10672OR
RESOLUTION NO. 10,672
711
A RESOLUTION AUTHORIZING A MEMORANDUM OF
INTENT BETWEEN THE CITY OF LITTLE ROCK,
ARKANSAS AND DILLARD STORE SERVICES, INC.,
PERTAINING TO THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS; AND PRESCRIBING
OTHER MATTERS RELATING THERETO.
BE IT RESOLVED by the Board of Directors of the City of Little Rock, Arkansas:
5906
Section 1. There is hereby authorized the execution and delivery of a Memorandum of
Intent by and between the City of Little Rock, Arkansas (the "City ") and Dillard Store Services,
Inc., an Arizona corporation (the "Company "), and the Mayor and City Clerk are hereby
authorized to execute and deliver the Memorandum of Intent for and on behalf of the City. The
Memorandum of Intent is approved in substantially the form submitted to this meeting, and the
Mayor is hereby authorized to confer with the Company in order to complete the Memorandum
of Intent in substantially the form submitted to this meeting with such changes as.shall be
approved by such persons executing the document, their execution to constitute conclusive
evidence of such approval.
Section 2. The Mayor and City Clerk are hereby authorized and directed, for and on
behalf of the City, to do all things, execute all instruments and otherwise take all action necessary
to the realization of the City's obligations under the Memorandum of Intent.
ADOPTED: October 19, 1999.
ATTEST:
p j. 0 t� gam ,& C&,
City Clerk Robbie Hancock
(SEAL)
APPROVED:
Ma r Jim Dailev
0
MEMORANDUM OF INTENT
597
This MEMORANDUM OF INTENT is between the CITY OF LITTLE ROCK,
ARKANSAS (hereinafter referred to as the "City "), and DILLARD STORE SERVICES, INC.,
an Arizona corporation (hereinafter referred to as the "Company ").
IN CONSIDERATION of the undertakings of the parties set forth herein and the benefits
to be derived therefrom and of other good and valuable considerations, receipt of which is hereby
acknowledged by the parties, the City and the Company AGREE:
1. Preliminary. (a) The City is authorized by the laws of the State of Arkansas,
including particularly Title 14, Chapter 164, Subchapter 2 of the Arkansas Code of 1987
Annotated (the "Act "), to issue revenue bonds for financing the costs of acquiring, constructing
and equipping facilities used in securing or developing industry (as defined in and authorized by
the Act).
(b) It is proposed that the City issue its revenue bonds under the Act for the purpose
of financing certain industrial facilities (the "Project ") to be located within the corporate limits of
the City for use primarily by Dillard Store Services, Inc., an Arizona corporation. It is expected
at this time that the Project will consist of three buildings having an aggregate area of
approximately 206,000 square feet situated on approximately 3.7 acres of land and will provide
new employment opportunities for approximately 600 persons.
(c) In order to secure and develop industry in furtherance of the public purpose of the
Act, the City is willing to proceed with the issuance of such revenue bonds as and when requested
by the Company, subject to compliance with all conditions set forth in the Act.
(d) The City considers that the acquiring, constructing and equipping of the Project will
furnish substantial employment and payrolls and will thereby promote the economic welfare of
the inhabitants of the City and adjacent areas.
2. Undertakings. Subject to the conditions stated herein, the City and the Company
agree as follows:
(a) When requested by the Company, the City will take the necessary steps to issue
revenue bonds under the Act in the aggregate principal amount necessary to furnish the permanent
financing of all or any part of the costs of accomplishing the Project. It is estimated at this time
that revenue bonds in the aggregate principal amount of $20,000,000 will be issued. However,
revenue bonds shall be issued in such amount as shall be requested by the Company for
accomplishing all or any part of the Project, whether that amount is more or less than the above
estimate.
(b) The City will, at the proper time and subject in all respects to the recommendation
and approval of the Company, adopt such proceedings and authorize the execution of such
documents as may be necessary and advisable for the issuance of the bonds, the acquiring,
0
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constructing and equipping of the Project, and the leasing or sale thereof or the making of loans
therefor to the Company, all in conformity with the Act and any other applicable federal and state
laws and upon terms and conditions mutually satisfactory to the City and the Company.
(c)' Upon the issuance of revenue bonds as provided herein, the Company will enter
into appropriate agreements with the City obligating itself to pay to the City amounts sufficient
to pay the principal of, premium, if any, and interest on the bonds when due, and containing such
other provisions as are necessary or desirable consistent with the authority conferred by the Act.
It is presently expected that the City and the Company will enter into a lease, or leases, under
which the Company will lease, with an option to purchase, from the City, the Project or portions
thereof for a term not to exceed thirty (30) years and will agree to make rental payments sufficient
to pay the principal of, premium, if any, and interest on the bonds when due.
(d) The Company will pay all costs of the Project and all financing costs (including all
expenses of the City in authorizing and issuing the bonds) not paid from the proceeds of the
bonds.
(e) The Company will pay to the City an administrative charge in such amount or amounts
established by the City as compensation to the City for administrative services performed in
connection with the Project and its financing.
(f) The City and the Company will take such further action and adopt such further
proceedings as may be required to implement the aforesaid undertakings or as it may deem
appropriate in pursuance thereof.
3. Ad Valorem Taxation. The City and the Company are informed and understand
that all or part of the real and personal properties comprising the Project may be exempt from ad
valorem taxes by virtue of their ownership by the City, and in such case, the Company will agree
to make payments to the City in lieu of ad valorem taxes as the parties shall negotiate. The
amount and other details concerning such payments will be embodied in an appropriate agreement
between the City and the Company which is mutually acceptable.
4. General Provisions. (a) As specified in the Act, the revenue bonds issued as
provided herein will not be general obligations of the City, but will be special obligations, and in
no event will they constitute an indebtedness of the City within the meaning of any constitutional
or statutory limitation.
(b) The revenue bonds issued as provided herein may be issued under laws of the State
of Arkansas other than the Act as the City shall deem appropriate or desirable.
(c) The Company may revise the plans for the Project_ and the facilities presently
expected to comprise the Project at any time and from time to time in any respect, including,
without limitation, any changes therein, additions thereto, substitutions therefor and deletions
therefrom, and this Memorandum of Intent shall apply thereto.
• .
(d) Any or all of the undertakings of the Company pursuant to this Memorandum of
Intent may be completed or performed by any corporation or partnership related to the Company
as may hereafter be determined by the Company.
595
(e) The Company is an equal opportunity employer, and it is the Company's policy not
to discriminate against job applicants or employees on the basis of race, sex, color, national
origin, religion or age in accordance with applicable law.
(f) This Memorandum of Intent shall continue in full force and effect until the Project
and its financing by revenue bonds (including bonds issued in separate series) is accomplished.
IN WITNESS WHEREOF, the City and the Company have entered into this Memorandum
of Intent by their officers thereunto duly authorized, as of the day of October, 1999.
ATTEST:
City Clerk
(SEAL)
ATTEST:
Title:
(SEAL)
CITY OF LITTLE ROCK, ARKANSAS
:
Mayor
DILLARD STORE SERVICES, INC.
am
Title: