HomeMy WebLinkAbout114-90 RESOLUTIONf
RESOLUTION NO.
114-90
A RESOLUTION AUTHORIZING AN AGREEMENT WITH THE
STATE BOARD OF FINANCE.
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to execute an agreement with the State
Board of Finance for turnback revenues under the Tourist Meeting
and Entertainment Facilities Assistance Act A copy of the
agreement authorized for execution hereby is attached hereto
marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 17th day ofjuly
BA ST •
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J
.... `;
:44;11S7:-14. 4✓
� y/City -erk 431.77:
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APPROVED:
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By:
Asst. Mayor
� Y '
, 1990.
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AGREEMENT
This AGREEMENT executed as of the 19 6Lday
1990, by and between the State Board of Finance,
of
an agency
,
of the
State of Arkansas (hereinafter called "State") and the City of
Fayetteville, Arkansas,a City of the
existing pursuant to the laws of
(hereinafter called "City").
first class organized and
WITNESSETH:
the State of Arkansas
WHEREAS, the State and the City executed an agreement dated
July 1, 1983, pursuant to which the City has received financial
assistance from the State as authorized by the "City -County
Tourist Meeting and Entertainment Facilities Assistance Law,"
763, Acts of Arkansas of 1977, as amen
WHEREAS, a copy of said agreement
Exhibit "A" and incorporated herein by
WHEREAS, said agreement provides
Act
ed; and;
is attached hereto marked
reference thereto; and
that the term thereof shall
be for two (2) years commencing July 1, 1983, but subject to
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approval of the General Assembly, will be extended from time to
time for additional terms, which additional terms shall not exceed
two (2) years; and
WHEREAS, said agreement provides that the City will
recertify, at the beginning of each two year term that said
agreement is extended, for the State's consideration and
determination, the additional State sales and income tax revenues
to be generated by said Tourist Meeting Facilities of the City
during the ensuing term all for the purpose of computing the
amount of State assistance to be paid the City for said ensuing
term.
NOW, THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS:
I. The aforesaid agreement between the State and City dated
July 1, 1983, shall be extended for an additional term of one (1)
year commencing July 1, 1990.
II. The City certifies to the State that the additional
State sales and income tax revenues to be derived from the City's
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Tourist Meeting Facilities is estimated, projected or found to be
$ 672,576.00 for. the fiscal year 1990-1991.
III. The State hereby covenants and agrees that it will
certify to the State Treasurer the amount of assistance to be paid
the City which the State hereby agrees to be the sum of
$346,864.00 for the fiscal year 1990-1991 and directs the said
treasurer to make quarterly payments to said City from the "City -
County Tourist Facilities Aid Fund" established pursuant to the
provisions of Act 763, Acts of Arkansas of 1977, as amended.
IV. As modified by the Agreement, the agreement between the
State and the City dated July 1, 1983, shall continue to full
force and effect.
This AGREEMENT executed in duplicate originals as of the (9)611/4-,
day of
a
r
1 4
f'•'
r.. Y e.ger
Acting 'Chairman
ATTEST • 0 /�
8y : /��Lf d e &etJiv
Robert C. Brow
Title: Chief Deputy, Treasurer of State's Office
et
✓r�o
.ATTEST:
-,.' j -v' • / �f G _ s=ifs )
• chs !!/ice
City Cher
CITY FAYET dp ARKANSAS
BY' /L�
Asst. Mao
2
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AGREEMENT
THIS AGREEMENT made and entered
1983, by and between the State
State of Arkansas (hereinafter
Fayetteville, Arkansas, a city
Board
calle
of th
ing pursuant to the laws of the Stat
called "City"):
WITNESSETH
EXHIBIT "A"
Page 1 of 4
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asirrmal
into this 1st day of Jdly,
of Finance, an Agency of the
"State") and the City of
first class organized and exist -
of Arkansas (hereinafter
WHEREAS, Act 763, Acts of Arkansas of 1977, as amended, includ-
ing Act 356, Acts of Arkansas, 1983, cited as the "City -County
Tourist Meeting and Entertainment F cilities Assistance Law,"
authorizes financial assistance to ualifying cities and counties
for constructing and/or securing tourist and entertainment facili-
ties; and-.
WHEREAS, the
lation, found and
the State and its
General Assembly, in the enactment of said legis -
determined that "it is in the interest of both
Cities and Counties for the State to assist any
City or County in financing tourist meeting facilities and tourist
entertainment facilities by paying JJ:o the City or County a portion
of the increased State Sales Tax reenues and State Income Tax
revenues attributable thereto as in this Act provided;" and
WHEREAS, the City has constructed in the said City "tourist
meeting facilities" being a convention center and has made appro-
priate application to the State for
financial assistance for said
facilities all in keeping and conf rmance with provisions of said
legislation; and
WHEREAS, the
provisions of Act
State, after notice and in keeping with all other
763, Acts of Arkansas of 1977, as amended, in-
cluding Act 356, Acts of Arkansas, 1983, held a public hearing on
March 1, 1983 on the City's appliction and following such public
hearing made the following finding and determinations:
(a) That the tourist meeting facilities of and by the City,
are eligible facilities and have been financed by the
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EXHIBIT "A"
Page 2 of 4
City through the issuance of Four Million and Four Hundred Seventy -
Five Thousand and 00/100 ($4,475,000.00) Dollars in Tourism Revenue
Bonds issued by the City under Act No. 380 of the Acts of Arkansas
of 1971, as amended; that the financi:,lg of such facilities through
a combination of the City's bonds and
763, Acts of Arkansas of 1977, as
of Arkansas, 1983,
state assistance under Act
ameded,
is in the best intrestlI
State and the City's application should be
(b) That the additional
to be derived from the City's
mated and projected and found
1983-1984 and $179,759.00 for
(c) That the investment
State S
tourist
to be $
the fiscal
including Act 356, Acts
of the City and the
approved.
les and Income Tax revenues
meeting facilities is esti-
22,278.00 for the fiscal year
year 1984-1985.
for computing additional
multipl
State Sales and Income Tax revenues
(d) That the debt service requi
bonds issued
2014 are set
assistance a
ier
is fixed at 4x.
rements of the City for the
to finance these facilities for the years 1982 through
forth on page 3 of the City'sIapplication for state
copy of which, marked E�thibit "A", is attached hereto
and made a part hereof as though set
(e) That the State assistance s
the additional State Sales and Incom
and projected to be generated by the
out herein word for word.
all be two/thirds (2/3) of
Tax revenues herein estimated
facilities annually, but in
no case shall such exceed eighty (80%) percent of the annual debt
service on the bonds issued to finane the facilities.•
NOW, THEREFORE, THE PARTIES HER
TO MUTUALLY AGREE AS FOLLOWS:
I.
The parties hereto mutually and rstand and agree that this
contract is made and entered into in keeping with and pursuant to
authority of Act 763, Acts of Arkansas of 1977, as amended, includ-
ing Act 356, Acts of Arkansas, 1983.
II.
The State hereby covenants and
debt services as reflected on page
hereto on the City's bonds hereinab
agrees to pay to the City for
of Exhibit "A" attached
ve described issued to finance
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EXHIBIT "A"
Page 3 of 4
the tourist meeting facilities an amount equal to two-thirds (2/3)
of the additional State Sales and Income Tax revenues hereinabove
estimated and projected to be generated by said tourist facilities
as described in the City's applicatio
n, but not more than eighty
(80%) percent of the annual debt service requirements of said
bonds.
III.
The State hereby covenants and agrees that it will certify
to the State Treasurer the amount of assistance to be paid the
City which the State hereby agrees to be the sum of $81,519.00
for the fiscal year 1983-1984 and the sum of $119,839.00 for fiscal
year 1984-1985 and directs the said 'reasurer to make quarterly
payments to said City from the "City1Counties Tourist Facilities
Aid Fund" established pursuant to the provisions of Act 763, Acts
of Arkansas of 1971, as amended, including Act 356, Acts of
Arkansas, 1983. It is understood by the parties that the City
will recertify, at the beginning of eachltwo year term that this
Agreement is extended, if any, for the State's consideration and
determination, the additional State hales and income tax revenues
to be generated by said tourist meet_ng facilities of the City dur-
ing the ensuing term all for the purpose of computing the amount
of state assistance to be paid the C_ty for said ensuing term.
IV.
Payment of such assistance funds
by the State shall be made
to the Trustee designated by the holfc?er of the City's bonds
(First Bank & Trust Company of }4ountkin Home, Arkansas or its
successor) and said Trustee shall apply all such funds received
from said City -County Tourist Facilities Aid Fund to the payment
of or redemption of said bonds of theiiCity and to the payment of
interest thereon. City covenants that any remaining funds re-
ceived from the State after retirement of said bonds shall be
returned forthwith to the State Treasurer.
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EXHIBIT "A"
Page 4 of 4
V.
Payment of assistance funds as providedlfor herein is subject
to approval by and appropriation of the General Assembly of the
State of Arkansas and nothing herein Contained shall be construed
to be a demand of the General Assembl' to make any appropriation
pursuant to Act 763, Acts of Arkansas
of 1977, as amended, includ-
ing Act 356, Acts of Arkansas, 1983,+br to prohibit the General
Assembly from amending or repealing the said Act at any time.
VI.
The term of this Agreement shall be for two (2) years commenc-
ing July 1, 1983, but subject to appz'Ioval of the General Assembly,
will be extended from time -to -time fdr additional terms, which
additional terms shall not exceed two (2) years.
This Agreement may be executed n duplicate of counterparts,
each of which when so executed and d$livered shall constitute an
original, but all of which together ((shall constitute one and the
same Agreement.
THIS AGREEMENT executed in duplicate originals this 1st day
of July, 1983.
ATTEST:
ATTEST:
1 44.171 aelt .7/7
fl
City Clekk
V
(J r
STATE BOARD OF FINANCE
By: 4/1'1 !_.:[.c. A.
CIT
By:
OF.EAYETTEVILI,E, ARKANSAS
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CITY OF FAYETTEVILLE, ARKANSAS
AND THE CONTINUING EDUCATION CENTER
ESTIMATED TAX REVENUES TO BE DERIVED
FOR FISCAL YEAR JULY 1, 1990 - JUNE 30, 1991
CALCULATION:
Estimated number of delegates 9,370
Estimated spending per delegate per day x $112.84
$ 1,057,311
Average number of days per delegate x 3.1
$ 3,277,664
Multiplier x 4
$13,110,656
Tax Factor x .0513
Estimated Tax Revenues $ 672,576
Estimated Tax Revenues
Allowable turnback per original contract
Estimated Turnback assistance for 1990 -1991
$ 672,576
x 66.67%
$ 448,406
TURNBACK LIMIT:
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds- 1996-1991
Limit per original contract
Limit on turnback assistance for 1990 -1991
$ 433,580
x 80%
$ 346,864
CALCULATION BASES:
Estimated number of convention delegates per year -
Based on actual delegate count of 18,7b9 from
1/1/88-12/31/89.
Estimated spending per delegate per da' - Based
on a survey conducted by the International
Association of Convention and Visitor Bureaus:
9,370
Convention delegate $126.50
Adjusted by Cost of Living Index for
Fayetteville -Springdale Area for the
fourth quarter of 1989, produced by the
American Chamber of Commerce Researchers
Association.
Average number of days per delegate -
actual delegate days 1/1/88 - 12/31/89
divided by actual delegates of 18,739.
ased on
of 58,496
Multiplier as in original agreement
Tax factor - Supplied by the Little Rock
Convention Center
x 89.2%
$112.84
3.1 days
4
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• CONVENTION
DELEGATE
Delegate
expenditures
Association
expenditures
TOTAL
n • zINTERNATIONAL ASSOCIATION OF CONVENTION & VISFFOR BUREAUS
1988
ESTIMATES FOR
AVERAGE SPENDING GENERATED PER
DELEGATE AND DELEGATE DAY
SPENDING
GENERATED
PER DELEGATE
SPENDING
GENERATED PER
DELEGATE DAY
t
1
1988 1986 %Chg. . 1988 1986 %Chg.
$518.65 $477.49 8.6 $126.50 $125.66
54.40 49.43 10.1 13.27 13.01
$573 05 $526.92 6.7 $139.77 $138.67
TRADE SNOW
DELEGATE
Delegate $518.65 $477.49 8.6 $126.50
expenditures
Association 54.40 49.43 10.1 13.27
expenditures
Exhibitor 274.33 243.31 12.7 66.91
expend lures
Exposit'on service 19.11 17.31 10.4 4.66
contractor
expenditures
TOTAL $866.49 $787.54 10.0 $211.34
Average length of stay 4.1 days
Average travel party size 1.71 persons
$125.66
13.01
64.03
0.7
2.0
0.8
4
SEP 2 21989
Conducted By
Laventhol &Horvath
Research Division
COMPARISON OF U.S. DELEGATE
SPENDING, '85, '86 &'88
Average total
expenditure per
delegate
Average daily
expenditure per
delegate
Average length of
slay per delegate
Average travel
party size
Association
0.7 expenditures per
delegate
2.0 Exhibitor
expenditures per
4.5 delegate
Exposition service
4.56 2.2 contractor
expenditures per
delegate
TOTAL
$207.26 2.0
3.8 days
1.65 persons
SUMMARY OF RESULTS
1985
$453.46
$122.56
3.7
1.80
$45.55
$201.36
$17.31
$717.68
U.S.CITIES INLY
1986 1988
PERCENTAGE
INCREASE
86-88
$477.49 $518.65 8.6%
$125.66 $126.50 0.7%
3.8 4.1 7.9%
1.65 1.71 3.6%
$49.43 $54.40 10.1%
$243.31 $274.33 12.7%
$17.31 $19.11 10.4%
$787.54 $866.49 10.0%