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HomeMy WebLinkAbout148-98 RESOLUTION• RESOLUTION NO 148-98 A RESOLUTION APPROVING CONTRACT RENEWAL OPTIONS OF AN EXISTING CONTRACT ENDING JULY 1, 1999, FOR A TWO YEAR PERIOD WITH THE STATE BOARD OF FINANCE FOR FINANCIAL ASSISTANCE FROM THE STATE FOR TURNBACK REVENUES FOR THE CONTINUING EDUCATION CENTER UNDER THE CITY -COUNTY TOURIST MEETING AND ENTERTAINMENT FACILITIES ASSISTANCE ACT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 That the City Council hereby approves contract renewal options of an existing contract ending July 1, 1999, for a two year period with the State Board of Fmance for financial assistance from the state for tumback revenues for the Continuing Education Center under the City - County Tourist Meeting and Entertainment Facilities Assistance Act; and authorizes the Mayor and City Clerk to execute said contract. A copy of the contract is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this nit day of November , 1998. i t, t. Y - ., 'j et :i C. ts:11. lit- •` t , 1 ST:b... \,,. By:�.../a/n-) l/jaY- Heather Woodruff, City Clerk 4 4 AGREEMENT 1q2-9 g This AGREEMENT executed as of the IS+S day of �U N E 1991, 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 It -. 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, 1999. 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 $487,623 for the fiscal year 1999-2000 and $487,623 for the fiscal year 2000-2001. 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 $296,590 for the fiscal year 1999-2000 and $297,202 for the fiscal year 2000-2001 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 in full force and effect. • This AGREEMENT executed in duplicate originals as of the /3"1.. day of J�l(E , 19 RSI . ATTEST: By: jaeiSLL Title: TREASURER OF STATE STATES $M OF Fj NAN By: Title: GOVERNOR City OF �A/AY�ETTEUARKANSAS By: M/////6v ayor State of Arkansas JUL 2 3 1999 FINANCE 1191 Jimmie Lou Rsher Office of the State Treasurer Telephone: (501) 682-5888 Treasurer of State Fax. (501) 682-3820 July 19, 1999 Ms. Emma Badgely Fayetteville Continuing Education Center 113 West Mountain Fayetteville, AR 72701 Dear Ms. Badgely: RECEIVED Cm OF FAYErrEviux CITY CLERK'S OFFIOE I have enclosed the executed agreement pertaining to state assistance to the Fayetteville Continuing Education Center approved by the State Board of Finance. If you have any questions, please call me at 682-3839. Sincerely, SherriDarbyk� Chief Operating Officer 220 State Capitol Building • Little Rock, AR 72201 STAFF REVIEW FORM x AGENDA REQUEST x CONTRACT REVIEW GRANT REVIEW ORDINANCE REVIEW For the Fayetteville City Council meeting of November 17. 1998 FROM: Emma Badgley Accounting Admin. Services Name Division Department ArTTnN RRQTTTRFfl• Approval of a two year renewal of an agreement with the State Board of Finance for turnback revenues for the Continuing Education Center under the Tourist Meeting and Entertainment Facilities Assistance Act. rAST TA (•TTV• None Cost of this Request Account Number Project Number 300.Dd0L6/11ta>L 41-1c Category/Project Budget Category/Project Name L CI (04-4. Funds Vilma To Date Program Name Raca+o.d / ,,.... 11 t2) %`itt COutTc1V/rVp �C Lem Remaining Balance Fund BUDGE EVIEW: F' Budgeted Item Budget Adjustment Attached Coordinator rANTRArT/f:RANT/T.F.ASF. RRVTRW• itAA4h jA14n Al Acco ting M ager IIXX'YY//// el Cit M Attorn Purchasing Officer STAFF RRfAMMRNfATTON• Administrative Services Director fRANTTNf. AfF.M V • /8 X9-98 Date Date to -a9 R8 Date ADA CoordinatorCY� Date &ILS Gpj/ /0 -z9 -yr ernal Auditor Date Staff recommends approval. k.1,,. � .��-. l /o -a0-9s Division Bead Date D11partment Director Date i Administrative Services Director Date j � Milt kr May r Date Cross Reference New Item. Prev Ord/Res #: Orig Contract Date: • • • • • AGREEMENT EXHIBIT •A' Page 1 of 4 • THIS AGREEMENT made and entered into this 1st day of .7dly, 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 £inancial.assistance to aua)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 appro- priate application to the State for financial assistance for said facilitias t1 •?„ •ktuzi.lny tnd ccnform_n_a r1 Iizions 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 o( 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 •=:.t:� •. :.p ��^d Emh bit in _ttc`.._ . i:.••. 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 (801) percent of the annual debt service on the bonds issued to finance the facilities. NOW, THEREFORE, THE PARTIES HERETO MUTUALLY AGREE AS FOLLOWS: 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 • • • • • 4 • 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 (80S) 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 $81,5449.00 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, £i$3. 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 c Trust Company of !fountain Rome, 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 heiein 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. 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 nr.itinr3_,hnt 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: '71-:C01/ C01l • • City Cid* V STATE BOARD OF FINANCE n .. • By: ,' rt/'I C,Cc. CITY OF-£AYETTEVILIIE, ARKANSAS By: ..' c=tt t ✓.I /44Cl( t:eL.