HomeMy WebLinkAbout26-93 RESOLUTION•
•
RESOLUTION NO. 26-93
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AN AGREEMENT WITH THE STATE
BOARD OF FINANCE TO RECEIVE TURNBACK REVENUES
FOR REPAYMENT OF DEBT SERVICE ON THE
CONTINUING EDUCATION CENTER BONDS UNDER THE
TOURIST MEETING AND ENTERTAINMENT FACILITIES
ASSISTANCE ACT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section I. That the City Council hereby authonzes the Mayor and City Clerk to
execute an agreement with the State Board of Finance to receive turnback revenues for repayment
of debt service on the Contmuing Education Center bonds under the Tourist Meeting and
Entertainment Facilities Assistance Act A copy of the agreement authorized is attached hereto
marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 17th day of February , 1993.
ATTEST:
By:
Sherry L. Thomas, City Clerk
APPROVED:
By:
red Hanna, Mayor
•
•
•
AGREEMENT
This AGREEMENT executed as of the 26th day of January
1993, 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 (hereinafter
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 by reference thereto; 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
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 AB FOLLOWS:
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, 1993.
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 $569,033
for the fiscal year 1993-1994 and $569,033 for the fiscal year
1994-1995.
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 $3401832
for the fiscal year 1993-1994 and $342.815 for the fiscal year
1994-1995 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 26th
day of January
ATTES �D
By: iI'- i(,�
, 1993.
Title:
Secretary
ATTEST:
By:
STATE, ARD FINnximisim
By M •7 Ale'Ake
Title: Chairman
City O71erk
City OF�n I E, ARKANSAS
By:
�
yor
City of Fayetteville, Arkansas
and the Continuing Education Center
Estimated Tax Revenues to be Derived
For Fiscal Years July 1, 1993 — June 30, 1994 and
July 1, 1994 — June 30, 1995
CALCULATION:
Estimated number of delegates per year
Estimated spending per delegate per day
Average number of days per delegate
Multiplier
Tax factor
Estimated tax revenues per year
Estimated tax revenues per year
Allowable tumback per original contract
Allowable tumback assistance per year for
1993-1994 and 1994-1995
TURNBACK UMIT:
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds — 7/01/93-6/30/94
Umit per original contract
Limit on tumback assistance for 1993-1994
Debt service requirements on City of Fayettevile
Continuing Education Center Bonds — 7/01/94-6/30/95
Umit per original contract
Umft on tumback assistance for 1994-1995
CALCULATION BASES:
Estimated number of convention delegates per year—
Based on actual delegate count of 19,733 from
01/01/90 — 09/30/92
Estimated spending per delegate per day — Based
on a survey conducted by the International
Association of Convention and Visitor Bureaus.
Adjusted by Cost of Living Index for
Fayetteville—Springdale Area for the
third quarter of 1991, produced by the
American Chamber of Commerce Researchers
Association.
Average number of days per delegate — Based on
actual delegate days 1/1/90 — 9/30/92 of 56,146
divided by number of delegates of 19,733.
Multiplier as In original agreement
7,176
135.83
974,716
2.845
2,773,067
4
11,092,269
0.0513
569,033
569,033
66.67%
379,375
426,040-
80%
340,832
428,519
80%
342,815
7,176
151.94 •
89.40%
135.83
2.845
4
Tax factor — supplied by the Little Rock
Convention Center 0513
t
•
Third Quarter 1991
Annual Subscription $100
Single Issue Price S50
W
0
z
J
0
co
0
0
Comparative Data for 304 Urban Areas
Section 1: Urban Area Index Data
Section 2: Average Prices
PRODUCED BY
ge
K
N
HEALTH CARE
siir it
N 00044
P P N
s r.^^RR sat
N1y pp My1� gMPN
S P q 4 O P P S O 22t C
M
& =A
0 '
K o $ S
W—
r
H F
1
2
I
ACCRA COST OF LIVING INDEX
0
INCE% WEIGHTS
J N,00 q '0 M OOJN M
ii S^Pc S i
a
SiSS
M J 'O—cccN
PI CNA
4
2222
O'
• yqy�
S O O OOq 1°I1
gON4 JJ
!SS 2; O OOO O 0 q 0401.0
JMq .Ap
S P •
S O g q p $
J O O. o N NPm0. .1411 qO 47"."4. N AAO r•• OD M WI P
••
O NN ONS
0 SSS pp222
'.PpO O
1111' 0
el 0p1 q Mp A q °ANA
A S A S pp P N NJNN
P P P P 0 O S P
• A 7 P n
S S t
O N O A q
A AOA N
r on on lei Vseeee
Np 0 pNp —pp O.J�pp4M
P O 0 N Ps
� M J J
N JM AJJ
8 P P
'nem
G
PSS
O
••
S q 0/J�pp
y�� .gy- N A r q A
•cNO Jryry MJ1 O �O
0' zcs
vVI N NOq q �C
P X OOP g O
.NI N� OM.*
O P O P O
<
_N Y
1.O/ O,-y�q
P O P P O
J pAp 4Ny�
d O P
t
O
W J O
N ` - t ` Y Y` Z J l
~ N_ Y N N_ N_ V`1 <C < S H at K <
W J Y < I< < < Z Y+y y N y
Yf } Iy O t l < C <
W < S V
.4<< 0 I J< L<• <<— Y <( N J < O •• K y
<LJ<<{Y���J<` • O: 08 <J S< tY< 1y<�I�8•V Vo.
YfmNOV8�6D`g•
N =� O L M< • C Y 0< O` 1 5 M < G <` i 1 M Y OL g •
ou
I% Y°•°—"i I 9.. =libel/ W1 Y L �O .yj33T1.LJY. l tliiE '"
0 0 i A j 1000 o• ' It Ni i
PN
P
0
30
65
IACVB CONVENTION INCOME SURVEY 3/92
DELEGATE WORTH TO H
INCREASED 6.5% IN 19!
Based on the Travel Price Index (TPI) through De
being used to update the economic impact of cony
community in 1991. Economic impact figures we
Convendon Income Survey conducted by Lavendi
Data Center's Travel Price Index measures change
lodging, food, transportation and other goods and
away from home in the U.S. The information is b
data. Each element is weighted to derive the inde
The than below indicates delegate worth to a ho
a 4.1 day stay.
T COMMUNITY
91, an adjustment of 6.5% is
l trade show delegates to a host
lly determined by the IACVB
oath in 1988. The U.S. Travel
;asonally unadjusted costs of
urchased by Americans traveling
S. Dept. of Labor consumer price
Per stay figures are based on
N • 1
PER DELEGATE STAY PER DELEGATE DAY
1988 1989 1990 1991 1988 1989 1990 1 1991
CONVENTION DELEGATE
126.50 131,74
13.27 13.82
142.67
151.94
TRADE SHOW DELEGATE
Delegate Expenditures
Assn Expenditures
Exhibitor Expenditures
Expo. Srv. Contractor Exp.
1
:.rc.r}.:•:9X;v.
584.95
61 35
309.40
21.56
622.97
65.34
329.51
22.95
126.50
13.27
66.91
4.66
131.74
13.82
69.68
4.85
142.67
14.97
75.46
5.26
151.94
15.94
80.37
5.60
jriylyidoessui Yli�...�
BREAKDOWN OF DELEGATE EXPENDITURES
Hotel Room & Incidentals
Hotel Restaurants
Other Restaurants
Hospltallty Suites
Entertainment
Retol Stores
Local Transportatlort
Other
TaOTxAto
OTAL;1,
264.56
56.87
59.08
26.86
25.95
42.44
22.39
20.50
275.51
59.22
6153
27.97
27.02
44.20
23.32
21.35
298.38
64.14
66,63
30.29
29.27
47.87
25.25
23.12
317.78
68.31
70.96
32.26
31.17
50.98
26.89
24.62
64.30
13.87
14.41
6.55
6.56
10.35
5.46
5.00
66.96
14.43
15.01
6.82
6.83
10.78
5.69
5.22
72.51
15.63
16.26
7.39
7.40
11.67
&16
5.65
77 23
16.65
17.31
7.87
7.88
12.43
6.56
6.01
Year
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999 and
thereafter
Numbered
1- 7
8-20
21-38
39-60
61-84
85-109
110-136
137-165
166-195
196-227
228-262
263-300
301-340
341-384
385-430
431-895
CITY Of FAYETTEVILLE, ARZANSAS
ENTERPRISE FUNDS
SUIMIARY OF 80110ED INDEBTEDNESS
DECENSER 31,1983
Continuing Education Center Revenue Bonds
Interest
Principal April 1-bitober 1 Total
S 35,000 S
65,000
90,000
110,000
120,000
125,000
135,000
145,000
150,000
160,000
175,000
190,000
200,000
220,000
230,000
170,843
169,662
167,452
164,347
160,497
156,237
151,737
146,843
141,551
136.061
130.040
123,478
116,353
108,853
100,603
2,325,000 381,937
5 4.475 000 S 2,526,434
S 170,843
169,662
167,452
164,347
160,497
156,237
151,737
146,843
141,550
136,000
130,041
123,476
116,353
108,853
100,603
381,038
S 376 686
404 324
424,904
438,694
440,994
437,474
438,474
438,686
433,101
432,001
435,081
436,956
432,706
437,706
431.206
3,088,875
S 2,526,434 S
Note: Bonds dated October 1, 1979, Ordinance Number 2567
Paying agent: First National Bank L Trust Co. of fountain Home
Principal due date: October 1
Interest payment dates: April 1, October 1
Interest rates: 6.75% to 7.875'.
See accory.. • notes.
•
9,527,868
•
•
AGREEMENT
EXHIBIT "A"
Page l of 4
•
r�
•
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
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,"
ant.horizes financial assistance to ana)ifvtnq cities and counties
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
facilities rx11 ... •k tiny aid ccaforn_nca ..i..t rc.,Ji.3ions of said
legislation; and
WHEREAS, the State, after notice and in keeping 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, Acts
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
cd S :h4^=hi t
,
it attc . , .,
.,
and made a part hereof as though set out herein word 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
-2-
•
fir "
•
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 $119,839.00 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
wrxansas, sib3. It is understood by the parties 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 Comoany of Mountain Rom', 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 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.
•
•
•
•
•
•
•
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, Acts of Arkansas of 1977, as amended, includ-
ing Act 356, Acts of 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
nrininat. h»*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:
CCU f
City c1e k
J1
STATE BOARD OF FINANCE
By: AA/1 1 . (.
CITY OF.FAYETTEVIL71E, ARKANSAS
�; 4;
By: . ' cCcc ite-C6 C 4: