13343ORDINANCE NO. 13,343
AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS UNDER ACT NO. 9 OF THE
FIRST EXTRAORDINARY SESSION OF THE SIXTY - SECOND
GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, APPROV-
ED JANUARY 21, 1960, AS AMENDED, FOR THE PURPOSE OF
PROVIDING INTERIM AND PERMANENT FINANCING OF THE
COSTS OF SECURING AND DEVELOPING INDUSTRY (THE
PARTICULAR INDUSTRIAL PROJECT IS DESCRIBED IN THE
ORDINANCE); AUTHORIZING THE EXECUTION AND DELIVERY
OF A TRUST INDENTURE SECURING THE BONDS; AUTHORIZING
AND PRESCRIBING OTHER MATTERS PERTAINING TO THE
ACQUISITION, CONSTRUCTION AND EQUIPMENT OF THE
INDUSTRIAL PROJECT AND THE FINANCING THEREOF; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the "City ") is autho-
rized by 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 ( "Act No. 9 "), to acquire lands, construct and equip manufactur-
ing buildings, improvements and facilities and to incur other costs and
expenses and make other expenditures incidental to and for the securing
and developing of industrial operations; and
WHEREAS, the City is authorized by Act No. 9 to issue Industrial
Development
Revenue Bonds payable from
revenues
derived from
the
indus-
trial project
so acquired, constructed and
equipped
and secured
by
a lien
thereon and security interest therein; and
WHEREAS, the necessary arrangements have been made with North
American Metals, Inc., an Arkansas corporation ( "North American ") , for a
Ordinance
substantial industrial project consisting of lands, buildings, machinery,
equipment, improvements and facilities for an industrial plant which will be
utilized for the manufacturing of such projects as North American shall
elect to manufacture (the "Project ") and to lease the Project to North
American pursuant to the terms of a Lease and Agreement subsequently
identified herein and referred to as the "Lease Agreement "; and
WHEREAS, permanent financing of the Project costs, necessary costs
and expenses incidental thereto and expenses of authorizing and issuing
bonds, is being furnished by the City issuing Industrial Development
Revenue Bonds under the provisions of Act No. 9 in the principal amount
of not to exceed Five Million Dollars ($5,000,000) (the "bonds "); and
WHEREAS, the bonds are to be sold and delivered in series, with
there being initally issued Series A in the principal amount, dated, bearing
interest, maturing and subject to the redemption as hereinafter set forth in
the form of Indenture authorized by this Ordinance;
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 following:
(a) The sale of the Series A Bonds to Worthen Bank & Trust
Company, N.A. , Little Rock, Arkansas, at a purchase price of
not more than $2,000,000 pursuant to the recommendation of
North American and, in connection therewith, the execution by
the Mayor and Clerk of a Bond Purchase Agreement with such
purchaser.
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(b) The acquiring, constructing and equipping of the Project,
and in connection therewith, the execution of architectural,
engineering, construction and other contracts or the acceptance
of an assignment of any such contracts previously executed by
North American, for the acquiring, constructing and equipping of
the Project; and
(c) The performance of all obligations of the City under the
Lease Agreement pertaining to the acquiring, constructing and
equipping of the Project and the performance of all obligations of
the City under the contracts referred to in (b) above.
Section 2. That Industrial Development Revenue Bonds of the City
under Act No. 9 in the total principal amount of not to exceed $5,000,000
are hereby authorized, and the immediate delivery of the Series A is hereby
authorized. To prescribe the terms and conditions upon which the bonds
are to be secured, executed, authenticated, accepted and held, the Mayor
is hereby authorized and directed to execute and acknowledge a Trust
Indenture (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, which constitutes and is hereby made a
part of this Ordinance, shall be in substantially the following form, to -wit:
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Section 3. That the Mayor and the 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 Indenture,
its execution and acceptance by the Trustee, the performance of all obliga-
tions of the City under and pursuant to the Indenture, the execution and
delivery of the Series A Bonds, the execution and delivery of an Official
Statement (if one is required), and the performance of all acts of whatever
nature necessary
to effect and carry out
the authority
conferred by the
Indenture and 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 4. That the City is here involved with the acquiring, construc-
ting and equipping of complex industrial facilities, requiring highly specialized
work and specialized types of equipment, and, therefore, competitive bidding
is waived. This action is taken by the Board of Directors pursuant to
applicable laws of the State of Arkansas, including particularly Act No. 9.
Section 5. That the Mayor and City Clerk, for and on behalf of the
City, be and they are hereby authorized and directed to take all action,
and execute and file all documents, necessary to perfect an election to
proceed under §103(b)(6)(D) of the Internal Revenue Code of 1954, as
amended, to the end of insuring that interest on the bonds is exempt from
federal income taxes.
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Section 6. 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 7. That all ordinances, resolutions and parts thereof in
conflict herewith are hereby repealed to the extent of such conflict.
Section 8. That there is hereby found and declared to be an imme-
diate 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 accomp-
lishing 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: September 20 1977.
ATTEST:. APPROVED:
City '
Mayor
(SEAL)
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