HomeMy WebLinkAbout110-96 RESOLUTIONRESOLUTION NO. 110-96
A RESOLUTION APPROVING AN AGREEMENT WITH THE
STATE BOARD OF FINANCE FOR TURNBACK OF SALES
AND INCOME TAX FUNDS FOR THE CONTINUING
EDUCATION CENTER (CEC) UNDER THE TOURIST AND
ENTERTAINMENT FACILITIES ASSISTANCE ACT.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
,Section 1. That the Council hereby authorizes Mayor and City Clerk to execute an
agreement with the State Board of Finance for turnback of sales and income tax funds for the
Continuing Education Center (CEC) under the Tourist and Entertainment Facilities Assistance
Act. A copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof.
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PASSED AND APPROVED this 15th day of October , 1996.
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\A.TTEST:
By:
/Lt
Traci Paul, City Clerk
APPROVED:
By:
red Hanna, Mayor
Jimmie Lou Fisher
State of Arkansas
Office of the State Treasurer
Telephone: (501) 682-5888
Treasurer of State Fax. (501) 682-3820
RECEIVED
MAY 0 8 1997
CfTY OF MAYOR'S OFFICE LE
May 7, 1997
Mr. Ben R. Mayes
Administrative Services Director
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
Dear Mr. Mayes:
Enclosed is an executed copy of the agreement approved in the State Board of
Finance meeting April 23, 1997.
With best regards, I am
Sincerely,
Donna Musgrove
for the State Board of Finance
220 State Capitol Building • Little Rock, AR 72201
AGREEMENT
y This AGREEMENT executed as of the �Z20 day of C!
19q7, 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").
WITNESSETH:
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 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 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, 1997.
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, pro3ected or found to be $450,616
for the fiscal year 1997-1998 and $450,616 for the fiscal year
1998-1999.
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 $296,738
for the fiscal year 1997-1998 and $295,113 for the fiscal year
1998-1999 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 this 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 c723Ad
day of
1 1917.
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EXHIBIT 'A'
Page l of
AGREEMENT
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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,'
Authorizes financial.assistancn to anllifvtna 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 appro-
priate application to the State for financial assistance for said
facilities til •l.. •ki::rin; and ccaform_n_a rt .+iaions 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 3S6, Acts of Arkansas, 1983, held a public hearing on
March L. 1983 on the City's application and following such public
hearing made the following findings and determinations:
(a) That the tourist ceeting 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 (54,475,000.00) 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 tihrough
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 beat 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 5179,759.00 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
• .---:.Ltt.: t _:.py _- : -c.a. .2=kod Exhibit E., it Wit:....: 1:.:..
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
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EXHIBIT •A'
Page 3 of f
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 S81.539.00
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
Arkansas, iyb3. 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.
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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 Mountain Pome, Arkansas or its
successor) and said Trustee shall apply alt -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.
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EXHIBIT 'A'
Page of
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.
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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
nrini.nei. hat 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:
f
City Clekk
1 !Jfi
41
STATE BOARD OF FINANCE
By, "RN 1,•�L•\�•C.t:-1:�._
CITY OraAYET/TEVILII'E. ARXANSAS
,,
City of Fayetteville, Arkansas .
and the Continuing Education Center
Estimated Tax Revenues to be Derived
For Fiscal Years July 1, 1997 — June 30, 1998 and
July 1, 1998 — June 30, 1999
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 turnback per original contract
Allowable turnback assistance per year for
1997-1998 and 1998-1999
1C:tbcal
TURNBACK LIMIT:
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds — 7/01/97-6/30/98
Limit per original contract
Limit on turnback assistance for 1997-1998
Debt service requirements on City of Fayetteville
Continuing Education Center Bonds — 7/01/98-6/30/99
Limit per original contract
Limit on turnback assistance for 1998-1999
5,550
165 97
921,134
2.384
2,195,982
4
8,783,929
0.0513
450,616
450,616
66 67%
300,425
370,923
80.00%
296,738
368,891
80.00%
295,113
City of Fayetteville, Arkansas
and the Continuing Education Center
Estimated Tax Revenues to be Derived
For Fiscal Years July 1, 1997 — June 30, 1998 and
July 1, 1998 — June 30, 1999
CALCULATION BASES:
Estimated number of convention delegates per year—
Based on actual delegate count of 11,100 from
07/01/94 — 06/30/96
Estimated spending per delegate per day — Based on a
a 1993 survey conducted by the International Association
of Convention and Visitor Bureaus.
Adjusted by Cost of Living Index for
Fayetteville—Springdale Area produced by
the American Chamber of Commerce
Researchers Association.
Average number of days per delegate — Based on
actual delegate days 7/01/94 — 6/30/96 of 26,464
divided by number of delegates of 11,100
\C:tbcal
5,550
183.39
90.50%
165.97
2.384
Multiplier as in original agreement 4
Tax factor — supplied by the Little Rock
Convention Center .0513
17A
lbonddebt
CITY OF FAYETTEVILLE, ARKANSAS
SUMMARY OF BONDED INDEBTEDNESS
As of December 31, 1995
HOTEL AND RESTAURANT GROSS RECEIPTS TAX REFUNDING BONDS,
SERIES, 1995
Year Interest
Rate
Principal
October 1
Interest
April 1
1996
1997
1998
1999
2000
2001
2002
2003
2004
4.250%
4.500%
4.750%
4.900%
5.000%
5.100%
5.150%
5.200%
5.250%
245,000
255,000
265,000
280,000
295,000
310,000
325,000
340,000
360,000
$2,675,000
77,042
60,830
55,093
48,799
41,939
34,564
26,659
18,290
9,450
$372,666
October 1
66,036
60,830
55,092
48,799
41,939
34,564
26,659
18,290
9,450
$361,659
Total
388,078
376,660
375,185
377,598
378,878
379,128
378,318
376,580
378,900
$3,409,325
I10U-03-1994 11:00 IRCUE
2022967889 P.01'03
BINTERNATIONAL ASSOCIATION OF CONVENTION & VISITOR BUREAUS
2000 L Street. NW. Suite 702 • Washington. DC USA 20036-4990 • Phonc: 202/296-7888 • Fax: 202/296.7889
Facsimile Cover Sheet
Comments:
Dort't Miss These Upcoming IACVB Events & Programs!
February 7, 1995 • Destinations Showcase • Chicago, IL USA
February 8, 1995 • IACVB Foundation 2nd Annual Fundraising Gala • Washington, DC USA
February 9, 1995 • Destinations Showcase • Washington, DC USA
February 18-21, 1995 • Mld-Winter Management & Education Conference • Kansas City, MO USA
July 15-18, 1995 • IACVB Slst Annual Convention • Phoenix, AZ USA
To:
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Company:
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Phone:
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Fax:
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Company:
IACVB
International Headquarters
Phone:
202/296-7888
202/296-7889
11-i- '-
Fax:
Date:
Pages including
this cover page:
3
Comments:
Dort't Miss These Upcoming IACVB Events & Programs!
February 7, 1995 • Destinations Showcase • Chicago, IL USA
February 8, 1995 • IACVB Foundation 2nd Annual Fundraising Gala • Washington, DC USA
February 9, 1995 • Destinations Showcase • Washington, DC USA
February 18-21, 1995 • Mld-Winter Management & Education Conference • Kansas City, MO USA
July 15-18, 1995 • IACVB Slst Annual Convention • Phoenix, AZ USA
ph
.N00-03-1994 11:01
IRCUB
2022967889 P.03'03
Breakdown of Delegate Expenditures
All Conventions
Type of Expenditure
Hotel Rooms
Hotel Restaurants
Other Restaurants
Hospitality Suites
Admission to Shows
Recreation
Sporting Events
Sightseeing
Retail Stores
Local Transport
Auto Rectal
Gasoline
Other
Total
Darr Pa Dckgue a 3.4E
Total
Expenditures
5294.16
77.25
78.53
21.11
10.97
5.00
249
9.63
82.69
12.31
16.66
9.19
1821
5638.20
Percent of Total
Table 2
Daily
Expendltures
384.53
2220
2237
6.07
3.15
1A4
0.72
2.77
23.76
3.54
4.79
2.64
5.21
X183.39
Hotel PDX=
. Hotel Retaaanu
*her Remnants
Hospitality Suites
Admission to Show
Reautim
Shins Events
Sightseeing
Retail Stores
Local Transport
Auto Rental
Gasoline
*ha
096
4649%
1210%
I230%
•3.31%
1.72%
0.78%
039%
13l4
1296%
1
20% 407. 6096 80% 103%
10
TOTAL P R3
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