HomeMy WebLinkAbout195-90 RESOLUTIONAGREEMENT p
This AGREEMENT executed as of the. I . day of (SSC {yid ,
1990, by and between the State Board of Finance, an agency of the
State of Arkansas (hereinafter called "State") and the City of
Fayetteville, Arkansas, a City of the first class organized and
existing pursuant to the laws of the State of Arkansas (hereinaf-
ter called "City").
W I T N E S S E T H:
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," Act
763, Acts of Arkansas of 1977, as amended; and
WHEREAS, a copy of said agreement is attached hereto marked
Exhibit "A" and incorporated herein byreferencethereto; and
WHEREAS, said agreement provides that the term thereof shall
be for two (2) years commencing July 1, 1983, but subject to
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 t'
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 determi-
nation, 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 FOL-
LOWS:
I. The aforesaid agreement between the State and City
dated July 1, 1983, shall be extended:for an additional term of
two (2) years commencing July 1, 1991.
II. The City certifies to the ,State that the additional
State sales and income tax revenues to be derived from the'City's
Tourist Meeting Facilities is estimated, projected or found to be
$672,576 for the fiscal year 1991-1992 and $672,576 for the
fiscal year 1992-1993.
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
$346,715 for the fiscal year 1991-1992 and $342,041 for the
fiscal year 1992-1993 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 S�c•!,d AL AG��RE
'� "�I
day of I
executed in duplicate originals as of the Miff'
, 1990.
ATTES &L
By: i4CI el)4 .o -c. _
Title: Chief Deputy
ATTEST:
c
JBy: -
y-_ 'City C1
0ESI
STA BOARD OF FINANCE
By: 1
Title: Chairman
City OF F TTEVILLE ARKANSAS
By. u i� y
Mayor
x .r.
CITY OF FAYETTEVILLE, ARKANSAS
AND THE CONTINUING EDUCATION CENTER
ESTIMATED TAX REVENUES TO BE DERIVED
FOR FISCAL YEARS JULY 1, 1991 - JUNE 30, 1992 AND
JULY 1, 1992 - JUNE 30, 1993
CALCULATION:
Estimated'number of delegates per year'
Estimated spending per delegate per day
Average number of days per delegate
Multiplier
Tax Factor
Estimated Tax Revenuesper year
Estimated Tax Revenues per year
Allowable turnback per original contract
Estimated Turnback assistance per year for
1991 -1992 and 1992-1993
9,370
x $112.84
$ 1,057,311
x 3.1
$ 3,277,664
x 4
$13,110;656
x .0513
$ 672,576
$ 672,576
x 66.67%
448,406
TURNBACK LIMIT:
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds- 1991-1992
Limit per original contract
Limit on turnback assistance for 1991 -1992
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds -1992-1993
Limit per original contract
Limit on turnback assistance for 1992-1993
$ 433,394
x 80°%,
$ 346,715
$ 427,551
x 80%
$ 342,041
CALCULATION BASES:
Estimated number of convention delegates per year
Based on actual delegate count of 18,739 from
1/1/88-12/31/89.
Estimated spending per delegate per day - Based
on a survey conducted by the .International
Association of Convention and Visitor Bureaus:
Convention delegate
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 - Based on
actual delegate days 1/1/88 - 12/31/89 of 58,496
divided by actual delegates of 18,739.
Multiplier as in original agreement
Tax factor - Supplied by the Little Rock
Convention Center
9,370
$126.50
x 89.2%
$112.84
3.1 days
4
.0513
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Section 1: Urban Area Index Data
Comparative Data for 284 Urban Areas
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•
•
CONVENTION
DELEGATE
Delegate
expenditures
Association
expenditures
TOTAL
1988
• ESTIMATES FOR
AVERAGE SPENDING GENERATED PER
DELEGATE AND DELEGATE DAY
SPENDING SPENDING
GENERATED GENERATED PER
PER DELEGATE OELEGATE DAY
1988 1986 %Chg. 1988 1986 % Chg.
$518.65 $477.49 8.6 $126.50 $125.66 0.7
54.40 49.43 10.1 13.27 13.01 2.0
$573.05 8526.92 6.7 $139.77 $138.67
TRADE SHOW
DELEGATE
Delegate $518.65 $477.49
expenditures
Association 54.40 49.43
expenditures
Exhibitor 274.33 243.31
expenditures
Exposition service 19.11 17,31
contractor
expendilures
'TOTAL 8866.49 $787.54 16.0 $211.34
r.A 111 0.• C‘. . 1.11. r+rn lM.IItAL]
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
0.8 stay per delegale
8.6 $126.50 $125.66 0.7
10.1 13.27 13.01 2.0
12.7 66 91 64.03 4.5
10.4 4.66 4.56 2.2
Average length of stay 4.1 days
Average travel party size 1.71 persons
8
$207.26 2.0
3.8 days
1.65 persons
Average travel
party size
Association
expenditures per
delegate
Exhibitor
expenditures per
delegate
Exposition service
contractor
expenditures per
delegate
TOTAL
SUMMARY OF RESULTS
PERCENTAGE
U.S.CITIES ONLY INCREASE
1985 - 1986 1988 86-88
5453.46 $477.49 $518.65 8.6%
$122.56 $125.66 $126.50 0.7%
3.7
1.80
$45.55
$201.36
$17.31
$717.68
3.8
1.65
4.1 7.9%
1.71 3.6%
$49.43 $54.40 10.1%
8243.31 5274.33 12.7%
$17.31 519.11 10.4%
$787.54 5866.49 10.0%
•
•
AGREEMENT
EXHIBIT "A"
Page l of 4
F,
e
THIS AGREEMENT made and entered into this 1st day of Jdly,
1983, by and between the State Board of Finance, an Agency of the
State of Arkansas (hereinafter called "State") and the City of
Fayetteville, Arkansas, a city of the first class organized and exist-
ing pursuant to the laws of the State of Arkansas (hereinafter
v
called "City"):
WITNESSETH
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 Facilities Assistance Law,"
aittnrj zes „scar 7+rl ^s ctan. to nual.ifving cities and comities
for constructing and/or securing tourist and entertainment -facili-
ties; and
WHEREAS, the General Assembly, in'the enactment of said legis-
lation, found and determined that "it is in the interest of both
the State and its Cities and Counties for the State to assist any
City or County in financing tourist meeting facilities and tourist
entertainment facilities by paying to the City or County a portion
of the increased State Sales Tax revenues 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 ap?ro-
priate application to the State for financial assistance for said
faciliti awer�
.. v's-siQns of said
legislation; and
WHEREAS, the State, after notice and in keening with all other
provisions of Act 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 application and following such public
hearing made the following findings and determinations:
(a) That the tourist meeting facilities of and by the City,
are eligible facilities and have been financed by the
•
•
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 financing of such facilities through
a combination of the City's bonds and state assistance under Act
763, Acts of Arkansas of 1977, as amended, including Act 356, Aqts
of Arkansas, 1983, is in the best interest of the City and the
State and the City's application should be approved.
(b) That the additional State Sales and Income Tax revenues
to be derived from the City's tourist meeting facilities is esti-
mated and projected and found to be $122,278.00 for the fiscal year
1983-1984 and $179,759.00 for the fiscal year 1984-1985.
(c) That the investment multiplier for computing additional
State Sales and Income Tax revenues is fixed at 4x.
(d) That the debt service requirements of the City for the
bonds issued to finance these facilities for the years 1982 through
2014 are set forth on page 3 of the City's application for state
•
and made a part hereof as though set out herein •cord for word.
(e) That the State assistance shall be two/thirds (2/3) of
the additional State Sales and Income Tax revenues herein estimated
and projected to be generated by the facilities annually, but in
no case shall such exceed eighty (80%) percent of the annual debt
service on the bonds issued to finance the facilities.
NOW, THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS:
I.
The parties hereto mutually understand 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 agrees to pay to the City for
debt services as reflected on page 3 of Exhibit "A" attached
hereto on the City's bonds hereinabove described issued to finance
•
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r
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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 application, 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 $119,339.00 for fiscal
year 1984-1985 and directs the said Treasurer to make quarterly
payments to said City from the "City -Counties Tourist Facilities
Aid Fund" established pursuant to the provisions of Act 763, Acts
of Arkansas of 1971, as amended, including Act 356, Acts of
A±Kausas,- 1983. it is understood by tiie pasties that the City
will recertify, at the beginning of each two year term that this
Agreement is extended, if any, 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 dur-
ing the ensuing term all for the purpose of computing the amount
of state assistance to be paid the City for said ensuing term.
IV.
Payment of such assistance funds by the State shall be made
to the Trustee designated by the holder of the City's bonds •
(First Bank & Trust Company of McnintP4r Hgmo j rk anF nr
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 the City 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.
-3-
•
•
EXHIBIT "A"
Page 4 of 4
V.
Payment of assistance funds as provided for 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 Assembly to make any appropriation
pursuant to Act 763,
ing Act 356, Acts of
Acts of Arkansas of 1977, as amended, includ-
Arkansas, 1983, or 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 approval of the General Assembly,
will be extended from time -to -time for additional terms, which
additional terms shall not exceed two (2) years.
This Agreement may be executed in duplicate of counterparts,
each of which when so executed and delivered shall constitute an
Qt cj.n?] 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:
City Clerk 1% i
V
STATE BOARD OF FINANCE
1
By; X1,1
CITY OF�__EAYETTEVIILI'E, ARKANSAS
By: .•. C(cc-4-• /.) ' //c�Y�C �i"!.
-4-
r•
RESOLUTION NO. 195-90
A RESOLUTION AUTHORIZING THE EXECUTION OF 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 18th day of
APPROVED:
By:
Mayor
"ATTEST:
a
By. City C
20k, -
r,
J
•
' " towA(h-
erk.'5
December
•
1990.