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HomeMy WebLinkAbout151-00 RESOLUTIONRESOLUTION NO. 151-00 0 MICR©FILMED A RESOLUTION APPROVING THE TWO YEAR RENEWAL AGREEMENT WITH THE STATE BOARD OF FINANCE FOR TURNBACKREVENUES FOR THE CONTINUING EDUCATION CENTER UNDER THE TOURIST MEETING AND ENTERTAINMENT FACILITIES ASSISTANCE ACT AND AUTHORIZES THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves the two year renewal agreement with the State Board of Finance for Turnback Revenues for the Continuing Education Center under the Tourist Meeting and Entertainment Facilities Assistance Act and authorizes the Mayor and City Clerk to execute said agreement. A copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this 7'" day of November , 2000. APPROVED. By: NAki F e Hanna, Mayor ATTEST: i!r eather Woodruff, City C k i NAME OF FILE: %tdi,i2 . i�/ 40 CROSS REFERENCE: Date Contents of File Initials /lD7ca SIA/a A6. x /—DD 411 f X st(* t,i/,��1d) /o -/o -on ri 4 49 %,62/5/Pi l/lF'/12�c/) �.���." � ir e"�� /167-oo de 'aS�A-�z • AGREEMENT This AGREEMENT executed as of the day of 20 , 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 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 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, 2001. 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 $347,109 for the fiscal year 2001-2002 and $347,109 for the fiscal year 2002-2003. 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 $296,978 for the fiscal year 2001-2002 and $295,959 for the fiscal year 2002-2003 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 day of , 20_. ATTEST: By: Title: ATTEST: //d/ / By: A City Clem U STATE BOARD OF FINANCE By: Title: City OF FA% TTEV LLE, ARKANSAS By: Ma or 1 City of Fayetteville, Arkansas Estimated tax revenues generated by and maximum allowable turnback assistance for The City of Fayetteville Continuing Education Center For Fiscal Years July 1, 2001 - June 30, 2002 and July 1, 2002 - June 30, 2003 • • \C:tbcal 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 2001-2002 and 2002-2003 5,076 212.53 1,078,802 1.568 1,691,562 4 6,766,248 0.0513 347,109 347,109 66.60% 231,174 TURNBACK LIMIT: Debt service requirements on City of Fayetteville Continuing Education Center Bonds - 7/01/2001-6/30/2002 Limit per original contract Limit on turnback assistance for 2001-2002 Debt service requirements on City of Fayetteville Continuing Education Center Bonds - 7/01/2002-6/30/2003 Limit per original contract Limit on turnback assistance for 2002 - 2003 371,223 80.00% 296,978 369,949 80.00% 295,959 • • City of Fayetteville, Arkansas • Estimated tax revenues generated by and maximum allowable turnback assistance for The City of Fayetteville Continuing Education Center For Fiscal Years July 1, 2001 - June 30, 2002 and July 1, 2002 - June 30, 2003 \C•tbcal CALCULATION BASES: Estimated number of convention delegates per year - Based on actual delegates for the period of 07/01/99 - 06/30/00 Estimated spending per delegate per day - Based on a a 1999 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 - 1st quarter, 2000. Average number of days per delegate - Based on actual delegate days 7/01/99 - 6/30/00 of 7,961 divided by number of delegates of 5,076 Multiplier* Tax factor * Source - State Board of Finance Policies and Procedures October 25, 1996 5,076 238.00 89.30% 212.53 1.568 4 .0513 • • • • • • • AGREEMENT • EXHIBIT 'A' Page I of • 'THIS AGREEME,,jT made and entered into this 1st day of Tdly, • 1983, by and between the State Hoard 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 finaneial.assistance to aiu3ifvinq cities and counties for constructing and/or securing tourist and entertainment faeili- 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,Couaty 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 Citi 'tourist meeting facilities' being a convention center and has made ap2ro- priate application to the State for financial assistance for said facilities a;_1 .----kdar-ny and cenfoz.m a re„.iisions 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 - eluding Act 356, Acts of Arkansas; 1983, held a public hearing on March 1, 1993 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 ...-.--+.?- W.,. Wm.. • - . • • • • • 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, Aqts 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 5179,759.00 for the fiscal year 1984-1985., . .(c) That the investment multipller.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.::.. x. :.?F -- tic.., =4.d Exhibit is :tr ...1 It... . 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 (804) percent of the annual debt service on the bonds issued to finance the facilities. NOW, THEREFORE, THE PARTIES HERETO MDTOALLY.AGREE AS FOLLOWS: . 1. . 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 • er— • Melo • , • EXHIBIT 'V Page 3 of 4 • the tourist meeting facilities an amount equal to two-thirds (2/3) of the additional State Sales and IncomeTaxrevenues hereinabove estimated and projected to be generated by said tourist facilities as described in the City's application, but not more than eighty (801) percent of the annual debt service requirements of said bonds. • III. The State hereby covenants and agrees that it vill 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,»9.00 for the fiscal year 1983-1984 and the sum of 5119,839.00 for fiscal year 1984-7985 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, 1Yb3. 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. 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 a Trust Company of Mountain Fame, 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 saidtbonds shall be returned forthwith to the State Treasurer. • • • • • • • • • • • • • • • EXHIBIT 'A' Page 4 of 4 V. Payment of assistance funds as provided for herein in 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. • 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 ort',ine3. 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: •1 'it'1! City C1eekk 4 T • vs . STATE BOARD OF FINANCE (By: CITY OF,EAYEITEVILT)E, ARKANSAS By: 'ALL //�47 t�f::e • • BOND DEBT SERVICE CEC REFUNDING ISSUE • SERIES 1995 Serial Bonds Period Annual Ending Principal Coupon Interest Debt Service Debt Service Sep 28, 1995 - - Apr 1, 1996 - 77,042.29 77,042.29 - Oct 1, 1996 245,000.00 4.250% 66,036.25 311,036.25 383,078.54 Apr 1, 1997 - 60,830.00 60,830.00 Oct 1, 1997 255,000.00 4.500X 60,830.00 315,830.00 376,660.00 Apr 1, 1998 - 55,092.50 55,092.50 - Oct 1, 1998 265,000.00 4.750% 55,092.50 320,092.50 375,185.00 Apr 1, 1999 - 48,798.75 48,798.75 Oct 1, 1999 280,000.00 4.900% 48,798.75 328,798.75 377,597.50 Apr 1, 2000 - 41,938.75 41,938.75 Oct 1, 2000 295,000.00 5.000% 41,938.75 336,938.75 378,877.50 Apr 1, 2001 - 34,563.75 34,563.75 -. Oct 1, 2001 310,000.00 5.100% 34,563.75 344,563.75 379,127.50 Apr 1, 2002 - 26,658.75 26,658.75 - Oct 1, 2002 325,000.00 5.150% 26,658.75 351,658.75 378,317.50 Apr 1, 2003 - 18,290.00 18,290.00 Oct 1, 2003 340,000.00 5.200% 18,290.00 358,290.00 376,580.00 Apr 1, 2004 - 9,450.00 9,450.00 - Oct 1, 2004 360,000.00 5.250%. 9,450.00 369,450.00 378,900.00 2,675,000.00 734,323.54 3,409,323.54 3,409,323.54 MIMIM 28 -Aug -95 3:05 pm Prepared by LLAMA COMPANY (Finance 2.300 FAYETTEV:CEC,CECREFND-1995) Page 7 FAYETTEVI tLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: Fred Hanna Mayor, City of Fayetteville FROM: John Maguire Administrative Services Director DATE: October 16, 2000 SUBJECT: AGENDA ITEM - CEC TURNBACK The City of Fayetteville entered into an agreement with the State Board of Finance on July 1, 1983, whereby the City receives financial assistance for the payment of debt service on the Continuing Education Center bonds. This assistance is granted under the "City -County Tourist Meeting and Entertainment Facilities Assistance Law" and returns to the City a portion of the increased State Sales Tax and State Income Tax revenues attributable to the qualifying facility. The original agreement was for a two year term and is renewable for additional terms, not to exceed two years each, until all the bonds are redeemed and all interest due is paid. The current agreement for consideration is for a period of two years beginning July 1, 2001. The amount of turnback assistance is limited to eighty percent (80%) of the debt service requirement on the CEC Bonds. The amount received under this agreement will be determined by actual delegate attendance at qualifying meetings and is contingent upon appropriation of funds by the State Legislature. • X AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW STAFF REVIEW FORM For the Fayetteville City Council meeting of November 7, 2000 FROM: Emma Badgley Name Admin. Services Acctq/Audit Division Department ACTION REQUIRED: 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. COST TO CITY: $ None Cost of this Request Account Number Project Number Category/Project Budget Category/Project Name Funds Used To Date Program Name Remaining Balance Fund BUDT REVIEW: Budgeted Item Budget Adjustment Attached _ BGdjet'Manager Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: i i Aocou in o. a ge City Attorn- Q GRANTING AGENCY: tttti /0 /7 "CO en.0147—Q"Llob 8107) D @ Interna Auditor Date Purchasing Officer )61 /I /da Date ADA Coordinator Date lb 118100 Date Grant Coordinator Date STAFF RECOMMENDATION: Division Head D ices Director Mayor /0-7/7-Oo Date D Date Cross Reference New Item: Yes No Prev Ord/Res #: Orig Contract Date: Orig Contract Number: FAYETTEV/LLE THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Emma Badgley, Administrative Services From: Heather Woodruff, City Clerk Date: November 13, 2000 Attached is a copy of Resolution 151-00 approving the two year renewal agre ment with the State Board of Finance for turnback revenues for the Continuing Education Center under the Tourist Meeting and Entertainment Facilities Assistance Act. Also attached are four original agreements that need signatures. Please attain the signatures and return (1) one original to the City Clerk's office where it will be microfilmed and filed. cc: Nancy Smith ��I t• • • 1 • • • o•. • RESOLUTION NO. 151-00 • A RESOLUTION APPROVING THE TWO YEAR RENEWAL AGREEMENT WITH THE STATE BOARD OF FINANCE FOR TURNBACK REVENUES FOR THE CONTINUING EDUCATION CENTER UNDER THE TOURIST MEETING AND ENTERTAINMENT FACILITIES ASSISTANCE ACT AND AUTHORIZES THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council hereby approves the two year renewal agreement with the State Board of Finance for Tumback Revenues for the Continuing Education Center under the Tourist Meeting and Entertainment Facilities Assistance Act and authorizes the Mayor and City Clerk to execute said agreement. A copy of the agreement is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this7' day of November 2000. APPROVED. By: F eteadifra anna, Mayor ATTEST: L�c wither Woodruff, City C k If 4