to the district remain
outstanding. History. Acts 2001, No. 1197, § 9.
14-168-309. Costs of formation.
(a) The local government may pay, but shall have no obligation to pay, the costs of preparing the project plan or
forming the redevelopment district-
(b) If the local government elects not to incur those costs, they shall be made project costs of the district and
reimbursed from bond proceeds or other financing, or may be paid by developers, property owners, or other persons
interested in the success of the redevelopment project. History. Acts 2001, No. 1197, § 10.
14-168-310.Overlapping districts.
The boundaries of any redevelopment districts shall not overlap with any other redevelopment district. History. Acts
2001, No. 1197, § 11.
14-168-311. Valuation of real property.
(a)(1) Upon and alter the elective date of the creation of a redevelopment project district, the county assessor of the
county in which the district is located shall transmit to the county clerk, upon the request of the local governing
body, the base value, total ad valorem rate, debt service ad valorem rate, and applicable ad valorem rate for the -
redevelopment district and shall certify to it.
(2)(A) The assessor shall undertake, upon request of the local governing body, an investigation, examination, and
inspection of the taxable real property in the district and shall reaffirm or revalue the base value for assessment of
the property in accordance with the findings of the investigation, examination, and inspection.
(B) The assessor shall determine, according to his or her best judgment from all sources available to him or her, the
full aggregate value of the taxable property in the district, which aggregate valuation, upon certification thereof by
the assessor to the clerk, constitutes the base value of the area.
(b)(1)(A)(i) The assessor shall give notice annually to the designated finance officer of each taxing unit having the
power to levy taxes on property within each district of the current value and the incremental value of the property in
the redevelopment district.
(ii) The assessor shall also determine the tax increment by applying the applicable ad valorem rate to the incremental
value:
(B) The notice shall also explain that the entire amount of the tax increment allocable to property within the
redevelopment district will be paid to the special fund of the redevelopment district.
(2) The assessor shall identify upon the assessment roll those parcels of property which are within each existing
district specifying on it the name of each district. History. Acts 2001, No. 1197, § 12.
� r r
47
14-168-312. Division of ad valorem real property tax revenue.
(a) For so long as the redevelopment district exists, the tax assessor shall divide the ad valorem tax revenue
collected, with respect to taxable property in the district, as follows:
(1) The assessor shall determine for each tax year.
(A) The amount of -total ad valorem tax revenue which should be generated by multiplying the total ad valorem rate
limes the current value;
(B) The amount of ad valorem tax revenue which should be generated by multiplying the applicable ad valorem rate
times the base value;
(C) The amount of ad valorem tax revenue which should be generated by multiplying the debt service ad valorem
rate times the current value; and
(D) The amount of ad valorem revenue which should be generated by multiplying the applicable ad valorem rate
times the incremental value;
(2) The assessor shall determine from the calculations set forth in subdivision (a)(I ) of this section the percentage
share of total ad valorem revenue for each according to subdivisions (a)(1)(13) - (D) of this section, by dividing each
of such amounts by the total ad valorem revenue figure determined by the calculation in subdivision (a)(1)(A) of this
section; and
(3) On each date on which ad valorem tax revenue is to be distributed to taxing units, such revenue shall be
distributed by:
(A) Applying the percentage share determined according to subdivision (a)(1)(13) of this section to the revenues
received and distributing such share to the taxing entities entitled to such distribution pursuant to current law;
(B) Applying the percentage share determined according to subdivision (a)(1)(C) of this section to the revenues
received and distributing such share to the taxing entities entitled to such distribution by reason of having bonds
outstanding; and
(C) Applying the percentage share determined according to subdivision (a)(1)(D) of this section to the revenues
received and distributing such share to the special fund of the redevelopment district.
(b) In each year for which there is a positive tax increment, the county treasurer shall remit to the special fund of the
redevelopment district that portion of the ad valorem taxes that consists of the tax increment.
(c) Any additional moneys appropriated to the redevelopment district pursuant to an appropriation by the local
governing body and any additional moneys dedicated to the fund from other sources shall be deposited to the
redevelopment district fund by the treasurer of the local government.
(d) Any funds so deposited into the special fund of the redevelopment district may be used to pay project costs,
principal and interest on bonds, and to pay for any other improvements of the redevelopment district deemed proper
by the local governing body.
(e) Unless otherwise directed pursuant to any agreement with bondholders, moneys in the fund may be temporarily
invested in the same manner as other municipal funds.
(f) If less than all of the tax increment is to be used for project costs or pledged to secure tax increment financing as
provided in the plan for the redevelopment project, the assessor shall account for such fact in distributing the ad
valorem tax revenues. History. Acts 200I, No. 1197, § 13.
48
14-168-313. Payments in lieu of taxes and other revenues.
(a) The local governing body may elect to deposit in the special fund of the redevelopment district all or any portion
of the local government's share of payments in lieu of taxes on property within the redevelopment district.
(b) Other revenues to be derived from the redevelopment project may also be deposited in. the special fund at the
direction of the local governing body. History. Acts 2001, No. 1197, § 14.
14-168-314. Bonds generally.
(a)(1) Bonds may be issued for project costs which may include interest prior to and during the carrying out of a
project and for a reasonable time thereafter, with such reserves as may be required by any agreement securing the
bonds and all other expenses incidental to planning, carrying out, and financing the project.
(2) The proceeds of bonds may also be used to reimburse the costs of any interim financing entered on behalf of the
redevelopment district.
(b) Bonds issued under this subchapter shall be payable solely from the tax increment or other revenues deposited to
the credit of the special fund of the redevelopment district and shall not be deemed to be a pledge of the faith and
credit of the local government.
(c) Every bond issued under this subchapter 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. History. Acts 2001, No. 1197, § I5.
14-168-315. Redevelopment bonds or notes - Authority to issue.
For the purpose of paying project costs or of refunding notes issued under this subchapter for the purpose of paying
project costs, the local governing body may issue redevelopment bonds or notes payable out of positive tax
increments and other revenues deposited to the special fund of the redevelopment district. History. Acts 2001, No.
11977 § 16.
14-168-316. Redevelopment bonds or notes - Authorizing resolution.
(a) Redevelopment bonds and notes shall be authorized by ordinance of the local governing body.
(b)(1) The ordinance shall state the time of the redevelopment project district, the amount of bonds or notes
authorized, and the interest rate to be bome by the bonds or notes.
(2) The ordinance may prescribe the terms, form, and content of the bonds or notes and such other matters as the
local governing body deems useful, or it may include by reference the terms and conditions set forth in a trust
indenture or other document securing the redevelopment bonds. History. Acts 2001, No. 1197, § 17.
14-168-317. Redevelopment bonds or notes - Terms, conditions, etc.
(a)(1) Redevelopment bonds or notes may not be issued in an amount exceeding the estimated aggregate project
costs, including all costs of issuance'of the bonds or notes.
(2) The redevelopment bonds and notes shall not be included in the computation of the constitutional debt limitation
of a local government.
(b)(1) The bonds or notes shall mature over a period not exceeding twenty-five (25) years from their date of issuance
or a period terminating with the date of termination of the redevelopment district, whichever period terminates
earlier.
(2) The bonds or notes may contain a provision authorizing their redemption, in whole or in part, at stipulated prices,
at the option of the local government on any interest payment date and, if so, shall provide the method of selecting
the bonds or notes to be redeemed.
t
m
(3) The principal and interest on the bonds and notes may be payable at any place set forth in the resolution, tmst
indenture, or other document governing the bonds.
(4) The bonds or notes shall be issued in registered form.
(5) The bonds or notes may be in any denominations.
(6) Each such bond or note is declared to be a negotiable instrument.
(c) The bonds or notes may be sold at public or private sale.
(d) Insofar as they are consistent with subdivision (a)(1) and subsections (b) and (c) of this section, the provisions of
§§ 14-169-220 and 14-169-221 relating to procedures for issuance, form, contents, execution, negotiation, and
registration of municipal bonds and notes are incorporated by reference therein.
(e)(1) The bonds may be refunded or refinanced and refunding bonds may be issued in any principal amount.
(2) Provided, that the last maturity of the refunding bonds shall not be later than the last maturity of the bonds being
refunded. History. Acts 2001, No. 1197, § 18.
14-168-318. Redevelopment bonds or notes - Security - Marketability.
To increase the security and marketability of redevelopment bonds or notes, the local government may:
(1) Create a lien for the benefit of 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, not inconsistent with the Arkansas Constitution, which
may be necessary or convenient or desirable in order to additionally secure the bonds or notes, or which tend to
make
the bonds or notes more marketable according to the best judgment of the local governing body. History. Acts 2001,
No. 1197, § 19.
14-168-319. Redevelopment bonds or notes - Special fund for repayment.
(a) Redevelopment bonds and notes are payable out of the special fund created for each redevelopment district under
this subchapter.
(b)(1) The local governing body shall irrevocably pledge all or part of the special fund to the payment of the bonds
or notes.
(2) The special fund, or the designated part thereof, may thereafter be used only for the payment of the bonds or
notes and their interest until they have been fully paid.
(c) A holder of the bonds or notes shall have a lien against the special fund for payment of the bonds or notes and
interest on them and may bring suit, either at law or in equity, to enforce the lien. History. Acts 2001, No. 1197, §
20.
14-168-320. Redevelopment bonds or notes - Tax exemption.
Bonds and notes issued under this subchapter, together with the interest and income therefrom, shall be exempt from
all state, county, and municipal income taxes. History. Acts 2001, No. 1197, § 21.
14-168-321. Excess funds.
50
(a) Moneys received in the special fund of the district in excess of amounts needed to pay project costs may be used
by the local governing body for other purposes of the district or for any other lawful purpose of the local governing
body.
(b) Upon termination of the district, all amounts in the special fund of the district may be used by the local governing
body for any lawful purpose. History. Acts 2001, No. 1197, § 22.
14-168-322. Impact reports.
The Assessment Coordination Department, in cooperation with other state agencies and local governments, shall
make a comprehensive impact report to the Governor and to the General Assembly at the beginning of each
biennium as to the economic, social, and financial effect and impact of community redevelopment financing
projects. History. Acts 2001, No. 1197, § 23.
14-168-323. Value of assessed property in a redevelopment district.
(a) If state funding to a school district is calculated with regard to the value of assessed property located in the
school district, the incremental value of real property within a redevelopment district shall not he included in the
assessed value of the real property within the school district for purposes of computing school district funding if the
real property is located within the redevelopment district and within the school district and the assessed value of the
real property increases above the base value.
(b) Subsection (a) of this section shall apply for each school year during which the tax increment for real property
within the redevelopment district is distributed pursuant to § 14-168-312. History. Acts 2003 (2nd Ex. Sess.), No.
43, § 1.
:I
51
City of rayetteville, Arkansas_
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.7
Local Demographics
Ll
a
EXHIBIT No.7
Local Demographics Summary
52
Economic strength continues to be the mainstay of the Northwest Arkansas MSA. Recently named
as the top ranking MSA in the country by the Milken Institute, NWA is now gathering much
attention for its regional economy. Fayetteville continues to experience robust growth along with
the rest of Northwest Arkansas. Fayetteville is still considered the city of choice for living mainly
because of its reputation for offering a superb quality of life. One highlight Fayetteville offers are
the attractions associated with the University of Arkansas including sporting events and cultural
activities. Fayetteville also is known in the region for its entertainment district located primarily
along Dickson Street which connects the historic areas of town and the university campus. There
has been a tremendous surge in demand for downtown/urban style living in Fayetteville near the
heartbeat of culture for northwest Arkansas.
Economic impact from the University of•Arkansas in Fayetteville continues to be a major factor.
Beginning in 1871 when the University of Arkansas was created with a major land-grant under the
Morrill Land -Grant College Act the campus population has been ever increasing. On April 11, 2002
the University of Arkansas announced that it had been the recipient of the largest gift in the history
of American public higher education. The Walton Family Charitable Support Foundation of
Bentonville, AR committed $300 million to establish and endow an undergraduate honors college
and endow the graduate school. $177 million will be targeted towards students, $82 million towards
faculty, and $41 million towards library, technology, and other support areas. At the time, the
University was in the midst of a six -year campaign targeting to raise $500 million. As a result of the
Walton's gift, the University decided to revise its parameters, upping the goal to raising $900 million
by June 2005. As of Fall, 2003 the campaign had raised $770 million. Chancellor John White said
in his annual State of the University address in September 2002 that over the next decade the
University would spend $642 million on building construction and improvement. Many of these
facilities and projects are necessary to the University's vision, as they have stated a goal of having
22,500 students by the year 2010. Current enrollment is just over 16,000.
The Fayetteville -Springdale -Rogers corridor gained notoriety when the 2000 Census indicated that
the area was the sixth fastest growing MSA in the country over the last 10 years. The population
jumped from approximately 211,000 to'311,000. Most notably during that time Wal-Mart Stores,
whose headquarters are in Bentonville, a sister city and north of Fayetteville, increased their sales
from $26 billion to $191 billion. Besides Wal-Mart, two other corporate giants call Northwest
Arkansas home. Tyson Foods, which had been a $7 billion sales giant, increased to $23 billion in
sales in 2002 with the takeover of IBP. JB Hunt Trucking, also headquartered in the MSA, has
annual sales in the $2-2.5 billion range. All three of these companies had phenomenal success during
the 1990s and are significant factor in the growth of the area. This bustling comer of the state's saga
has not escaped the media's attention as it has received write-ups in several national publications
thus aiding growth in yet another way.
53
Economic Overview of the Fayetteville -Springdale -Rogers MSA
Overview
The two -county area of Northwest Arkansas has experienced unprecedented economic and
population growth since the 1990's. A dominant driver behind the growth has been the success of
Wal-Mart, as it grew to become the world's largest retailer. Along the way, Wal-Mart has
encouraged its vendors to be accessible to the company which directly translated into the opening of
offices within Benton or Washington County for Fortune 500 and other companies. The resulting
high quality job creation has spawned a boom in the commercial real estate market, as the demand
for office space has increased and as the population growth has created the need for more retail
shops, restaurants, entertainment facilities and service providers. A corresponding escalation has
occurred in the construction of residential housing.
Wal-Mart has not been the only driver of growth in Northwest Arkansas. Tyson Foods has also
grown rapidly during the same period, becoming the world's largest "protein" company. The
Northwest Arkansas area has long been the home base of several large trucking companies. JB Hunt
has become one of the largest providers of logistics services in North America and Willis Shaw
Express is a major provider of transportation of refrigerated and frozen food products.
Fayetteville is also home to the University of Arkansas, a major research university, which is
steadily improving its national rankings. Some academic areas have reached the top tier nationally.
In 2002, the University of Arkansas was the recipient of a $300 million challenge grant from the
Wal-Mart Foundation, the largest grant ever given to a public university in the U.S. The university
has accelerated its quest for excellence and at the same time is pursuing a goal of increasing its
enrollment, to a total of 22,500 students by 2010.
The following pages provide some economic highlights of the Fayetteville -Springdale -Rogers MSA.
54
National Perspective
In June of 2003, the Milken Institute released an update of its "Best Performing Cities" rankings,
which is intended to rank U.S. cities on two counts: leading the nation in economic performance
overall and in job creation. The components of the index include job, wage and salary and
technology growth. Using these criteria, the Fayetteville -Springdale -Rogers MSA ranked as the
number one regional economy in the United States.
Top -20 Best Performing Cities
Composite Index
2083 Rank,
Rank Year Ago Metro Index
1 23 Fsgetteyille,Sprang/dale-Rogen, AR tooko
2 3 Las Vegas, NV -AZ 120.00
3 37 Fartlf)lsCapeCorsi, FL 123.08
4 12 West -Palm Beacl -Boca Rater, FL 138.77
5 1 San Die CA l49 23
6 7 San Lois OLispo-Atwcadero, C.A. 151.08
7. , 16 Laredo, TX. I g031
8 9 Bma ,ffie-Harlingen-Sm Benito, TX 18338
9 5 hir:illlen-Edinburg-Mission, TX 186A6
to 50 klomnowh-Ocesa, NJ I86.46
11 48 Auchange, AK 194.15
12 20 Raleigh-Darham-Chapel MI, NC 19723
13 41 Chico-Fam&re, CA 206A6
14 4 Ventura, CA 207.39
15 18 Saaamenta, CA 210.46
16 33 Honau,.LA 215.08
17 15 Vatlejo-FanHet&Napa, CA 219.08
is 36 San Antonio. TX 223.08
19 28 Waslwrgtou,DC.MD-VA-WV 226.15
20 11 RivcrsidaSm Bernardino. CA 22992
Saarrc 3mIXm rvamn
a.
. a
e
PR
•
62
Highway 71 East Square Redevelopment District
'A part of the Northwest Quarter (NWI/) and a part of the Southwest Quarter (SW'/.) of Section 15, a part
of the Northeast Quarter (NE%) and a part of the Southeast Quarter (SE%) of Section 16, and a part of
the Northwest Quarter (NW'/.) of the Northeast Quarter (NE%) of Section 21, all within Township 16 North,
Range 30 West, and being more specifically described as follows: Beginning at the Northwest corner of
said Section 15: thence South 87' 17' 2T' East 249.668 feet, within the right-of-way of Maple Street;
thence South 01' 47' 40' West 20.003 feet; thence South 02° 42' 16" West 174.001 feet; thence North
87' 1 T 37 West 26.0 feet; thence South 02' 4T 09' West 133.615 feet; thence North SS 27' 59' West -.
6.224 feet; thence South 02' 42' 49' West 75.089 feet; thence South 87' 10' 49" East 21222 feet; thence
North 02' 42' 08" East 86.052 feet; thence South 67' 17' 23' East 42.0 feel: thence South 02' 42, 09"
West 181.078 feet; thence South 09' 38' 06' East 53.252 feet; thence South 02' 4T 31" West 88117
feet; thence South 87' 17' 25' East 6.578 feet; thence South 02' 42' 34" West 118.249 feet thence North
87' 17' 19" West 6.405 feel; thence South 02' 47 33" West 178.179 feet; thence North 87' 1T 2W West
48.246 feet; thence South 02' 36' 09" West 140.177 feet; thence South 87' 17' 25" East 18.0 feet; thence
South 02' 42, 21" West 8.749 feet; thence South 873 17' 21" East 66.367 feet; thence South 02° 47 47'
West 250.57 feet; thence South 87' 10' 22' Fast 568.485 feet, within the rightof-way of Dickson Street:
thence South 02' 47' 49" West 193.929 feet; thence North 87' 17' 30" West 60 feet;.thence South 02' 4T
53" West 60 feet; thence North 87' 12' 10" West 178.5 feet; thence North 02' 4T 247 East 6.8 feet; .
thence North 87" 17 11" West 72.75 feet; thence South 02' 47' 49' West 108.121 feet; thence North.87"
12' 11' West 135.25 feet thence North 02' 47 50" East 63.132 feet thence North 87' 17' 31' West 12.6
feet; thence South 02' 4T 50" West 76.7 feet; thence North 87' 17' 29" West 57.931 feet; thence South
02' 47' 60' West 217.289 feet; thence South 27' 30' 4T West 23.922 feet; thence South 02' 42' 33' West
170.585 feet; thence North.87' 17' 24' West 50.0 feet; thence South 02' 52' 40" West 163.672 feet;
thence South 87' 17' 27' East 64.825 feet; thence South 02' 42' 33' West 150.0 feet; thence North 87"
11, 1 T West 11.476 feet; thence South 02' 42' 48'. West 448.801 feet; thence South 400, 00' 30" East
36.293 feet; thence South 02' 43' 58' West 419.8W feet, within the right-of-way of Washington Avenue; .
thence North fir 10' 22' West 209.244 feet, within the right-of-way of Rock Street; thence South 02' 43'
58" West 546.724 feet within an alloy; thence North 87' 10' 22' West 210.365 feet, within the right-of-way.
of South Street; thence South 02' 43' 6T' West 66.685 feet, within the right-of-way of College Avenue;
thence North 87' 10' 22" West 518.584 feet, within the right-of-way of South Street; thence South 02' 43'
58" West 353.985 feet, within the rigid -of -way of Fast Avenue; thence North 87' t0'22 West 266.896 -
feet, within the right-of-way of Fourth Street; thence South 02' 43' 58" West 336.999,feet, within the -right- ,
of -way of Block Avenue; thence North. 87'.10' 16' West 762.561 feet;:thence South 02' 43' 58" West
983.02 feet, within the right-of-way of Locust Avenue; thence North 87' 00'49" West 312.479 feet;: thence
North 46' 44' 23" West 92.814 feel; thence North 87' 00' 48' West 306.778 feet; thence South 020 S4"17',
West 40.0 feet; thence South 73' 33' 26' East 16.52 feet thence South o2' 07 5T west27.743 feet;,;
thence North 71' 09' 03' West 403.805 feet; thence North 02' 49' 30' East 106.181 feet; thence South.
82' 51 29" West 25.111 feel; thence North 02" 49' 31' Fast 118.176 feet; thence North 80' 43' 37" East'.
39.444 feet; thence North 74' 49': 51" East 31.257 feel; thence North 02' 09 42" East. 195.911 . feet;. '
thence North 85" 34' 21" West 57.073 feet; thence North 00" 24' 18" East 100.401 feet; thence South 87' "--
10' 22" East 370.524 feet, within the right-of-way of Sbtth Street; thence North 02' 44'-00" Fast 52.635
.feet; thence North 01' 46' 36' East 62.183 feet thence North 05' I 32" West 48A2 feet; thence North
10' 47' 2W West 37.114 feet; thence North 14' 03' 53" West 218.89 feet; thence North 02" 26 34" East
76273 feet; thence North 09' 56' 28' West 61.522 feet' thence North 14' 03' 08" West 181254 feet;
thence South 86' 57' 21" East 122.451 feet; thence South 66' 13' 30" East 64.306 feet; thence South 87'
10' 16" East 323.255 feet; thence North 62' 4T S9' East 149.989 feet, within the right-of-way of School -
Avenue; thence South 87' 10' 15' East 350.602 feet; thence North 02' 43' 52' East 5.751 feet; thence
South 86' 50' 3W East227.568 feet thence South 02' 41' 24" West 54.443 feet; thence South'87' 10'
16" East 160.561 feet; -thence North 02' 41' 25' East 2228.846 feet, within the right-of-way of Church -
Avenue; thence South 87' 10' 23' East 642.95 feet, within the right-of-way of Spring Street; thence North
02' 43' 58" East 608.315 feet, within the right-of-way.of East Avenue; thence South 87' 10' 21" East "
170.083 feet, within (he right-of-way of Dickson Street; thence North 02' 44' 13" East 1333.6.08 feet,
Within the right-of-way of Highland Avenue; thence South 8T 02' 57" East347.732 feet, within the right- .
of -way of Maple Street, to the Point of Beginning and containing 144.467 acres, more or less.
63
City of Fayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.9
Existing Conditions of Blight
a e ev11e
y ARKA N 5A5
DEPARTMENTAL CORRESPONDENCE
To: Gary Dumas
Administration
Kit Williams
City Attorney
Tim Conklin
Planning Division
From: Clarice Buffalohead-Pearman%*
City Clerk Division
Date: December 14, 2004
Re: Ord. No. 4646
City Clerk Division
113 West Mountain
Fayetteville, AR 72701
Telephone: (479) 575-8323
Fax: (479)718-7695
cityclerk&i.fayettevi I le.ar. us
The City Council passed the above ordinance, December 7, 2004, approving Hwy 71 TIF
District plan and authorizing the issuance of bonds for improvements. I have attached a copy
of the ordinance.
Tim, I am still waiting for an original of the project plan. I only have a draft in your items
submitted for the agenda.
This ordinance will be recorded in the city clerk's office and microfilm. If anything else is needed.
please let the clerk's office know. Thanks.
/cbp
attachments
From: Clarice Pearman
To: Conklin, Tim
Subject: Hwy 71 TIF Project Plan
Tim, I need an original project plan to attached to the ordinance. Please see that I get one. Thanks.
Clarice
AFFIDAVIT OF PUBLICATION
I, r)) C do solemnly swear that I am
Lega Clf rk of the Aft csas Democrat-Gazette/Northwest Arkansas
Times n wspaper, Orighted and published in Lowell, Arkansas, and that
from my own personal knowledge and reference to the files of said
publication, that advertisement of:
lV`tC. ma)u't ) L)1P was inserted in the regular editions on
wn, Cal.
"' Publication Charge: $ 19�.,���
Subscribed and sworn to befolye me this
day of 2004.
Azo
Notary Public
My Commission Expires:—3harlena-D.-Wllllams
Notary Public
State of Arkansas
" Please do not pay from AffidayA, Commission Expires
An invoice will be sent. October 18, 2014
RECEIVED
DEC .2 2 2004
CITY OF FAYETrEVILLE
CITY CLERK'S OFFICE
212 NORTH EAST AVENUE • P.O. BOX 1607 FAYETTEVILLE, ARKANSAS 72702 • (501) 442-1700
r
0
165UANGE VF JAx IN[:FitMtNt HNAMit&m U-)NU , ARKANSAS
TO RINDIHE fMPROVEMFNTS,OURINED IN THE
PLFN •.
THERE![" on J* 27. 2004,, the Fayetteville Ofty CocsA tecl a Public Hearing oorver g the
etion of die HIRI way 71'Faet Square Rodevelopment District; and
WNFR8A8,,onA66= 17 2004. the Clly Oounnl Passed Ordinance No. 4606 creating the Higt
71 Fsst Square Redevelopment District and authorized Preparation of a Redoebpment Protect I
and .
W UUUTA8, the,Clty With InoW from the Proposed redevelopers of a Twenty -Two Million Dollar i
project to be consiiucted after removal of the blighted Mountain Inn has prepared a Proposed Pr
Plan attached as E#dIM OK: -and
and sets of this obarei to the redeviiepers;
(co a description of finano-60cli set incrivintent bonds:
NOW, THEREFORE, ee IT ORDAINED BY THE CITY COUNCIL OF WE CITY OF I
TE111LL8, ARNAMUM
Section 1: That the City Council of the City of Fayetteville, Aikarvsas hereby Ands that the Prof
for the Highway 71 East Square Redevelopment Dewitt (attached as En1vWt A) Is eGoponvoelly'
Section 2: That the City Council of the City o: Fayeame, Arkansas hereby adopts are Protect
the Hghway 71 East Square Redarelopnient Disaict and deter nines 111118 oampBeO with all
niche set forth In A.CA §14-168-306.
Section 3:'That the City Cound of fha City of Fayetteville. Arkarses taeby WPnNm and slNn
isviance of are tan hercnent financing bonds as Witttetl an the Project Plan In Ina enpint.
rates, duration. etc. stated within the Protect Plan.
i:. Ip 7-111'sgle•l
APPROVED:
By:
DEN COODY Mayo.
ATTEST:
BY:
80NORA BERM, CUT Clark
AN, Eeavblt W may be viewed at the Office of the Cty Clerk
RECEIVED
DEC 2 2 2W
CrrY OF FAYETrEVILLE
CITY CLERK'S OFFICE
S'1
'=-'_
y L;
City of ray: t roie, ArFansnq
HIGf RPAP iI EAST SQUARE REDEPE.LOPME\ T IIISTRIC'I
11R0.1EC'f PI,AN
Citc cf Fayettcvilic,;arGansas
HIGHWAY 71 EAST SQUARE RF.DEVEI,OPMEVT DIST RICI'
PROJECT PLAN
ITT 'IT -
'I ITI
III IT I
K
Cih1 of �aycYcv(��q �r�:ansas
HIGHWAY 71 EAJ 1SQL ARE REDEVELOPMENT DISTRICT
PROJECT PLAN
U LL) of f"aycttevi lq,gr�:ansas
HIGHN"AY 71 LASI' SQI:ARE REDEVELOPMENT DISTRICT
PROJECT PLA-N
55
Unemployment Rate
The unemployment rates for the U.S. and for the state of Arkansas have followed the same general
trend and the levels have been fairly close.The unemployment rate for the Fayetteville -Springdale -
Rogers MSA has consistently been significantly lower than both. It has been at the three percent or
under level since the second half of 1998.
Unemployment Rates, Seasonally Adjusted
6.5
5.5
4.5
u
0
IL
3.5
2.5
1.5
e0 e0 A° 9° cP po po A^ A^ As ti Ary n> A� Sp
-!-U.S.__4Arkansas—Fay$prRog. MSA
Seurte: Buaru aLaeorsrrstio.9waW M� 6y .._....—
W Cwlrbr &v�ess aq Eao-wrYc awwd�
56
Non -Farm Employment
The monthly establishment -based employment survey conducted by the Bureau of Labor Statistics
shows that, on a seasonally adjusted basis, total non -farts employment in both the U.S. and Arkansas
are at levels about 105 percent of the level in June of 1998. The Fayetteville -Springdale -Rogers
MSA has experienced a noticeably larger increase in employment. Currently, the level is just about
125 percent of the level of June 1998.
Non -Farm Employment Relative to June 1998
Seasonally Adjusted
1.30
NMI
1.20
_------.--
1.0o
0.90
90 50 90 CP Co qq A9 Q' (P SP SP S' lz ` 5'` p^ p't- P1 o' p% pP qS5 PA %A oN 0k
)tee c Oeo )mac 4 Oec 4e VP 49 peo 4e1 )`* C eQ per. 41
)fc qO peo 40 VP C eQ peo 4e1)oc
U.SAdunaas --Fay-Spr-Rog MSA
Scum. F,re,ualuN SUWs .Sea 141F USWM by
VA CmWW WVMre a Eon is Resea
WA
Sector F,mplotwurnt
Sector employment in the region has shown varying trends. Manufacturing employment has
declined since 1998, but by a lesser amount than nationally or in the state. Construction, trade -
transportation -utilities and services have shown significant gains in the past six years.
Fayetteville -Springdale -Rogers MSA Sector Employment Relative to June 1998,
Seasonally Adjusted
0.9
�d00 90 aF' rH�iCP 0 FA ,.p �rP Po P• A, ,pN AN Ph dory 'L 5§' )�K P; oeb 4P AA A° cj'a
Eeonstnwtion �Manutao ring Trade, Transportation, ti Utilities —services
Sar®: BuwMlaOar SYbks. 9a WA*N by WCrMbauira"Emmica�M
58
Buildine Permits
While there is some monthly volatility in the monthly data compiled by the United States Census
Bureau, the strong upward trend in the value of building permits in Northwest Arkansas since the
Fall of 1998 is evident. Over the last two years, this growth trend has accelerated. In fact, the value
of residential building permits in the area has equaled or exceeded the value of those in the Little
Rock metropolitan area, an area that currently has a population almost double that of the
Fayetteville -Springdale -Rogers MSA.
Fayetteville -Springdale -Rogers MSA Residential Building Permits, Seasonally
Adjusted Value in $ Millions,
60.000
50,000
40.000
tt I.0
30,000
�ir y
20.000
10.000
a0 o0 0° to cp co a°j 5Q po JQ A� A� o� 4.0^ ory Ati oti Ary oA o0 o AP S\%
oe'
)4tr y, CIO 'go)P, FV O¢' dP1 3§� 4 O°� �a� ) cio Oa �ya� 3P e°C Off' �O 10 5°�OQF '4 i
sa.®: xurew au cen�. Seawd AWs,,,nt by un c fvm. B� a E�rm�m,
59
Population Proiections
In June of 2003,the Center for Business and Economic Research released updated population
projections for Arkansas, its counties and its metropolitan areas. The Fayetteville -Springdale -
Rogers MSA is projected to experience a doubling of its population by the year 2025.
Population Projections for Fayetteville -Springdale -Rogers MSA
ns000
IEaM
6)5009
6EOM
5E
E
j
5]5000
4S
DEMO
�
SEOM
3E
lEMp
1Fi0M
IEOM
gg gg
gg
�g`
@
aa
^�a
pp
,y�y
�qJ
Ym
S w US.Cnrew""
VA Ca WW a Ud wRe ,,d�-�9]5[Ii n[ �4we[baed —nPPQ d
9
The following aerial photograph delineates the Mountain Inn Project site:
Historic
FaVade
Parking
Garage
to
Meeting
Facilities
New
Main
Bldg.
Upon the completion of the removal of blight the Developer will purchase the raw land of the project
site at the established appraised fair market value.
Other
The project plan provides for temporary replacement parking (up to 25 spaces) or funds for said
parking as allowed in 14-168-301. Definitions (C) "The financial or other assistance in the
relocation of persons and organizations displaced as a result of carrying out the redevelopment
project and other improvements necessary for carrying out the project plan."
Direct Economic Impacts
-Approximately 125 new jobs will be created in connection with the catalyst project
-Construction jobs estimated at 55
-Increase in demand in consumer goods during construction period
-Improved Property Values upon removal of blight
-Tourism attraction drawing tourist dollars to Fayetteville
-Adjunct to convention/meeting space for attracting additional conventions, etc.
-Creates a catalyst for additional redevelopment along College/Archibald Yell
-Promotes additional downtown living, thereby adding vitality to Fayetteville's downtown economy
-New tax revenues (estimated on catalyst project only):
1) Sales tax of approximately $153,750 annually
2) HMR tax collections of approximately $60,000 annually
REDEVELOPMENTHIGHWAY 71 EAST SQUARE
PROJECT
proposedPlan documents have been prepared that are related to a .,
Redevelopmentareas and specific project parcels in the Highway 71 East Square
by the Fayetteville City Council on _August 17, 2004, with the ordinance
00'
. The Project Plan is specifically designed to benefit the City of Fayetteville in the removal of
designated blight coupled with the reinvestment in infrastructure to benefit the project area and the
City of Fayetteville as a whole. The geographical boundaries
Redevelopment
� 77
b
P n
3=
. tt
l� a
� , a
R I
Cdg of Fa�cttedlle, (�rk�rnee ..
I IIG IIK>5''I E:59T SQCARF. REUES'ELOY�I4;X 1- UI SI IiICI
PR O.IECT PL.A�
The redevelopment district anticipates incremental growth in tax collections to exceed $35 million
over a twenty five year period beginning in 2004 and ending in 2029 (see Economic Feasibility
Study, Exhibit #1). The Highway 71 East Square Redevelopment District Project Plan outlines the
public purposes and investments that are targeted in the redevelopment district. The purpose of the
district is to encourage the commercial and residential redevelopment of real property, thereby
preventing the spread of blighted, deteriorated and deteriorating areas, and discouraging the loss of
commerce, industry and employment.
The Project Plan once adopted may be adjusted over time by the Fayetteville City Council in order
to ensure the return to the public is invested in a manner that will ensure economic vitality in the
district, as well as the district's impact on the City of Fayetteville.
There are initially two specific phases for the public investments to he made in the Highway 71 East
Square Redevelopment District. They are:
1. Phase I - Process of removing blight in the former Mountain Inn area -Catalyst Project
2. Phase I1— City Streetscape Improvements — First 10 Year Project
The "catalyst" project in the district is the redevelopment of the blighted Mountain Inn area (see
Section One). East Square, LLC, (The Developer) is proposing a $ 22.5 million investment into a
destination hotel/meeting space condominium project. Approximately $19 million of the proposed
redevelopment is from private investments. An additional $3.5 million for the public purpose of
eliminating the existing blight will be secured by Tax Increment Bonds issued by the redevelopment
district. No TIF proceeds will be used for the construction of the buildings of the proposed project
but will be limited strictly to public purposes allowed under the law for redevelopment districts.
The Fayetteville City Council has adopted the Dover Kohl Downtown Master Plan (see Exhibit # 10)
that has as its focus improvements in much of the area now included in the approved TIF District.
The adopted Downtown Master Plan identified as a clear priority the removal of the "eyesore" of the
denigrated Mountain Inn.
In addition to the catalyst project the Highway 71 East Square Redevelopment District Project Plan
will also include a number of streetscape improvements in the district (see Section Two).
City of ragetteville, Arkansas
PHASE I (Catalyst Project)
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
IMPROVEMENT RECOMMENDATIONS
Section One - Removal of Blight
Phase I of the project plan (the area identified as the Mountain Inn Project) for the Highway 71 East
Square Redevelopment District targets the removal of blight as defined in Arkansas Statute 14-168-
301. It reads as follows:
(3XA) "Blighted area" means an area in which the structures, buildings, or improvements, by
reason of dilapidation, deterioration, age or obsolescence, inadequate provision for access,
ventilation, light, air, sanitation, or open spaces, high density of population and
overcrowding or the existence of conditions which endanger life or property, are detrimental
to the public health, safety, morals, or welfare.
(B) 'Blighted area" includes any area which, by reason of the presence of a substantial number of
substandard, slum, deteriorated or deteriorating structures, predominance of defective or
inadequate street layout, faulty lot layout in relation to size, adequacy, accessibility, or
usefulness, unsanitary or unsafe conditions, deterioration of site or other improvements,
diversity of ownership, tax on special assessment delinquency exceeding the fair value of the
land, defective or unusual conditions of title, or the existence of conditions which endanger
life or property by fire and other causes, or any combination of such factors, substantially
impairs or arrests the sound growth of a city, retards the provision of housing
accommodations, or constitutes an economic or social liability and is a menace to the public
health, safety, morals, or welfare in its present condition and use, or any area which is
predominantly open and which because of lack of accessibility, obsolete platting, diversity of
ownership, deterioration of structures or of site improvements, or otherwise, substantially
impairs or arrests the sound growth of the community.
The recently adopted "Downtown Master Plan"
contemplates specific key projects necessary for a fully
revitalized downtown area. The Mountain Inn was
identified as #3 in the list of immediate projects. The
Downtown Master Plan states: "A key opportunity for ill
development is the redevelopment of the Mountain Inn.
The hotel, fronting College Avenue, has been vacant for a
number of years. The existing structure is an eyesore... the
location of the Mountain Inn among several other
Downtown landmarks and historic structures offers the
opportunity to create a taller building - a new landmark -
which signals the revival of downtown".
For many years the remnants of the once premier lodging
facility formerly known as the Mountain Inn have been
decaying with little hope for a change in its blighted condition.
In its day, the hotel was considered the destination of choice for
travelers in the Fayetteville area as well as the hosting of other
community traditions including Sunday brunch, regular
business meetings, club events and wedding parties.
Unfortunately, the hotel through a series of unsuccessful ventures became an inconsistent host and
ultimately an outdated lodging facility. During the same period that the Mountain Inn lost its luster
the Fayetteville downtown area went into a period of degradation and many business operators,
vendors and customers left the area. After years of wasting away, concerned citizens, local
government leaders and developers came together to revitalize the historic Fayetteville downtown
square as well as neighboring Dickson Street. This rebirth has been ongoing for the past fifteen
years with the vast majority of the significant building in the Downtown/Dickson Street area being
revived to support the business, cultural and entertainment center it has become.
In recent years multiple redevelopment projects have transformed parts of the downtown/Dickson
Street area into a hub of culture, commerce and entertainment for northwest Arkansas. New
construction and redevelopment projects of note that have emerged include: The Campbell Bell
Building, The Ozark Theatre Building, The Three Sisters, UARK Bowl, The Bank Of Fayetteville
Building, The Walton Arts Center, The Ozark Brew Pub, Camall Hall, The Ice Plant Building,
Rollston Building, Cooper House, Pyeatt Building, Campbell Terrace, Laundry Building, Bakery
Building, Collier's Drug, The Old Post Office Building, The Town Center and the recently
completed new Fayetteville Public Library. Some of the redevelopments are pictured below:
01
Noticeably absent from this regenerative trend has
been the Mountain Inn with its broken windows
and boarded -up doorways sitting on its prominent
position at the crest of Archibald Yell/College
Avenue. Unfortunately, now, the once bustling
hotel's only visitors consist of vandals, transients
and the local police force.
Now with its neighbors alive with activity, the former Mountain Inn and other participating spaces
will be transformed into a destination facility that will be unsurpassed in the Fayetteville market.
The planned development project will incorporate
a 144 room full -service hotel, 18 condominiums,
12,500 sq. ft. conference/meeting space, three
restaurants, a day spa, exercise center, boutique
shops, a 300 space multi -story parking garage and
a rooftop botanical garden with observation deck.
The project in its entirety is known as the East
Square Redevelopment Project.
The project's centerpiece is a planned full service
national flagship hotel. The hotel will serve the
mid -to -high end of the business traveler, short
duration vacationer and meetinglevent attendees.
With a thoroughly defined design concept, the
stylish hotel will offer the highest level of comfort
and service along with the intrigue of its inviting
amenities. The twelve -story main structure of the
new hotel will be built on the existing site of the
1960's addition to the historic Mountain Inn.
Condominiums will be built on the upper floors of
the new structure.
The architecturally pleasing section of the historic
inn's arcade which faces Center Street will be
preserved to accommodate pedestrian accessible boutique shops along the north/south lower level
arcade and will house the day spa and function space on the upper floors. Banquet and conference
facilities will be arranged in the northeast section of the complex with a multi -purpose ballroom and
multiple flexible "break-out" meeting spaces. The planned botanical garden will be the crown jewel
of the facility positioned on the rooftop of the main hotel building.
,<i..«ta
l�rkx"iki
��:i
re
ktr
✓w'
r
ro
yS�.pT
The project will combine complementary architecture, functional access, technological amenities
and comfortable furnishings of subtle ambience to satisfy visitors with the facility.
The proposed subject property is anticipated to be complete and operational in or near the Spring of
2006. No rezoning is required for the project.
8
The project is located one block east of the heart of the downtown business district. It is
conveniently located less than five minutes from the University of Arkansas, a short walk to the
Fayetteville Town Center, within walking distance of the Dickson Street entertainment district, the
University of Arkansas, the Walton Arts Center and approximately ten minutes from the 1-540
north/south corridor. The following map illustrates the development's location:
L41a4 ,t
0 Is
aS QtCY �lr z$ �A'.>.F1F`S,,Ty''o �u�ac�Si
v m, bat 6ea��hG
fYy��t- 3S - —
't EG
Q5� 11 h� � J ' �: •�, Bc
r D
troy e' n ,roIA
rJUTT"'m 3T
1 LAM !W 6 N -iy lz 4 G CK
r.✓' Me" 1' l 1 ri' r
It :SDE1
-,lrt anon
SPRI?�GST t. -
tq��
w P L
Mountain Inn Project Site m c
Y _a_
The Tax Increment Bonds to be issued by the Highway 71 East Square Redevelopment District
will finance certain allowable public purposes as outlined by the enabling legislation Arkansas Code
Annotated 14-168-301 through 14-168-323, Redevelopment District, Chapter 168, Community
Redevelopment Generally, Subchapter 3, Community redevelopment — Creation and procedures.
Specifically as described in 14-168-301(13A-E):
"(13)(A) "Redevelopment project" means an undertaking for eliminating or preventing the
development or spread of slums or deteriorated, deteriorating, or blighted areas, for discouraging the
loss of commerce, industry, or employment, or for increasing employment, or any combination
thereof.
(B) A redevelopment project may include one (1) or more of the following:
(i) The acquisition of land and improvements, if any, within the redevelopment district and clearance
of the land so acquired; or
(ii) The development, redevelopment, revitalization, or conservation of the project area whenever
necessary to provide land for needed public facilities, public housing, or industrial or commercial
development or revitalization, to eliminate unhealthful, unsanitary, or unsafe conditions, to lessen
density, mitigate or eliminate traffic congestion, reduce traffic hazards, eliminate obsolete or other
0
63
City of rayetteville, Arkansas
HIGHWAY 71 EAST SQUARE REDEVELOPMENT DISTRICT
PROJECT PLAN
EXHIBIT No.9
Existing Conditions of Blight
Cjtg oF Mlgifokillo,ArI msas
IIR;IMAl71 E:ASI SQUARE REDEVELOPMEN L DISCRI Cl
11 RU.I EC'1' PLAT
•
65
MII jj s ,-
-'•�—
i
f
{
oor
�l
City of I ayctteeillc; ALinsas
IIICIMAN 71 EASI-SQI ARE. REIDr VITOPM FN'l�
P It 0.1 EC'I' PLAN
0
} 2
"oi
jw-
---