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A RESOLUTION AUTHORIZING THE ENTRY INTO A MEMORANDUM OF UNDERSTANDING WITH THE CITY OF JONESBORO, ARKANSAS ADVERTISING AND PROMOTION COMMISSION AND ACKNOWLEDGING THE CITY’S SUPPORT FOR AND CONSENT TO THE DEVELOPMENT OF A SPORTS COMPLEX
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WHEREAS, the City of Jonesboro, Arkansas (the “City”) established the City of Jonesboro, Arkansas Advertising and Promotion Commission (the “Commission”) and initially levied a tax of one percent upon the gross receipts or gross proceeds from the renting, leasing or otherwise furnishing of motel or hotel accommodations in the City pursuant to Ordinance No. 1361 which was adopted by the City Council on May 21, 1973, as amended from time to time, with the purpose of generating revenues for the advertising and promotion of the City and the development of a convention center;
WHEREAS, pursuant to Ordinance No. 21-046 adopted by the City Council on November 2, 2021, the City levied a two percent (2.00%) tax on the gross receipts from the sale of prepared foods in the City and directed the Commission to utilize these resources to develop public recreation facilities that would promote tourism within the City;
WHEREAS, the revenues from the above-described taxes (the “Taxes”) are deposited in the City of Jonesboro, Arkansas Advertising and Promotion Fund of the Commission;
WHEREAS, the Commission engaged with the local community to determine the wants and needs of the citizens of the City and designed and developed recreational and tourist facilities to be located in the City that includes, but is not limited to, an aquatic center, splash pad and outdoor aquatic facilities, basketball, volleyball and pickleball courts, synthetic turf fields, meeting rooms, community event spaces, offices, and a kitchen (collectively, the “Sports Complex Project”);
WHEREAS, the Commission requested that the City of Jonesboro, Arkansas Public Facilities Board (the “Board”) assist in financing a portion of the costs of designing, acquiring, constructing, and equipping the Sports Complex Project;
WHEREAS, the Board engaged legal and financial professionals and investigated financing options;
WHEREAS, the Board solicited proposals from potential lenders and has accepted a term sheet offered by Capital One Public Funding, LLC (the “Bondholder”) setting forth proposed terms for its acquisition of lease revenue bonds (the “Bonds”) to be issued by the Board with the proceeds to be used by the Board to finance a portion of the costs of the Sports Complex Project;
WHEREAS, the proposed financing structure anticipates that the Board will lease the Sports Complex Project to the Commission pursuant to a lease agreement (the “Lease”), and the Commission will assist with the management of the construction of the Sports Complex Project and will pay a fair market value rent (the “Rent”) for the occupancy, use and operation of the Sports Complex Project;
WHEREAS, the Commission will use its legally available funds, including, but not limited to revenues generated by the operation of the Sports Complex Project and the revenues from the Taxes deposited in the City of Jonesboro, Arkansas Advertising and Promotion Fund, to pay the Rent due pursuant to the Lease;
WHEREAS, the City is an Arkansas city of the first class with a finance department that currently provides accounting and funds management services to support the Commission;
WHEREAS, the City and the Commission anticipate the Commission will need additional accounting and funds management services as a result of the use and operation of the Sports Complex Project; and
WHEREAS, the parties wish to document their joint intent and mutually beneficial agreement for the City to continue to provide, and/or provide additional, accounting and funds management services to the Commission.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS that:
Section 1. The City hereby acknowledges receipt of information related to, evidences its support for, and affirms and consents to (i) the designing, acquiring, constructing, and equipping of the Sports Complex Project, (ii) the financing of a portion of the costs of the Sports Complex Project through the issuance of the Bonds by the Board, (iii) the leasing of the Sports Complex Project by the Commission, and (iv) the payment of Rent by the Commission with funds legally available to the Commission, including, but not limited to, revenues generated by the operation of the Sports Complex Project and revenues from the Taxes deposited in the City of Jonesboro, Arkansas Advertising and Promotion Fund.
Section 2. The Mayor and the City Clerk of the City are hereby authorized to enter into the Memorandum of Understanding in substantially the form and substance attached as Exhibit A.
Section 3. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or adjudication shall not affect the remaining portions of this resolution, which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitutional was not originally a part of this resolution.
Section 4. Repealer. All resolutions of the City in conflict herewith are hereby repealed to the extent of such conflict.
PASSED AND APPROVED THIS 18TH OF MARCH 2025.