HomeMy WebLinkAbout67-16 RESOLUTION113 West Mountain
Street Fayetteville,
AR 72701
(479) 575-8323
Resolution: 67-16 ARCH I d E D
File Number: 2016-0102
FAYETTEVILLE PUBLIC FACILITIES BOARD:
A RESOLUTION RATIFYING THE RESOLUTION OF THE FAYETTEVILLE PUBLIC FACILITIES
BOARD APPROVING A REFUNDING AND IMPROVEMENT REVENUE BOND (BUTTERFIELD
TRAIL VILLAGE PROJECT), SERIES 2016 IN A PRINCIPAL AMOUNT OF NOT TO EXCEED
$17,450,000; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO
WHEREAS, The Fayetteville Public Facilities Board (the 'Board"), is a public body politic and corporate
with the power of perpetual succession created by Ordinance No. 2485, as amended (collectively, the
"Ordinance"), of the City of Fayetteville, Arkansas (the "City") under the constitution and laws of the State
of Arkansas (the "State"), including the Public Facilities Boards Act as codified at Arkansas Code Annotated
§14-137-101 et seq., as amended (the "Act"); and
WHEREAS, the Board is authorized by the Act and the Ordinance to issue and sell its revenue bonds and to
use the proceeds thereof for the purpose of financing housing, health care and related facilities in the City to
serve elderly persons so long as such facilities are owned by nonprofit corporations and to secure payment of
such revenue bonds as therein provided, and to issue refunding bonds, all in accordance with the provisions
of the Act and the Ordinance; and
WHEREAS, Butterfield Trail Village, Incorporated, an Arkansas nonprofit corporation, owns a residential
life care retirement facility for the elderly known as 'Butterfield Trail Village" consisting of independent
living units, a skilled nursing care center and related facility located on approximately 44 acres of land at
1923 E. Joyce Boulevard in the City ('Butterfield Trail Village"); and
WHEREAS, the Board has previously issued its Refunding Revenue Bonds (Butterfield Trail Village
Project), Series 2010 (the "2010 Bonds"); and
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File Number.' 2016-0102
Resolution: 67-16
WHEREAS, the Board has determined that the economic interest and public purpose of the Board are served
by issuing its Refunding and Improvement Revenue Bond (Butterfield Trail Village Project), Series 2016
(the "Bond") in a principal amount of not to exceed $17,450,000 for the purpose of providing moneys to (a)
refund the 2010 Bonds (the "Refunding"), and (b) finance all or a portion of the costs of improvements for
Butterfield Trail Village, including particularly, without limitation, (i) acquiring, constructing, renovating,
remodeling, equipping and furnishing common areas in the Main Residential Building, including
particularly, without limitation, improvements to the main hallways, resident hallways, elevators, the library,
meeting rooms, the game room, stairwells and atriums, (ii) acquiring, constructing, renovating, remodeling,
equipping and furnishing the Health Care Center in the Main Residential Building, including particularly,
without limitation, improvements to hallways, nursing stations, offices, meeting rooms, resident rooms, and
auxiliary spaces, and (iii) acquiring, constructing, renovating, equipping and furnishing an approximately
17,200 square foot expansion to the Main Residential Building to include particularly, without limitation, a
new lobby and entryway, a convocation room and offices (collectively, the "2016 Project"), to pay the costs
of issuing the Bond and accomplishing the Refunding and for other purposes related thereto: and
WHEREAS, the Bond is not a debt of or pledge of the credit of either the City or the Board and neither the
City or the Board is obligated to pay debt service on the Bond; and
WHEREAS, pursuant to the provisions of the Ordinance, resolutions adopted by the Board which authorize
the approval of bonds for financing and refinancing residential housing, health care and related facilities for
the elderly which are owned by non-profit corporations are required to be ratified by the City prior to the
issuance of such bonds; and
WHEREAS, such resolution adopted by the Board on March 1, 2016 (the "Board Resolution"), authorized
the issuance of the Bond to accomplish the Refunding and to finance the 2016 Project and authorized the
Chairman and Secretary of the Board to execute and delivery the Bond and documents to effect the issuance
of the Bond;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS
Section 1. Recognition of Board's Authority. The Board is authorized by the Act and the Ordinance to
approve the issuance of the Bond in a principal amount of not to exceed $17,450,000 for the purpose of
providing moneys to accomplish the Refunding, to finance all or a portion of the costs of the 2016 Project, to
pay the costs of issuing the Bond and accomplishing the Refunding, and for other purposes related thereto and
shall comply with other provisions of the Act and the Ordinance. The Bond by statute and intent of this City
Council is not a debt of or pledge of the credit of either the City or the Board and neither the
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File Number. 2016-0102
Resolution: 67-16
City nor the Board is obligated to pay debt service on the Bond whether or not the Bond has
been properly issued.
Section 2. Ratification of Board's Resolution. The provisions of the Board Resolution, a copy of
which is filed with the Clerk of the City, are hereby ratified by the City.
Section 3. Severability. If any provision of this Resolution shall be held or deemed to be or shall, in
fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or
provisions herein contained or render the same invalid, inoperative or unenforceable to any
extent whatever.
Section 4. Repeal of Resolutions in Conflict. All resolutions and parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
PASSED and APPROVED on 3/15/2016
Attest:
Sondra E. Smith, City Clerk Treasurer
`;1"/iYETTEViLLL;
`V � f ()
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r:� ..- - City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
41 Text File
File Number: 2016-0102
Agenda Date: 3/15/2016 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: C. 1
FAYETTEVILLE PUBLIC FACILITIES BOARD:
A RESOLUTION RATIFYING THE RESOLUTION OF THE FAYETTEVILLE PUBLIC
FACILITIES BOARD APPROVING A REFUNDING AND IMPROVEMENT REVENUE BOND
(BUTTERFIELD TRAIL VILLAGE PROJECT), SERIES 2016 IN A PRINCIPAL AMOUNT OF NOT
TO EXCEED $17,450,000; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO
WHEREAS, The Fayetteville Public Facilities Board (the 'Board"), is a public body politic and
corporate with the power of perpetual succession created by Ordinance No. 2485, as amended
(collectively, the "Ordinance"), of the City of Fayetteville, Arkansas (the "City") under the constitution
and laws of the State of Arkansas (the "State"), including the Public Facilities Boards Act as codified at
Arkansas Code Annotated §14-137-101 et seq., as amended (the "Act"); and
WHEREAS, the Board is authorized by the Act and the Ordinance to issue and sell its revenue bonds
and to use the proceeds thereof for the purpose of financing housing, health care and related facilities in
the City to serve elderly persons so long as such facilities are owned by nonprofit corporations and to
secure payment of such revenue bonds as therein provided, and to issue refunding bonds, all in
accordance with the provisions of the Act and the Ordinance; and
WHEREAS, Butterfield Trail Village, Incorporated, an Arkansas nonprofit corporation, owns a
residential life care retirement facility for the elderly known as 'Butterfield Trail Village" consisting of
independent living units, a skilled nursing care center and related facility located on approximately 44
acres of land at 1923 E. Joyce Boulevard in the City ('Butterfield Trail Village"); and
WHEREAS, the Board has previously issued its Refunding Revenue Bonds (Butterfield Trail Village
Project), Series 2010 (the "2010 Bonds"); and
WHEREAS, the Board has determined that the economic interest and public purpose of the Board are
served by issuing its Refunding and Improvement Revenue Bond (Butterfield Trail Village Project),
Series 2016 (the 'Bond") in a principal amount of not to exceed $17,450,000 for the purpose of
providing moneys to (a) refund the 2010 Bonds (the "Refunding"), and (b) finance all or a portion of the
costs of improvements for Butterfield Trail Village, including particularly, without limitation, (i)
acquiring, constructing, renovating, remodeling, equipping and furnishing common areas in the Main
Residential Building, including particularly, without limitation, improvements to the main hallways,
resident hallways, elevators, the library, meeting rooms, the game room, stairwells and atriums, (ii)
acquiring, constructing, renovating, remodeling, equipping and furnishing the Health Care Center in the
Main Residential Building, including particularly, without limitation, improvements to hallways,
City of Fayetteville, Arkansas Page 1 Printed on 311612016
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File Number: 2016-0102
nursing stations, offices, meeting rooms, resident rooms, and auxiliary spaces, and (iii) acquiring,
constructing, renovating, equipping and furnishing an approximately 17,200 square foot expansion to
the Main Residential Building to include particularly, without limitation, a new lobby and entryway, a
convocation room and offices (collectively, the "2016 Project"), to pay the costs of issuing the Bond and
accomplishing the Refunding and for other purposes related thereto: and
WHEREAS, the Bond is not a debt of or pledge of the credit of either the City or the Board and neither
the City or the Board is obligated to pay debt service on the Bond; and
WHEREAS, pursuant to the provisions of the Ordinance, resolutions adopted by the Board which
authorize the approval of bonds for financing and refinancing residential housing, health care and
related facilities for the elderly which are owned by non-profit corporations are required to be ratified by
the City prior to the issuance of such bonds; and
WHEREAS, such resolution adopted by the Board on March 1, 2016 (the "Board Resolution"),
authorized the issuance of the Bond to accomplish the Refunding and to finance the 2016 Project and
authorized the Chairman and Secretary of the Board to execute and delivery the Bond and documents to
effect the issuance of the Bond;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS
Section 1. Recognition of Board's Authority. The Board is authorized by the Act and the Ordinance
to approve the issuance of the Bond in a principal amount of not to exceed $17,450,000 for the purpose
of providing moneys to accomplish the Refunding, to finance all or a portion of the costs of the 2016
Project, to pay the costs of issuing the Bond and accomplishing the Refunding, and for other purposes
related thereto and shall comply with other provisions of the Act and the Ordinance. The Bond by
statute and intent of this City Council is not a debt of or pledge of the credit of either the City or the
Board and neither the City nor the Board is obligated to pay debt service on the Bond whether or not the
Bond has been properly issued.
Section 2. Ratification of Board's Resolution. The provisions of the Board Resolution, a copy of
which is filed with the Clerk of the City, are hereby ratified by the City.
Section 3. Severability. If any provision of this Resolution shall be held or deemed to be or shall, in
fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or provisions
herein contained or render the same invalid, inoperative or unenforceable to any extent whatever.
Section 4. Repeal of Resolutions in Conflict. All resolutions and parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
City of Fayetteville, Arkansas Page 2 Printed on 3/16/2016
FS
Legistar ID No.: 2016-0102
AGENDA REQUEST FORM
FOR: Council Meeting of March 15, 2016
FROM: _ -- - -- _
City Attorney Kit Williams
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
A RESOLUTION RATIFYING THE RESOLUTION OF THE FAYETTEVILLE PUBLIC
FACILITIES BOARD APPROVING A REFUNDING AND IMPROVEMENT REVENUE BOND
(BUTTERFIELD TRAIL VILLAGE PROJECT), SERIES 2016 IN A PRINCIPAL AMOUNT OF
NOT TO EXCEED $17 454000 AND PRESCRIBING OTHER MATTERS --PEI -TA-I--N--I--NG-
THERETO
APPROVED FOR AGENDA:
City Attorney Kit illiaixis Date
(as to form)
M
RESOLUTION
RESOLUTION AUTHORIZING THE ISSUANCE OF THE ISSUER'S
REFUNDING AND IMPROVEMENT REVENUE BOND (BUTTERFIELD
TRAIL VILLAGE PROJECT), SERIES 2016 IN A PRINCIPAL AMOUNT
NOT TO EXCEED $17,450,000 (THE "BOND") TO PROVIDE FUNDS TO
REFUND OUTSTANDING BONDS AND TO FINANCE IMPROVEMENTS
TO A RESIDENTIAL LIFE CARE RETIREMENT FACILITY IN
FAYETTEVILLE, ARKANSAS FOR ELDERLY PERSONS; AUTHORIZING
A LOAN AGREEMENT BETWEEN THE BOARD AND BUTTERFIELD
TRAIL VILLAGE, INCORPORATED; AUTHORIZING THE SALE OF THE
BOND AND THE EXECUTION OF A BOND PURCHASE AGREEMENT IN
CONNECTION THEREWITH; AND AUTHORIZING AND PRESCRIBING
OTHER MATTERS PERTAINING THERETO.
WHEREAS, The Fayetteville Public Facilities Board (the "Issuer") has been organized and
exists under the laws of the State of Arkansas as a public facilities board; and
WHEREAS, the Issuer is a public body corporate and politic duly organized and validly
existing under the Constitution and laws of the State of Arkansas (the "State"), including the
Arkansas Code Annotated §§ 14-137-101, et seq., as amended (the "Act"), and by Ordinance No.
2485, as amended (collectively, the "Ordinance"), of the Board of Directors (now the City Council)
of the City of Fayetteville, Arkansas (the "City"), adopted on November 21, 1978; and
WHEREAS, the Ordinance and the Act authorized the Issuer to issue revenue bonds to
finance residential housing, health care and related facilities to serve elderly persons so long as such
facilities are secured by nonprofit corporations and to refund bonds issued for such purpose; and
WHEREAS, the Issuer has previously issued its Refunding Revenue Bonds (Butterfield Trail
Village Project), Series 2010 (the "2010 Bonds"); and
WHEREAS, the Issuer has previously issued its Revenue Bond (Butterfield Trail Village
Project), Series 2013 (the "2013 Bond"); and
WHEREAS, for the purposes set forth in the Ordinance, the Issuer desires to issue not to
exceed $17,450,000 in principal amount of its Refunding and Improvement Revenue Bond
(Butterfield Trail Village Project), Series 2016 (the "Bond") to provide funds to (a) refund the 2010
Bonds (the "Refunding") and (b) to finance all or a portion of the costs of (i) acquiring, constructing,
renovating, remodeling, equipping and furnishing common areas in the Main Residential Building,
including particularly, without limitation, improvements to the main hallways, resident hallways,
elevators, the library, meeting rooms, the game room, stairwells and atriums, (ii) acquiring,
constructing, renovating, remodeling, equipping and furnishing the Health Care Center in the Main
Residential Building, including particularly, without limitation, improvements to hallways, nursing
stations, offices, meeting rooms, resident rooms, and auxiliary spaces, and (iii) acquiring,
constructing, renovating, equipping and furnishing an approximately 17,200 square foot expansion to
the Main Residential Building to include particularly, without limitation, a new lobby and entryway,
a convocation room and offices (collectively, the "2016 Project") for Butterfield Trail Village,
Incorporated, an Arkansas nonprofit corporation (the "Borrower"), which operates a residential life
care retirement facility for the elderly, known as "Butterfield Trail Village" consisting of independent
living units, a skilled nursing care center and related facilities located on approximately 44 acres at
1923 E. Joyce Boulevard, Fayetteville, Arkansas, 72703; and
WHEREAS, the proceeds of the Bond will be loaned by the Issuer to the Borrower, pursuant
to a Loan Agreement, to be dated as of the dated date of the Bond (the "Loan Agreement"), providing
for payments by the Borrower, as a repayment of the loan in amounts sufficient to provide for the
payment of the principal of and premium, if any, and interest on the Bond as due and payable;
WHEREAS, the Bond will be sold to Arvest Bank (the "Purchaser"), pursuant to a Bond
Purchase, Assignment and Security Agreement to be dated as of the dated date of the Bond (the
"Bond Purchase Agreement"), setting forth the terms of the Bond; and
WHEREAS, the Bond will be secured on a parity of security with the 2013 Bond; and
WHEREAS, there has been presented to this meeting the form of the following instruments
which ie tssuierproposestcreXecutetOca uthe transaction-described-abGve,copies-of_-which
instruments shall be filed with the records of the Issuer:
(a) the Bond Purchase Agreement; and
(b) the Loan Agreement; and
WHEREAS, it appears that each of the instruments above referred to, which are now before
the Issuer, are in appropriate form and are appropriate instruments for the purpose intended;
NOW, THEREFORE, BE IT RESOLVED BY THE FAYETTEVILLE PUBLIC
FACILITIES BOARD, AS FOLLOWS:
Section 1. The Issuer hereby finds that the issuance of the Bond to accomplish the
Refunding and to finance all or a portion of the costs of the 2016 Project will assist in providing
residential care facilities for the elderly in the City and, therefore, should be accomplished.
Section 2. The issuance of the Bond in the principal amount of not to exceed $17,450,000
is hereby authorized. The Bond shall be designated "The Fayetteville Public Facilities Board
Refunding and Improvement Revenue Bond (Butterfield Trail Village Project), Series 2016" and
shall be issued in the form, shall be dated, shall be numbered, shall bear interest (provided such
interest rate shall not exceed 3.25% per annum), and shall be subject to redemption prior to maturity,
upon the terms and conditions set forth in the Bond Purchase Agreement. The principal of and
interest on the Bond shall be payable in semi-annual installments, as provided in the Bond Purchase
Agreement, with the final installment due not later than sixteen (16) years after the date of issuance
of the Bond.
Section 3. To prescribe the terms and conditions upon which the Bond is to be executed,
issued, purchased, accepted, held and secured, the Chairman and Secretary of the Issuer are hereby
authorized and directed to execute and deliver the Bond Purchase Agreement to the Purchaser.
a
Section 4. There is hereby authorized the loaning of the proceeds of the Bond to the
Borrower in accordance with the provisions of the Loan Agreement. The Chairman and Secretary of
the Issuer are hereby authorized and directed to execute and deliver the Loan Agreement to the
Borrower.
Section 5. The Chairman and Secretary of the Issuer are hereby authorized and directed to
execute the Bond and to cause the Bond so executed and authenticated to be delivered to the
Purchaser upon payment of the purchase price.
Section 6. The Bond Purchase Agreement and the Loan Agreement shall be in
substantially the forms submitted to this meeting, which are hereby approved, with such omissions,
insertions and changes as may be approved by the officers executing them, their execution to
constitute conclusive evidence of their approval of any such omissions, insertions and changes.
Section 7. The Chairman, Secretary and other officers of the Issuer, for and on behalf of
the Issuer, are hereby authorized and directed to do any and all things necessary to effect the
execution and delivery of the instruments approved by this Resolution and the performance of all
obligations of the Issuer thereunder, the issuance, execution and delivery of the Bond, and the
performance of all acts of w a ever nature necessary to�ffect and carry--out-the-authoritycon€e1Ted
by this Resolution. The Chairman, Secretary and other officers of the Issuer are hereby further
authorized and directed, for and on behalf of the Issuer, to execute all papers, documents, certificates
and other instruments that may be required for the carrying out of such authority or to evidence the
exercise thereof. The Chairman, Secretary and other officers of the Issuer are hereby further
authorized and directed, for and on behalf of the Issuer, to execute all papers, documents, certificates
and other instruments that may be required in order for the Bond to be secured on a parity of security
with the 2013 Bond.
Section 8. The Secretary shall maintain, as a part of the minutes of the meeting at which
this Resolution is adopted and the permanent records of the Issuer, for inspection by any interested
person, copies of the Bond Purchase Agreement and the Loan Agreement.
Section 9. The Issuer will restrict the use of the proceeds of the Bond in such manner and
to such extent, if any, as may be necessary, after taking into account reasonable expectations at the
time the Bond is delivered to the Purchaser, so that they will not constitute an arbitrage bond under
Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"). The Chairman or any
other officer having responsibility with respect to the issuance of the Bond, is authorized and
directed, alone or in conjunction with the Borrower or any officer, employee, consultant or agent of
the Borrower, to deliver a certificate for inclusion in the transcript of proceedings for the Bond,
setting forth the facts, estimates and circumstances and reasonable expectations pertaining to said
Section 148 and regulations thereunder. In its performance of these covenants, and other covenants of
the Issuer pertaining to federal income tax laws, the Issuer may rely upon the written advice of
nationally recognized bond 'counsel which is provided to the Borrower.
Section 10. The Chairman and the Secretary of the Issuer be and they hereby are
authorized to execute and deliver for and on behalf of the Issuer any and all additional certificates,
documents, opinions, agreements or other papers and perform all other acts (including without
limitation the filing of any financing statements or any other documents to create and maintain a
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security interest in the collateral pledged under the Bond Purchase Agreement) as they may deem
necessary or appropriate in order to implement and carry out the intent and purposes of this
Resolution.
Section 11. The Issuer acknowledges that proceeds of the 2013 Bond will be used to
provide a portion of the funds to finance costs of the 2016 Project.
Section 12. The Chairman of the Issuer is hereby authorized and directed to work with
Friday, Eldredge & Clark, LLP, as Bond Counsel, and officials of the Borrower to develop, adopt and
implement written procedures to assist the Borrower in monitoring compliance with federal tax
requirements with respect to tax-exempt obligations issued by the Issuer for the benefit of the
Borrower. It is understood that the policies to be adopted and established by such written procedures
will be adopted and established by the Borrower on behalf of the Issuer for tax-exempt obligations
issued by the Issuer for the benefit of the Borrower.
Section 13. The Bond shall not be issued and delivered by the Issuer unless and until the
City Council of the City shall have adopted a resolution ratifying the adoption by the Issuer of this
Resolution.
Section 14. The provisions of this Resolution are hereby declared to be separable and, if
any section, phrase or provisions shall for any reason be declared to be invalid, such declaration shall
not affect the validity of the remainder of the sections, phrases or provisions.
Section 15. All prior resolutions or portions thereof of the Issuer which are inconsistent
with the contents hereof are hereby repealed.
Section 16. This Resolution shall become effective immediately upon its passage and
approval....
Adopted and approved this 1st day of March, 2016.
THE FAYETTEVILLE PUBLIC FACILITIES
BOARD
ATTEST:
Secretary
(SEAL)
By
Chairman
4
CERTIFICATE
The undersigned, Secretary of The Fayetteville Public Facilities Board hereby certifies that
the foregoing pages are a true and correct copy of a Resolution of the Board adopted on the 1st day of
March, 2016, and that the Resolution is of record in the records of the Board.
GIVEN under my hand and seal this 1st day of March, 2016.
(SEAL)
Secretary
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RECEIVED
JAMES N. McCORD MAR 0 8 2016
Attorney at Law CITY OF FAYETTEVILLE
The Fulbright Building CLERK OFFICE
217 E. DICKSON STREET
SUITE #102
FAYETTEVILLE, ARKANSAS 72701
TELEPHONE (479) 695-1134
FACSIMLE (479) 442-1490
jimmccordlaw@gmail.com
To: Fayetteville City Council
Mayor Lioneld Jordan
From: James N. McCord
Attorney for The Fayetteville Public Facilities Board ("PFB")
Date: March 8, 2016
Re: PFB Bond for Butterfield Trail Village
The Bond which The Fayetteville Public Facilities Board proposes to
issue for Butterfield Trail Village, Inc. (the "Corporation") does not
create any potential liability for the City of Fayetteville or the PFB
because the Bond states:
"... This Bond is not a general obligation of the Issuer
but is a limited obligation payable solely from revenues
derived from the Loan Agreement. In no event shall this
Bond or the interest thereon constitute an indebtedness for
which the faith and credit of the State of Arkansas or the
City of Fayetteville, Arkansas (the "City") or any of their
revenues are pledged.... The Loan Agreement provides
for loan repayments by the Corporation in amounts
sufficient to provide for the payment of the principal and
interest on this Bond as due and payable...."
cc: Kit Williams, City Attorney
Paul Becker, Finance Director
Don Marr, Chief of Staff
Sondra Smith, City Clerk
RESOLUTION
RESOLUTION AUTHORIZING THE ISSUANCE OF THE ISSUER'S
REFUNDING AND IMPROVEMENT REVENUE BOND (BUTTERFIELD
TRAIL VILLAGE PROJECT), SERIES 2016 IN A PRINCIPAL AMOUNT
NOT TO EXCEED $17,450,000 (THE "BOND") TO PROVIDE FUNDS TO
REFUND OUTSTANDING BONDS AND TO FINANCE IMPROVEMENTS
TO A RESIDENTIAL LIFE CARE RETIREMENT FACILITY IN
FAYETTEVILLE, ARKANSAS FOR ELDERLY PERSONS; AUTHORIZING
A LOAN AGREEMENT BETWEEN THE BOARD AND BUTTERFIELD
TRAIL VILLAGE, INCORPORATED; AUTHORIZING THE SALE OF THE
BOND AND THE EXECUTION OF A BOND PURCHASE AGREEMENT IN
CONNECTION THEREWITH; AND AUTHORIZING AND PRESCRIBING
OTHER MATTERS PERTAINING THERETO.
WHEREAS, The Fayetteville Public Facilities Board (the "Issuer") has been organized and
exists under the laws of the State of Arkansas as a public facilities board; and
WHEREAS, the Issuer is a public body corporate and politic duly organized and validly
existing under the Constitution and laws of the State of Arkansas (the "State"), including the
Arkansas Code Annotated §§ 14-137-101, et seq., as amended (the "Act"), and by Ordinance No.
2485, as amended (collectively, the "Ordinance"), of the Board of Directors (now the City Council)
of the City of Fayetteville, Arkansas (the "City"), adopted on November 21, 1978; and
WHEREAS, the Ordinance and the Act authorized the Issuer to issue revenue bonds to
finance residential housing, health care and related facilities to serve elderly persons so long as such
facilities are secured by nonprofit corporations and to refund bonds issued for such purpose; and
WHEREAS, the Issuer has previously issued its Refunding Revenue Bonds (Butterfield Trail
Village Project), Series 2010 (the "2010 Bonds"); and
WHEREAS, the Issuer has previously issued its Revenue Bond (Butterfield Trail Village
Project), Series 2013 (the "2013 Bond"); and
WHEREAS, for the purposes set forth in the Ordinance, the Issuer desires to issue not to
exceed $17,450,000 in principal amount of its Refunding and Improvement Revenue Bond
(Butterfield Trail Village Project), Series 2016 (the "Bond") to provide funds to (a) refund the 2010
Bonds (the "Refunding") and (b) to finance all or a portion of the costs of (i) acquiring, constructing,
renovating, remodeling, equipping and furnishing common areas in the Main Residential Building,
including particularly, without limitation, improvements to the main hallways, resident hallways,
elevators, the library, meeting rooms, the game room, stairwells and atriums, (ii) acquiring,
constructing, renovating, remodeling, equipping and furnishing the Health Care Center in the Main
Residential Building, including particularly, without limitation, improvements to hallways, nursing
stations, offices, meeting rooms, resident rooms, and auxiliary spaces, and (iii) acquiring,
constructing, renovating, equipping and furnishing an approximately 17,200 square foot expansion to
the Main Residential Building to include particularly, without limitation, a new lobby and entryway,
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a convocation room and offices (collectively, the "2016 Project") for Butterfield Trail Village,
Incorporated, an Arkansas nonprofit corporation (the "Borrower"), which operates a residential life
care retirement facility for the elderly, known as "Butterfield Trail Village" consisting of independent
living units, a skilled nursing care: center and related facilities located on approximately 44 acres at
1923 E. Joyce Boulevard, Fayetteville, Arkansas, 72703; and
WHEREAS, the proceeds of the Bond will be loaned by the Issuer to the Borrower, pursuant
to a Loan Agreement, to be dated as of the dated date of the Bond (the "Loan Agreement"), providing
for payments by the Borrower, as a repayment of the loan in amounts sufficient to provide for the
payment of the principal of and premium, if any, and interest on the Bond as due and payable;
WHEREAS, the Bond will be sold to Arvest Bank (the "Purchaser"), pursuant to a Bond
Purchase, Assignment and Security Agreement to be dated as of the dated date of the Bond (the
"Bond Purchase Agreement"), setting forth the terms of the Bond; and
WHEREAS, the Bond will be secured on a parity of security with the 2013 Bond; and
WHEREAS, there has been presented to this meeting the form of the following instruments
which the Issuer proposes to execute to carry out the transaction described above, copies of which
instruments shall be filed with the records of the Issuer:
(a) the Bond Purchase Agreement; and
(b) the Loan Agreement; and
WHEREAS, it appears that each of the instruments above referred to, which are now before
the Issuer, are in appropriate form and are appropriate instruments for the purpose intended;
NOW, THEREFORE, BE IT RESOLVED BY THE FAYETTEVILLE PUBLIC
FACILITIES BOARD, AS FOLLOWS:
Section 1. The Issuer hereby finds that the issuance of the Bond to accomplish the
Refunding and to finance all or a portion of the costs of the 2016 Project will assist in providing
residential care facilities for the elderly in the City and, therefore, should be accomplished.
Section 2. The issuance of the Bond in the principal amount of not to exceed $17,450,000
is hereby authorized. The Bond shall be designated "The Fayetteville Public Facilities Board
Refunding and Improvement Revenue Bond (Butterfield Trail Village Project), Series 2016" and
shall be issued in the form, shall be dated, shall be, numbered, shall bear interest (provided such
interest rate shall not exceed 3.25% per annum), and shall be subject to redemption prior to maturity,
upon the terms and conditions set forth in the Bond Purchase Agreement. The principal of and
interest on the Bond shall be payable in semi-annual installments, as provided in the Bond Purchase
Agreement, with the final installment due not later than sixteen (16) years after the date of issuance
of the Bond.
Section 3. To prescribe the terms and conditions upon which the Bond is to be executed,
issued, purchased, accepted, held and secured, the Chairman and Secretary of the Issuer are hereby
authorized and directed to execute and deliver the Bond Purchase Agreement to the Purchaser.
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Section 4. There is hereby authorized the loaning of the proceeds of the Bond to the
Borrower in accordance with the provisions of the Loan Agreement. The Chairman and Secretary of
the Issuer are hereby authorized and directed to execute and deliver the Loan Agreement to the
Borrower.
Section 5. The Chairman and Secretary of the Issuer are hereby authorized and directed to
execute the Bond and to cause the Bond so executed and authenticated to be delivered to the
Purchaser upon payment of the purchase price.
Section 6. The Bond Purchase Agreement and the Loan Agreement shall be in
substantially the forms submitted to this meeting, which are hereby approved, with such omissions,
insertions and changes as may be approved by the officers executing them, their execution to
constitute conclusive evidence of their approval of any such omissions, insertions and changes.
Section 7. The Chairman, Secretary and other officers of the Issuer, for and on behalf of
the Issuer, are hereby authorized and directed to do any and all things necessary to effect the
execution and delivery of the instruments approved by this Resolution and the performance of all
obligations of the Issuer thereunder, the issuance, execution and delivery of the Bond, and the
performance of all acts of whatever nature necessary to effect and carry out the authority conferred
by this Resolution. The Chairman, Secretary and other officers of the Issuer are hereby further
authorized and directed, for and on behalf of the Issuer, to execute all papers, documents, certificates
and other instruments that may be required for the carrying out of such authority or to evidence the
exercise thereof. The Chairman, Secretary and other officers of the Issuer are hereby further
authorized and directed, for and on behalf of the Issuer, to execute all papers; documents, certificates
and other instruments that may be required in order for: the Bond to be secured on a parity of security
with the 2013 Bond.
Section 8. The Secretary shall maintain, as: a part of the minutes of the meeting at which
this Resolution is adopted and the permanent records of the Issuer, for inspection by any interested
person, copies of the Bond Purchase Agreement and the Loan Agreement.
Section 9. The Issuer will restrict the use of the proceeds of the Bond in such manner and
to such extent, if any, as may be necessary, after taking into account reasonable expectations at the
time the Bond is delivered to the Purchaser, so that they will not constitute :an arbitrage bond under
Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"). The Chairman or any
other officer having responsibility with respect to the issuance of the Bond, is authorized and
directed, alone or in conjunction with the Borrower or any officer, employee, consultant or agent of
the Borrower, to deliver a certificate for inclusion im the transcript of proceedings for the Bond,
setting forth the facts, estimates and circumstances and reasonable expectations pertaining to said
Section 148 and regulations thereunder. In its performance of these covenants, and other covenants of
the Issuer pertaining to federal income tax laws, the Issuer may rely upon the written advice of
nationally recognized bond counsel which is provided to the Borrower.
Section 10. The Chairman and the Secretary of the Issuer be and they hereby are
authorized to execute and deliver for and on behalf of the Issuer any and all additional certificates,
documents, opinions, agreements or other papers and perform all other acts (including without
limitation the filing of any financing statements or any other documents to create and maintain a
1<
security interest in the collateral pledged under the Bond Purchase Agreement) as they may deem
necessary or appropriate in order to implement and carry out the intent and purposes of this
Resolution.
Section 11. The Issuer acknowledges that proceeds of the 2013 Bond will be used to
provide a portion of the funds to fmance costs of the 2016 Project.
Section 12. The Chairman of the Issuer is hereby authorized and directed to work with
Friday, Eldredge & Clark, LLP, as Bond Counsel, and officials of the Borrower to develop, adopt and
implement written procedures to assist the Borrower in monitoring compliance with federal tax
requirements with respect to tax-exempt obligations issued by the Issuer for the benefit of the
Borrower. It is understood that the policies to be adopted and established by such written procedures
will be adopted and established by the Borrower on behalf of the Issuer for tax-exempt obligations
issued by the Issuer for the benefit of the Borrower.
Section 13. The Bond shall not be issued and delivered by the Issuer unless and until the
City Council of the City shall have adopted a resolutipn ratifying the adoption by the Issuer of this
Resolution.
Section 14. The provisions of this Resolution are hereby declared to be separable and, if
any section, phrase or provisions shall for any reason be declared to be invalid, such declaration shall
not affect the validity of the remainder of the sections, phrases or provisions.
Section 15. All prior resolutions or portions thereof of the Issuer which are inconsistent
with the contents hereof are hereby repealed.
Section 16. This Resolution shall become effective immediately upon its passage and
approval.
Adopted and approved this 1st day of March, 2016.
ATTEST:
Secretary
(SEAL)
TI;IE FAYETTEVILLE PUBLIC FACILITIES
BOARD
Chairman
4
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CERTIFICATE
The undersigned, Secretary of The Fayetteville Public Facilities Board hereby certifies that
the foregoing pages are a true and correct copy of a Resolution of the Board adopted on the 1st day of
March, 2016, and that the Resolution is of record in therecords of the Board.
GIVEN under my hand and seal this 1st day of March, 2016.
(SAL)
Secre
Fayettevillle Public Fa-cilities Board
March 1, 2016
The Fayetteville Public Facilities Board (the •Board) met on March 1, 2016,
at 4:00 p.m. in Room 326 of the City Administration Building , 113 W. Mountain,
Fayetteville, Arkansas. Present: Board members Steve Adams, Phil Taylor, "Mommy
Deweese, Hugh Earnest and Board Counsel James T\ . McCord. Absent: Board member
Steve Cosby. Also present: Quintin Trammell, President and CEO of Butterfield Trail
Village, Inc. ("BTV"), and Bo Bittle, Vice President Publ:-c Finance, Stephens Inc.
Chairman Steve Adams called the meeting to order. Board Counsel James
N. McCord announced that the item of bu.sines3 before the Board was
consideration of a Resolution headed: RESOLUTICIN AUTHORIZING
THE ISSUANCE OF THE ISSUER'S REFUNDING AND
IMPROVEMENT REVENUE BOND (BUTTERFIELD TRAIL
VILLAGE PROJECT), SERIES 2016 A PRINCIPAL AMOUNT
NOT TO EXCEED $17,450,000 (THE "BOND") TO PROVIDE
FUNDS TO REFUND OUTSTANDING BONDS AND TO FINANCE
IMPROVEMENTS TO A RESIDENTIAL LIFE CARE
RETIREMENT FACILITY IN FAYETTEVILLE, ARKANSAS FOR
ELDERLY PERSONS; AUTHORIZING. A LOAN AGREEMENT
BETWEEN THE BOARD AND BUTTERFIELD TRAIL VILLAGE,
INCORPORATED; AUTHORIZING THE SALE OF THE BOND
AND THE EXECUTION OF A BOND PURCHASE AGREEMENT
IN CONNECTION THEREWITH; AND AUTHORIZING AND
PRESCRIBING OTHER MATTERS PERTAINING THERETO.
The Resolution, prepared by Michael Moyers with the Little Rock law firm of
Friday Eldredge & Clark (Bond Counsel), was previously distributed to the Board
members via e-mail from Board Counsel James IN. McCord.
McCord advised the Board that the Bond for BTV states: "This Bond is not a
general obligation of the Issuer but is a limited obligation payable solely from revenues
derived from the Loan Agreement. [n no event shall this Bond or the interest thereon
constitute an indebtedness for which the faith and credit of the State of Arkansas or the
City of Fayetteville, Arkansas ... or any of their revenue> are pledged.... The Loan
Agreement provides for loan repayments by the Corporation in amounts sufficient to
provide for the payment of the principal of and interest on this Bond as due and payable.
McCord also advised the Board that the Notice of Public Hearing to be held by
the Fayetteville City Council on March 15`h states: "The aggregate principal amount of
the bonds allocable to the 2016 Project shall not exceed ¶3,655,000 and the aggregate
principal amount of the bonds allocable to the refunding of the 2010 Bonds shall not
exceed $13,795,000."
4\
Following discussion during which Quintin Cramniel l described part of the 2016
Project, Phil Taylor moved that the Resolution presented to the Board be adopted. The
motion was seconded by Tommy Deweese and passed unanimously. Said Resolution is
attached hereto and made a part hereof.
There being no further business, the meeting Chairman Adams adjourned the
meeting.
Respectfully submitted,
Stephen Cosby, Secretary
(Minutes prepared by James N. McCord,
Board Counsel, and submitted to Board
mernbers for corrections)
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
TO: Mayor Jordan
City Council
CC: Paul Becker, Finance Director
Don Marr, Chief of Staff
FROM: Kit Williams, City Attorney
DATE: February 25, 2016
RE: Public Facilities Resolution Ratification
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Patti Mulford
Paralegal
The Fayetteville Public Facilities Board is seeking the City Council's
approval for its proposed sale of Seventeen Million Four Hundred and Fifty
Thousand Dollars ($17,450,000.00) of Public Facilities Revenue Bonds to refund
the 2010 existing bonds and to further expand and renovate Butterfield Trail
Village. The Fayetteville Public Facilities Board was created almost 40 years ago
primarily to help obtain low interest funding to build Butterfield Trail Village.
To my knowledge, this has been the Board's sole project and has proven very
successful.
Butterfield Trail Village is an expressly authorized project pursuant to §
33.068 Powers of the Board (B) Fayetteville Code of Ordinances:
"(B) The board is expressly authorized to issue revenue bonds for
the purpose of financing residential housing, health care and related
facilities to serve elderly persons; provided said facilities are owned
by nonprofit corporations or associations. The issuance of such
revenue bonds shall be accomplished by resolution duly adopted by
the city Public Facilities Board and ratified by the City Council."
K
As you see the Public Facilities Board may only issue bonds for Butterfield
after its Resolution has been "ratified by the City Council." That is their request
to you now.
Both state law and the Fayetteville Code make it clear that Public Facilities
Revenue Bonds (as requested to be issued now) are obligations of the Public
Facilities Board only and do not constitute an indebtedness of the City.
"It shall be plainly stated on the face of each bond that it has been
issued under the provisions of this chapter, that the bonds are
obligations only of the public facilities board, and that in no event
shall they constitute an indebtedness for which the faith and credit
of the creating municipality or county or any of its revenues are
pledged." A.C.A. § 14-137-120 Obligations on bonds (a).
uch venue_bonds-shall_be-oblig-ations _onLy_of he facllftie-s-board
and shall not constitute an indebtedness for which the faith and
credit of the city or any of its revenues are pledged...." § 33.070
Issuance of Revenue Bonds (A) of the Fayetteville Code of
Ordinances.
If the City Council determines that the Fayetteville Public Facilities Board's
plan to refund the existing 2010 bonds and to further renovate and enlarge
Butterfield Trail Village by issuing $17,450,000.00 in Public Facilities Bonds
should be ratified and approved, please pass the ratifying Resolution. The Public
Facilities Bonds issued by the Fayetteville Public Facilities Board in 2013 shall
remain outstanding to be paid in addition to these new revenue bonds. If you
believe the Fayetteville Public Facilities Board's Resolution should not be ratified
for whatever reason, you should explain why it should not be ratified and vote
against the ratifying Resolution.
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FAYETTEVILLE CODE OF ORDINANCES
TITLE III ADMINISTRATION
income to finance the costs of decent, safe and
(iv) Unpaid charges; and sanitary residential housing facilities is a proper
public purpose as declared by the act, and by this
(v) Such other information as may be determination of the City Council.
required by officials of the city
(Ord. No. 3490, 7-3-90; Code 1991, §33.050; Ord. No. 5591
6-4-13)
33.051-33.064 Reserved
ARTICLE VI
PUBLIC FACILITIES BOARD
33.065 Findings
The City of Fayetteville hereby finds and determines:
(A) There exists within and near the city, including
the city's projected growth areas and the city's
extraterritoriat�sta'rtning-��s; a sfivriage caf
decent, safe and sanitary residential housing
facilities available for rehabilitation, construction,
or purchase on terms that persons and families of
low and moderate income can afford to pay.
(B) Existing economic conditions including high rates
of interest on residential mortgage loans, and a
shortage of funds within lending institutions in the
state for residential mortgage loans are operating
to: Further restrict the rehabilitation, construction,
and purchase of residential housing by persons
of low and moderate income at reasonably
affordable costs; create unemployment and
hardship within the residential construction
industry, adversely affecting residents of the city:
and reduce and limit the valve of property within
the city; all of which adversely affect the city's tax
revenues and which, if not alleviated, wilt lead to
further urban blight and decay and result in
disproportionately large expenditures for services
by the city.
(C) The availability of mortgage financing to assist
such persons and families in the rehabilitation,
construction or purchase of decent, safe, and
sanitary residential housing facilities will be aided
by the providing of funds for mortgage financing
of residential housing facilities by the creation of
a Public Facilities Board pursuant to the
provisions of Act No 142 of the General
Assembly of 1975.
(D) The providing of financial assistance in order to
enable persons and families of low and moderate
(E) The public purpose of financing residential
housing facilities may best be served by
establishing a Public Facilities Board to purchase
mortgages on such residential housing facilities
or make loans to mortgage lenders to provide
financing for residential housing facilities as
provided in the act,
(F) In addition to alt other findings and public
purposes stated in this ordinance, the
development of housing, health care, and related
facilities for elderly persons, regardless of
income, serves a substantial public purpose and
there is a significant need in the city for such
facilities.
(Code 1965, §2-111; Ord. No. 2485, 11-21-78; Ord. No.
2991, 3-20-84; Ord. No. 4021, §1, 2-18-97; Code 1991,
§33.065)
State law reference(s)--Public Facilities Board Act,
A C.A §14-137-101 et seq.
33.066 Establishment
Pursuant to A.C.A. §14-137-107 there is created and
established the city Public Facilities Board
(hereinafter known as "facilities board") with authority
as hereinafter provided to accomplish, finance,
contract or purchase mortgage loans concerning, and
otherwise act in such manner as may be permitted by
the act to provide decent, safe, and sanitary
residential housing facilities within or near the city,
including the city's projected growth areas and the
city's extraterritorial planning areas.
Additional authority has been granted the facilities
board by Ordinance No 2708 and Ordinance No.
2991 and the facilities board's authority may vary as
allowed by statute and as provided by further
amending ordinances which may be passed by the
city in the future.
(Code 1965, §2-112; Ord. No. 2485, 11-21-78: Ord No.
4021, §2, 2-18-97; Code 1991, §33 066)
33.067 Members Of The Board; Term Of
Office; Duration Of The Board
The facilities board shall consist of five persons. The
initial members shall, as provided in A.C.A. §14-137-
107, be appointed by the mayor of the city to serve for
terms of one, two, three, four and five years,
CD33:14
a
FAYETTEVILLE CODE OF ORDINANCES
TITLE III ADMINISTRATION
respectively. The members of the facilities board shall (e) numbers;
be residents of the city and shall take and file with the
City Clerk the oath of office prescribed by the act.
(f) denominations;
(Code 1965, §2-113; Ord. No. 2485, 11-21-78; Ord. No.
2991, 3-20-84; Code 1991. §33.067)
State law reference(s)--Creating ordinance -Authority,
A C.A. §14-137-107; Board members, A.C.A. §14-137-108.
33.068 Powers Of The Board
(A) The facilities board is empowered, from time to
time, to loan, acquire, construct, reconstruct,
extend, equip, improve, sell, lease, and contract
concerning (which shall include the purchase of
mortgage loans and the making of loans to
mortgage lenders) residential housing facilities as
shall be determined by the facilities board to be
necessary to effect the purposes of this article to
provide decent, safe and sanitary residential
housing facilities within or near the city, including
the city's projected growth areas and the city's
extraterritorial planning areas. In addition, the
facilities board shall have each of the powers set
forth in A.C-A. §14-137-111, as amended, and
appropriate to the purposes for which the board
is created unless otherwise restricted herein.
The board may enter into which contractual or
cooperative agreements with such persons as
may in its discretion be advisable to accomplish
the purposes of this article, including, without
limitation, departments, agencies, or
instrumentalities of the United Slates of America,
the state or the city; for example. the Department
of Housing and Urban Development. the Federal
Housing Administration, the Veterans'
Administration and the Arkansas Housing
Development Agency. Prior to the issuance or
any such bonds, the facilities board must submit
to the City Council for its approval the following
information:
(1) The size of the proposed bond issue and all
related details, including, but without
limitation:
(a) principal amount;
(b) date of the bonds;
(c) interest payment dates;
(d) principal payment dates;
CD33:15
(g) rates of interest;
(h) a schedule reflecting the annual
principal maturities;
(i) the semiannual interest requirements
and the total requirements; and
(j) applicable redemption provisions.
(2) Recommendations for person to serve as
underwriter, trustee, and custodian for any
such bonds and the mortgage lenders and
servicing institutions with which the facilities
board shall contract, which the City Council
r€sewes-the-right-to-select-or-app rove.—Tti e
trustee and the custodian shall be institutions
located within the city, if such institutions are
qualified and such appointments do not
otherwise adversely affect the rating of the
bonds (if submitted for rating).
(B) The board is expressly authorized to issue
revenue bonds for the purpose of financing
residential housing, health carp and related
facilities to serve elderly persons; provided said
facilities are owned by nonprofit corporations or
associations. The issuance of such revenue
bonds shall be accomplished by resolution duly
adopted by the city Public Facilities Board and
ratified by the City Council
(Code 1965, §2-114; Ord No. 2485, 11-21-78: Ord No
2991, 3-10-84; Code 1991, §33.068)
State law reference(s)--Powers generally -bidding and
appraisal procedure, A.C.A. §14-137-111.
33.069 Bond Proceeds; Investments
(A) Any agreements made by the facilities board with
mortgage lenders must contain a provision to the
effect that such mortgage lenders may only loan
[lie proceeds provided to them to finance housing
located within the city's corporate limits and to
finance housing located within the city's projected
growth area and extraterritorial planning area. A
minimum of 75% of the bond proceeds shall be
available to finance housing located within the
city's corporate limits; and a maximum of 25% of
the bond proceeds shall be available to finance
FAYETTEVILLE CODE OF ORDINANCES
TITLE III ADMINISTRATION
existing housing located within the city's
projected growth area and extraterritorial
planning area. The facilities board shall have the
authority, after prior approval of the City Council,
to reallocate such percentages.
(B) This section shall apply only to bonds issued for
the purpose of financing owner -occupied
housing.
(C) The facilities board shall offer bond proceeds not
otherwise required to be deposited with the
custodian to financial institutions which have their
principal place of business located within the city
and which are qualified for such investments.
This section shall apply only to the proceeds of
bonds issued for the purpose of financing owner -
occupied housing.
(Code 1965, §2-115, 2-116; Ord. No. 2485,
f4o-2991 32-2"4; Code 1991; §33069) -
State law reference(s)--Use of funds
bonds, A.C.A. §14-137-115.
facilities are owned by nonprofit corporations or
associations.
(Code 1965, §2-117; Ord. No. 2485, 11-21-78; Ord No
2991, 3-20-84; Code 1991, §33.070)
'Note --It should be noted that Ord. No. 4021, adopted
Feb. 18, 1997, provided in the preamble and §3 that §9 of
Ord. No. 2485 provided for the appointment of a bond
counsel for the issuance and sale of residential housing
facility bonds, and said appointment is only for the residential
housing facilities bonds first authorized on Ord. No 2485
prior to the amendments thereto.
33.071 Organization; Reports
As soon as practicable after the adoption of this
article the facilities board shall meet and elect such
officers as shall be required by law, The facilities
board may adopt such bylaws and other rules and
regulations as shall be necessary for the conduct of
11-21-78; Ord. its. business and consistent with the -provisions -of -the
act. The facilities board shall cause to be filed with
and revenue- the City Clerk of the city the annual report.
33.070 Issuance Of Revenue Bonds
(A) The facilities board is authorized and is limited to
issue this initial series of revenue bonds, in
accordance with the conditions set forth in
§33.068, and to use the proceeds, either alone or
together with other available funds and revenues,
to accomplish the purposes for which the facilities
board is created as the same relates to the
providing of decent, safe, and sanitary residential
housing facilities. Such revenue bonds shall be
obligations only of the facilities board and shall
not constitute an indebtedness for which the faith
and credit of the city or any of its revenues are
pledged, and the principal and interest on the
bonds shall be payable from and secured by a
pledge of revenues derived from residential
housing facilities financed, in whole or in part,
from bond proceeds and as authorized by, and in
accordance with the provisions of law, together
with such other collateral as may properly be
pledged under the act and as the facilities board
in its discretion may determine.
(B) This section shall apply only to the issuance of
bonds for the purpose of financing owner -
Occupied housing. The board is expressly
authorized to issue bonds for the purpose of
financing housing, health care, and related
facilities to serve elderly persons, provided said
(Code 1965, §2-118; Ord. No, 2485, 11-21-78; Code 1991,
§33.071)
State law reference(s)--Annual reports, A.C.A. §14-
137-123.
33.072-33.104 Reserved
ARTICLE VII
PLANNING COMMISSION
33.105 Establishment
There is hereby created a city Planning Commission
(Code 1965, §2-80; Ord. No 956, 9-12-49)
State law reference(s)--Municipal planning
commissions generally, A.C.A., §15-56-401 et seq.
33.106 Composition
The Planning Commission ("commission") shall
consist of nine members, all of who shall be citizens
of Fayetteville, and at least two-thirds of whom shall
not hold any municipal office or appointment No two
members of the commission ("commissioners") shall
be related by blood or marriage in the third degree,
nor shall any two commissioners have direct financial
involvement All commissioners must disclose
annually all real estate holdings in Fayetteville and the
Fayetteville planning area, and any business or
financial interest which could affect, or be affected by,
decisions of the commission. All commissioners shall
CD33:16
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NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be conducted on March 15, 2016,
at 5:30 o'clock p.m., before the Mayor and the City Council of the City of Fayetteville, Arkansas,
in the Quorum Court Room of the Washington County Courthouse, 280 North College Avenue,
Fayetteville, Arkansas 72701, on the question of the issuance of revenue bonds (the "bonds") by
The Fayetteville Public Facilities Board (the "Board") for the purpose of (a) refunding The
Fayetteville Public Facilities Board Refunding Revenue Bonds (Butterfield Trail Village
Project), Series 2010 (the "2010 Bonds") and (b) financing all or a portion of the costs of the
following improvements for Butterfield Trail Village, Incorporated, an Arkansas non-profit
corporation (the "Corporation") that operates a residential life care retirement facility for the
elderly: (i) financing all or a portion of the costs of acquiring, constructing, renovating,
remodeling, equipping and furnishing common areas in the Main Residential Building, including
particularly, without limitation, improvements to the main hallways, resident hallways, elevators,
thelibrary, meeting rotes s�the game room, stairwells and atriums;(ii) financing all or a portion
of the costs of acquiring, constructing, renovating, remodeling, equipping and furnishing the
Health Care Center in the Main Residential Building, including particularly, without limitation,
improvements to hallways, nursing stations, offices, meeting rooms, resident rooms, and
auxiliary spaces, and (iii) financing a portion of the costs of acquiring, constructing, renovating,
equipping and furnishing an approximately 17,200 square foot expansion to the Main Residential
Building to include particularly, without limitation, a new lobby and entryway, a convocation
room and offices (collectively, the "2016 Project"). The aggregate principal amount of the bonds
allocable to the 2016 Project shall not exceed $3,655,000 and the aggregate principal amount of
the bonds allocable to the refunding of the 2010 Bonds shall not exceed $13,795,000.
The initial owner and operator of the 2016 Project will be the Corporation. The
2016 Project will be located on the Corporation's approximately 44 -acre campus at 1923 E.
Joyce Boulevard, Fayetteville, Arkansas 72703.
The 2010 Bonds were issued to refund the Board's Adjustable Rate Demand
Refunding Revenue Bonds, Series 2002 (Butterfield Trail Village Project), which were issued to
refinance costs of acquiring, constructing and equipping the residential life care retirement
facility (consisting of particularly, without limitation, residential units, a skilled nursing care
center, recreational facilities and other related facilities) owned and operated by the Corporation
on the Corporation's approximately 44 -acre campus at 1923 E. Joyce Boulevard, Fayetteville,
Arkansas 72703.
Proceeds of the Board's Revenue Bond (Butterfield Trail Village Project), Series
2013 (the "2013 Bond") will be used to provide a portion of the funds to finance costs of the
O
2016 Project. The remainder of the proceeds of the 2013 Bonds have been expended to finance
the following improvements for the Corporation: (i) acquiring, constructing, equipping and
furnishing an assisted living facility containing approximately 9,300 square feet, (ii) acquiring,
constructing, renovating, equipping and furnishing the existing Wellness Center and acquiring,
constructing, renovating, equipping and furnishing an approximately 6,700 square foot
expansion to the Wellness Center, all of which are located on the Corporation's approximately
44 -acre campus at 1923 E. Joyce Boulevard, Fayetteville, Arkansas 72703.
The bonds shall be special obligations of the Board, secured by and payable from
an assignment of the right to receive payments from the Corporation pursuant to a Loan
Agreement between the Board and the Corporation, and such other collateral as may be provided
by the Corporation. The obligations shall not constitute an indebtedness for which the faith and
credit of the City are pledged.
Dated: February 24, 2016
/s/ Lioneld Jordan
Mayor
TEFRA NOTICE PUBLIC HEARING AND
Re: The Fayetteville Public Facilities Board
Bond (Butterfield Trail Village Project),
The ndersigned Mayor (the "Mayor") of the
the chief elect�d executive officer of the City, and he
OVAL CERTIFICATE
nding and Improvement Revenue
2016
of Fayetteville, Arkansas (the "City") is
certifies as follows:
(1) Atta ed hereto is an affidavit of he publisher of the
showing that a notice public hearing (the "Noti e") on the issuance of the above referenced bond
issue (the "Bond"), in th .aggregate principal arIount of not to exceed $17,450,000, to be held on
March 15, 2016, was pub 'shed one time ins ch newspaper on , 2016.
Such notice apprised the resents of the City �f the proposed issuance of the Bond, in compliance
with all legal requirements, i eluding Secti n 147(f) of the Internal Revenue Code of 1986, as
amended.
(2) The public hearing de crib d in such notice was duly held at the date and place set
forth in such notice before me, the CitNdi-ing
until of the City and a representative of The Fayetteville
Publlc acilities�oar -(the " ssuer")ring was conducted in a mannvhich provided a
reasonable opportunity for persons wiviews on the issuance of the Bond or the location
and the nature of the proposed projecrd.
(3) The public hearing i�as held prior\o final approval, authorization and issuance of
the Bond.
(4) The undersigned, cting in his capacity\s Mayor of the City, hereby approves the
issuance of the Bond by the Iss er only for the purpose of meeting the requirements of Section
147(f) of the Internal Revenue ode of 1986, as amended.
(5) The undersign,�d in reliance upon the Resoluti a of the Fayetteville Public Facilities
Board acknowledges that 1roeeeds of the Issuer's Revenu Bond (Butterfield Trail Village
Project), Series 2013 will l used to provide a portion of the fi ds to finance costs of the 2016
Project (as defined in the otice).
IN WITNESS WI EREOF, the undersigned has executed his' rtificate as of the 15th day
of March, 2016.
APPROVED: ATTEST:
13y
LIONELD JO1kDAN, Mayor SONDRA SMITH, City Cler\ciTreasurer
City Attorney Kit Williams Revised - Do Not Sign
TEFRA NOTICE PUBLIC HEARING AND APPROVAL CERTIFICATE
Re: The Fayetteville Public Facilities Board Refunding and Improvement Revenue
Bond (Butterfield Trail Village Project), Series 2016
The undersigned Mayor (the "Mayor") of the City of Fayetteville, Arkansas (the "City") is
the chief elected executive officer of the City, and hereby certifies as follows:
(1) Attached hereto is an affidavit of the publisher of the
showing that a notice of public hearing (the "Notice") on the issuance of the above referenced bond
issue (the "Bond"), in the aggregate principal amount of not to exceed $17,450,000, to be held on
March 15, 2016, was published one time in such newspaper on ___________________,2016.
Such notice apprised the residents of the City of the proposed issuance of the Bond, in compliance
with all legal requirements, including Section 147(f) of the Internal Revenue Code of 1986, as
amended.
(2) The public hearing described in such notice was duly held at the date and place set
forth in such notice before me, the City Council of the City and a representative of The Fayetteville
Public Facilities��-Cthe " ssuer").T� e ring was conducted in a mannivhich provided a
reasonable opportunity for persons with differing views on the issuance of the Bond or the location
and the nature of the proposed project to be heard.
(3) The public hearing was held prior to final approval, authorization and issuance of
the Bond.
(4) The undersigned, acting in his capacity as Mayor of the City, hereby approves the
issuance of the Bond by the Issuer only for the purposes of meeting the requirements of Section
147(f) of the Internal Revenue Code of 1986, as amended.
(5) The undersigned in reliance upon the Resolution of the Fayetteville Public Facilities
Board acknowledges that proceeds of the Issuer's Revenue Bond (Butterfield Trail Village
Project), Series 2013 will be used to provide a portion of the funds to finance costs of the 2016
Project (as defined in the Notice).
IN WITNESS WHEREOF, the undersigned has executed his Certificate as of the 15th day
of March, 2016.
APPROVED: ATTEST:
City Attorney Kit Williams Revised - Do Not Sign
By:
LIONELD JORDAN, Mayor SONDRA SMITH, City Clerk/Treasurer
CLOSING CERTIFICATE OF
CITY OF FAYETTEVILLE, ARKANSAS
The undersigned, Mayor and City Clerk of the City of Fayetteville, Arkansas, a duly
organized and existing municipality of the State of Arkansas (the "City"), do hereby certify as
follows:
1. The undersigned are the duly elected, qualified, and acting Mayor and City Clerk of
the City, and as such officials have in their possession or have access to the official books and
records of the City.
2. Attached in the Exhibits hereto is a true, correct and complete copy of all proceedings
had by the City relating to the issuance by The Fayetteville Public Facilities Board (the
"Issuer") of its Refunding and Improvement Revenue Bond (Butterfield Trail Village
Project), Series 2016 (the "Bond"), as the same appear upon the records of the City in
our possession.
3. Attached hereto as Exhibit A is a true, complete and correct copy of (a) Ordinance
No. 2485 of the City duly adopted by the City Council of the City at a duly called meeting
of the City Council, open to the public, held on November 21, 1978; (b) Ordinance No. 2708
of the City duly adopted by the City Council of the City at a duly called meeting of the City
Council, open to the public, held on March 3, 1981; (c) Ordinance No. 2991 of the City
duly adopted by the City Council of the City at a duly called meeting of the City Council, open
to the public, held on March 20, 1984; and (d) Ordinance No. 4021 of the City duly adopted
by the City Council of the City at a duly called meeting of the City Council, open to the public,
held on February 18, 1997. At such meetings a quorum was present and acted throughout;
the said Ordinances are in full force and effect and have not been altered, amended or
repealed as of the date hereof, except as noted above. No petition or petitions to refer the
above referenced Ordinances to the people under Amendment No. 7 to the Constitution of
the State of Arkansas have been filed as of the date hereof, and the City Council of the City
has not referred the above referenced Ordinances to the people for adoption or rejection.
Attached hereto as Exhibit B is a true, complete and correct copy of Resolution No.
67-16 of the City ratifying the Issuer's authorization to issue the Bond, duly adopted by the
City Council of the City at a duly called meeting of the City Council, open to the public, held
on March 15, 2016. At such meeting a quorum was present and acted throughout; the said
Resolution is in full force and effect and has not been altered, amended or repealed as of the
date hereof.
Attached hereto as Exhibit C is the Mayor's Notice of Public Hearing for the issuance
of the Bond. Also included in Exhibit C is an affidavit of the publisher of the Northwest
Arkansas Democrat -Gazette, showing that the Notice of Public Hearing on the issuance of
the Bond to be held March 15, 2016 was published one time in such newspaper on February
29, 2016. The public hearing was held at the time and place set forth in the notice.
No authority or proceedings in connection with the issuance, sale and delivery of the
Bond have been repealed, revoked or rescinded.
4. The meetings of the City Council referred to in paragraph 3 hereof were open to the
public in compliance with the provisions of Section 25-19-106 Open public meetings. of the
Arkansas Code Annotated.
5. The City is a City of the First Class, duly organized and existing under the laws of the
State of Arkansas pursuant to the provisions of Title 14, Chapters 42 and 43 of the Arkansas
Code Annotated.
6. No action, suit, proceeding, inquiry or investigation is pending or, to the knowledge
of the undersigned, threatened in any court or other tribunal of competent jurisdiction, state
or federal, or, to the knowledge of the undersigned, is there any basis therefor, in any way (i)
restraining or enjoining the issuance, sale or delivery of the Bond, or (ii) questioning or
affecting the validity or enforceability of the Bond, or (iii) questioning or affecting the
validity of the ordinances or resolutions referred to in paragraph 3 hereof or any of the
proceedings for the authorization, execution, authentication, sale or delivery of the Bond, or
(iv) questioning or affecting the corporate existence or organization of the City or the Issuer
or the title to office of any of the members, officers or officials thereof or any powers of the
City or the Issuer, or (v) questioning or affecting the power and authority of the Issuer to issue
the Bond.
7. According to the records of the City, Stephen E. Adams, Stephen Cosby, Phillip
Taylor, Tommy Deweese and Hugh Earnest are members of the Issuer and there are on file
in the office of the City Clerk the oaths of office for each member.
IN WITNESS WHEREOF, the undersigned have hereunto set their signatures this
12th day of April, 2016.
AP:
By:
ATTEST:
By: Lut , .N
SONDRA E. SMITH, City Clerk/Treasurer
e do o c - ocW-
UXS 1e\ cj
CLOSING CERTIFICATE OF `^'
CITY OF FAYETTEVILLE, ARKANSAS
The undersigned, Mayor and City Clerk of the City of Fayetteville, Arkansas, a duly
organized and existing municipality of the State of Arkansas (the "City"), do hereby certify as
follows:
1. The undersigned are the duly elected, qualified, and acting Mayor and City Clerk of
the City, and as such officials have in their possession or have access to the official books and
records of the City.
2. Attached in the Exhibits hereto is a true, correct and complete copy of all proceedings
had by the City relating to the issuance by The Fayetteville Public Facilities Board (the
"Issuer") of its Refunding and Improvement Revenue Bond (Butterfield Trail Village
Project), Series 2016 (the "Bond"), as the same appear upon the records of the City in
our possession.
3. Attached hereto as Exhibit A is a true, complete and correct copy of (a) Ordinance
No. 2485 of the City duly adopted by the City Council of the City at a duly called meeting
of the City Council, open to the public, held on November 21, 1978; (b) Ordinance No. 2708
of the City duly adopted by the City Council of the City at a duly called meeting of the City
Council, open to the public, held on March 3, 1981; (c) Ordinance No. 2991 of the City
duly adopted by the City Council of the City at a duly called meeting of the City Council, open
to the public, held on March 20, 1984; and (d) Ordinance No. 4021 of the City duly adopted
by the City Council of the City at a duly called meeting of the City Council, open to the public,
held on February 18, 1997. At such meetings a quorum was present and acted throughout;
the said Ordinances are in full force and effect and have not been altered, amended or
repealed as of the date hereof, except as noted above. No petition or petitions to refer the
above referenced Ordinances to the people under Amendment No. 7 to the Constitution of
the State of Arkansas have been filed as of the date hereof, and the City Council of the City
has not referred the above referenced Ordinances to the people for adoption or rejection.
Attached hereto as Exhibit B is a true, complete and correct copy of Resolution No.
67-16 of the City ratifying the Issuer's authorization to issue the Bond, duly adopted by the
City Council of the City at a duly called meeting of the City Council, open to the public, held
on March 15, 2016. At such meeting a quorum was present and acted throughout; the said
Resolution is in full force and effect and has not been altered, amended or. repealed as of the
date hereof.
Attached hereto as Exhibit C is the Mayor's Notice of Public Hearing for the issuance
of the Bond. Also included in Exhibit C is an affidavit of the publisher of the Northwest
Arkansas Democrat -Gazette, showing that the Notice of Public Hearing on the issuance of
the Bond to be held March 15, 2016 was published one time in such newspaper on February
29, 2016. The public hearing was held at the time and place set forth in the notice.
No authority or proceedings in connection with the issuance, sale and delivery of the
Bond have been repealed, revoked or rescinded.
4. The meetings of the City Council referred to in paragraph 3 hereof were open to the
public in compliance with the provisions of Section 25-19-106 Open public meetings. of the
Arkansas Code Annotated.
5. The City is a City of the First Class, duly organized and existing under the laws of the
State of Arkansas pursuant to the provisions of Title 14, Chapters 42 and 43 of the Arkansas
Code Annotated.
6. No action, suit, proceeding, inquiry or investigation is pending or, to the knowledge
of the undersigned, threatened in any court or other tribunal of competent jurisdiction, state
or federal, or, to the knowledge of the undersigned, is there any basis therefor, in any way (i)
restraining or enjoining the issuance, sale or delivery of the Bond, or (ii) questioning or
affecting the validity or enforceability of the Bond, or (iii) questioning or affecting the
validity of the ordinances or resolutions referred to in paragraph 3 hereof or any of the
proceedings for the authorization, execution, authentication, sale or delivery of the Bond, or
(iv) questioning or affecting the corporate existence or organization of the City or the Issuer
or the title to office of any of the members, officers or officials thereof or any powers of the
City or the Issuer, or (v) questioning or affecting the power and authority of the Issuer to issue
the Bond.
7. According to the records of the City, Stephen E. Adams, Stephen Cosby, Phillip
Taylor, Tommy Deweese and Hugh Earnest are members of the Issuer and there are on file
in the office of the City Clerk the oaths of office for each member.
TNESS WHEREOF, the undersigned have hereunto set their signatures this
6�' day of April, 2
APPROVF,b: ATTEST:
By:
DA , Mayor SONDRA E. SMITH, City Clerk/Treasurer
EXHIBIT
• :
fIF•
Tp
ORDINANCE NO. L c�
AN ORDINANCE CREATING THE CITY OF FAYETTEVILLE, c�CiQ,yFh'�'�f
ARKANSAS RESIDENTIAL HOUSING FACILITIES BOARD
PURSUANT TO THE PROVISIONS OF ACT NO. 142 OF
THE ACTS OF ARKANSAS OF 1975; PROVIDING FOR THE
APPOINTMENT OF THE INITIAL MEMBERS THEREOF;
PRESCRIBING OTHER MATTERS RELATING THERETO;
1'ND DECLRaING AN EMERGENCY.
WHEREAS, the City of Fayetteville, Arkansas (the "City"),
pv- sLiant to the ,;:ovisious of Act No. 142 of the Acts of the
General Assembly of the State of Arkansas for the year 1975
(the "Act"), is authorized to establish public facilities boards
for the purposes set forth in the Act, which include assisting
in the financing of residential housing facilities within or
near the City; and
WHEREAS, the providing of decent, safe and sanitary
residential housing facilities will be aided by the creation of
a public facilities board to assist in the financing of residential
housing facilities; and
WHEREAS, funds may be obtained by a public facilities
board onsuchterms and under such conditions as will materially
assist persons of low and moderate income to obtain financing of
residential housing facilities under conditions more favorable
than would otherwise be available;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
OF THE CITY OF FAYETTEVILLE, ARKANSAS:
.Section 1. Findings. The City hereby finds and
determines:
(a) There exists within and near the City, including
the City's projected growth areas and the City's
extra -territorial planning areas, a shortage of
decent, safe and sanitary residential housing
facilities available for rehabilitation, con-
struction or purchase on terms that persons and
MICROFAME.
DATE JUN 1 11979
REB. Naa
i 98O 74
families of low and moderate income can afford
to pay.
(b) Existing economic conditions including high
rates of interest on residential mortgage loans, and
a shortage of funds within lending institutions in
the State of Arkansas for residential mortgage loans
are operating (i) to further restrict the rehabilita-
tion, construction and purchase of residential housing
by persons of low and moderate income at reasonably
affordable costs, (ii) to create unemployment and
hardship within the residential construction industry,
adversely affecting residents of the City and (iii) to
reduce and limit the value of property within the City,
all of which adversely affect the City's tax revenues
and which, if not alleviated, will lead to further
urban blight and decay and result in disproportionately
large expenditures for services by the City.
(c) The availability of mortgage financing to
assist such persons and families in the rehabilitation,
construction or purchase of decent, safe and sanitary
residential housing facilities will be aided by the
providing of funds for mortgage financing of residential
housing facilities by the creation of a public facilities
board pursuant to the provisions of the Act.
(d) The providing of financial assistance in
order to enable persons and families of low and moderate
income to finance the costs of decent, safe and sanitary
residential housing facilities is a proper public purpose
as declared by the Act, and by this determination of
the Board of Directors of the City.
® 980 75
(e) The public purpose of financing residential
housing facilities may best be served by establishing
a public facilities board to purchase mortgages on such
residential housing facilities or make loans to mortgage
lenders to provide financing for residential housing
facilities as provided in the Act.
Section 2. Creation of Board. Pursuant to the authority
of the Act there is hereby created and established the "City of
Fayetteville, Arkansas Residential Housing Facilities Board"
("Facilities Board") with authority as hereinafter provided to
accomplish, finance, contract or purchase mortgage loans concerning,
and otherwise act in such manner as may be permitted by the Act
to provide decent, safe and sanitary residential housing faci-
lities within or near the City, including the City's projected
growth areas and the City's extra -territorial planning areas.
Section 3. Members of the Board; Term of Office;
Duration of the Board. The Facilities Board shall consist of
five persons. The initial members shall, as provided in the Act,
be appointed by the Mayor of the City to serve for terms of one,
two, three, four and five years, respectively. The members of
the Facilities Board shall be residents of the City and shall
take and file with the City Clerk the oath of office prescribed
by the Act. The duration of the Board shall be for the life of
any such bonds issued hereunder as provided in Section 7.
Section 4. Powers. The Facilities Board is empowered,
from time to time, to loan, acquire, construct, reconstruct,
extend, equip, improve, sell, lease, and contract concerning
(which shall include the purchase of mortgage loans and the
making of loans to mortgage lenders) residential housing facilities
as shall be determined by the Facilities Board to be necessary to
effect the purposes of this Ordinance to provide decent, safe and
sanitary residential housing facilities within or near the City,
4; ® 980 .76
including the City's projected growth areas and the City's
extra -territorial planning areas. In addition, the Facilities
Board shall have each of the powers set forth in Section 7 of
the Act, as amended, and appropriate to the purposes for which
the Board is creates_ unless otherwise restricted herein. The
Board may enter into such contractural or cooperative agreements
with such persons as may, in its discretion, be advisable to
accomplish the purposes of this Ordinance, including without
limitation, departments, agencies or instrumentalities of the
United States of America, the State of Arkansas, or the City,
for example, the Department of Housing and Urban Development, the
Federal Housing Administration, the Veterans Administration and
the Arkansas Housing Development Agency. Prior to the issuance
of any such bonds, the Facilities Board must submit to the City
Board of Directors for its approval the following information:
(a) the size of the proposed bond issue and all
related details, including, but without limitation:
(i) principal amount;
(ii) date of the bonds;
(iii) interest payment dates;
(iv) principal payment dates;
(v) numbers
(vi) denominations;
(vii) rates of interest;
(viii) a schedule reflecting the annual
principal maturities;
(ix) the semi-annual interest requirements
and the total requirements; and
(x) applicable redemption provisions.
(b) Recommendations for person or persons to serve as
underwriter or underwriters, trustee, and custodian for any
980 77
such bonds and the mortgage lenders and servicing institu-
tions with which the Facilities Board shall contract, which
the Board of Directors reserves the right to select or
approve. The trustee and the custodian shall be institu-
tions located within the City, if such institutions are
qualified and such appointments do not otherwise adversely
affect the rating of the bonds (if submitted for rating).
Section -5. Bond Proceeds. Any agreements made by the
Facilities Board with mortgage lenders must contain a provision
to the effect that such mortgage lenders may only loan the
proceeds provided to them to finance housing located within the
City's corporate limits and to finance housing located within
the City's projected growth area and extra -territorial planning
area. A minimum of seventy-five percent (75%) of the bond
proceeds shall be available to finance housing located within
the City's corporate limits; and a maximum of twenty-five percent
(25%) of the bond proceeds shall be available to finance existing
housing located within the City's projected growth area and extra-
territorial planning area. The Facilities Board shall have the
authority, after prior approval of the City Board of Directors,
to reallocate such percentages.
Section 6. Investment of Bond Proceeds. The Facilities
Board shall offer bond proceeds not otherwise required to be
deposited with the custodian to financial institutions which
have their principal place of business located within the City
and which are qualified for such investments.
Section 7. Issuance of Bonds. The Facilities Board is
authorized and is limited to issue this initial series of revenue
bonds, in accordance with the conditions set forth in Section 4
hereof, and to use the proceeds, either alone or together with
other available funds and revenues, to accomplish the purposes for
which the Facilities Board is created as the same relates to the
providing of decent, safe and sanitary residential housing facilities.
980 78
Such revenue bonds shall be obligations only of the Facilities
Board and shall not constitute an indebtedness for which the faith
and credit of the City or any of its revenues are pledged, and the
principal and interest on the bonds shall be payable from and
secured by a pledge of revenues derived from residential housing
facilities financed, in whole or in -part, from bond proceeds
and as authorized by, and -in accordance with the provisions of the
Act, together with such other collateral as may properly be
pledged under the Act and as the Facilities Board in its discretion
may determine.
Section 8. Organization; Reports. As soon as practicable
after the adoption of this Ordinance the Facilities Board shall
meet and elect such officers as shall be required by the Act.
The Facilities Board may adopt such by-laws and other rules and
regulations as shall be necessary for the conduct of its business
and consistent with the provisions of the Act. The Facilities
Board shall cause to be.filed with the City Clerk of the City
the annual report described in Section 18 of the Act.
Section 9. The law firm of Friday, Eldredge & Clark,
Little Rock, Arkansas, is hereby appointed to act as Bond Counsel
on behalf of the City and the Facilities Board in connection with
the issuance and sale of the Bonds.
Section 10. Severability. If any provisions of this
Ordinance or the application thereof to any person or circumstance
is held invalid, such invalidity shall not affect the other provisions
or applications of this Ordinance, which can be given effect
without the invalid provision or application, and to this end the
provisions of this Ordinance are declared to be severable.
i ® 980 79
Section 11. General Repeal. All Ordinances of the City,
or parts thereof, in conflict with this Ordinance are hereby
repealed to the extent of such conflict.
Section 12. Emergency. It is hereby found and determined
the'- there is an immediate and urgent need for the providing of
decent, safe and sanitary housing for persons of low and moderate
income in or near the City, including the City's projected
growth areas and the City's extra -territorial planning areas,
and the providing of financial assistance to such persons, and
that creation of the Facilities Board and the exercise of the
duties and powers provided in this Ordinance are necessary to
the preservation of the public peace, health and safety. Therefore,
an emergency is declared to exist and this Ordinance shall be in
full force and effect from and after its passage.
PASSED: , 1978.
APPR f z i
:",."�►. Assista,t- Mayor
Sl e k
CERTIFICATE OF RECORD
OF ARKArrCAS I
W :I rn ;9r County I SS.
I. A' ' 1.. K0tfrriyer, Circuit C trk and Ex-Offiiclo Recorder for
Washington County, do her., icy certify Ihat the annexed or fore.
goin instr_�u�ttry%,' �: es Tided for re'c�ord in I7 ?Ef:co r the i 'day
0f f:C�u 1'9.—r{at��•OrUock ..M Ind the same is
duly recor¢a,,,1,1 record V49 at page
••r u.eaa my hand ana seat this - lday o} ig�
Circuit i;!erk and
Ex-Oi..cto ttecoraed
En;_Lrr. 1nrY
vr`+_ o a3reteviilo r r.,a
L _ic':o i .,_de, icr the 5, o:e.i�t{3iri C.
,. b.etcuy .,;a ,, _ :ao t, or C io.c
going is of record ill my Oltics aid ho same
appears in C tq& .__________-. —_ bock
V 1 1 _ at page ` Witness my
hand and seal this day of
City C1 it and Ex-Ot£ic!o Recorder
Ii ® 980 80
ORDINANCE NO. '7 d
AN ORDINANCENUMBER 2485 TO
DESIGNATE THE FAYETTEVILLEE, C ARKANSAS, RESIDENTIAL
HOUSING FACILITIES BOARD AS THE FAYETTEVILLE PUBLIC
FACILITIES BOARD; TO EMPOWER SAID BOARD TO OWN, ACQUIRE,
CONSTRUCT, RECONSTRUCT, EXTENT, EQUIP, IMPROVE, OPERATE,
MAINTAIN, SELL, LEASE, CONTRACT CONCERNING, LAND FOR THE
PURPOSE OF CONSTRUCTING, ACQUIRING OR EQUIPPING OR OTHERWISE
DEAL- -IN OR DISPOSE OF HEALTH CARE FACILITIES; TO
AUTHORIZE SAID BOARD TO ISSUE BONDS TO FINANCE HEALTH
CARE FACILITIES; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Fayetteville, Arkansas (the "City"),
pursuant to the provisions of Act No. 142 of the Acts of the
General Assembly of the State of Arkansas for the year 1965
(the "Act"), is authorized to establish public facilities boards
for the purposes set forth in the Act; and
WHEREAS, the Fayetteville Board of Directors on November 21,
1978 adopted Ordinance No. 2485 which created such a board to
assist in the financing of residential housing facilities within
or near the City and designated said board as the Fayetteville
Residential Housing Facilities Board and authorized said board
to issue bonds for the purpose of providing residential housing;
and
WHEREAS, the Fayetteville Board of Directors has determined
that the City of Fayetteville is in immediate need of health care
facilities and that the aforesaid board should be authorized to
issue bonds to finance the construction and equipping of said
facilities.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
OF THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That Ordinance No. 2485 is hereby amended by
changing the name of the Fayetteville Residential Housing
Facilities Board created by said ordinance to The Fayetteville
Public Facilities Board.
Section 2. That the Fayetteville Public Facilities Board
is hereby authorized to own, acquire, construct, reconstruct,
extend, equip, improve, operate, maintain, sell, lease, contract
concerning, land for the purpose of constructing, acquiring or
equipping, or otherwise deal in or dispose of health care facilities
as well as residential housing facilities.
Section 3. That the Fayetteville Public Facilities Board
is hereby authorized to issue bonds in accordance with the
procedure prescribed by Act No. 142 of 1975 for the purpose of
financing health care facilities.
Section 4. It is hereby found and determined that there
is an immediate and urgent need for the providing of health care
facilities in the City of Fayetteville to preserve the public
health and that the exercise of the powers provided in this
ordinance are necessary to provide health care facilities and
thereby preserve the public health. Therefore, an emergency is
hereby declared to exist and this ordinance being necessary for
the public health shall be in full force and effect from and after
its passage.
PASSED AND APPROVED thi( day of , 1981.
I. !• 4 - , 'A'T3TEST.
CT YCLERI{
APP ROV• :
MAYOR
1U36 749
MICROFILMED
CERTIFICATE OF RECORD
State of Arkansas SS
City of Fayetteville
1. Suzanne C. I{ennedy, City Clerk and
Ex -Officio recorder for the City of Fayetteville,
do hereby certify that the annexed or fore-
going is of record in my office and the same a.p-
peers in Ordinance & Resolution book
CERTIFICATE OF RECORD
STATE OF ARKANSAS I SS.
Washington County
I, Alma L. Kola.never, Circuit Clark and Ex -Officio Recorder for
Wa hmgton CoOunl/, do hereby Certify that the annexed or dara-
going Instrument was flied for rrecordln my oiflce on theAlZdY
of � 1,L1 rPD'r:ip �,t,YS?, and the Sla,no.�ifs
duly recorded Inrecord bat parmZ
Witness my hand and Seal I ' data L9&(
Circuit Clerk and
Ex•0 ficio [ieeor a
By CdarK
at page— _ _ _.. Witness my
band and seal this- j of
Clerk and Ex wia Recor
ORDINTMCE IVO. 2991 (5'/�r
AN ORDINANCE AMENDING ORDINANCE NO. 2485, AS AMENDED, <"8 �
TO AUTHORIZE THE FAYETTEVILLE PUBLIC FACILITIES i.�
BOARD TO ISSUE REVENUE BONDS TO FINANCE THE CO RUCTION "8
OF HEALTH CARE AND RESIDENTIAL FACILITIES FORCF�r ERLY
O _, 8s
ER ON .
C,
WHEREAS, the Board of Directors of the City df Faye �#rll,
Arkansas, has established a public facilities board pursuai4t
to Act No. 142 of the Acts of the General Assembly of the State
of Arkansas for the year 1975 (the "Act"), as amended, for
the purpose of providing assistance in the financing of
residential and health care facilities; and
WHEREAS, said board was established
by Ordinance No. 2485
adopted and approved November 21, 1978,
as amended by Ordinance
No. 2708, adopted and approved March 3,
1981; and
WHEREAS, the Fayetteville Public Facilities
Board proposes
to issue revenue bonds to assist in the
financing of residential,
health care, and related facilities for
elderly persons; and
WHEREAS, the Fayetteville Board of
Directors has determined
that there is a need for said facilities
as manifested by the
substantial number of elderly persons residing
within the City;
and
WHEREAS, the Fayetteville Board of
Directors has determined
that Ordinance No. 2485, as amended, should
be amended to expressly
authorize the issuance of revenue bonds
to assist in financing
the construction of residential housing,
health care, and related
facilities for elderly persons.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
OF THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That Section 1 of Ordinance No. 2485 is hereby
amended by adding the following:
(f) The development of housing, health care,
and related facilities for elderly persons serves
a substantial public purpose and there is a significant
need in the City for such facilities.
Section 2. That Section 3 of Ordinance No. 2485 is hereby
amended by deleting the last sentence in said section.
Section 3. That Section 4 of Ordinance No. 2485 is hereby
amended by adding the following:
The Board is expressly authorized to issue
revenue bonds for the purpose of financing residential
housing, health care, and related facilities to serve
elderly persons, provided said facilities are owned by
1104 . 863
Y. ..
ra
non-profit corporations or associations. The issuance
of such revenue bonds shall be accomplished by resolution
duly adopted by the Fayetteville Public Facilities Board
and ratified by the Fayetteville Board of Directors.
Section 4. That Section 5 of Ordinance No. 2485 is
hereby amended by adding the following:
This section shall apply only to bonds issued
for the purpose of financing owner -occupied housing.
Section 5. That Section 6 of Ordinance No. 2485 is
hereby amended by adding the following:
This section shall apply only to the proceeds
of bonds issued for the purpose of financing owner -
occupied housing.
Section 6. That Section 7 of Ordinance No. 2485 is
hereby amended by adding the following:
This section shall apply only to the issuance
of bonds for the purpose of financing owner -occupied
housing. The Board is expressly authorized to issue
bonds for the purpose of financing housing, health
care, and related facilities to serve elderly persons,
provided said facilities are owned by non-profit
corporations or associations.
Section 7. As amended hereby, Ordinance No. 2485 as
amended by Ordinance No. 2708, is hereby ratifiied and affirmed.
Section 8. All ordinances, or parts thereof, in conflict
with this ordinance are hereby repealed to the extent of such
conflict.
Section 9. If any provision of this ordinance or the
application thereof to any person or circumstances is held
invalid, such invalidity shall not affect the other provisions
or applications of this ordinance, which can be given affect
without the invalid provision or application, and to this end
the provisions of this ordinance are declared to be severable.
Section 10. It is hereby found and determined that there
is an immediate and urgent need for the providing of decent,
safe and sanitary housing, health care and related facilities
for elderly persons residing in or near the City of Fayette-
ville and that the immediate passage of this ordinance is
necessary to provide such facilities. Therefore, an emergency
is declared to exist, and this ordinance being necessary for
the public health and welfare shall be in full force and
effect from and after its passage and approval.
PASSED AND APPROVED this 20th day of March, 1984.
APPROVED:
By:
Mayor
ATTEST;
�''f' *«i jlrierk
t �'r
Li,L �,y • ',.S•
Iw111.5.1
CERTIFICATE OF RECORD
State of Ark;insas ( SS
City of Fayetteville
I. &irenne C. Kennedy, City Clerk and
recur ler for the City of Fayctte ille,
do harc'vy certify that the ann.•-e.l or fore -
o: record in my office a.id the same ep-
cears is O:jinance &� /Reesol;ztion book
x �•� pit paF;e-f J. _ . \ itnas, my
':1d imJ Seal this- day of
1104 865w
ORDINANCE NO. _4021
0 21
AN ORDINANCE AMENDING ORDINANCE NO. 2485, AS
AMENDED, TO MAKE EXPRESSLY CLEAR THAT THE
FAYETTEVILLE PUBLIC FACILITIES BOARDS'
AUTHORIZATION TO ISSUE REVENUE BONDS FOR THE
PURPOSE OF FINANCING RESIDENTIAL HOUSING,
HEALTH CARE, AND RELATED FACILITIES TO SERVE
ELDERLY PERSONS IS IN ADDITION TO ANY OTHER
AUTHORIZATION TO ISSUE BONDS CONTAINED
ELSEWHERE IN THE ORDINANCE; TO DELETE SECTION
9 OF ORDINANCE NO. 2485 WHICH NAMED FRIDAY,
ELDREDGE & CLARK AS BOND COUNSEL;AND
DECLARING AN EMERGENCY.
WHEREAS, the Board of Directors of the City of Fayetteville, Arkansas, has established
a public facilities board pursuant to Act No. 142 of the Acts of the General Assembly of the State
of Arkansas for the year 1975 (the "Act"), as amended, for the purpose of financing residential
housing facilities for low and moderate income families, for the purpose of financing health care
facilities, and for the purpose of financing residential housing, health care, and related facilities
to serve elderly persons; and,
WHEREAS, said board was established by Ordinance No. 2485 adopted and approved
November 21, 1978, as amended by Ordinance No. 2708, adopted and approved March 3, 1981
and Ordinance No. 2991 adopted and approved March 20, 1984; and,
WHEREAS, the Fayetteville City Council wishes to make it expressly clear that the
Public Facilities Board is authorized three separate and distinct powers by this and previous
amendments - one; to finance residential housing facilities for low and moderate income
families; - two, to finance health care facilities; and - three, to finance residential housing,
health care, and related facilities to serve elderly persons; and,
WHEREAS, Section 9 of Ordinance No. 2485 providing for the appointment of the law
firm of Friday, Eldredge & Clark as bond counsel was only for the issuance and sale of the
residential housing facility bonds and, accordingly, should reflect that limited appointment.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That Section (f) of Section 1 of Ordinance No. 2485 is hereby amended
by deleting said Section (f) and replacing the same as follows:
Page 2
Ordinance No.
4021
(f) In addition to all other findings and public purposes stated in this
ordinance, the development of housing, health care, and related facilities for
elderly persons, regardless of income, serves a substantial public purpose and
there is a significant need in the city for such facilities.
Section 2. That Section 2 of Ordinance No. 2485 is hereby amended by adding the
following:
Additional authority has been granted the Facilities Board by Ordinance
No. 2708 and Ordinance No. 2991 and the Facilities Boards' authority may vary
as allowed by statute and as provided by further amending ordinances which may
be passed by the City in the future.
Section 3. That Section 9 of Ordinance No. 2485 is hereby amended by adding the
following:
Said appointment is only for the residential housing facilities bonds first
authorized in Ordinance No. 2485 prior to the amendments thereto.
Section 4. As amended hereby, Ordinance No. 2485 as amended by Ordinance No.
2708 and Ordinance No. 2991, is hereby ratified and affirmed.
Section 5. All ordinances, or parts thereof, in conflict with this ordinance are hereby
repealed to the extent of such conflict.
Section 6. If any provision of this ordinance or the application thereof to any person
or circumstances is held invalid, such invalidity shall not affect the other provisions or
applications of this ordinance, which can be given affect without the invalid provision or
application, and to this end the provisions of this ordinance are declared to be severable.
Section 7. It is hereby found and determined that there is an immediate and urgent
need to finance and/or refinance a bond issue in order to provide residential housing, health care
and related facilities to serve elderly persons and this ordinance is needed to allow the Public
Facilities Board to proceed with such financing, any delay in which may cause harm to existing
facilities and endanger the health, safety and welfare of those elderly persons benefiting from
such financing. Therefore an emergency is declared to exist, and this ordinance being necessary
for the public health, safety and welfare shall be in full force and effect from and after its passage
and approval.
Page 3
Ordinance No. 4021
PASSED AND APPROVED this 18th day of February , 1997.
f AYE-[, APPROVED:
By.
red Hanna, Mayor
`ATTES
Sy:
Traci Paul, City Clerk
EXHIBIT
113 West Mountain
Street Fayetteville,
AR 72701
(479) 575-8323
Resolution: 67-16
File Number: 2016-0102
FAYETTEVILLE PUBLIC FACILITIES BOARD:
A RESOLUTION RATIFYING THE RESOLUTION OF THE FAYETTEVILLE PUBLIC FACILITIES
BOARD APPROVING A REFUNDING AND IMPROVEMENT REVENUE BOND (BUTTERFIELD
TRAIL VILLAGE PROJECT), SERIES 2016 IN A PRINCIPAL AMOUNT OF NOT TO EXCEED
$17,450,000; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO
WHEREAS, The Fayetteville Public Facilities Board (the "Board"), is a public body politic and corporate
with the power of perpetual succession created by Ordinance No. 2485, as amended (collectively, the
"Ordinance"), of the City of Fayetteville, Arkansas (the "City") under the constitution and laws of the State
of Arkansas (the "State"), including the Public Facilities Boards Act as codified at Arkansas Code Annotated
§14-137-101 et seq., as amended (the "Act"); and
WHEREAS, the Board is authorized by the Act and the Ordinance to issue and sell its revenue bonds and to
use the proceeds thereof for the purpose of financing housing, health care and related facilities in the City to
serve elderly persons so long as such facilities are owned by nonprofit corporations and to secure payment of
such revenue bonds as therein provided, and to issue refunding bonds, all in accordance with the provisions
of the Act and the Ordinance; and
WHEREAS, Butterfield Trail Village, Incorporated, an Arkansas nonprofit corporation, owns a residential
life care retirement facility for the elderly known as "Butterfield Trail Village" consisting of independent
living units, a skilled nursing care center and related facility located on approximately 44 acres of land at
1923 E. Joyce Boulevard in the City ("Butterfield Trail Village"); and
WHEREAS, the Board has previously issued its Refunding Revenue Bonds (Butterfield Trail Village
Project), Series 2010 (the "2010 Bonds"); and
Page 1 Printed on 3/16/16
File Number. 2016-0102
Resolution: 67-16
WHEREAS, the Board has determined that the economic interest and public purpose of the Board are served
by issuing its Refunding and Improvement Revenue Bond (Butterfield Trail Village Project), Series 2016
(the "Bond") in a principal amount of not to exceed $17,450,000 for the purpose of providing moneys to (a)
refund the 2010 Bonds (the "Refunding"), and (b) finance all or a portion of the costs of improvements for
Butterfield Trail Village, including particularly, without limitation, (i) acquiring, constructing, renovating,
remodeling, equipping and furnishing common areas in the Main Residential Building, including
particularly, without limitation, improvements to the main hallways, resident hallways, elevators, the library,
meeting rooms, the game room, stairwells and atriums, (ii) acquiring, constructing, renovating, remodeling,
equipping and furnishing the Health Care Center in the Main Residential Building, including particularly,
without limitation, improvements to hallways, nursing stations, offices, meeting rooms, resident rooms, and
auxiliary spaces, and (iii) acquiring, constructing, renovating, equipping and furnishing an approximately
17,200 square foot expansion to the Main Residential Building to include particularly, without limitation, a
new lobby and entryway, a convocation room and offices (collectively, the "2016 Project"), to pay the costs
of issuing the Bond and accomplishing the Refunding and for other purposes related thereto: and
WHEREAS, the Bond is not a debt of or pledge of the credit of either the City or the Board and neither the
City or the Board is obligated to pay debt service on the Bond; and
WHEREAS, pursuant to the provisions of the Ordinance, resolutions adopted by the Board which authorize
the approval of bonds for financing and refinancing residential housing, health care and related facilities for
the elderly which are owned by non-profit corporations are required to be ratified by the City prior to the
issuance of such bonds; and
WHEREAS, such resolution adopted by the Board on March 1, 2016 (the "Board Resolution"), authorized
the issuance of the Bond to accomplish the Refunding and to finance the 2016 Project and authorized the
Chairman and Secretary of the Board to execute and delivery the Bond and documents to effect the issuance
of the Bond;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS
Section 1. Recognition of Board's Authority. The Board is authorized by the Act and the Ordinance to
approve the issuance of the Bond in a principal amount of not to exceed $17,450,000 for the purpose of
providing moneys to accomplish the Refunding, to finance all or a portion of the costs of the 2016 Project, to
pay the costs of issuing the Bond and accomplishing the Refunding, and for other purposes related thereto and
shall comply with other provisions of the Act and the Ordinance. The Bond by statute and intent of this City
Council is not a debt of or pledge of the credit of either the City or the Board and neither the
Page 2 Printed on 3/16/16
File Number: 2016-0102
Resolution: 67-16
City nor the Board is obligated to pay debt service on the Bond whether or not the Bond has
been properly issued.
Section 2. Ratification of Board's Resolution. The provisions of the Board Resolution, a copy of
which is filed with the Clerk of the City, are hereby ratified by the City.
Section 3. Severability. If any provision of this Resolution shall be held or deemed to be or shall, in
fact, be illegal, inoperative or unenforceable, the same shall not affect any other provision or
provisions herein contained or render the same invalid, inoperative or unenforceable to any
extent whatever.
Section 4. Repeal of Resolutions in Conflict. All resolutions and parts of resolutions in conflict
herewith are hereby repealed to the extent of such conflict.
PASSED and APPROVED on 3/15/2016
Attest:
Sondra E. Smith, City Clerk Treasurer
Page 3 Printed on 3/16/16
EXHISfrr
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be conducted on March 15, 2016,
at 5:30 o'clock p.m., before the Mayor and the City Council of the City of Fayetteville, Arkansas,
in the Quorum Court Room of the Washington County Courthouse, 280 North College Avenue,
Fayetteville, Arkansas 72701, on the question of the issuance of revenue bonds (the "bonds") by
The Fayetteville Public Facilities Board (the "Board") for the purpose of (a) refunding The
Fayetteville Public Facilities Board Refunding Revenue Bonds (Butterfield Trail Village
Project), Series 2010 (the "2010 Bonds") and (b) financing all or a portion of the costs of the
following improvements for Butterfield Trail Village, Incorporated, an Arkansas non-profit
corporation (the "Corporation") that operates a residential life care retirement facility for the
elderly: (i) financing all or a portion of the costs of acquiring, constructing, renovating,
remodeling, equipping and furnishing common areas in the Main Residential Building, including
particularly, without limitation, improvements to the main hallways, resident hallways, elevators,
thelibrary, meetingro-Qms• the game room, stairwells and atriums;ii financing all or a portion
of the costs of acquiring, constructing, renovating, remodeling, equipping and furnishing the
Health Care Center in the Main Residential Building, including particularly, without limitation,
improvements to hallways, nursing stations, offices, meeting rooms, resident rooms, and
auxiliary spaces, and (iii) financing a portion of the costs of acquiring, constructing, renovating,
equipping and furnishing an approximately 17,200 square foot expansion to the Main Residential
Building to include particularly, without limitation, a new lobby and entryway, a convocation
room and offices (collectively, the "2016 Project"). The aggregate principal amount of the bonds
allocable to the 2016 Project shall not exceed $3,655,000 and the aggregate principal amount of
the bonds allocable to the refunding of the 2010 Bonds shall not exceed $13,795,000.
The initial owner and operator of the 2016 Project will be the Corporation. The
2016 Project will be located on the Corporation's approximately 44 -acre campus at 1923 E.
Joyce Boulevard, Fayetteville, Arkansas 72703.
The 2010 Bonds were issued to refund the Board's Adjustable Rate Demand
Refunding Revenue Bonds, Series 2002 (Butterfield Trail Village Project), which were issued to
refinance costs of acquiring, constructing and equipping the residential life care retirement
facility (consisting of particularly, without limitation, residential units, a skilled nursing care
center, recreational facilities and other related facilities) owned and operated by the Corporation
on the Corporation's approximately 44 -acre campus at 1923 E. Joyce Boulevard, Fayetteville,
Arkansas 72703.
Proceeds of the Board's Revenue Bond (Butterfield Trail Village Project), Series
2013 (the "2013 Bond") will be used to provide a portion of the funds to finance costs of the
2016 Project. The remainder of the proceeds of the 2013 Bonds have been expended to finance
the following improvements for the Corporation: (i) acquiring, constructing, equipping and
furnishing an assisted living facility containing approximately 9,300 square feet, (ii) acquiring,
constructing, renovating, equipping and furnishing the existing Wellness Center and acquiring,
constructing, renovating, equipping and furnishing an approximately 6,700 square foot
expansion to the Wellness Center, all of which are located on the Corporation's approximately
44 -acre campus at 1923 E. Joyce Boulevard, Fayetteville, Arkansas 72703.
The bonds shall be special obligations of the Board, secured by and payable from
an assignment of the right to receive payments from the Corporation pursuant to a Loan
Agreement between the Board and the Corporation, and such other collateral as may be provided
by the Corporation. The obligations shall not constitute an ind - tedness for which the faith and
credit of the City are pledged. /-+•`
rd
Dated: February 24, 2016
Mayor
NOliEr! OF PUBLIC HEARING
an approximately 6,700 square foot
Notice is hereby given that a public
expanslon to the Wellness Center,
haarungwill be conducted on March
all of which are located on the
15, 2016, at 5:30 o'clock p.m., before
Corporation's approximately 44 -acre
I '('(r �C� ARKANSAS
Mayor and the City Council of the
campus 1923 B. Joyce Boulevard,
v
�� �{ E' J
City of Fayetteville, Arkansas, in the
it
PayULevilla, Arkansas 72703.
Quoattm Court Room or dm
Washington County Courthouse, 280
The bonds shall be special
obligations of the Board, secured by
/'�/�{�/�
Arka sasl727 Avenue, Fayequestion
and einm ap asmenment of
� lac r
*11"Ank
of,
Arkansas 72701, on (lie question of
ight to
the right to receive payments from
9/1A1
I Its issuance of revenue bonds (the
the Corporation pursuant too Loan
'bonds') by Ilia Fayetteville Public
Agreement between the Board and
purpiseof(arr (the "Board') for the
tine and ouch
P.O BOX 1607, FAYE'i TEVILLE, AR, 72702 - 479-442-1700 " FAX: 479.695-1118 i WWW N WADG,COM
purpose of (a) refunding The
ed br
ntennlCorps ma,
wilatcral as may be provided by the
to
Fayetteville Public Facilities Board
Corporation. The obligationsshall
'4!
AFFIDAVIT OF PUBLICATION
Refunding Rcvcnua Beads
not constitute an indebtedness for
t.,
(Satterfield Trail Village Projeci),
which the faith and credit of the City
Series 2010 (the "2010 Bonds') end
are pledged.
(b) financing all or a portion of the
Dni 4: February 24, 2016
I, Karen Caler, do solemnly swear that I am the Legal Clerk of the
cents of the dTl improvements
fbt Butterfield Trail Village,
Meyer/nfLeld Jordan
Mayo
Northwest Arkansas Democrat and in
laeegperetn en Arkansas non-profit
73594829 1Peb 29, 2016
-Gazette, printed published
eospoattlen (the "Corporation") that
Washington County and Benton Counties, Arkansas, and of
operates a residential life care
ratireagent facility for the elderly: (u)
bona fide circulation, that from m own ersonal knowled e
y p g
oliacquag all m n portion of the costs
of acquiring, conswcdng, renovating,
and reference to the files of said publication, the advertisement of:
rarnedeling, equipping and fur siting
commute aria In the Malts
Reoldemlal liuilding, including
particularly, without limitation.
BUTTERFIELD TRAIL VILLAGE
hsidenthallwaothe maors,thallways,
resident hallways, elevators, the
Notice of Public Hearing
library, meeting rooms, the game
room, stairwells and atriums; (ii)
City of Fayetteville Revenue Bonds
Rrtancing a0 or a portion of the tests
,•f
airacgrairing, constructing, renovating,
imesadeling, equipping and fttmishi ng
Was inserted in the Regular Edition on:
this Health Care Center in the Main
Residential Building, including
February 29, 2016
particularly, without limitation,
improvements to hallways, nursing
stations, offices, moaning rooms,
•
resident rooms, and auxiliary spaces,
Publication Charge: $ 222.30
and (iii) financing a portion of the
costs of acquiring, constructing,
renovating, equipping and furnishing
an approximately 17,200 square foot
<OJ)
itheMainticularly,al
Building
Building to include particularly,
(!&Q
without limitation, a now lobby and
entryway, a convocation room and
Karen Caler
offices (collectively, the "2016
Projec('). The aggregate principal
amount of the bonds allocable to the
2016 Project shall not exceed
Subscribed and sworn to before me
$3,655,009 oral the aggregate
principal amount of the bonds
This 2 day of , 2016.
allocable to the refunding of the 2010
Bonds shall not exceed $13,795,000.
line initial owner and operator of the
2016 Project will be the Corporation.
The 2016 Project will be located on
the Corporation's approximately 44 -
acre campus at 1923 H. Joyce
Boulevard, Fayetteville, Arkansas
(rf./
72703.
The 2010 Bonds were issued to
Notary Public
refund the Board's Adjustable Rate
Demand Refunding Revenue Bonds,
My Commission Expires: Z/2t�
Series t , which (flwerfi taneldedd Trail Village
Project), ware issued to
r
refinance coils of acquiring,
••
cnnsttuciing and equipping the
residential life taro retirement facility
(cotuutltsg, of particularly, without
Ilmltaton, residential units, a skilled
CATHY WILES
nursing care center, recreational
Arkansas - Benton County
facilitles and other related facilities)
Notary Public - Comm# 12397118
owned eat! operated by the
Corporatlon on the Corporation's
My Commission Expires Feb 20, 2024
approximately 44 -acre campus at
1923 B. Joyce Boulevard,
— ,,PJ
Fayetteville, Arkansas 72703.
Proceeds of the Board's Revenue
Bond (Butterfield Trail Village
* *NOTE* *
Project), Series 2013 (the '2013
Bond") will be used to provide a
Please do not pay from Affidavit.
portion of the funds to finance coals
ofline 2016Project. The remainder of
Invoice will be sent. -
roceeds of have
been expended to finance the
following improvements for the
Corpoation: I)) acquiring,
constructing, equipping and
furnishing an assisted living facility
containing approximately 9,300
square feet, (ii) acquiring,
•
constructing, renovating, equipping
end furnishing the existing Wellness
Center and acquiring, constructing,
renovating, equipping and furnishing
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
TO: Mayor Jordan
Sondra Smith, City Clerk
CC: Don Marr, Chief of Staff
Paul Becker, Finance Director
FROM: Kit Williams, City Attorney
DATE: April 5, 2016
RE: Closing Certificate for Public Facilities Board Bonds
TEFRA Notice of Public Hearing and Approval Certificate
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Patti Mulford
Paralegal
I amended and corrected the proposed Closing Certificate which now
appears proper to me. We need to attach as Exhibit C the actual Notice of Public
Hearing that I drafted to replace the proposed so called TEFRA Notice of Public
Hearing and Approval Certificate. My Notice of Public Hearing was published,
not the proposed "TEFRA" (whatever that means) notice. I sent my Notice to
bond counsel in Little Rock before publication and heard no objections. In the
City's own bond documents, it is Bond Counsel rather than the Mayor who
certifies compliance with tax laws.
The proposed TEFRA Notice (that was not published) stated that the
"Mayor... hereby approves the issuance of the Bond by the Issuer for purposes
of meeting the requirements of Section 147(f) of the Internal Revenue Code."
The Mayor also certifies that his published "notice apprised the residents of the
City of the proposed issuance of the Bond, in compliance with all legal
requirements, including Section 147(f) of the Internal Revenue Code of 1986,
as amended." I am not a bond tax expert, and I would not ask Mayor Jordan to
sign such a statement. Therefore, I redrafted the Notice to what was actually
published without mentioning "TEFRA", nor requiring the Mayor to certify
compliance with tax laws.
Thus, I have corrected the Closing Certificate, removed the incorrect and
unpublished TEFRA Notice from the proposed exhibits and placed the published
Notice of Public Hearing in its place as the first page of Exhibit C. The Mayor
should probably sign this Notice above his electronic signature and may now
sign the corrected Closing Certificate.
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be conducted on March 15, 2016,
at 5:30 o'clock p.m., before the Mayor and the City Council of the City of Fayetteville, Arkansas,
in the Quorum Court Room of the Washington County Courthouse, 280 North College Avenue,
Fayetteville, Arkansas 72701, on the question of the issuance of revenue bonds (the "bonds") by
The Fayetteville Public Facilities Board (the "Board") for the purpose of (a) refunding The
Fayetteville Public Facilities Board Refunding Revenue Bonds (Butterfield Trail Village
Project), Series 2010 (the "2010 Bonds") and (b) financing all or a portion of the costs of the
following improvements for Butterfield Trail Village, Incorporated, an Arkansas non-profit
corporation (the "Corporation") that operates a residential life care retirement facility for the
elderly: (i) financing all or a portion of the costs of acquiring, constructing, renovating,
remodeling, equipping and furnishing common areas in the Main Residential Building, including
particularly, without limitation, improvements to the main hallways, resident hallways, elevators,
thelibrary, meetingx9oms t, he game room, stairwells and atriums; (ii) financing all or a portion
of the costs of acquiring, constructing, renovating, remodeling, equipping and furnishing the
Health Care Center in the Main Residential Building, including particularly, without limitation,
improvements to hallways, nursing stations, offices, meeting rooms, resident rooms, and
auxiliary spaces, and (iii) financing a portion of the costs of acquiring, constructing, renovating,
equipping and furnishing an approximately 17,200 square foot expansion to the Main Residential
Building to include particularly, without limitation, a new lobby and entryway, a convocation
room and offices (collectively, the "2016 Project"). The aggregate principal amount of the bonds
allocable to the 2016 Project shall not exceed $3,655,000 and the aggregate principal amount of
the bonds allocable to the refunding of the 2010 Bonds shall not exceed $13,795,000.
The initial owner and operator of the 2016 Project will be the Corporation. The
2016 Project will be located on the Corporation's approximately 44 -acre campus at 1923 E.
Joyce Boulevard, Fayetteville, Arkansas 72703.
The 2010 Bonds were issued to refund the Board's Adjustable Rate Demand
Refunding Revenue Bonds, Series 2002 (Butterfield Trail Village Project), which were issued to
refinance costs of acquiring, constructing and equipping the residential life care retirement
facility (consisting of particularly, without limitation, residential units, a skilled nursing care
center, recreational facilities and other related facilities) owned and operated by the Corporation
on the Corporation's approximately 44 -acre campus at 1923 E. Joyce Boulevard, Fayetteville,
Arkansas 72703.
Proceeds of the Board's Revenue Bond (Butterfield Trail Village Project), Series
2013 (the "2013 Bond") will be used to provide a portion of the funds to finance costs of the
2016 Project. The remainder of the proceeds of the 2013 Bonds have been expended to finance
the following improvements for the Corporation: (i) acquiring, constructing, equipping and
furnishing an assisted living facility containing approximately 9,300 square feet, (ii) acquiring,
constructing, renovating, equipping and furnishing the existing Wellness Center and acquiring,
constructing, renovating, equipping and furnishing an approximately 6,700 square foot
expansion to the Wellness Center, all of which are located on the Corporation's approximately
44 -acre campus at 1923 E. Joyce Boulevard, Fayetteville, Arkansas 72703.
The bonds shall be special obligations of the Board, secured by and payable from
an assignment of the right to receive payments from the Corporation pursuant to a Loan
Agreement between the Board and the Corporation, and such other collateral as may be provided
by the Corporation. The obligations shall not constitute an indebtedness for which the faith and
credit of the City are pledged.
Dated: February 24, 2016
/s/ Lioneld Jordan
Mayor
KIT WILLIAMS
FAYETTEVILLE CITY ATTORNEY
Blake E. Pennington
Assistant City Attorney
Patti T. Mulford
Paralegal
Phone 479.575.8313
cityattor'ney@fayetteville-ar.gov
Hon. D. Michael Moyers
Friday, Eldridge & Clark
400 West Capitol, Suite 2000
Little Rock, AR 72201-3522
April 8, 2016
113 W. Mountain Street, Suite 302
Fayetteville, AR 72701-6083
Re: Fayetteville Public Facilities Revenue Bond Notice/ Closing Certificate
Dear Michael:
Thanks for your email of April 7, 2016. As you know, the Notice of
Public Hearing that was actually published prior to the City Council
Meeting to consider the City Council's approval of the Facilities Board's
Resolution to issue the revenue bonds was the Notice I drafted and NOT
the TEFRA notice you supplied originally. Your supplied TEFRA notice
included language that the Mayor claimed the notice and (by implication)
bond complied with IRS regulations. That certification should be made by
you as bond counsel, not the Mayor. Attached is the bond opinion letter
from a recent bond issuance by the City in which our bond counsel fulfills
his responsibility by opining on the IRS compliance.
Thanks for supplying me with the TEFRA notice that Mayor Jordan
signed for the 2013 Facilities Bond issuance. This came as a surprise to me
because I had also refused to allow the publication of the TEFRA notice
you had supplied then and had drafted a different Notice (similar to the
2016 Notice) which I supplied to you and which you published. A clerical
mistake occurred in 2013 which allowed the Mayor to sign the wrong
publication notice. This will not happen again.
In order to accommodate your request that the Closing Certificate be
dated at the actual closing date, I have requested the Mayor to resign the
last page of the Closing Certificate we have already supplied to you
reflecting your proposed date of April 12, 2016. Reviewing the 2013 bond
issuance, I see the Mayor signed the Closing Certificate as the"_____ day
of October, 2013." Assuming this was eventually filled out, please send us
that page for our records.
With kindest regards,
KIT WILLIAMS
Fayetteville City Attorney
cc: Mayor Lioneld Jordan
Don Marr, Chief of Staff
City Clerk Sondra Smith
Paul Becker, Finance Director
CLOSING CERTIFICATE OF
CITY OF FAYETTEVILLE, ARKANSAS
The undersigned, Mayor and City Clerk of the City of Fayetteville, Arkansas, a duly
organized and existing municipality of the State of Arkansas (the "City"), do hereby certify as
follows:
1. The undersigned are the duly elected, qualified, and acting Mayor and City Clerk of
the City, and as such officials have in their possession or have access to the official books and
records of the City.
2. Attached in the Exhibits hereto is a true, correct and complete copy of all proceedings
had by the City relating to the issuance by The Fayetteville Public Facilities Board (the
"Issuer") of its Refunding and Improvement Revenue Bond (Butterfield Trail Village
Project), Series 2016 (the "Bond"), as the same appear upon the records of the City in
our possession.
3. Attached hereto as Exhibit A is a true, complete and correct copy of (a) Ordinance
No. 2485 of the City duly adopted by the City Council of the City at a duly called meeting
of the City Council, open to the public, held on November 21, 1978; (b) Ordinance No. 2708
of the City duly adopted by the City Council of the City at a duly called meeting of the City
Council, open to the public, held on March 3, 1981; (c) Ordinance No. 2991 of the City
duly adopted by the City Council of the City at a duly called meeting of the City Council, open
to the public, held on March 20, 1984; and (d) Ordinance No. 4021 of the City duly adopted
by the City Council of the City at a duly called meeting of the City Council, open to the public,
held on February 18, 1997. At such meetings a quorum was present and acted throughout;
the said Ordinances are in full force and effect and have not been altered, amended or
repealed as of the date hereof, except as noted above. No petition or petitions to refer the
above referenced Ordinances to the people under Amendment No. 7 to the Constitution of
the State of Arkansas have been filed as of the date hereof, and the City Council of the City
has not referred the above referenced Ordinances to the people for adoption or rejection.
Attached hereto as Exhibit B is a true, complete and correct copy of Resolution No.
67-16 of the City ratifying the Issuer's authorization to issue the Bond, duly adopted by the
City Council of the City at a duly called meeting of the City Council, open to the public, held
on March 15, 2016. At such meeting a quorum was present and acted throughout; the said
Resolution is in full force and effect and has not been altered, amended or repealed as of the
date hereof.
Attached hereto as Exhibit C is the Mayor's Notice of Public Hearing for the issuance
of the Bond. Also included in Exhibit C is an affidavit of the publisher of the Northwest
Arkansas Democrat -Gazette, showing that the Notice of Public Hearing on the issuance of
the Bond to be held March 15, 2016 was published one time in such newspaper on February
29, 2016. The public hearing was held at the time and place set forth in the notice.
No authority or proceedings in connection with the issuance, sale and delivery of the
Bond have been repealed, revoked or rescinded.
4. The meetings of the City Council referred to in paragraph 3 hereof were open to the
public in compliance with the provisions of Section 25-19-106 Open public meetings. of the
Arkansas Code Annotated.
5. The City is a City of the First Class, duly organized and existing under the laws of the
State of Arkansas pursuant to the provisions of Title 14, Chapters 42 and 43 of the Arkansas
Code Annotated.
6. No action, suit, proceeding, inquiry or investigation is pending or, to the knowledge
of the undersigned, threatened in any court or other tribunal of competent jurisdiction, state
or federal, or, to the knowledge of the undersigned, is there any basis therefor, in any way (i)
restraining or enjoining the issuance, sale or delivery of the Bond, or (ii) questioning or
affecting the validity or enforceability of the Bond, or (iii) questioning or affecting the
validity of the ordinances or resolutions referred to in paragraph 3 hereof or any of the
proceedings for the authorization, execution, authentication, sale or delivery of the Bond, or
(iv) questioning or affecting the corporate existence or organization of the City or the Issuer
or the title to office of any of the members, officers or officials thereof or any powers of the
City or the Issuer, or (v) questioning or affecting the power and authority of the Issuer to issue
the Bond.
7. According to the records of the City, Stephen E. Adams, Stephen Cosby, Phillip
Taylor, Tommy Deweese and Hugh Earnest are members of the Issuer and there are on file
in the office of the City Clerk the oaths of office for each member.
IN WITNESS WHEREOF, the undersigned have hereunto set their signatures this
12th day of April, 2016.
A]
19
ATTEST:
By: % ELwL
SONDRA E. SMITH, City Clerk/Treasurer
FAYE7TEVILLE %:
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KUTAK ROCK LLP
ATLANTA
CHICAGO
SUITE 2000
DENVER
FAYETTEVILLE
124 WEST CAPITOL AVENUE
IRVINE
AKANSAS
SAS OFFICE
LITTLE ROCK, AR 72201 -3706
CITY
Sx
LITTLE ROCK
SUITE 400
501-975-3000
LOS ANGELES
EAST MILLSAP ROAD
FACSIMILE 501 -975-3001
MINNEAPOLIS
LLE- ARKANSAS 72703-4099
OKLAHOMA CITY
479-073-4200
www.kutakrock.com
OMAHA
PHILADELPHIA
RICHMOND
SCOTTSDALE
WASHINGTON
M, WILBOURN
WICHITA
,,MsRr0ckCam
II
May 20, 2014
City of Fayetteville, Arkansas
Fayetteville, Arkansas
BOKF, NA dba Bank of Oklahoma, as Trustee
Tulsa, Oklahoma
Fayetteville, Arkansas
$6,330,000
City of Fayetteville, Arkansas
Water and Sewer System Refunding Revenue Bonds
Series 2014
Ladies and Gentlemen:
We have acted as bond counsel in connection with the issuance and sale by the City of
Fayetteville, Arkansas (the "City"), a political subdivision of the State of Arkansas, of its
$6,330,000 Water and Sewer System Refunding Revenue Bonds, Series 2014 (the "Bonds").
The Bonds are being issued pursuant to the provisions of the Constitution and laws of the
State of Arkansas, including, particularly, Amendment 65 and Arkansas Code Annotated (1998
Repl. & Supp. 2013) §§14-164-401 et seq., §§14-234-201 et seq. and §§14-235-201
et seq. (collectively, and as from time to time amended, the "Authorizing Legislation"), pursuant
to Ordinance No. 5665 of the City, duly adopted and approved on March 4, 2014 (the
"Authorizing Ordinance" ), and pursuant to a Trust Indenture dated as of May 1, 2002, as
amended and supplemented by a First Supplemental Trust Indenture dated as of May 1, 2004, by
a Second Supplemental Trust Indenture dated as of June 1, 2009, by a Third Supplemental Trust
Indenture dated as of May 15, 2012, and by a Fourth Supplemental Trust Indenture dated as of
May 15, 2014 (as amended and supplemented, the "Indenture"), each by and between the City
and BOKF, NA dba Bank of Oklahoma (formerly Bank of Oklahoma, N.A.), as trustee (the
"Trustee"). Reference is hereby made to the Indenture and to all indentures supplemental thereto
for the provisions, among others, with respect to the conditions for the issuance of parity debt by
the City, the nature and extent of the security for the Bonds, the rights, duties and obligations of
the City, the Trustee and the holders of the Bonds, and the terms upon which the Bonds are
issued and secured.
ROCK LLP
20, 2014
oving Opinion
Reference is made to an opinion of even date herewith of Kit Williams, Esq. , City
Attorney, a copy of which is on file with the Trustee, with respect, among other matters, to the
the
status and valid existence of
to e Cityenter? ntothepand perform its obligations undower of the City to adopt the ee r rCthe3nances Indenture the
Aatl�ori2ing Ordinance and
valid adoption of the Rate inances and the re Authorizing
City and witOrdinance
ectand
tothe
the ulndenture being
e authorization,
execution and delivery of theIndenture by the
enforceable upon the City.
We have examined the law and such certified proceedings and other papers as we have
deemed necessary to render this opinion. As to questions of fact material to our opinion, we
have relied upon the representations of the City contained in the Authorizing Ordinance and the
indenture and in the certified proceedings and other certifications of public officials furnished to
us, without undertaking to verify the same by independent investigation.
Based upon the foregoing, we are of the opinion, under existing law, as follows:
1. The City is duly created and validly existing as a municipal corporation of the
tate of Arkansas. Pursuant to the Constitution and laws of the State of Arkansas, including,
;particularly, Amendment 65 and the Authorizing Legislation, the City is empowered to adopt the
,uthorizing Ordinance, to execute and deliver the Indenture, to perform the agreements on its
art contained therein, and to issue the Bonds.
2 The Authorizing Ordinance has been duly adopted by the City and constitutes a
7ralid and binding obligation of the City enforceable upon the City in accordance with its terms.
3. The Indenture has been duly authorized, executed and delivered by the City and is
a ' alid and binding obligation of the City enforceable upon the City in accordance with its terms.
�lff
4. The Bonds have been validly authorized, executed, issued and deliveremiumred by
qty e
and represent valid and binding special obligations of the City. The principal, p
v and interest on the Bonds shall be payable from, and shall be secured by an assignment and
a+_? r :_.. .i. T-A-ntswrp? of the, City's
edge by the City to the Trustee of, the Net Revenues (as defined in the In
...
ater and sewer system, subject to a parity pledge of Net Revenues securing (i) the City's Water
Sewer System Refunding Revenue Bonds, Series 2012, and (ii) any Additional Bonds (as
fed in the Indenture) issued hereafter.
5. The Net Revenues have been duly and validly assigned and pledged to the Trustee
r the Indenture, and the Indenture creates, as security for the Bonds, a valid security interest
e Net Revenues. Under the laws of the State of Arkansas, including, particularly, Arkansas
e Annotated (2001 Repl. & 2013" Supp.) Section 4-9-109(d)(14), the pledge, assignment is udiciai lien
'and
ty interest in the Net Revenues securing the Bonds is and shale be prior
fter imposed on said Net Revenues to enforce a judgment against the City on a simple
U, LVLY
oving Opinion.
utract, and it is not necessary to file a Uniform Commercial Code financing statement in order
perfect a security interest in said Net Revenues.
6. Interest on the Bonds is excluded from gross income for federal income tax
poses and is not a specific preference item for purposes of the federal alternative minimum
The opinion described in the preceding sentence assumes the accuracy of certain
n¢ presentations and compliance by the City with covenants designed to satisfy the requirements
ofthe Internal Revenue Code of 1986, as amended (the "Code"), that must be met subsequent to
issuance of the Bonds. Failure to comply with such requirements could cause interest on the
Bonds to be included in gross income for federal income tax purposes retroactive to the date of
nuance of the Bonds. The City has covenanted to comply with such requirements. We express
' Do opinion regarding other federal tax consequences of holding the Bonds.
7. The interest on the Bonds is exempt from all state, county and municipal taxes in
�e State of Arkansas.
8. The Bonds are exempt from registration pursuant to the Securities Act of 1933, as
€ended, and the Indenture is not required to be qualified under the Trust Indenture Act of 1939,
amended, in connection with the offer and sale of the Bonds.
It is to be understood that the rights of the registered owners of the Bonds and the
uaforceability of the Bonds, the Authorizing Ordinance and the Indenture may be subject to
bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors'
tights heretofore or hereafter enacted to the extent constitutionally applicable and that their
enforcement may also be subject to the exercise of judicial discretion in appropriate cases.
Very truly yours,
LV
N
NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be conducted on September 17,
2013, at 6:00 o'clock p.m., before the City Council of the City of Fayetteville, Arkansas, in
Room 219 of the City Administration Building, 113 West Mountain Street, Fayetteville,
Arkansas 72701, on the question of the issuance of revenue bonds by The Fayetteville Public
Facilities Board (the "Board") in the principal amount of not to exceed $8,000,000 for the
purpose of financing all or a portion of the costs of the following improvements for Butterfield
Trail Village, Incorporated, an Arkansas non-profit corporation (the "Corporation") that operates
a residential life care retirement facility for the elderly: (a) acquiring, constructing, equipping
and furnishing an assisted living facility containing approximately 9,300 square feet, (b)
acquiring, constructing, renovating, equipping and furnishing the existing Wellness Center and
acquiring, constructing, renovating, equipping and furnishing an approximately 6,700 square foot
expansion to the Wellness Center and (c) acquiring, constructing, renovating, equipping and
furnishing the existing commons area located in the Main Residential Building and acquiring,
constructing, renovating, equipping and furnishing an approximately 10,000 square foot
expansion to the commons area (collectively, the "Project"). The initial owner and operator of
the Project will be the Coporation. The Project will be located on the Corporation's campus at
1923 E. Joyce Boulevard, Fayetteville, Arkansas 72703.
The bonds shall be special obligations of the Board, secured by and payable from
an assignment of the right to receive payments from the Corporation pursuant to a Loan
Agreement between the Board and the Corporation, and such other collateral as may be provided
by the Corporation. The obligations shall not constitute an indebtedness for which the faith and
credit of the City are pledged.
Dated: August 23, 2013 /s! Lioneld Jordan
Mayor
NORTHWEST ARKANSAS DEMOCRAT'GAZETTE
NOTICE OF PUBLIC HEARING
Notice is hereby given that
TME h10RNING NEWS OF SPRINGOALE
�
a public hearing will be conducted en September 17,
NORT 1Y]
�NS�S'
2013, at 6:00 o'clock p.m., before the City Council
YY LST THEMORNING NE%VSOFROGERi
NDR'I}ANESTARKANSASTIMES
of the City tr et. Fay t ev, Arkansas, in 7R270 , 219
of the City Administration Building, 113 West
Mountain Street, Fayetteville, Arkansas 72701, on
BENTON OOONTYDLYRECORD
the question of the issuance of revenue bonds by
The Fayetteville Public Facilities Board (the
'Beard') in the principal amount of not to exceed
212 NORTH EASTAVENUE FAYETTEVILLE. ARKANSAS 72701 1 P.O. BOA 1607, 72702 1 479442.1700. 1 WWW.NWANEWS.COM
53,000,000 for the purpose of financing all or a
'
portion of the costs ofthe following improvements
for Butterfield Trail Village, incorporated, an
AFFIDAVIT OF PUBLICATION
Arkansas non-profit corporation (the "Corporation")
that operates a residential life care retirement
facility for the elderly: (a) acquiring, constructing,
I, Holly Andrews, do solemnly swear that I am the Legal Clerk of the
equipping pad approximately ing an assisted00 living et, (b)
containing 9,300 square Feet, (b)
Northwest Arkansas Newspapers,LLC, printed and published in
acquiring, constructing, renovating, equipping and
Wellness Center
Washington and Benton County, Arkansas, bona fide circulation,
famishing the existing and
acquiring, constructing, renovating, equipping and
that from my own personal knowledge and reference to the files
furnishing an approximately 6,700 square foot
expansion to the Wellness Center and (c) acquiring,
of said publication, the advertisement of:
constructing, renovating, equipping and furnishing
the existing commons area located in the Main
Residential Building end acquiring; constructing,
renovating, equipping and furnishing an
•
apgroxim0rely lo,oee square foot expansion to the
'4
BUTTERFILEID TRAIL VILLAGE - — — — •• -• : - --
- commonssorca (eet'tectivety, the P i{ojecl"j.-,,, The
�• i)itlii aavner and gp:rater•of the Project will he the
,-
PH notice
Corporation. The Project will be located on the
Corporation's campus at 1923 E, Joyce Boulevard.
Fayetteville, Arkansas 72703.
The bonds shall be special
obligations of the Board, secured by and payable
Was inserted in the Regular Editions on:
from an assignment of the right to receive paymentt
g
from the Corporation pursuant to a Loan Agreement
August 30, 2013
between the Board and the Corporation, and such
•
other collateral as may be provided by the
Corporation. The obligations shall not constitute an
indebtedness for which the faith and credit of the
oily are pledged.
Publication Charges: $ 97.20
fs/Lianeld Jordan, Mayor
Dated: August 28, 2013
72217555 . August 30, 2013
Holly A drews
Subscribed and sworn to before me
This 5 day of , 2013.
Notary Public l 11
My Commission Expires: `7�l2 /
CATHYJ, WILLS
f• Benl issionniy
My Commission �xp re•
Febn o. 2D, 2014
**NOTE**
Please do not pay from Affidavit. Invoice will be sent.
Smith, Sondra
From: Williams, Kit
Sent: Friday, April 08, 2016 2:30 PM
To: D. Michael Moyers
Cc: Jim McCord; Pennington, Blake; Becker, Paul; Jordan, Lioneld; Smith, Sondra
Subject: RE: Butterfield Trail Village Bond Issue
Attachments: 3854_001.pdf
Mike,
Attached is my letter to you as well as the Closing Certificate dated for your scheduled closing of April 12th as you requested. The Mayor has signed the
proper Notice of the City Council hearing on the Resolution of the Facilities Board to issue the bonds. We decline to sign a document that appears to certify
proper compliance with IRS regulations as we believe that is for bond counsel to opine about.
Jim,
You may come to my office to pick up these documents from Blake.
Kit Williams
Fayetteville City Attorney
479.575.8313
p a w y; r r .. p III
From: D. Michael Moyers [mailto:mmoyers@fridayfirm.com]
Sent: Thursday, April 07, 2016 4:58 PM
To: Williams, Kit <kwilliams@fayetteville-ar.gov>
Cc: Jim McCord <jimmccordlaw@gmail.com>
Subject: Butterfield Trail Village Bond Issue
Kit,
I understand from Jim McCord that you have some concerns with the TEFRA approval certificate. I called you earlier this afternoon to try to discuss this issue.
I have attached the certificate that I sent you on March 3, 2016, which incorporated your previous comments on #5 (that March 3 email is also attached). Please
let me know exactly which provisions concern you.
Also attached for your reference is the TEFRA certificate executed in conjunction with the 2013 bond issue. Except for (5) of the 2016 TEFRA certificate, the two
documents contain similar statements.
As background, under federal income tax law (the Code Section 147(f) referenced in the documents), a bond issue like the Butterfield Trail Village issue must be
approved by an elected governmental representative, in this case the Mayor of the City of Fayetteville. That is the reason for (4) of the 2016 TEFRA certificate
and, likewise, the 2013 TEFRA certificate. If the Mayor does not execute an approval certification, the BTV bond cannot be issued as tax-exempt and, as a result
the bond issue will not be able to close.
Jim also sent me the Closing Certificate of the City. The Closing Certificate will need to be dated April 12, which is the projected closing date (if you are not
comfortable releasing a pre -dated certificate to me, Jim McCord can hold it in escrow). The attached Closing Certificate picks up the changes you made in #s 4
and 5, but I kept my original language dealing with the approval in Exhibit C. I should also note that there is a chance that the closing will not occur on April 12 -
would you prefer to go ahead and have the Mayor and City Clerk sign an updated Certificate (and let Jim hold it in escrow) so that they do not have to sign
another one if the closing is delayed? Just in case, an undated version of the Certificate is also attached.
Again, please advise as to your concerns on the TEFRA certificate. If (5) is the trouble, I am okay with removing that language. Pre -closing is Monday, April 11, so
I need the executed docs either tomorrow or Monday morning.
I ask that you have the Mayor and City Clerk execute the attached versions of the Closing Certificate (one undated and one dated 4/12) and that you have the
Mayor execute the attached version of the 2016 TEFRA Certificate.
Thank you,
Michael
D. MICHAEL MOYERS I ATTORNEY
FRIDAY DAY CL
C, C, L'I f.O r 'V r O °P ₹33 A'f
mmoyers@fridayfirm.com I Direct: (501) 370-1492 1 Fax (501) 244-5394
400 West Capitol Avenue, Suite 2000
Little Rock, Arkansas 72201-3522 1 www FridayFirm corn
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