HomeMy WebLinkAbout4-96 RESOLUTION• •
RESOLUTION NO. 4-96
A RESOLUTION APPROVING A LEI 1ER AGREEMENT
WITH STEPHENS, INC. TO PERFORM UNDERWRITING
SERVICES IN CONNECTION WITH THE REFUNDING OF
THE SALES TAX CAPITAL IMPROVEMENTS BONDS,
SERIES 1986 ISSUED TO ASSIST FINANCING OF THE
WALTON PERFORMING ARTS CENTER.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
5ection 1. The Council hereby approves a letter agreement with Stephens, Inc in
connection with the refunding of the Sales Tax Capital Improvements Bonds, Series 1986, which
were issued to assist in the financing of the Walton Performing Arts Center and authorizes the
Mayor and City Clerk to execute said agreement. A copy of the letter agreement is attached
hereto marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 16th day of January 1996.
Traci Paul, City Clerk
APPROVED:
By:
.4(
11
Stephens Inc.
EXHIBIT A
January 4, 1996
Mr. Ben Mayes
Director of Administrative Services
City of Fayetteville
113 West Mountain
Fayetteville, AR 72701
RE. Underwriting Services for the City of Fayetteville
Dear Mr. Mayes
Stephens Inc. is pleased to provide underwriting services for the City of Fayetteville in connection with
refunding the City's 1986 Sales and Use Tax Bond Issue. This letter is to serve as an Engagement Agreement
between the City of Fayetteville and Stephens Inc. for underwriting services.
Our scope of services will be as submitted in our response to the City's RFP 95-7. As indicated in our
response, we will provide you with an analysis of financing options, debt service schedules, and prepare a report on
pricing the bonds. In addition, we will be available to make presentations to review and explain the financing
alternatives. Once a structure is complete, we will then, based on your approval, offer the bonds.
To initiate this process, we would request that the City of Fayetteville agree to designate Stephens Inc. as
underwriter for the proposed financing. It is understood that the City will not be obligated to our firm for
underwriting costs in the event that the bonds are not sold or in the event that the City Council fails to adopt an
Ordinance approving the bond issue. Our compensation will be limited solely to the sell of the bonds, the terms of
which, including the underwriting discount, will be subject to your approval. In any event, the underwriting fee will
not exceed .85% of the issue. Stephens agrees to pay all travel, phone, and computer expenses from the
underwriter's discount. All other costs relating to the issuance of the bonds will be paid from bond proceeds or from
existing funds.
If the foregoing is in accordance with your understanding and our previous discussions, please execute the
acceptance below. We look forward and appreciate the opportunity to work with you on restructuring this issue.
Accepted this gik day ofjo. eic..o/749fig
DH/jms
Respectfully submitted,
By:
By:
Stephens Inc.
City of Fayetteville
Investment Bankers
Executive Square • One West Mountain • Fayetteville, Arkansas 72701
501-521-4708 Fax 501-521-6770