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Ordinance 2004-12

ORDINANCE NO. 2004-12
AN ORDINANCE CREATING CITY OF JOHNSON, ARKANSAS CLEAR
CREEK REDEVELOPMENT DISTRICT #1 PURSUANT TO THE
AUTHORITY OF AMENDMENT 78 TO THE CONSTITUTION OF THE
STATE OF ARKANSAS; PRESCRIBING OTHER MATTERS RELATING
THERETO; AND DECLARING AN EMERGENCY TO EXIST.
WHEREAS, the City Council of the City of Johnson, Arkansas (the "City") has determined
that there is a great need for a source of revenue to finance the cost of certain capital improvements
within portions of the City; and
WHEREAS, the City is authorized and empowered under the pro visions of the Constitution
and laws of the State of Arkansas, including particularly Amendment 78 to the Constitution of the
State of Arkansas ("Amendment 78") and Arkansas Code Annotated (2003 Supp.) Sections 14-168-
301 et seg. (as from time to time amended, the "Act"), to create and define the boundaries of
redevelopment districts within the City for the purpose of issuing bonds or notes to finance the
acquisition, construction and equipping of certain capital improvements described in the Act; and
WHEREAS, the creation of a redevelopment district has been requested by certain owners
of real property in the City that would be located within such a district; and
WHEREAS, the City Council has determined appropriate boundaries for such a
redevelopment district and finds that the financing of improvements therein pursuant to the
provisions of Amendment 78 and the Act would provide benefits to the City and to the real property
located within the district; and
WHEREAS, an open public hearing on the question of the creation of a redevelopment
district and its boundaries has been held before the City Council and Mayor of the City on October
12,2004, following publication of notice of such public hearing in fat Arkansas Democrat-Gazette
on September 26; 2004; and
WHERE AS, prior to such publication, a copy of the notice of hearing was sent via first-class
mail to the chief executive officers of all local governmental and taxing entities having the power
to levy ad valorem taxes on real property located within the proposed district and to the school
boards of those school districts which include real property located within the proposed district;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Johnson,
Arkansas that:
Section 1. Under the authority of the Constitution and laws of the State of Arkansas,
including particularly Amendment 78 and the Act, there is hereby created a redevelopment district
Fmunicipal/co; Clear Creek Redevelopment Ordinance
within the City to be known as "City of Johnson, Arkansas Clear Creek Redevelopment District #1"
(the "District"). The creation of the District is effective as of the date of adoption of this ordinance.
The boundaries of the District shall be as set forth on the map attached hereto as Exhibit A and
incorporated herein by this reference.
Section 2. The City Council hereby finds that the real property within the District will
be benefitted upon the completion of a "redevelopment project75 (as defined in the Act) within the
District by the elimination or prevention of the development or spread of slums or blighted,
deteriorated or deteriorating areas, or by discouraging the loss of commerce, industry or
employment, or by increasing employment, or by any combination thereof.
Section 3. There is hereby created a special fund of the City into which all tax increment
revenues described in the Act and any other future revenues designated by the City for the benefit
of the District shall be deposited. This fund shall be designated "City of Johnson, Arkansas Clear
Creek Redevelopment District #1 Tax Increment Fund." S uch special fund may be assigned to and
held by a trustee for the benefit of bondholders or noteholders upon the issuance of debt by the City
pursuant to the Act.
Section 4. The preparation of a project plan for the District as described in the Act is
hereby authorized.
Section 5. That the City considers this Ordinance to be its declaration of official intent
to issue bonds or note and to make reimbursement with a portion of the proceeds thereof for all
original expenditures incurred hi acquiring, constructing or equipping capital improvements within
the District between the date that is sixty (60) days prior to the date of this Ordinance and the date
such bonds or notes are issued, plus a de minimis amount and preliminary expenditures, as such
terms are defined in Section 1.150-2(f) of the Federal Income Tax Regulations, for all purposes of
Section 1.150-2 of the Federal Income Tax Regulations.
Section 6. The provisions of this Ordinance are hereby declared to be severable, and if
any section, phrase or provision shall for any reason be declared to be illegal or invalid, such
declaration shall not affect the validity of the remainder of the sections, phrases or provisions of this
Ordinance.
Section 7. All ordinances, resolutions and parts thereof in conflict herewith are hereby
repealed to the extent of such conflict.
Section 8. This area of the City is developing at apace which has made it impossible for
the City to make infrastructure improvements without severe financial restrictions in other areas,
also this area of the City is where the revenue potential to fund future infrastructure improvements
is greatest; this current opportunity to finance improvements needed now will enable the City to
benefit from the future growth of the area in the present. The City Council hereby declares an
emergency to exist and the immediate implementation of this ordinance is necessary to seize this
opportunity which will preserve the health, safety and welfare of the citizens of Johnson and
therefore this ordinance shall be in full force and effect immediately.


ADOPTED AND APPROVED THIS 12th DAY OF OCTOBER, 2004.
APPROVED: Richard Long, Mayor
ATTEST: Jennifer Allen, Recorder/Treasurer