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HomeMy WebLinkAbout1998-07-13 - Agendas - Final • MEETING NOTICE The Advertising and Promotion Commission will meet on Monday, July 13, 1998, at 2:00 p.m. at City Hall in City Council Chambers. ADVERTISING AND PROMOTION COMMISSION July 13, 1998 2 :00 p.m. City Hall Council Chambers I Call to Order II. Reports A. Approval of Minutes for June 8 B. Financial — Ben Mayes C. Convention and Visitor Activity — Marilyn Snapp D. Blackwood/Martin/CJRW Report — Susan Stirewalt III. Old Business A. Town Center Subcommittee Report 1 . Lease with City B. Funding Requests IV. New Business • V. Adjourn Informational Items — Trolley Operations Report • GROUP: ADVERTISING & PROMOTION COMMISSION DATE: June 8, 1998 PRESENT: Joe Fennel, Fred Hanna, Alex Jerde, Carl Maguire, Jim Waselues, Kit Williams, and Marilyn Snapp ABSENT: Curtis Shipley The regular meeting of the Advertising and Promotion Commission was called to order at the City Hall Council Chambers at 2:00 p.m. by Chairman Joe Fennel. MINUTES It was moved by Williams, second by Jerde to approve the minutes of the May 11 meeting. Motion carried. FINANCIAL REPORT Ben Mayes presented financial report for May. HMR collections were $97,309, an increase of 11 .57% over May, 1997 collections. Year to date collections are $433,644, an 8.69% increase over 1997. May expenditures were $78,560. Marilyn indicated that this is the largest month of HMR collections since collections began. • Ben reviewed 1998 revised schedule of resources available. CONVENTION AND VISITOR DEVELOPMENT REPORT Marilyn Snapp presented the Convention Visitor Development report. Inquiries for the month are down from last year. The Newcomer's Trolley trial run was held with three participants. Reservations are full for June tour. Money magazine contacted Marilyn for slides to use in their article on best places to live. C-Span School bus was here to do short presentation on Bill Clinton's life here. ADVERTISING AGENCY REPORT Susan Stirewalt reported that agency was excited about increase in HMR but concerned with drop in responses versus last year. Internet inquiries, which have caused a decrease in the traditional advertising responses, were somewhat anticipated since ads focused on web site address and 800 number. State magazine/newspaper co-op insert has had most effect on responses. This is being addressed and changes are anticipated in 1999 co-op program. However, core of schedule is performing adequately without need for revisions. Susan reported work on impact of opening of regional airport and its effect on Fayetteville hotels, motels and restaurants. They are identifying communities with two airports to identify problems they encountered and solutions. They are also studying the current business traveler. This work will be in conjunction with the Chamber Convention and Visitor sub-committee. OLD BUSINESS Town Center Update Marilyn reported that Jerry Rose was to present to the City Council on Tuesday results of his negotiations with the Bradberrys on leasing property for plaza. • A & P Commission subcommittee should meet after City Council meeting to work on lease agreement. • Funding Requests Funding requests were not considered pending lease agreement decision with City Council. There being no further business, the meeting was adjourned. Respectfully submitted, Marilyn Snapp Director Convention and Visitor Development • • City of Fayetteville, Arkansas Monthly HMR Tax Collections 1996-1998 • 1996 1997 1997 1998 1998 Total Total Change Over Total Change Over HMR Taxes HMR Taxes Prior Year HMR Taxes Prior Year January $ 76,738 $ 73,809 -3.82% $ 82, 157 11 . 31 % February 68,507 731099 6.70% 83,759 14.58% March 72,521 76, 808 5.91 % 80,815 5.22% April 82, 155 88, 050 7. 17% 897603 1 .76% May 781771 87,221 10.73% 97,309 11 .57% June 791880 84,417 5.68% 983318 16.47% July 83,337 79,784 -4.26% 0 August 78,651 84,099 6. 93% 0 September 85,514 82,984 -2. 96% 0 October 80,031 95,030 18. 74% 0 November 891882 88, 147 -1 .93% 0 December 80, 107 79,492 -0.77% 0 • Total $ 956,093 $ 992,939 3.850/6 E 531 ,962 10.05% HMR Tax Collections By Month 120 100 80 C v, N J 60 3 L f 40 $ 20 0 January February March April May June July August September October November December O 1996 ® 1997 I 1998 • \HMRTAX Advertising & Promotion Commission Financial Report - Expenditures For the Month Ending June 30, 1998 • 1998 YTD June Budget Item Budget Expenses Remaining Expenses Chamber of Commerce Operations Contract $100,000 $75,000 $25,000 Collection Expense - City of Fayetteville 203500 10,369 10, 131 11966 Audit Expense 150 150 800 Telephone Number (Chamber of Commerce) 10,000 5,000 5,000 Public Notification (BMA Contract) 225,000 111 ,613 113,387 177493 Trolley Operations 40,000 13, 169 26,831 Convention Support 51000 3,809 19191 21213 Town Center/Exhibit Hall 58,460 742351 (153891 ) Brochure Development 16,859 952 15,907 Air Museum 402000 20,000 201000 Square Gardens 213920 12,715 91205 21808 Special Projects Fay. Public Library Genealogical Collection 35,522 33,825 1 ,697 1 ,384 • Univ. of Arkansas Museum 59724 5,724 AAAA State Baseball Tournament 21000 2,000 0 21000 HAWKS AAU Basketball Tournament 21000 2,000 0 Joe Martin Memorial Stage Race 21000 29000 Ark, State Gymnastics Competition 600 600 TOTAL USES $5853735 $364,803 $220,932 $27,864 • W&PEXP98 • ACTIVITY REPORT JUNE, 1998 INQUIRY RESPONSES June 1998 Tourist - 239 1998 Year to Date — 1 ,804 June 1997 Tourist - 131 1997 Year to Date — 1 ,941 June 1998 Advertising Response — 2,397 1998 Year to Date -13rMl June 1997 Advertising Response — 3, 168 1997 Year to Date — 21 ,855 June 1998 Relocation — 164 1998 Year to Date — 974 June 1997 Relocation — 111 1997 Year to Date — 1, 162 June 1998 Total Inquiries — 2,800 June 1997 Total Inquiries — 3,410 Year to Date 1998 — 15,941 Year to Date 1997 — 24,958 Internet Inquiries June Hits — 30,397 Hits since Sept 3, 1997 — 303, 121 • CONVENTION ACTIVITY Conventions — Game and Fish employees regarding deer meeting - February, 99 Bus Tours — Norma Waldrip, DeWitt (fall tour bus) Capitol Tours (Oklahoma City) — Max Paty Kincaid Tours (Oklahoma City) — slides sent for their program Tourist Activity — Packaged tours sold Miscellaneous — Newcomer's Fayetteville Friendly Tour Arkansas Festival Association meeting — Little Rock America's Junior Miss contestant — Joann Lucas (Miss Arkansas entrant from Fayetteville) A & P Roundtable — Little Rock A.S.A.E. meeting — Little Rock Hospitality in a Heartbeat training — Dillard's (NWA Mall) Reunion on the River — Little Rock (birthday party for Governor Huckabee, sponsored by tourist and Travel professionals in Arkasas) NYSP Board of Directors Media Relations - Where To Retire magazine — Nina Stewart (Austin Texas) Power Radio Group — Kathy Sluder Morning News of Northwest Arkansas — Becca Martin • Top HMR Collections — June Hilton Clarion Red Lobster Rio Bravo Ryan's A. Q. Chilli's McDonald's 50's Jose's Ozark Brewing Company Applebee's McDonald's #1363 • • • Tourist Inquiries - 1998 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL AL 4 3 4 5 4 7 AK AZ 4 4 4 1 3 6 AR 43 32 71 31 27 36 CA 8 9 30 16 4 10 CO 3 4 5 1 1 CT 1 1 DE 2 OC 1 FL 5 2 4 9 5 5 GA 3 3 5 4 2 5 HI ID 1 1 IL 10 9 67 13 13 15 IN 4 3 26 4 6 5 IA 8 7 24 10 5 1 KS 5 6 19 11 17 9 KY 2 1 1 2 4 LA 4 7 23 15 16 14 ME 2 1 1 MD 1 4 2 MA 4 1 2 1 1 MI 5 3 26 10 5 6 MN 5 10 34 12 3 8 MS 5 3 5 5 1 1 MO 6 19 45 21 21 13 • MT 1 NE 1 1 17 7 6 1 NV 1 NH 1 1 NJ 3 1 3 2 4 3 NM 1 2 4 3 1 1 NY 6 6 3 2 2 3 NC 1 5 2 3 5 3 NO 3 1 1 OH 3 4 20 9 5 3 OK 11 9 32 21 26 20 OR 1 2 2 4 1 PA 1 4 7 6 3 5 PR 1 RI 1 SC 1 2 1 1 1 2 SD 1 8 2 TN 4 1 4 6 2 5 TX 12 35 47 38 35 37 LIT VT VA 3 2 WA 3 2 2 4 3 WV 1 1 WI 5 16 49 9 3 4 WY 2 1 APO 1 1 2 1 1 1 • CAN 1 1 4 2 1 1 FOR 1 2 190 220 615 294 246 239 Relocation Inquiries - 1998 • Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec TOTAL AL 1 1 1 1 AK 1 1 AZ 3 5 6 2 4 8 AR 24 23 27 31 18 28 CA 19 5 25 10 8 24 CO 1 1 4 6 7 2 CT 1 1 2 DE 1 DC FL 4 5 6 7 6 9 GA 1 2 1 2 2 6 HI 1 2 ID 1 1 1 1 IL 10 3 9 12 5 5 IN 2 4 1 2 1 1 IA 7 3 5 1 2 3 KS 3 2 7 2 5 5 KY 2 2 1 LA 1 6 11 7 5 3 ME 1 1 MD 2 4 MA 1 2 MI 4 8 2 3 MN 4 4 6 4 3 3 MS 3 4 4 4 1 • MO 8 5 10 8 11 9 MT 2 1 NE 3 1 3 4 2 2 NV 2 2 1 4 3 NH 1 NJ 1 1 3 4 NM 1 2 2 1 2 2 NY 1 3 2 3 2 2 NC 1 2 2 2 1 1 ND 1 2 OH 2 1 5 3 1 2 OK 10 4 3 5 7 8 OR 1 1 3 2 2 PA 2 1 5 3 2 2 PR RI SC 1 2 1 2 1 SD 2 TN 3 3 11 6 1 4 TX 15 15 21 21 11 15 UT 1 1 VT VA 3 2 2 2 2 WA 3 2 4 6 2 1 WV 6 1 1 WI 2 7 4 4 2 3 WY 1 3 2 1 • APO 2 1 1 1 CAN 1 151 128 223 175 133 164 • ADVERTISING INQUIRIES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Tourist ACW 25 3 6 BH 38 534 154 125 CWT 2 10 18 5 6 D FC 1 11 109 42 HT 60 H&A 37 187 MC 186 456 298 ML 32 48 59 2 573 742 MVG 275 1232 NG NTG 123 191 448 368 457 365 OK 17 12 79 35 SL 14 16 472 139 217 223 SMI 35 1131 235 95 57 SV TA 13 18 209 TJ TM 182 64 171 429 86 77 USA 35 471 1392 Meetings • SM 2 3 2 TOTAL 384 359 2653 3729 3TO 2397 ACW-Am. Civil War BH-Better Homes & Gardens CWT-Civil War Times D-D Magazine FC-Family Circle HT-Historic Traveler H&A-Home and Away MC-McCalls ML-Midwest Living MVG-Midwest Vacation NG-Nati Geog Traveler NTG-NATA OK-Oklahoma Today SL-Southern Living SMI-State Mag. Insert SM-Successful Meetings SV-Summer Vacation TA-Travel America TJ-Texas Journal • Advertising Inquiries by State - May, 1998 ACW BH CWT FC H&A MC ML NTG OT SL SMI TA TM USA TOTAL AL 2 2 3 1 5 6 1 20 AK 1 1 1 2 AZ 1 6 9 1 2 1 1 21 AR 4 4 9 4 35 8 22 1 2 89 CA 12 7 12 2 32 3 5 2 3 1 79 CO 2 2 6 2 9 1 1 2 1 2 28 CT 1 6 1 4 12 DE 3 2 5 DC. 0 FL 7 1 4 20 5 15 14 2 2 4 1 75 GA 5 10 1 1 15 1 1 34 HI 1 1 2 ID 1 3 4 IL 1 5 6 31 130 19 4 7 2 1 311 516 IN 2 1 11 17 44 6 3 1 93 178 IA 1 12 44 10 1 1 1 147 217 KS 2 5 2 13 27 11 1 4 43 108 KY 3 1 12 2 3 7 2 6 36 LA 3 4 17 1 26 25 2 1 79 ME 3 1 4 MD 1 2 1 1 3 3 1 12 MA 2 1 11 2 3 1 20 MI 1 14 1 6 15 45 7 1 5 2 1 157 254 MN 4 2 1 11 35 12 2 3 1 157 228 MS 4 7 5 10 6 32 MO 8 9 24 57 28 5 2 98 231 • MT 1 1 1 1 3 7 NE 2 1 5 7 18 10 1 1 14 59 NV 2 3 1 60 NH 1 1 1 3 NJ 6 2 14 1 3 3 1 1 31 NM 6 7 2 15 NY 5 1 7 30 3 17 2 1 1 2 2 71 NC 2 2 1 19 2 12 1 39 ND 1 4 1 5 11 OH 11 2 2 16 47 11 1 4 178 272 OK 1 4 2 10 14 3 28 24 9 1 1 97 OR 1 7 2 1 11 PA 7 1 2 19 2 15 1 2 1 50 RI 1 1 1 Sc 5 1 2 4 2 14 SD 3 1 2 5 24 32 TN 3 2 8 1 5 16 1 2 38 TX 16 16 21 2 66 6 37 11 1 56 232 UT 2 3 1 6 VT 0 VA 4 1 1 5 1 8 9 1 2 32 WA 2 1 2 7 1 1 1 1 1 17 WV 1 1 10 1 4 1 1 19 WI 3 5 3 15 61 11 2 5 1 137 243 WY 1 1 2 APO 1 1 CAN 1 3 4 7 • FOR 1 1 2 4 TOTAI 3 154 5 109 37 456 550 457 35 217 95 18 86 1392 3614 • Advertising Inquiries by State - June, 1998 ACW BH CWT FC HT H8A MC MWL NTG SL SMI TA TM TOTAL AL 3 1 5 2 3 16 4 1 35 AK 1 1 2 4 AZ 1 1 1 3 3 3 4 16 AR 3 3 2 5 7 31 10 14 1 4 80 CA 1 8 1 4 8 24 7 18 1 2 17 3 94 CO 3 2 2 5 2 1 1 1 17 CT 3 6 3 1 2 15 DE 1 1 DC 1 1 2 FL 4 2 3 13 6 9 18 15 70 GA 1 1 1 6 2 11 1 5 28 HI 1 4 1 6 ID 1 1 1 3 IL 10 1 1 27 15 158 18 5 6 12 1 254 IN 2 1 2 3 6 10 69 7 1 6 1 108 IA 3 24 7 49 13 2 1 5 104 KS 2 2 1 7 3 29 13 3 3 5 1 69 KY 1 15 3 9 3 4 1 1 37 LA 4 2 3 1 22 29 3 2 66 ME 1 1 1 3 MD 2 1 1 4 2 1 4 1 16 MA 6 2 4 2 1 1 4 20 MI 9 4 7 90 5 4 2 5 126 MN 4 19 6 41 13 1 3 87 MS 1 2 1 2 1 1 7 8 2 25 • MO 6 1 3 1 12 77 28 11 3 10 1 153 MT 2 1 1 4 NE 1 1 5 2 18 4 2 3 36 NV 2 1 2 1 6 NH 2 1 1 4 NJ 5 3 9 2 5 2 2 5 1 34 NM 2 1 2 1 1 3 10 NY 3 2 15 4 7 2 1 8 1 43 NC 7 3 1 11 2 11 8 43 ND 2 3 2 7 OH 1 4 4 33 14 76 4 4 2 8 150 OK 1 1 1 1 3 26 6 4 36 7 11 4 101 OR 3 6 1 1 1 2 14 PA 5 2 3 15 4 4 1 6 40 RI 1 1 2 Sc 1 4 1 1 1 8 SD 2 5 1 2 10 TN 1 1 2 5 2 2 11 1 6 1 32 TX 1 16 2 2 21 6 69 39 7 20 51 234 UT 1 2 3 2 1 9 VT 2 1 1 4 VA 2 10 1 1 7 1 22 WA 2 1 2 3 1 3 3 1 16 WV 1 1 3 1 1 7 WI 3 1 22 14 56 8 1 4 109 WY 1 1 APO 1 1 CAN 2 2 1 1 6 • FOR 1 1 1 1 1 5 TOTAI 6 125 6 42 60 187 298 742 365 223 57 209 77 2397 Access statistics for uw .fayettevillear.wnt (last 12 month) http://www.FayenevilleAR.wm/staW Access statistics for www.fayettevillear.com • Summary period: last 12 month Last updated: 27/Jun/1998 21:28 _............................................................................................................................ ............. ............. :its/Files/SitesA by tee: by month r if b z f ....................... •• rc i ti 41 p Nr O a Z �P O f� CJ 'i: Jun 97 Jul Rug Sep Oct Nov Iles Jan Feb ttar Rpr May Jun 98 =w ����n.� . Current statistic for June 98 u dated more f uentl ont 8 ea sent I ... .. . . (�� . . . .,..,., ,_.v.... ... .. .. .. _ 1 . ..... June 98 30397 26905 1402 161707 May 98 30942: 27740,' 1317 163921 : ..... ... ...: Aoril98 3292YI 26734'; 1380, . 159067: : ;March 98 j 35528 29316,; 15171 177707; 'Webruary 98 1 10959 .. ..... 8500 : M41 53375: ... .... January 98 20115 10438!: 6491 57690: ..December 97 20183: 8905;: 568. 49502: .................................................................. ...................................:............................. ................................................... : November 97 30685: 13039:: 571: 76023: ...... ........ October97 30790 11860 : 45T 67576: ;September97j 60078 15-495 4731 78782; _..... I.. ........ ....._._.... ... .._._ ..__. _... _._ ............._._..... _......................... ....................... ...... August 97 S17� 270: 20� 1655: _ .. July 97 __ .._.._ 0:1 ..... .... .°i ..... .0 .................p' r ry otal ri,3 „ 3Nv 303121179202 rR 8853 1047005 `g w ; w nrw{a:: -------------- ::::: _..:..::....::::::::.::.::.::.:::::.::::.::::.::.:::.:...:::::::....:....::.:.....::..............._...................................._.................... ........................... . . .. .. ............................................................... • Full statistics for 1997 1 of 2 7!7/98 11:47 AM City of Fayetteville - Trolley Operation Regular Route • 1997 Activity 1998 Activity Average Average Trip Days of Trips Per Trip Days of Trips Per Month Count Operation Day Count Operation Day Jan. 891 21 .50 41 .44 11600 23.50 68.09 Feb. 11029 22.00 46.77 11609 22.00 73. 14 March 1 ,191 23.50 50.68 11630 24.00 67.92 April 1 ,097 24.00 45.71 11728 24.00 72.00 May 1 , 131 23.50 48.13 11804 22.50 80. 18 June 1 ,327 23.00 57.70 July 12442 24.00 60.08 Aug. 12289 23.50 54.85 Sept. 1 ,359 23.00 59.09 Oct. 13727 25.50 67.73 Nov . 12337 23.00 58. 13 Dec. 12472 23.00 64.00 15,292 279.50 54.53 8,371 116.00 72.26 Average Trips Per Day • ,og so 60 f 40 zo 0 Jan. March May July Sept. Nov. Feb. April June Aug. Oct. Dec. ❑1997 © 1998 Trip Summary of Other Trolley Trips (May. 1998) Count Habitat for Humanity 11099 St. Joseph's Catholic Church 60 Varady Birthday Party 48 • TOTAL - OTHER TROLLEY TRIPS 1 ,207 \TROLLEY r CITY OF FAYETTEVILLE, ARKANSAS • ADVERTISING AND PROMOTION COMMISSION A RESOLUTION RECOMMENDING THE ISSUANCE AND SALE OF HOTEL AND RESTAURANT GROSS RECEIPTS TAX BONDS, SERIES 19989 BY THE CITY OF FAYET EVHd.E, ARKANSAS FOR THE PURPOSE OF PROVIDING FINANCING FOR THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF ADDITIONAL CONVENTION FAcnxr ES AND RELATED PARKING FACILITIES; APPROVING AN ORDINANCE, PREIAIIINARY OFFICIAL STATEMENT, AND BOND PURCHASE AGREniENT IN CONNECTION THEREWITH; AND AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO WHEREAS, the Advertising and Promotion Commission (the "Commission") of the City of Fayetteville, Arkansas (the "City") was established pursuant to the Advertising and Promotion Commission Act, Arkansas Code Annotated ( 1997 Repl. ) §§26-75-601 to -617; and Whereas, the Commission previously recommended the City call a Special Election on the question of the issuance of not to exceed $6,950,000 principal amount of Hotel and Restaurant gross Receipts Tax Bonds (the "Series 1998 Bonds") to finance the construction of the Fayetteville Town Center as a new, multipurpose, civic center for meetings, conventions, exhibitions, • entertainment events, related uses and parking (the "Additional Convention Facilities"); and Whereas, at the Special Election held on August 5 , 1997, the electors within the City approved the issuance of the Series 1998 Bonds; WHEREAS, a form of an Ordinance (the "Ordinance") authorizing the issuance and sale of $6,9509000 City of Fayetteville, Arkansas Hotel and Restaurant Gross Receipts Tax Bonds, Series 1998, a Bond Purchase Agreement (the "Bond Purchase Agreement") by and among the City, and Llama Company and Stephens Inc. (the "Purchasers"), and Preliminary Official Statement (the "Preliminary Official Statement") offering the Series 1998 Bonds for sale have been presented to and are before this meeting; Now, THEREFORE, BE IT RESOLVED by the City of Fayetteville, Arkansas Advertising and Promotion Commission: Section 1. That the issuance and sale of the Series 1998 Bonds is hereby recommended to the City to provide (together with the moneys available from the Commission and from the City) for the acquisition, construction and equipping of the Additional Convention.Facilities, to pay the costs of the issuance of the Series 1998 Bonds, and to establish appropriate reserves. • r tf/ . Section 2. That the sale of the Series 1998 Bonds to the Purchasers is hereby • recommended to the City. To prescribe the terms and conditions upon which the Series 1998 Bonds are to be sold, the Commission hereby consents to the execution and delivery by the City of the Bond Purchase Agreement in substantially the form submitted to this meeting. Section 3. That to prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, issued, accepted, held, and secured, the Commission hereby consents to the adoption by the City of the Ordinance and agrees that it shall be bound thereby. The Ordinance is hereby approved in substantially the form submitted to this meeting, including, without limitation, the deposit and handling of revenues and the terms of the Series 1998 Bonds. Section 4. That the Series 1998 Bonds shall be offered for sale pursuant to the Preliminary Official Statement. The Preliminary Official Statement is hereby approved in substantially the form submitted to this meeting. Section 5. That the Chairman is hereby authorized and directed to do any and all things necessary to effect the issuance, execution, sale and delivery of the Series 1998 Bonds and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by this Resolution. Section 6. That the provisions of this Resolution are hereby declared to be severable, and if any section, phrase, or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases, and provisions. • Section 7. That all resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 8. That this Resolution shall take effect immediately upon its passage and approval. PASSED July , 1998. Chairman /ASP H:\b s\apuker\FayeucvdkUiMPO/.vro • -2 i ORDINANCE NO. • AN ORDINANCE PROVIDING FOR THE ISSUANCE OF HOTEL AND RESTAURANT GROSS RECEIPTS TAX BONDS, SERIES 1998, BY THE CITY OF FAYETTEVILLE, ARKANSAS FOR THE PURPOSE OF PROVIDING FINANCING FOR THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF ADDITIONAL CONVENTION FACILITIES AND RELATED PARKING FACILITIES; AUTHORIZING THE SALE OF THE SERIES 1998 BONDS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL OF AND PREMIUM, IF ANY, AND INTEREST ON THE SERIES 1998 BONDS FROM THE CITY'S 1977 HOTEL AND RESTAURANT GROSS RECEIPTS TAX AND OTHER SOURCES; ESTABLISHING THE PRINCIPAL MATURITIES, INTEREST RATES AND PRICE OF THE SERIES 1998 BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, under the authority of Ordinance No. 2310, duly adopted and passed March 1 , 1977, as amended by Ordinance No. 2315, approved on March 15, 1977, the City established a City Advertising and Promotion Commission (the "Commission") and levied a one cent tax upon the gross receipts of hotels, motels, restaurants, cafes, cafeterias and other establishments providing lodging or selling food for on-premises consumption in the City (the " 1977 Hotel and Restaurant Gross • Receipts Tax") pursuant to Act No. 185 of 1965, as amended ("Act No. 185"); and WHEREAS, the City issued its Continuing Education Center Revenue Bonds, Series 1979 (the " 1979 Bonds"), under the authority of Act No. 185 and Act No. 380 of 1971 ("Act No. 380") and particularly under Ordinance No. 2567 of the City, duly adopted and passed October 22, 1979; WHEREAS, the City of Fayetteville, Arkansas (the "City") constructed the convention facilities known as the Continuing Education Center (the "Convention Facilities") with the proceeds of the 1979 Bonds, which Convention Facilities are leased to the Board of Trustees of the University of Arkansas; and WHEREAS, the 1979 Bonds were refunded and redeemed when the City issued its $2,675,000 Hotel and Restaurant Cross Receipts Tax Refunding Bonds, Series 1995 (the " 1995 Bonds") WHEREAS,The Trust Indenture securing the 1995 Bonds provides for the issuance of bonds on a parity with the 1995 Bonds to construct additional convention facilities; and WHEREAS, at a Special Election held on August 5, 1997, the electors within the City approved the issuance of not to exceed $6,950,000 principal amount of Hotel and Restaurant Gross Receipts Tax Bonds to finance the construction of the Fayetteville Town Center as a new, multi- purpose, civic center for meetings, conventions, exhibitions, entertainment events, related uses and • parking ("Additional Convention Facilities"); and WHEREAS, the Commission has recommended to the City Council of the City, and the City • Council has determined, that it is in the best interest of the City to proceed with the issuance of the 1998 Bonds and construct the Additional Convention Facilities; and WHEREAS, the City is authorized under the Advertising and Promotion Commission Act, as amended, Arkansas Code Annotated (Repl. 1997) §§26-75-601 through 618, (Repl. 1997) (the "Act") and the City-County Tourist Meeting and Entertainment Facilities Assistance Law, as amended, Arkansas Code Annotated §§ 14- 171 -201 through 217, (1987 & Supp. 1997) (the "Turnback Law") to issue and sell revenue bonds for the purpose of constructing the Additional Convention Facilities; and , WHEREAS, to secure funds necessary (together with the moneys to be contributed by the Commission and money and property to be contributed by the City) to construct the Additional Convention Facilities, to establish a reserve fund and to finance the printing, legal, underwriting, and other costs incidental to the issuance of revenue bonds for this purpose, the City has determined to issue revenue bonds in an aggregate principal amount of $6,950,000 Hotel and Restaurant Gross Receipts Tax Bonds, Series 1998 (the "Series 1998 Bonds"); and WHEREAS, the City has determined to issue the Series 1998 Bonds under and pursuant to a First Supplemental Trust Indenture (the " Supplemental Indenture") by and between the City and Bank of Oklahoma N.A., Tulsa, Oklahoma, as Trustee (the "Trustee"), a form of which has been presented to and is before this meeting; and • WHEREAS, a Preliminary Official Statement (the "Preliminary Official Statement"), a form of the final Official Statement ("Official Statement') offering the Series 1998 Bonds for sale and a Bond Purchase Agreement have been presented to and are before this meeting. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Fayetteville, Arkansas: Section 1. Construction of Additional Convention Facilities. That the construction of the Additional Convention Facilities be accomplished. The Mayor and City Clerk are hereby authorized to take or cause to be taken all action necessary to accomplish the project and to execute all required documents. Section 2. Issuance and Sale of Series 1998 Bonds. That under the authority of the Constitution and laws of the State of Arkansas, including particularly the Act and the Turnback Law, City of Fayetteville, Xrkansas Hotel and Restaurant Gross Receipts Tax Bonds, Series 1998, are hereby authorized in the total principal amount of $6,950,000, the proceeds of the sale of which are necessary to provide sufficient funds, together with other funds available, to pay the cost of constructing the Additional Convention Facilities in the form of a multipurpose, civic center for meetings, conventions, exhibitions, entertainment events, related uses and parking, establishing a debt service reserve for the Series 1998 Bonds, and paying the costs of issuing the Series 1998 Bonds. The Series 1998 Bonds shall be sold to Llama Company and Stephens Inc. (the "Purchasers") • pursuant to the terms and conditions of a Bond Purchase Agreement in substantially the form 2 J exhibited at this meeting, upon the terms and conditions set forth therein. The Mayor is hereby • authorized to confer with the Purchasers of the Series 1998 Bonds in order to complete the Bond Purchase Agreement and he is further authorized to execute the Bond Purchase Agreement on behalf of the City, an executed copy of which shall be filed with the permanent records of the City. Section 3. Details of Series 1998 Bonds. That the Series 1998 Bonds shall mature on October 1 of the years and in the principal amounts stated in the Bond Purchase Agreement. That the Series 1998 Bonds shall bear interest payable semiannually on April 1 and October 1 of each year at prevailing market rates as stated in the Bond Purchase Agreement but not to exceed an average coupon of five and seventy five hundredths percent (5 .75 %). That the Series 1998 Bonds shall be sold at the prices set forth in the Bond Purchase Agreement. Section 4. Preliminary Official Statement and Official Statement. That the Mayor is hereby authorized to approve the Preliminary Official Statement, in substantially the form submitted at this meeting with such changes as shall by approved by the Mayor, and to deem it final as of its date within the meaning of Rule 15c2- 12 of the Securities and Exchange Commission and its distribution is hereby authorized. That there be, and there is hereby, authorized the distribution to various prospective and actual purchasers of the Bonds of a final Official Statement in the name of the Issuer, describing the City, the Series 1998 Bonds, the Supplemental Indenture, and setting forth such other information as may be determined to be necessary or desirable by the Purchasers. The Mayor is authorized to execute such Official Statement on behalf of the City and to confer with the Purchasers of the Series 1998 Bonds in order to complete the Official Statement. • Section 5. First Supplemental Trust Indenture. That to prescribe the terms and conditions upon which the Series 1998 Bonds are to be executed, authenticated, issued, accepted, held, and secured, the Mayor is hereby authorized and directed to execute and acknowledge a First Supplemental Trust Indenture by and between the City and Bank of Oklahoma N.A., as Trustee, and the City Clerk is hereby authorized and directed to execute and acknowledge the Supplemental Indenture and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Supplemental Indenture to be accepted, executed, and acknowledged by the Trustee. The Supplemental Indenture is hereby approved in substantially the form submitted to this meeting, including, without limitation, the provisions of the Supplemental Indenture pertaining to the maintenance of the City's 1977 Hotel and Restaurant Gross Receipts Tax at the rate of not less than 1%, the deposit and handling of revenues, and the terns of the Series 1998 Bonds. The Mayor is hereby authorized to confer with the Trustee and others in order to complete the Supplemental Indenture and to execute and deliver the same on behalf of the City in substantially the form presented to this meeting, with such changes as shall be approved by him, his execution to constitute conclusiveTvidence of such approval. Section 6. Execution and Delivery of Documents. That the Mayor and the City Clerk are hereby authorized and directed to do any and all things necessary to effect the execution and delivery of the Bond Purchase Agreement, the Supplemental Indenture, a Continuing Disclosure Agreement, and a Tax Regulatory Agreement providing for the exclusion of interest on the Series 1998 Bonds from federal income taxation, and the performance of all obligations of the City under • each such agreement, the issuance, execution, sale, and delivery of the Series 1998 Bonds, the 3 distribution of the Preliminary Official Statement and an Official Statement, and the performance of • all acts of whatever nature necessary to effect and carry out the authority conferred hereby. Section 7. Tax-Exempt Obligations. The Series 1998 Bonds are hereby designated as a "Qualified Tax-Exempt Obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"). The City represents that the aggregate principal amount of its Qualified Tax-Exempt Obligations (excluding "Private Activity Bonds" within the meaning of Section 141 of the Code which are not "Qualified 501 (c)(3) Bonds" within the meaning of Section 145 of the Code), including those of its subordinate entities, issued in calendar year 1998 is not expected to exceed $ 10,000,000. Section S. Clerk to File Documents. That the City Clerk is hereby authorized and directed to file in the office of the City Clerk, as a part of the minutes of the meetings at which this Ordinance is adopted, for inspection by any interested person, a copy of the Bond Purchase Agreement, the Supplemental Indenture, and the Preliminary Official Statement in the forms presented to the City Council at this meeting. Section 9. Powers of Commission. That the powers and authority of the Commission under the Act and the Turnback Law and prior ordinances of the City and all actions of the Commission taken or to be taken thereunder with respect to the Series 1998 Bonds, are hereby ratified, confirmed, and continued. Section 10. No Rights Until Series 1998 Bonds Delivered. That this Ordinance shall not • create any right of any kind and no right of any kind shall arise hereunder or pursuant hereto until the Series 1998 Bonds authorized by this Ordinance shall be issued and delivered. Section 11. Severability. That the provisions of this Ordinance are hereby declared to be separable and if any provision shall for any reason be held illegal or invalid, such holding shall not affect the validity of the remainder of this Ordinance. Section 12. Conflicts Repealed. That all ordinances and parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. Adopted: 1998. APPROVED: ATTEST: Fred B. Hanna, Jr., Mayor Heather Woodruff, City Clerk • ( SEAL ) xwe� mresm.�.nnmu� jazz-saaroma.awa 4