11926ORDINANCE N0. 111 926
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT GENERAL OBLIGATION
BONDS UNDER AMENDMENT NO. 49 TO THE CONSTITU-
TION OF THE STATE OF ARKANSAS FOR THE PURPOSE
OF SECURING AND DEVELOPING INDUSTRY WITHIN THE
CITY OF LITTLE ROCK, ARKANSAS.
WHEREAS, by Ordinance duly passed on the 16th day of
January, 1967, there was submitted tothe qualified electors of
the City of Little Rock, Arkansas, the question whether it should
issue bonds under the provisions of Amendment No. 49 to the Con-
stitution of the State of Arkansas (hereafter referred to as
"Amendment No. 4911) in an amount not to exceed One Million Five
Hundred Thousand Dollars ($1,500,000.00)9 to supplement an issue
of Industrial Development Revenue Bonds to be issued by the City
of Little Rock, Arkansas, under Act No. 9 of the First Extra-
ordinary Session of the Sixty - second General Assembly of the
State of Arkansas, approved January 21, 1960 (hereafter referred
to as "Act No. 9 ") in an amount not to exceed Three Million
Dollars ($3,000,000.00), to bear interest at such rate as the
Board of Directors might determine on the sale of the Bonds, for
the purpose of securing and developing industry within the City
of Little Rock, Arkansas, by assisting The Armstrong Rubber Company,
a Connecticut corporation (hereafter referred to as "Armstrong ")
to construct an industrial project, which Project will consist
of lands, buildings, improvements and facilities to be operated
for the manufacture of rubber products and such other items as
Armstrong shall dete mine; and
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WHEREAS, due notice of the election was given as required
by law, and at said election 3,182 votes were cast in favor of
the said bond issue, and only 312 votes were cast against it;
and
WHEREAS, after due advertisement for the time and in the
manner required by law, duly published in a newspaper having a
bona fide circulation in the City of Little Rock, said bonds
were offered for sale on sealed bids at the City Hall at 2 :00
o'clock, P.M., on the 24th day of May, 1967, and at said sale
First National Bank of Memphis, Memphis, Tennessee, bid and
offered the price of 100 cents on the dollar, plus a premium of
$80.00, plus accrued interest, for $1,500,000.00 of bonds, bear-
ing interest at the rate of four per cent (4 %) per annum, and
this being the best bid, said bonds were sold to the said pur-
chaser at that price; and
WHEREAS, the necessary arrangements have been made with
Armstrong 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 ");
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS:
Section 1. That Industrial Development General obliga-
tion Bonds under Amendment No. 49 to the Constitution of the State
of Arkansas in the total principal amount of One Million Five
Hundred Thousand Dollars ($1,500,000.00) to supplement the said
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issue of Industrial Development Revenue Bonds of the City under
Act No. 9 in the total principal amount of Three Million Dollars
($3,000,000.00) are hereby authorized and ordered to be issued;
and to prescribe certain of the terms and conditions in addition
to the provisions of this Ordinance upon which the bonds are to
be secured, executed, authenticated, accepted and held, the
Mayor is hereby authorized and directed to execute and acknow-
ledge 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, executed 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:
(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 2. That in order to pay the bonds as they
mature, with interest thereon, there is hereby levied upon all
real and personal property within the City of Little Rock, Arkansas,
a tax of three - fourths of one (3 /4ths of 1) mill in and for each
of the years 1968 to 1992, inclusive, collectible with the general
taxes collectible in each of the said years 1968 to 1992, in-
clusive, and collectible commencing with the taxes collected
in 1968, being a sum sufficient to pay said bonds and interest
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as they mature, with five per cent (S %) added for unforeseen
contingencies; and the City Clerk is directed to transmit a
certified copy of this Section of this Ordinance to the County
Clerk of Pulaski County, to the end that said taxes may be extended
on the tax books of said County and, unless suspended, collected
annually along with the other taxes collectible in the years
1968 to 1992, inclusive, until the said bonds and interest thereon
are paid in full.
The said Amendment No. 49 provides that the said
levy may be suspended from time to time, in whole or in part,
when not required for the payment of bonds issued thereunder.
It is contemplated that the Industrial Development General Obliga-
tion Bonds herein authorized to be issued will be paid from the
rentals of the Project reserved in the said Lease Agreements and
as provided in the Trust Indenture herein authorized, and that the
levy of three- fourths of one (3 /4ths of 1) mill, while pledged
for the payment of the said Industrial Development General Obliga-
tion Bonds, may and will be suspended until required for the pay-
ment of the said bonds, and the collection of -the said levy is
hereby suspended until the collection thereof shall be certified
to the County Clerk.
Section 3. That for the prompt payment of the bonds
of this issue, with interest, the City of Little Rock hereby
pledges its full faith, credit, aid taxing power, including the
tax levied in Section 2.
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Section 4. That the bonds herein authorized shall be
paid from the Industrial Development Revenue Bond Fund - Armstrong
Project created and established in the said Trust Indenture and as
provided therein, and in the event that the moneys therein should
be insufficient to meet the debt service requirements of the said
bonds herein authorized, there is hereby appropriated out of the
proceeds of the tax hereby levied, and if such proceeds be insuf-
ficient, then out of the general revenues of the City, the sum
necessary to pay the principal of and interest on the said bonds
as they mature.
Section 5. That the bonds herein authorized shall be
callable upon such terms and in the manner provided therein and
in the said Trust Indenture.
Section 6. That the Mayor and City Clerk, for and on
behalf of the City, be, and they are hereby, authorized and
directed to do any aid 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 Industrial Development General Obligation Bonds,
and the performance of all other acts of whatever nature neces-
sary 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
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carrying out of the authority conferred by this Ordinance and the
Trust'Indenture, or to evidence said authority and its exercise.
Section 7. This Ordinance shall not create any right of
any character, and no right of any character shall arise under or
pursuant to it, until the bonds authorized by this Ordinance
shall be issued and delivered.
Section 8. All ordinances and parts of ordinances in
conflict with the Ordinance are hereby repealed.
Section 9. 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 inhabit-
ants thereof, and the issuance of the bonds authorized hereby
and the taking of the other action authorized herein are im-
mediately necessary in connection with the securing and develop-
ing 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:
- . 7 " It 11L7
�.. City Clerk
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