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.
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By:�.../a/n-) l/jaY-
Heather Woodruff, City Clerk
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AGREEMENT
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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.
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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
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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:
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AGREEMENT
EXHIBIT •A'
Page 1 of 4
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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
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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
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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
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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.
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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
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City Cid*
V
STATE BOARD OF FINANCE
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By: ,' rt/'I C,Cc.
CITY OF-£AYETTEVILIIE, ARKANSAS
By: ..' c=tt t ✓.I /44Cl( t:eL.