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from Rush B. Deacon, President
Direct Line: 501-682-3339

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$60 Million in Tobacco Settlement Bonds Fund Bioscience and

Public Health Projects

Initiated Act No. 1 of 2000, the Tobacco Settlement Proceeds Act, was passed by popular vote on November 7, 2000. This act provided the framework for the Arkansas Development Finance Authority to issue approximately $60 million in tax-exempt tobacco settlement revenue bonds to be used to fund bioscience and public health research facilities in Jonesboro and Little Rock.

The issuance is scheduled to price on September 6, 2001, and settle on September 13, 2001, with a retail order period scheduled for September 4 and 5. Moody’s is expected to rate the bonds ‘Aa2’.

We are very excited at ADFA about both the mission aspect and business aspect of this bond issue. On the mission side, we are funding three important projects that will enhance both the health and economic development of Arkansas, and on the business side, we are selling bonds that should be an attractive yield for investors.

Bond proceeds will be used to provide funds for the following capital projects:

$25 million for the University of Arkansas for Medical Sciences (Little Rock campus) Biosciences Institute;

$20 million for the Arkansas State University (Jonesboro campus) Biosciences Institute; and

$15 million for the College of Public Health (UAMS, Little Rock campus).

Board actions
(June/July/August meetings)

ADFA Board of Directors approved the following actions during its June, July, and August board meetings:

Approved $1 million in down payment assistance for housing for families with low to moderate incomes. The current interest rate for down payment assistance is $8.25%.

Approved $3,750,000 in tax-exempt Multifamily Housing Revenue Bonds for Emerald Properties I, L.P. to construct a 96 unit apartment complex for families of low and moderate income in Saline County, Arkansas.

Approved the issuance of $5,030,000 in Multifamily Housing Revenue Bonds for the Gables of Maumelle, a 120 unit apartment complex for families of low to moderate income.

Approved $300,000 in HOME funds for the construction of five single family homes for low income families in Camden, Arkansas.

Authorized the sale of approximately $60 million in Tobacco Settlement Revenue Bonds for projects in Jonesboro and Little Rock (see lead story).

Approved the issuance of a composite Economic Development Revenue Bond issue in the amount of $6,045,000 to finance the following six facilities consisting of lands, buildings, improvements, machinery and equipment.

Project Name Location Principal Amount

Team Ward Monticello $1,400,000
Thompson Industries Inc. Russellivlle $420,000
H & O Investments Wynne $350,000
Rich N Tone Calls, Inc. Stuttgart $265,000
Sweet Goods, Inc. North Little Rock $1,700,000
AEDD/Community Living, Inc. North Little Rock $1,910,000

Approved the issuance of tax-exempt Economic Development Revenue Bonds with an ADFA guarantee in the amount of $1,070,000 for Riverside Furniture Corporation located in Fort Smith.

Approved the issuance of $45 million in Single Family Mortgage Revenue Bonds to fund below market interest rate loans for low to moderate income, first time homebuyers throughout Arkansas through ADFA’s HomeToOwn Loan Program. ADFA’s current interest rate is 6.05%.

The Many Faces of ADFA

Tieing in with the opposite article on our tobacco bonds, this is the third of eight profiles of individuals who have been touched by ADFA’s various programs. We believe that these short stories describe what ADFA’s programs accomplish better than any chart or set of figures.

Dr. Elizabeth Laurenzana is a Research Scientist at the Biomedical Research Center for the University of Arkansas Medical Sciences campus. She is currently working to develop treatments for drug addition and abuse. This and other UAMS research facilities have produced breakthrough medical technologies improving the health of our citizens and providing many collateral benefits such as economic development ventures that create high-wage jobs within our state.