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ORDINANCE NO. 14,175 126
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE
PURPOSE OF PROVIDING PERMANENT FINANCING FOR
INDUSTRIAL FACILITIES; AUTHORIZING A TRUST
INDENTURE SECURING THE BONDS; AUTHORIZING A
LEASE AND AGREEMENT BETWEEN THE CITY OF
LITTLE ROCK, ARKANSAS, AS LESSOR, AND YELLOW
FREIGHT SYSTEM, INC., AS LESSEE; AUTHORIZING
THE SALE OF THE BONDS; AUTHORIZING AND
PRESCRIBING OTHER MATTERS PERTAINING
THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the
"City "), is authorized and empowered under the provisions of Act
No. 9 of the First Extraordinary Session of the Sixty- Second
General Assembly of the State of Arkansas, approved January 21,
1960, as amended (the "Act "), to issue revenue bonds and to expend
the proceeds thereof to finance the acquisition, construction and
equipment of land, buildings or facilities which can be used in
securing or developing industry; and
WHEREAS, it is proposed that the City provide permanent
financing, through the issuance of revenue bonds under the Act, of
the costs of acquiring an existing motor freight terminal located
within the boundaries of the City (the "Project "), and that the
City lease the Project to Yellow Freight System, Inc., an Indiana
corporation (the "Company "), to be operated by the Company (or its
successors or assigns); and
WHEREAS, pursuant to and in accordance with the
provisions of the Act, the City is now prepared to proceed with
financing the Project and to issue and sell $1,540,000 in
principal amount of its Industrial Development Revenue Bonds -
Yellow Freight System, Inc. Project, Series 1982 (the "Bonds "), to
provide such financing, and
WHEREAS, copies of the hereinafter described Trust
Indenture and Lease and Agreement have been presented to and are
before this meeting;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors
of the City of Little Rock, Arkansas:
Section 1. That the issuance of the Bonds is hereby
authorized. The Bonds shall be issued in the forms and denomina-
tions, shall be dated, shall be numbered, shall mature (over a
period of twelve (12) years), shall bear interest (at a rate of
eight percent (8%) per annum during the first two years and at a
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rate of ten percent (10 %) per annum thereafter), and shall be
subject to redemption prior to maturity all upon the terms and
conditions recommended by the Company and set forth in the Trust
Indenture (hereinafter authorized) securing the Bonds.
Section 2. That the Bonds be sold to Mercantile
National Bank at Dallas, Dallas, Texas (the "Purchaser "), for the
purchase price of 100 cents on the dollar, plus accrued interest
on the Bonds from the date of the Bonds to the date of delivery to
the Purchaser, if any, which price has been recommended by the
Company.
Section 3. To prescribe the terms and conditions upon
which the Bonds are to be executed, authenticated, issued,
accepted, held and secured, the Mayor is hereby authorized and
directed to execute and acknowledge a Trust Indenture by and
between the City and the Purchaser, as Trustee thereunder (the
"Indenture "), and the City Clerk is hereby authorized and directed
to execute and acknowledge the Indenture and to affix the seal of
the City thereto, and the Mayor and City Clerk are hereby
authorized and directed to cause the Indenture to be accepted,
executed and acknowledged by the Trustee. The Indenture is hereby
approved in substantially the form submitted to this meeting, and
the Mayor is hereby authorized to confer with the Purchaser and
the Company in order to complete the Indenture 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 4. That there be, and there is hereby
authorized the execution and delivery of a Lease and Agreement by
and between the City as Lessor, and the Company as Lessee (the
"Lease Agreement "), and the Mayor and City Clerk be, and they are
hereby, authorized to execute, acknowledge and deliver the Lease
Agreement for and on behalf of the City. The Lease Agreement is
hereby approved in substantially the form submitted to this
meeting, and the Mayor is hereby authorized to confer with the
Company and the Purchaser in order to complete the Lease Agreement
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 5. That the Mayor and City Clerk, for and on
behalf of the City, be, and they are hereby, authorized and
directed to do any and all things necessary to effect the
execution and delivery of the Lease Agreement and the performance
of all obligations of the City thereunder, the execution and
delivery of the Indenture and the performance of all obligations
of the City thereunder, the issuance, execution, sale and delivery
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of the Bonds, and the performance of all acts of whatever nature
necessary to effect and carry out the authority conferred by this
Ordinance. That the Mayor and City Clerk be, and they are hereby,
further authorized and directed, for and on behalf of the City, 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.
Section 6. That the City is hereby involved with the
acquiring, constructing and equipping of industrial facilities,
and pursuant to applicable laws of the State of Arkansas,
including particularly the Act, competitive bidding is waived.
Section 7. That the City Clerk is hereby authorized and
directed to file in the office of the City Clerk, as a part of the
minutes of the meeting at which this Ordinance is adopted, for
inspection by any interested person a copy of the Indenture and
Lease Agreement, and such documents shall be on file for
inspection by any interested person.
Section 8. That the provisions of this Ordinance are
hereby declared to be separable, and if any section, phrase or
provision shall for any reason be declared to be invalid, such
declaration shall not affect the validity of the remainder of the
sections, phrases and provisions.
Section 9. That all ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent of
such conflict.
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Section 10. That there is hereby found and declared to
be an immediate need for the securing and developing of industry
in order to provide employment and payrolls, alleviate
unemployment and otherwise benefit the public health, safety and
welfare of the City and the inhabitants thereof, and the issuance
of the Bonds authorized hereby and the taking of the other action
authorized hereby are immediately necessary for the accomplishing
of these public benefits and purposes. It is, therefore, declared
that an emergency exists and this Ordinance being necessary for
the immediate preservation of the public peace, health and safety
shall be in force and effect immediately upon and after its
passage.
PASSED: December 30, 1981.
APPROVE
ATTEST:
Mayor
Ci y Clerk
(SEAL)