15970475
ORDINANCE NO. 15,970
AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS UNDER ARKANSAS CODE ANNOTATED
SECTIONS 14- 164 -201 to -224 (1987) FOR THE PURPOSE OF
SECURING AND DEVELOPING INDUSTRY (THE PARTICULAR
INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE);
RATIFYING AND AFFIRMING ORDINANCE NO. 15,930, ADOPTED
SEPTEMBER 4, 1990, WHICH AUTHORIZED THE EXECUTION AND
DELIVERY OF A BOND PURCHASE AGREEMENT PROVIDING FOR THE
SALE OF THE BONDS, THE EXECUTION AND DELIVERY OF A
TRUST INDENTURE SECURING THE BONDS, A LEASE AGREEMENT
BETWEEN THE CITY AND THE LITTLE ROCK MUNICIPAL AIRPORT
COMMISSION AS LESSOR AND ARKANSAS MODIFICATION CENTER,
INC. AS LESSEE, AND THE EXECUTION AND DELIVERY OF THE
LEASE AGREEMENT; AMENDING ORDINANCE NO. 15,930 TO ALTER
THE PRINCIPAL AMOUNTS AND DATES; SETTING A PUBLIC
HEARING; PRESCRIBING MATTERS RELATING THERETO; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the "City "), is
authorized by Arkansas Code Annotated Sections 14- 164 -201 to
-224 (1987) (the "Act ") to acquire lands, construct and equip
industrial buildings, improvements, and facilities, and incur
costs and expenses and make expenditures incidental to and for
the implementing and accomplishing of the conduct of industrial
operations; and
WHEREAS, the City is authorized by the Act to issue
industrial development revenue bonds payable from revenues
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derived from the industrial project so acquired and constructed
and secured by a lien thereon and security interest therein; and
WHEREAS, the necessary arrangements have been made with
Arkansas Modification Center, Inc., an Arkansas corporation
( "the Company "), for the acquisition of a leasehold estate in
real property located at the Little Rock Regional Airport and
the acquisition, construction, and equipping of a substantial
industrial project thereon consisting of hangars, shops, and
corporate offices and related furnishings, fixtures, and
equipment to be used in the business of repairing and
maintaining airplanes (the "Airport Project ") and in the
business of designing, manufacturing, and installing interiors
of and avionics for airplanes (the "Manufacturing Project ") (the
Airport Project and the Manufacturing Project are collectively
referred to as the "Projects "); and
WHEREAS, permanent financing of the costs of the Projects,
necessary costs and expenditures incidental thereto, and the
cost of the issuance of bonds is being furnished by the City
issuing industrial development revenue bonds under the
provisions of the Act in the principal amount of $13,950,000
(the "Bonds "), being issued in two series, 1991 Series A with
respect to the Airport Project in the principal amount of
$2,540,000, and 1991 Taxable Series B with respect to the
Manufacturing Project in the principal amount of $11,410,000;
and
WHEREAS, the City, pursuant to Ordinance No. 15,930, adopted
September 4, 1990, has entered into a Bond Purchase Agreement
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with Stephens Inc., approved by the Company, to sell such bonds
under the Act for the purposes hereinafter described for the
benefit of the Company; and
WHEREAS, an open public hearing on the question of the
issuance of the Bonds was held before the Board of Directors of
the City on September 12, 1990, following publication of notice
in the Arkansas Democrat on August 25, 1990; and
WHEREAS, the Company has requested that the City amend
Ordinance No. 15,930 in order to change the dates of the
documents, bonds, and maturities set forth therein and to alter
the principal amount of bonds allocated to the two series, and
the City has agreed to do so; and
WHEREAS, the Company has requested the City to further amend
Ordinance No. 15,930 and to amend this ordinance in order to
increase the total principal amount of bonds to be issued, and
the City intends to do so after publication of notice and
holding a public hearing; and
WHEREAS, the City has entered into a Bond Purchase Agreement
with Stephens Inc. (the "Underwriter ") for the sale of the
Bonds;
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. That there be, and there is hereby authorized
and directed the issuance of the 1991 Series A Bonds in the
principal amount of $2,540,000 and the sale of the 1991 Series A
Bonds to the Underwriter for a price of $2,489,200 plus accrued
interest to date of delivery and the issuance of the 1991
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Taxable Series B Bonds in the principal amount of $11,410,000
and the sale of the 1991 Taxable Series B Bonds to the
Underwriter for a price of $11,181,800 plus accrued interest to
date of delivery. The 1991 Series A Bonds shall mature on
January 1, 2006, and shall bear interest at the rate of 9.78
percent per annum. The 1991 Taxable Series B Bonds shall mature
on January 1, 2006, and shall bear interest at the rate of not
to exceed 9.00 percent per annum.
Section 2. That Ordinance No. 15,930, adopted
September 4, 1990, is hereby amended as follows: (a) the phrase
"1990 Series" is changed to 111991 Series" each place it appears;
(b) the date "September 1, 1990" is changed to "January 1, 1991"
each place it appears; (c) the 1991 Series A Bonds shall be in
the original aggregate principal amount of $2,540,000 and the
1991 Taxable Series B Bonds shall be in the principal amount of
$11,410,000; (d) the Preliminary Official Statement shall be
dated November 28, 1990; and (e) the phrase "September 1 in the
years 1991 to 2005, inclusive" is changed to "January 1 in the
years 1992 to 2006, inclusive."
Section 3. That the actions of the City taken in
Ordinance No. 15,930, adopted September 41 1990, as amended, are
hereby ratified and confirmed. Specifically, the City hereby
ratifies and confirms the Bond Purchase Agreement providing the
terms and conditions upon which the Bonds are to be sold to
Stephens Inc., the Underwriter; the Trust Indenture, dated as of
January 1, 1991 (the "Indenture "), by and between the City and
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Twin City Bank, in the City of North Little Rock, Arkansas, as
trustee (the "Trustee "); the Lease Agreement, dated as of
January 1, 1991, by and between the City and the Little Rock
Municipal Airport Commission as Lessor and the Company as Lessee
(the "Lease Agreement "); the Payment in Lieu of Taxes Agreement,
dated as of January 1, 1991, by and between the City and the
Company (the "PILOT Agreement "); the Preliminary Official
Statement, including the cover page and appendices attached
thereto, of the City, dated November 28, 1990, relating to the
Bonds.
Section 4. That the City hereby announces its intention
to further amend Ordinance No. 15,930 and to amend this
ordinance in order to increase the total principal amount of
1991 Series Bonds from $13,950,000 (being $2,540,000 1991 Series
A Bonds and $11,410,000 1991 Taxable Series B Bonds) to
$14,105,000 (being $2,540,000 1991 Series A Bonds and
$11,565,000 1991 Taxable Series B Bonds), and sets 6:00 p.m. on
Tuesday, December 18, 1990, as the date to hold a public hearing
on the issuance on the 1991 Series Bonds in the increased total
principal amount.
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 of the Lease Agreement, the performance of the City's
obligations under the Lease Agreement, the execution and
delivery of the Indenture, its execution and acceptance by the
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Trustee, the performance of all obligations of the City under
and pursuant to the Indenture, the execution and delivery of the
PILOT Agreement, the execution and delivery of the Bond Purchase
Agreement, the execution and delivery of the Bonds, and the
performance of all other acts of whatever nature necessary to
effect and carry out the authority conferred by this Ordinance
and Ordinance No. 15,930, as amended. The Mayor and the City
Clerk are 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 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 invalid, such
declaration shall not affect the validity of the remainder of
the sections, phrases, or provisions.
Section 7. That all ordinances, resolutions, and parts
thereof in conflict herewith are hereby repealed to the extent
of such conflict.
Section S. That there is hereby found and declared to be
an immediate need for the securing and developing of substantial
industrial operations in order to provide additional employment,
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 herein are immediately necessary in
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connection with the securing and developing of substantial
industrial operations and deriving the public benefits referred
to above. It is, therefore, declared that an emergency exists
and this Ordinance, being necessary for the immediate
preservation of the public health, safety, and welfare, shall be
in force and take effect immediately upon and after its passage.
PASSED: November 28, 1990.
Mayor
ATTEST:
S�� Lee&—
Citv Clerk
(S E A L)
APPROVED AS TQ'/FORM:
Mark Stodola, City Attorney
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