13046ORDINANCE NO. 13,046
AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE
UPON THE QUESTION OF ISSUING BONDS 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, FOR THE PURPOSE OF FURNISHING THE
PERMANENT FINANCING OF THE COST OF DEVELOPING
INDUSTRY (THE PARTICULAR INDUSTRIAL PROJECT IS
DESCRIBED IN THE ORDINANCE); PRESCRIBING OTHER
MATTERS RELATING THERETO; AND DECLARING AN
EMERGENCY.
WHEREAS, A. O. Smith - Inland Inc. , a Delaware corporation ( "Smith-
Inland ") , operates a substantial industrial plant furnishing employment, payrolls
and other benefits to the citizens and inhabitants of the City of Little Rock,
Arkansas (the "City "); and
WHEREAS, it is proposed that the plant be improved and enlarged and
additional machinery and equipment installed (the "Project "); and
WHEREAS, Smith - Inland has requested the City to furnish a portion of
the costs of accomplishing the Project and the expenses of authorizing and issuing
bonds by authorizing up to Five Million Dollars ($5, 000, 000) in principal amount
of bonds (the "bonds ") 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 ( "Act No. 9") to be issued in series; and
WHEREAS, the purpose of this Ordinance is to submit the question of
authorizing the issuance of the bonds to the electors of the .City at a special election
called for that purpose;
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NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City
of Little Rock, Arkansas:
Section 1. That a special election be, and the same is hereby, called
to be held in the City on the 29th day of July , 1975, at which election
there will be submitted to the electors of the City the question of authorizing the
issuance of not to exceed Five Million Dollars ($5,000,000) in principal amount
of Industrial Development Revenue Bonds for the purpose of furnishing permanent
financing of a portion of the costs of developing industry (the industrial under-
taking is described above) . The bonds will be dated, will bear interest at the
rate or rates, the interest will be payable on such dates, the bonds will be
subject to redemption prior to maturity in such manner and upon such terms, and
the bonds may be issued in series from time to time, all as the Board of Directors
shall subsequently determine and specify in the ordinance or ordinances authorizing
the issuance of the bonds.
Section 2. That the question shall be placed on the ballot for the
election in substantially the following form:
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Vote on measure by placing an "X" in the square above
the measure either FOR or AGAINST:
FOR the issuance of Industrial Development Revenue Bonds
by the City of Little Rock, Arkansas in an aggregate
principal amount up to $5, 000, 000 .. .. .. .. .. .. .. . . ...
AGAINST the issuance of Industrial Development Revenue
Bonds by the City of Little Rock, Arkansas in an aggregate
principal amount up to $5,000,000 . .. .. .. .. .. .. . . ...
It is proposed that there be authorized City of Little Rock, Arkansas
(the "City ") Industrial Development Revenue Bonds (the "bonds ")
under 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. 911), in an aggregate principal amount
up to $5, 000, 000 for the purpose of furnishing permanent financing
of a portion of the costs of developing industry. The bonds will be
dated, the bonds will bear interest at such rate or rates, the interest
will be payable on such dates, the bonds will mature on such date
or dates, the bonds will be subject to redemption prior to maturity
in such manner and upon such terms, and the bonds may be issued
in series from time to time, all as the Board of Directors shall sub-
sequently determine and specify in the ordinance or ordinances
authorizing their issuance. The proceeds of the bonds that are issued
will be applied to all or any part of the costs incurred in connection
with improving and expanding the industrial plant presently operated
by A. 0. Smith - Inland Inc . , a Delaware corporation ( "Smith - Inland ") ,
in the City and acquiring and installing machinery and equipment
therein, and to the payment of the expenses of issuing the bonds.
The facilities to which bond proceeds are applied will be owned by
the City and leased or sold to Smith - Inland for rentals or payments
sufficient to provide for the payment of the principal of and interest
on the bonds that are issued. The bonds will not be general obligations
of the City but will be special obligations payable solely from revenues
derived from the leasing or sale of the facilities, which will be
specifically pledged to the payment of the principal of and interest on
the bonds, and the bonds may be secured by a lien on or security
interest in the facilities as authorized by Act No. 9.
Section 3. That the election shall be held and conducted and the
vote canvassed and the results declared under the law and in the manner
provided for municipal elections, so far as the same may be applicable, and
the Mayor shall give notice of such election by an advertisement published
once a week for four consecutive weeks in a newspaper having a bona fide
circulation in the City, with the last publication to be not. less than ten days
prior to the date of the election, and qualified electors of the City shall have
the right to vote at the election.
Section 4. That the results of the election shall be proclaimed by
the Mayor and his proclamation shall be published one time in a newspaper
having a bona fide circulation in the City, which proclamation shall advise
that the results as proclaimed shall be conclusive unless attacked in the
courts within thirty days after the date of such proclamation.
Section 5. That the Mayor and City Clerk are hereby authorized to
execute, for and on behalf of the City, a Memorandum of Intent in the usual
form setting forth a general understanding of the undertakings of the parties
with respect to the construction and equipment of the facilities, their operation
and their financing by the issuance of the bonds referred to in this Ordinance.
Section 6. That a copy of this Ordinance shall be furnished to the
Pulaski County Board of Election Commissioners so that the necessary election
officials and supplies may be provided.
Section 7. That there is hereby found and declared to be an immediate
need for the developing of industry so that employment and payrolls may be
continued and expanded and the authorization of the bonds referred to in this
Ordinance is essential to accomplishing those public benefits. It is therefore,
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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 effect immediately upon and after its passage.
PASSED: June 3 , 1975.
ATTEST:
(SEAL)
APPROVED:
By
City Clerk