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Home My WebLink About137-92 RESOLUTION• • RESOLUTION NO. 137-92 A RESOLUTION AUTHORIZING ENTERING INTO AN AGREEMENT WITH THE NORTHWEST ARKANSAS REGIONAL AIRPORT AUTHORITY ENTITLED, AN AGREEMENT REGARDING REVENUE BONDS AND NON -LIABILITY OF MEMEBERS FOR OBLIGATIONS OF THE NORTHWEST ARKANSAS REGIONAL AIRPORT AUTHORITY. 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 Northwest Arkansas Regional Airport Authority entitled, Agreement Regarding Revenue Bonds and Non -Liability of Members for Obligations of the Northwest Arkansas Regional Airport Authority. A copy of the Agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 15th day of September , 1992. ATTEST: / . City CleIk APPROVED: Mayor j ` PLSSELL ELROD 1I404 .9151 IONN R ELROD GEORGIA E.RCD DANIEL R ELROD DEKA C DICKINSON* • ELROD LAW FIRM '23 5OL'e' BROAD%AY POST O•}ICE DRAMFR 4190 S:I (HM SPRIN.F ARKANSAS ^'91 ' ELL. ICI -124.119 •AK 501 521 7!10 • Also l.0+Nd 19 Omrom. MEMORANDUM TO: Mayers, City A±dnistrators and County Judges of Siloam Springs, Bentonville, Rogers, Springdale, Fayetteville, Benton County and Washington County; Merhe_rs of the Board of Directors of the Northwest Arkansas Regional Airport Authority; Legal Counsel for the cities of Siloam Springs, Ber*onvi'le, Rogers, Springdale and Fayetteville and Washnngton and BentonsCounties FROM: John R. Elrod , " RE: Enclosed Agreement DATE: August 21, 1992 Ladies and Gentlemen: At the meeting of the Northwest Arkansas Regional Airport Authority of Thursday, August 20, 1992, : was directed to prepare an agreement, contractual in nature, for presenta*ion to each of you underlining once and for all that obligations of the Authority, if and when incurred, will be obligations only of the Authority and not of its governmental menhimrs. We all should be aware by now that the Authority is a stand-alone corporate entity and that Arkansas law does not permit the governmental entities which make up the membership of the Authority to be obligors of any revenue bonds it may issue. :t nust answer to you, its members, but you are not legally responsible to perform its obligations. Nevertheless, we have been told that there continues to be same confusion in the minds cf the general public and thus the agreement enclosed intends to put that notion to rest, once and for all. I have not drafted a resolution or ordinance, but would request that each of you give immediate and due consideration to authorizing your respective chief executive officers to execute the agreement by appropriate means. Please anticipate that members of the Authority board who represent your jurisdiction will be in touch with you in the very near future to assure agenda consideration and answer any questions you might have. • Memo - Page 2 August 21, 1992 If I can be of any further help please do not hesitate to contact me. Otherwise, I would appreciate your returning the agreement, executed by your appropriate officers, to me as soon as possible whereupon I will accunilate all, place then in a packet and return to the seven jurisdictions. Thank you again fcr your help. JRE/jh cc* Gira Scott Mark Minton Andrea Harter Kent Marts Rusty Garrett JRE • • • • • NORTHWEST ARKANSAS REGIONAL AIRPORT AUTHORITY AG u REGARDING REVENUE BONDS AND NON -LIABILITY OF MEMBERS FOR OBLIGATIONS OF THE NORTHWEST ARKANSAS REGIONAL AIRPORT AUTHORITY This agreement :s made and entered into on the signature date set forth below. In consideration of the mutual promises and covenants contained herein the parties agree as fo:lows: 1. RECITALS. In November and December, 1990, the cities of Bentonville, Fayetteville, Rogers, Siloam: Springs and Springdale, Arkansas and the counties of Benton and Washington created :he Northwest Arkansas Regional Airport Authority by mutual agree:nen: pursuant to the authority of Ark. Code Ann. Sectior. 14, Chapter 262. As created, the Authority has a corporate existence separate and apart from that of the municipalities and counties which formed it and which elect its 14 person Board of Directors. Ark. Code Ann. 14-362-110 et seq. describes the nature of revenue bonds authorized to be Issued by the Authority. If and when the Authority obtains permission from the Federal Aviation Administration and the governing bodies which constitute i:s membership to proceed with the development of a financing plan for the construction of an airport facility, it is anticipated that revenue bonds authorized to be issued by Ark. Code Ann. 14-362-110 et seq. will be a necessary part of the airport funding mechanism. Ark. Code Ann. 14-362-115 provides, inter alfa: (a) The revenue bonds issued under this chapter shad be obligations only of the Authority and shall not be general obligations of any county or municipality. (b) (1) In no ever.t shall the revenue bonds constitute an indebtedness of any county or municipality within the meaning of any constitutional or statutory limitation. • (2) It shall be plainly stated on the face of each bond that is has been issued under the provisions of this chapter and that it does not constitute an indebtedness of any county or municipality within any constitutional or statutory limitation. 2. PURPOSE OF THIS AGREEMENT. The Authority has been informed that there continues to be confusior in the minds of some of the citizens of Northwest Arkansas as to whether :he obligations of the Authority, once incurred, will solely be the obligations of the Authority and not those of its governmental members. The parties hereto wish to clarify that situation and to bird themselves contractually as described in the following paragraph. 3. AGREEMENT. For :he reasons set forth above the cities of Bentonville, Fayetteville Rogers, Siloam Springs and Springdale, Arkansas, and the counties of Benton and Washington agree that: a. Any rever.ue bonds issued by the Northwest Arkansas Regional Airport Authority for the purpose of constructing a new airport facility for the use of the citizens of Northwest Arkansas and the surrounding area, if and when, shall be obliga:ions only of the Authority, backed by the pledge of its assets, and shall not be the obligation, by guarantee, or otherwise, of the governmental entities which are members of the Authority, all in accordance with Arkansas law. b. The Authority shall not seek the appropriation of funds from any city or county member. c. The Authority shall not ask any city or county member to pledge its full faith and credit to back any bonds issued by the Authority. d. The Authority shall not enter into a separate contract with any of its city or county members which wouid financially obligate such city or county to assume any financial liability for bonds issued by the Authonty. e. None of the city or county members of the Authority shall in any manner be obligated to guarantee any financial undertakings of the Authority or any actions taken by the Authority as may be prescribed by law. • • • • • CITY OF SPRINGDALE, ARKANSAS BY: • • • ATTEST: DATE: COUNTY OF BENTON, ARKANSAS BY: ATTEST: DATE: COUNTY OF WASHINGTON, ARKANSAS BY: ATTEST: DATE NORTHWEST ARKANSAS REGIONAL AIRPORT AUTHORITY BY: ATTEST: DATE 4