11925ORDINANCE N0. 11,925
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, APPROVED JANUARY
21ST9 1960, AS AMENDED, FOR THE PURPOSE OF PROVIDING
PERMANENT FINANCING OF THE COST OF SECURING AND DEVELOP-
ING 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 SAID INDUSTRIAL PROJECT, THE CONSTRUCTING THEREOF
AND THE FINANCING THEREOF; AND DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (called
"City ") is authorized 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 (called "Act
No. 9 "), and by Amendment No. 49 to the Constitution of the
State of Arkansas (called "Amendment No. 49 "), to acquire lands,
construct and equip manufacturing buildings, improvements and
facilities and to incur other costs and expenses and make other
expenditures incidental to and for the implementing and accomplish-
ing of the conduct of manufacturing operations; and
WHEREAS, the City is authorized by Act No. 9 to issue
Industrial Development Revenue Bonds payable from revenues
derived from the industrial project so acquired and constructed
and secured by a lien thereon and a security interest therein;
and
WHEREAS, the necessary arrangements have been made with
THE ARMSTRONG RUBBER COMPANY, a Connecticut corporation (called
"Armstrong "), to construct an industrial project, which Project
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will consist of lands, buildings, improvements and facilities to
be operated for the manufacturing of such items as Armstrong
shall determine, with necessary incidental expenses and expen-
ditures in connection therewith (called the "Project" or the
"Industrial Project ") and to lease the Project to Armstrong
pursuant to the terms of a Lease Agreement and an Equipment Lease
Agreement (referred to collectively as the "Lease Agreements ");
and
WHEREAS, permanent financing of the Project costs,
necessary costs and expenditures incidental thereto and to the
expeditious commencment of manufacturing operations, the cost
of the issuance of bonds and the amount necessary to provide for
interest on bonds until Project revenues are available is being
furnished by the issuance of Industrial Development General
Obligation Bonds by the City under provisions of Amendment No.
49 to the extent of One Million Five Hundred Thousand Dollars
($1,500,000.00) in principal amount and by the issuance of
Industrial Development Revenue Bonds by the City under the pro-
visions of Act No. 9 to the extent of Three Million Dollars
($3,000,000.00) (called "Act No. 9 Bonds ") ; and
WHEREAS, there has been submitted to the electors of
the City the question of issuing the said Act No. 9 Bonds at a
special election, and at said election the electors approved the
issuance of said Act No. 9 Bonds; and
WHEREAS, the City has heretofore sold the said Act No.
9 Bonds to Equitable Securities Corporation, of Nashville,
Tennessee, with the bonds so sold being dated, bearing interest
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and maturing as hereafter in this Indenture set forth in detail;
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, approved,
authorized and directed the acquisition of the title to the
lands and industrial equipment and machinery embodied in the
Project (hereafter described in the form of Trust Indenture
authorized by this Ordinance).
Section 2. That Industrial Development Revenue Bonds
of the City under Act No. 9 in the total principal amount of
Three Million Dollars ($3,000,000.00) (called "Act 9 Bonds "),
to supplement the said issue of Industrial Development General
Obligation Bonds in the total principal amount of One Million
Five Hundred Thousand Dollars ($1,500,000.00), are hereby autho-
rized and ordered issued; and to prescribe the terms and condi-
tions upon which the bonds are to be secured, executed, authen-
ticated, accepted and held, the Mayor is hereby authorized and
directed to execute and acknowledge the Trust Indenture, and the
City Clerk is hereby authorized and directed to execute and
acknowledge the Trust Indenture and to affix the seal of the
City thereto, and the Mayor and City Clerk are hereby authorized
and directed to cause the Trust Indenture to be accepted, execu-
ted and acknowledged by the Trustee, with the Trust Indenture,
which constitutes and is hereby made a part of this Ordinance,
to be in substantially the following form, to wit:
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(Advice is hereby given that a copy of the form
of Trust Indenture is on file in the office of
the City Clerk, and reference may be had thereto
by any interested person.)
Section 3. 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 execu-
tion of the Trust Indenture, its execution and acceptance by
the Trustee, the performance of all obligations of the City
under and pursuant to the Trust Indenture, the execution and
delivery of the Act 9 Bonds, and the performance of all other
acts of whatever nature necessary to effect and carry out the
authority conferred by this Ordinance and by the Trust Indenture.
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 the authority conferred
by this Ordinance and the Trust Indenture, or to evidence said
authority and its exercise.
Section 4. That since we are here involved with the
constructing and equipping of a complex industrial project re-
quiring highly specialized work and specialized types of
machinery and equipment and materials, it has been and is hereby
determined that competitive bidding is not feasible or practical.
THEREFORE, any requirements under Ordinances of the City or under
the general laws of the State of Arkansas for competitive bidding
be, and the same are be reby, waived for this particular Project.
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This action is taken by the Board of Directors pursuant to the
authority conferred by Act No. 9 and because the action so taken
has been made a condition precedent to the securing and develop-
ing of this particular Industrial Project.
Section 5. 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 6. That all ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent
of such conflict.
Section 7. That there is hereby found and declared to
be an immediate need for the securing and developing of sub-
stantial 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 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 pre-
servation of the public health, safety and welfare shall be in
force and take effect immediately upon and after its passage.
PASSED: July 17 , 1967.
Mayor
City Clerk