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HomeMy WebLinkAbout7819EL-' RESOLUTION NO. 7,819 RESOLUTION ACKNOWLEDGING AND CONSENTING TO THE TRUSTEE'S RELEASE OF CERTAIN REAL PROPERTY PLEDGED TO SECURE THE $1,000,000 CITY OF LITTLE ROCK, ARKANSAS INDUSTRIAL DEVELOPMENT REVENUE BONDS (WRAPE FOREST INDUSTRIES PROJECT) DATED JANUARY 1, 1980; AUTHORIZING THE EXECUTION AND DELIVERY OF A DEED OF SUCH REAL PROPERTY TO CONESTOGA WOOD SPECIALITIES, INC.; AUTHORIZING THE ACCEPTANCE OF THE CONVEYANCE OF CERTAIN REAL PROPERTY BY CONESTOGA WOOD SPECIALITIES, INC. TO THE CITY OF LITTLE ROCK, ARKANSAS; AND PRESCRIBING OTHER MATTERS RELATING THERETO. WHEREAS, on December 4, 1979, the City of Little Rock, Arkansas (the "City ") authorized the issuance of its $1,000,000 City of Little Rock, Arkansas Industrial Development Revenue Bonds ( Wrape Forest Industries Project) (the "Bonds ") pursuant to Ordinance No. 13,763 and thereafter entered into a Trust Indenture (the "Trust Indenture ") with Worthen Bank & Trust Company, N.A., as Trustee, and a Lease Agreement with Wrape Forest Industries, Inc., as Lessee; WHEREAS, on or about December 7, 1982, the City approved Resolution No. 6903 which, among other things authorized and approved the assumption of the obligations on the Bonds by Conestoga Wood Specialities, Inc. and authorized the execution of a Lease and Agreement (the "Lease ") by and between the City, as Lessor, and Conestoga Wood Specialities, as Lessee ( "Conestoga "); WHEREAS, Conestoga has informed the City that it intends to expand the industrial facilities located on the real property 286 e - .2 J b -/3 "1 pledged to secure the Bonds and that a necessary incident of the 2 8 expansion is the release from the lien of the Trust Indenture of an undeveloped portion of the real property upon which additional improvements will be constructed; WHEREAS, the Trust Indenture and Lease permit the release of real property from the lien of the Trust Indenture and the Lease upon a determination by the Trustee that the consideration to be paid by the Lessee to the Lessor upon conveyance of such real property shall be an amount equal to the fair value of the land released as determined by the Trustee, and the mutual benefits to be derived by the parties from such expansion program; WHEREAS, the Trustee has determined that the consideration to be paid by Conestoga in the form of the conveyance of certain other undeveloped real property located contiguous to the industrial facilities is of an equivalent fair value to that real property which is proposed to be released from the lien of the Trust Indenture and the Lease; WHEREAS, the Arkansas Industrial Development Commission ( "AIDC ") as guarantor of the Bonds, has consented to the release of the real property which is subject to the lien of the Trust Indenture and the Lease in consideration of Conestoga's conveyance of certain other real property to the City and the execution of and delivery by Conestoga of a Supplemental Trust Indenture extending the lien of the Trust Indenture to include the real property to be conveyed by Conestoga to the City; -2- 288 WHEREAS, Conestoga requests the approval by the City of the foregoing transactions prior to commencement of the expansion of I its facilities. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK: Section 1. That the release by the Trustee of the lien of the Trust Indenture against the real property described in Exhibit "A" hereto shall be and is hereby acknowledged and approved in all respects. Section 2. That the Mayor and City Clerk be, and they are hereby, authorized to execute and deliver such documents, including a deed conveying the real property described in Exhibit "A" attached hereto and made a part hereof to Conestoga Wood Specialities, Inc., or its designee, as may be necessary to accomplish the purposes described hereinbefore. Section 3. That the Mayor and City Clerk be, and they are hereby, authorized to execute and deliver any and all documents necessary to extend the lien of the Trust Indenture to the real property described in Exhibit "B" attached hereto and made a part hereof including, but not limited to, a Supplemental Trust Indenture. Section 4. That the Mayor and City Clerk be, and they are hereby, authorized to accept on behalf of the City the conveyance of the real property described in Exhibit "B" from Conestoga Wood Specialities, Inc. in fulfillment of the purposes described hereinbefore. -3- Section 5. That this Resolution shall be in effect from and after the date of its adoption. Dated this 21st day of July, 1987. CITY OF LITTLE ROCK, ARKANSAS By: 4��L- orf-tie Sh ckelford ATTEST: By: Q (J 14Z,4 4 ✓ City Cler ane Czech 1847C -4- 283 "eSO�!RionM, 8T — EXHIBIT A Existing Bond Issue Property.- Lots 2, 3, 4, 5 and part of Lot of 6, and part of a 20 foot North -South alley, all in Block 1, Clinton Park Addition to the City of Little Rock, Pulaski County, Arkansas, described as: Beginning at the Northeast Corner of said Lot 2, thence South 7 °40'21" West along the westerly right -of -way of Calhoun Street, 223.0 feet; thence North 82 °19'39" West 148.0 feet; thence North 7 040'21" East 202.89 feet; thence North 89 °56' East along the northerly line of Lot 2, 149.36 feet to the Point of beginning; containing 31,516 square feet, more or less. 290 EXHIBIT B Exchange Property - Lots 8, 9, 10, 11 and the South 26.66 feet of Lot 12, Block 2, McLean's Addition to the City of Little Rock, Pulaski County, Arkansas; containing 31,516 square feet, more or less. 291 • • (Resolution #7,819) EXHIBIT B Exchange Property - Lots 8, 9, 10, 11 and the South 26.66 feet of Lot 12, Block 2, McLean's Addition to the City of Little Rock, Pulaski County, Arkansas; containing 31,516 square feet, more or less. 291