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11350ORDINANCE NO. 11,350 AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE UPON THE QUESTION OF ISSUING BONDS UNDER THE PROVISIONS OF ACT NO. 9 OF THE FIRST EXTRA- ORDINARY SESSION OF THE SIXTY - SECOND GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, APPROVED JANUARY 21, 1960s AS AMENDED BY ACT NO. 48 OF THE ACTS OF ARKANSAS OF 1961, FOR THE PURPOSE OF FINANCING THE COST OF SECURING AND DEVELOPING INDUSTRY WITHIN THE CITY OF LITTLE ROCK, ARKANSAS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS arrangements have been made with DowSmith, Inc., a Delaware corporation (hereinafter sometimes referred to as "DowSmith "), for the location of a substantial industrial plant within the City of Little Rock, Arkansas (hereinafter sometimes referred to as the "City "); and WHEREAS the location of said industrial plant within the City will result in increased employment, will result in in- creased payrolls, will alleviate unemployment, and will result in other public benefits incidental to the operation of a substantial industrial plant, all of which will be in the best interests of the City and its citizens and inhabitants; and WHEREAS in order to obtain funds for the financing of necessary lands and constructing a factory building and manufactur- ing facilities thereon (hereinafter sometimes called the "Project "), essential to the location and operation of said industrial plant, the Board of Directors of the City has determined to issue, sub- ject to the approval of the electors of the City, City of Little Rock, Arkansas Industrial Development Revenue 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 ©00 3 v F- � Page 2 January 21, 1960, as amended by Act No. 48 of the Acts of Arkansas of 1961 (hereinafter sometimes called "Act No. 911) in an amount not to exceed $2,500,000 for the purpose of financing the Project costs and necessary costs and expenses incidental thereto, the costs of the issuance of the bonds, and to provide adequately for debt service on the bonds until Project revenues are available there- for; and WHEREAS the Project will be leased to DowSmith for net lease rentals sufficient to provide for the payment of the prin- cipal of and interest on the bonds, as the same become due and payable, and the bonds will be secured by a mortgage on the Project as authorized by Act No. 9; and WHEREAS the capital stock of DowSmith is owned by The Dow Chemical Company, a Delaware corporation, and A. 0. Smith Corporation, a New York corporation, and said parent corporations will unconditionally guarantee the payment of the rentals and the performance of all other covenants and obligations of DowSmith as Lessee under the Lease Agreement with the guaranty of each guaranteeing corporation being limited to fifty per cent (50 %) of the amounts necessary to insure the prompt performance of their commitments under their guaranty agreement; 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 of Little Rock, Arkansas on the 26th day of February , 1963, at which election there shall be submitted to the electors the question of issuing Industrial Development Revenue Bonds under the provisions of Act Page 3 No. 9 in an amount not to exceed $2,500,000 for the purpose of securing and developing industry within the City (the particular industrial Project is described above). The bonds will be dated May 1, 1963 and interest on the bonds will be payable semiannually on May 1 and November 1 of each year commencing November 1, 1963, at a rate or rates to be hereafter fixed. The bonds will mature serially on May 1 in each year as follows, but will be callable for payment prior to maturity upon such terms as shall be set forth in the face of the bonds and in the ordinance authorizing their issuance and delivery: YEAR AMOUNT 1964 $ 832000 1965 87,000 1966 903000 1967 949000 1968 983,000 1969 1022000 1970 1062000 1971 1102000 1972 1152000 1973 1192000 1974 1242000 1975 1292000 1976 1342000 1977 1402000 1978 1462000 1979 1523,000 1980 1582000 1981 1642000 1982 1712000 1983 1782000 Section 2. That said question shall be placed on the ballot for the special election in substantially the following form: Vote on measure by placing an 'T' 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 amount not to exceed $2,500, 000 .. .............................// Page 4 Against the issuance of In- dustrial Development Revenue Bonds by the City of Little Rock, Arkansas in an amount not to exceed $22500 ,000.......... *000.0.0.0.. * * / It is proposed to issue City of Little Rock, Arkansas 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 21, 1960, as amended by Act No. 48 of the Acts of Arkansas of 1961 (herein called "Act No. 9 ") in an amount not to exceed $2,500,000 for the purpose of financing the cost of securing and developing industry within the City. The bonds will be dated May 1, 1963 and interest thereon will be payable semiannually on May 1 and November 1 of each year commencing November 1, 1963, at a rate or rates to be hereafter deter- mined. The bonds will mature serially in annual installments on May 1 in each of the years 1964 to 1983, inclusive. The particular industrial project consists of lands and the construction of a factory building and manu- facturing facilities thereon which industrial project will be leased to DowSmith, Inc., a Delaware corporation (herein called "DowSmith "), and operated for the manufacturing of glass reinforced epoxy tubular goods and dielectric electrical goods and such other items as Dow - Smith shall elect to manufacture. The rentals derived from the leasing of the said industrial project will be pledged to and used for the payment of the principal of and interest on the bonds, as the same become due and payable, and the said Lease Agreement will provide for net rentals sufficient in amount for that purpose. The capital stock of DowSmith is owned by The Dow Chemical Company, a Delaware corpora- tion, and A. 0. Smith Corporation, a New York corporation, and said parent corporations will unconditionally guarantee the payment of the rentals and the performance of all other cove- nants and obligations of DowSmith as Lessee under said Lease Agreement with the guaranty of each of said guaranteeing corporations being limited to fifty per cent (50 %) of the amounts necessary to insure the prompt performance of their commit- ments under said guaranty agreement. The bonds will not be general obligations of the City but will be special obligations payable solely from lease rentals and revenues derived from said industrial project and will be secured by a mortgage on said industrial project as authorized Page 5 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 of Little Rock, Arkansas, with the last publication to be not less than ten days prior to the date of the election, and only quali- fied electors of said City shall have the right to vote at said election on said question. Section 4. That the results of said election shall be proclaimed by the Mayor and his proclamation shall be published one time in a newspaper having a bona fide circulation in said City of Little Rock, Arkansas, 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 a copy of this ordinance shall be fur- nished the Pulaski County Board of Election Commissioners so that the necessary election officials and supplies may be provided. Section 6. That there is hereby found and declared to be an immediate need for the securing and developing of industry within the City of Little Rock, Arkansas in order to provide employment, provide increased payrolls, alleviate unemployment and provide other public benefits incidental to the securing and operation of a substantial industry, and the issuance of the above described bonds is essential to the financing and obtaining of said industry. It is, therefore, declared that an emergency Page 6 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: January 21, 1963 APPROVED: le "-��Mayor ATTEST: a za--Sd—J City Clerk