HomeMy WebLinkAbout15553 1 RESOLUTION NO. 15,553
2
3 A RESOLUTION OF INTENT TO ISSUE INDUSTRIAL DEVELOPMENT
4 REVENUE BONDS, IN THE APPROXIMATE PRINCIPAL AMOUNT OF
5 THREE HUNDRED FIFTY MILLION DOLLARS ($350,000,000.00), FOR
6 THE PURPOSE OF ACQUIRING AND EQUIPPING INDUSTRIAL
7 FACILITIES AT THE LITTLE ROCK PORT AUTHORITY ON BEHALF
8 OF TREX COMPANY, INC., A DELAWARE CORPORATION; AND FOR .
9 OTHER PURPOSES.
10
11 WHEREAS,the City of Little Rock, Arkansas (the "City"), is authorized by the laws of the State of
12 Arkansas, including particularly Title 14, Chapter 164, Subchapter 2 of the Arkansas Code of 1987
13 Annotated (the "Act"), to issue Revenue Bonds for financing the costs of acquiring, constructing and
14 equipping industrial facilities; and,
15 WHEREAS, it is proposed that the City issue its Revenue Bonds under the Act for the purpose of
16 financing an project to be located in the Little Rock Port Authority Industrial Park (the "Project") for use
17 by Trex Company, Inc., a Delaware corporation (the "Company"), and/or any affiliate designated by the
18 Company, pursuant to a lease agreement to be entered into between the City, as lessor, and the Company
19 and/or any such affiliate, as lessee(the Lease Agreement");and,
20 WHEREAS,the Project will generally consist of an initial capital investment of approximately Three
21 Hundred Fifty Million Dollars ($350,000,000.00), for various improvements, machinery, equipment and
22 other personal property, to be used for manufacture of composite decking, composite cladding, outdoor
23 lighting and related products; and,
24 WHEREAS, it is anticipated that the Lease Agreement will have a stated lease term of twenty (20)
25 years;and,
26 WHEREAS, in order to secure and develop industry in furtherance of the public purpose of the Act,
27 the City is willing to proceed with the issuance of the bonds as and when requested by the Company,subject
28 to compliance with all conditions set forth in the Act.
29 NOW,THEREFORE,BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
30 OF LITTLE ROCK,ARKANSAS:
31 Section 1. The City hereby states its intention to assist in the accomplishment of the Project and at
32 such time as it may be properly called upon to do so to issue its revenue bonds to finance the same,subject
33 to the following:
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1 (a) It is estimated at this time that Revenue Bonds in the approximate principal amount of
2 Three Hundred Fifty Million Dollars ($350,000,000.00) will be issued to finance the Project.
3 However, the City's commitment is to issue Revenue Bonds under the Act in such amount for
4 accomplishing all or any part of the Project, whether that amount is more or less than the above
5 estimate.
6 (b) The bonds will be special obligations of the City, and in no event will they constitute an
7 indebtedness for which the faith and credit of the City or any of its revenues are pledged.
8 (c) The City will not be called upon to pay any costs or expenses incurred in connection with
9 the authorization and issuance of the bonds, and all such costs and expenses will be paid out of the
10 proceeds of the bonds or by the Company.
11 Section 2. The City is informed and understands that the properties comprising the Project will be
12 exempt from ad valorem taxes. The City desires to enter into an appropriate agreement with the Company
13 for payments in lieu of taxes and agrees that such payments will be equal to an amount equal to 35%of the
14 Ad Valorem Taxes which would be payable if the property comprising the leased premises were subject to
15 Ad Valorem Taxes, all subject to the provisions of the Act and the requirements of Arkansas State Law
16 pertaining thereto.
17 Section 3. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
18 word of this resolution is declared or adjudged to be invalid or unconstitutional, such declaration or
19 adj udication shall not affect the remaining portions of the resolution which shall remain in full force and
20 effect as if the portion so declared or adjudged invalid or unconstitutional were not originally a part of the
21 resolution.
22 Section 4. Repealer. All laws ordinances resolutions or parts of the same that are inconsistent with
23 the provisions of this resolution are hereby repealed to the extent of such inconsistency.
24 ADOPTED: October 26,2021
25 ATTES drib APPROVED:
26 `
27 11,
28 S u san ngle�. 'ty Clerk Fran S An, fayor
29 APPROV i S i LEGAL FORM:
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31
32 Thomas M. Carpenter, Cit Attorn
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