2939 RESOLUTION NO. 2,939
R E S O L U T I O N
BE IT RESOLVED by the Board of Directors of the City
of Little Rock, Arkansas:
Section 1. That the Mayor and City Clerk be, and
they are hereby, authorized and directed to enter into a Financing
Agreement with T. J . Raney & Sons and Stephens, Inc . , Little Rock,
Arkansas, with the form and contents of said Agreement which is
made a part hereof being as follows :
- r
A G R E E M E N T
THIS AGREEMENT made this day of
1963 by and between the CITY OF LITTLE ROCK, ARKANSAS (herein called
"City") and T. J. RANEY & SONS AND STEPHENS, INC. , Little Rock,
Arkansas (herein called "Raney and Stephens") ;
W I T N E S S E T H:
WHEREAS DowSmith, Inc . (herein called "DowSmith") has
determined to locate and operate a substantial manufacturing plant
in Little Rock, Arkansas and has advised that it desires to finance
the said industrial project 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 by
Act No. 48 of 1961 (herein called "Act No. 9") ; and
WHEREAS the City is advised that inasmuch as assured financ-
ing on acceptable terms was a necessary factor in the final determi-
nation of DowSmith, DowSmith has entered into a financing agreement
with Raney and Stephens, and DowSmith has recommended to the Board
of Directors of the City that the City execute the necessary Financ-
ing Agreement with Raney and Stephens ;
NOW, THEREFORE, for valuable consideration, the receipt of
which is hereby acknowledged, including without limitation the
benefits to be derived by the City and its inhabitants from the
location and operation of a substantial industrial project,
IT IS AGREED by and between the City and Raney and Stephens as
follows :
1. The City agrees to sell to Raney and Stephens, and
Raney and Stephens agree to purchase from the City, Industrial
Development Revenue Bonds of the City under Act No. 9 in the
principal amount of $2, 500, 000 upon terms and conditions which have
Page 2
been agreed to by DowSmith. It is understood that DowSmith will
enter into a net lease of the Industrial Project, acquired and
constructed out of the proceeds of the Act No. 9 Bonds, calling
for net rentals sufficient to provide for the payment of the
principal of and interest on the Act No. 9 Bonds . It is understood
that 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 that said parent corporations will un-
conditionally guarantee the payment of the rentals and the perfor-
mance of all other covenants and obligations of DowSmith as Lessee
under the Lease Agreement with the unconditional guaranties of
each said guaranteeing corporation being limited to fifty per cent
(50%) of the amounts necessary to insure the prompt performance of
their commitments under the said Guaranty Agreement. It is also
understood that the Act No. 9 Bonds to be issued by the City will
not be general obligations of the City but will be special obliga-
tions payable solely from lease rentals and revenue derived from
the Industrial Project and will be secured by a mortgage on the
Industrial Project as authorized by Act No. 9.
EXECUTED this day of , 1963 .
CITY OF LITTLE ROCK, ARKANSAS
By
Mayor
ATTEST:
City Clerk
(SEAL)
Page 3
T. J. RANEY & SONS
By
STEPHENS, INC.
By
Section 2 . That the Mayor and City Clerk be, and
they are hereby, authorized to execute and deliver for and on
behalf of the City said Financing Agreement and to take all
action necessary to perform all obligations and realize all
rights of the City set forth therein.
ADOPTED this 21st day of January , 1963 .
APPROVED:
1404.4M004wo/ )1°1-04.4.4.4.._
Mayor
ATTEST:
City Clerk