3773 RESOLUTION NO. 3,773
RESOLUTION ACCEPTING PROPOSAL TO PURCHASE CITY
OF LITTLE ROCK, ARKANSAS INDUSTRIAL REVENUE
BONDS IN THE PRINCIPAL AMOUNT OF $3,000,000.00
TO BE ISSUED FOR THE PURPOSE OF SECURING AND
DEVELOPING INDUSTRY WITHIN THE CITY OF LITTLE
ROCK BY ASSISTING THE ARMSTRONG RUBBER COMPANY
IN CONSTRUCTING AND EQUIPPING AN INDUSTRIAL
PLANT FOR THE MANUFACTURE OF RUBBER PRODUCTS.
WHEREAS, the electors of the City of Little Rock in an
election held on the 7th day of March, 1967 , authorized the issu-
ance of Industrial 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, in
a principal amount not to exceed $3,500,000.00 for the purpose of
securing and developing industry within the City of Little Rock
by assisting THE ARMSTRONG RUBBER COMPANY in constructing and
equipping an industrial plant for the manufacture of rubber pro-
ducts and such other products as ARMSTRONG might determine by
furnishing a portion of the permanent financing therefor; and
WHEREAS, THE ARMSTRONG RUBBER COMPANY has called upon the
City for the sale of Industrial Revenue Bonds in the principal
amount of $3,000,000.00 for the said purpose ; and
WHEREAS, there has been submitted to the Board of Directors
of the City of Little Rock the written proposal of EQUITABLE
SECURITIES CORPORATION of Nashville,Tennessee, for the purchase
of Industrial Revenue Bonds of the City for the said purpose in the
said principal amount of $3,000,000.00, which said proposal has
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been accepted by THE ARMSTRONG RUBBER COMPANY:
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF LITTLE ROCK, ARKANSAS :
Section 1. That the written proposal of EQUITABLE SECURITIES
CORPORATION of Nashville , Tennessee, to purchase Industrial Revenue
Bonds of the City of Little Rock in the principal amount of
$3,000,000.00 (being a part of the authorized issue of $3,500,000.00
of Industrial Revenue Bonds) to be issued for the purpose of assist-
ing THE ARMSTRONG RUBBER COMPANY in constructing and equipping an
industrial plant in the City of Little Rock for the manufacture of
rubber products by furnishing a portion of the permanent financ-
ing therefor be, and it is hereby, accepted.
Section 2. That the Mayor and City Clerk of the City of
Little Rock, Arkansas, be , and they are hereby, authorized to
execute and deliver for and on behalf of the City of Little Rock
the acceptance of the said written proposal made by EQUITABLE
SECURITIES CORPORATION and accepted by THE ARMSTRONG RUBBER COMPANY
in the following form:
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.4011k
The Armstrong Rubber Company,
West Haven, Connecticut.
City Board of Directors,
City of Little Rock, •
Little Rock, Arkansas.
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Gentlemen:
For legally issued, properly executed$3,000,000 City of Little Rock Industrial Revenue Bonds we will pay the City •
$2,955,000 plus accrued interest from the date of the bonds to the date of delivery. The bonds will be dated July 1,
1967, will bear interest at the rate of 5% per annum, and will mature July 1 of each year as follows:
1965 $190,000 1972 $230,000 191'S $280,0033
1969 • 200,000 1973 240,000 1977 293,000
1970 210,000 '•' 1974 250,000 1973 • 310,000•1971 220,000 1975 260,003 1979 320.000
The bonds will be callable(a) as a whole on any interest payment date only in the event of major damage,
destruction •
or condemnation of the properties at par and accrued interest plus a premium of 1%, (b) as a whole on any interest pay-
ment date only in the event of purchase of the properties by the Lessee at par and accrued.interest plus a premium as
follows: January 1, 1968 to January 1, 1977 - 2%,and July 1, 19T7 to January 1, 19'79.- 1 1a, and (c) as a whole or in
part in inverse numerical order out of any other moneys made available therefor on July 1, 19'74 and any interest pay-
- ment date thereafter at par and accrued interest plus a premium as follows: July 1, 1974 to January 1. 1977 - 2% and
July 1. 1977 and thereafter - 1 50.
The bon's will be in coupon form in the denomination of$5,000. Interest will be payable eech January 1 and July 1
beginning January 1, 1968. Principal and interest will be payable at First National Bank of Memphis, Memphis, Tenn-
essee.
The bonds will be reoffered to the public at a price or prices to be deternhinded by us.
This offer to purchase the above described bonds is conditioned upon the opinion of Rose, Mack; Rouse, Barron, Nash
&Williamson, bond attorneys of Little Rock, that(a) interest on the bonds is exempt from all Federal income taxation
under existing laws, regulations and rulings and(b) the bonds are valid and legally binding special obligations of the
City of Little Rock, secured by a trust indenture between the City of Little Rock and First National Bak of Memphis,
Trustee, covering the land and buildings acquired and co nstucted out of the proceeds of$1,500,000 City of Little
• Rock General Obligation industrial Development Bonds and the machinery and equipment acquired out of these
$3,000,000 bonds and payable out of rentals to be made pursuant to a lease dated;uiy 1, 1957 and e _ ;rune
30, 1979 between the City of Little Rock, Lessor, and The Armstrong Rubber Company, Lessee. Under the terms
of the lease The Armstrong Rubber Company will make rental payments to the T r-.zee sufficient in ant.ant to meet
principal of and interest on the bons as the same become due, together with pay_n2 agent's charges in connection
therewith. The lease may contain such option to renew a:d option to purchase as the Company and City may determine
prior to its execution. Under the terms of the lease the Company will agree to provide adequate insurance and to main-
tain the facilities in good condition and repair.
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Upon acceptance of this proposal we will proceed with the preparation of the bond forms.
it is mutually understood and agreed that the Company and the City will act promptly in the adoption of all necessary
ordinances and/or resolutions and other legal instruments, all to be in such form as will be satisfactory to Rose, Meek,
House, Barron, Nash and Williamson.
The Company will pay for the cost of printing the bond forms and the legal fees of the bond attorneys.
Upon the acceptance of this proposal as evidenced by the signatures:M.the spaces provided below, it will constitute a
valid and binding agreement between all parties concerned. „
)UI A:LE SECL lTalS COR:ORATION
Robert F. Stamps, Vice President
Accepted th r.1St day of MaY , 1967
TIE ARMSTRONG R CO�/PAN ,
By F. L. Wye() fr"'`77
President
Accepted this ay of , 1967
CITY 07 LITTL.ROCK
By •
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Section 3. That the City reserves the right to issue and
sell the remaining Industrial Revenue Bonds in the principal amount
of $500,000 .00 (being the remaining part of the Industrial Revenue
Bonds in the principal amount of $3,500,000.00 authorized by the
electors of the City) subject to the request of THE ARMSTRONG
RUBBER COMPANY and the approval of the Board of Directors .
Section 4. It is ascertained and declared that the
safety and health of the inhabitants of the City of Little Rock
are jeopardized by the lack of sufficient industry and that only
by action made possible by this Resolution can the City under-
take to secure and develop additional industry and to promote
the safety, health, and welfare of its citizens. IT IS THEREFORE,
declared that an emergency exists, that this Resolution is neces-
sary for the immediate preservation of the public peace, health
and safety, and that this Resolution shall take effect and be
in force from and after its adoption.
ADOPTED: May 15 , 1967 .
APPROVED : A
ayor
ATTEST:
City Clerk
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