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ORDINANCE NO. 14,830
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE
PURPOSE OF PROVIDING PERMANENT FINANCING FOR
INDUSTRIAL FACILITIES; AUTHORIZING A TRUST
INDENTURE SECURING THE BONDS; AUTHORIZING A
LEASE AND AGREEMENT BETWEEN THE CITY OF
LITTLE ROCK, ARKANSAS, AS LESSOR, AND DON
KIRKPATRICK AND CAROLYN KIRKPATRICK, AS
LESSEES; AUTHORIZING THE SALE OF THE BONDS;
AUTHORIZING AND PRESCRIBING OTHER MATTERS
PERTAINING THERETO; AND DECLARING AN
EMERGENCY.
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WHEREAS, the City of Little Rock, Arkansas (the
"City "), is authorized and empowered 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 (the "Act "), to issue revenue bonds and to
expend the proceeds thereof to finance the acquisition,
construction and equipment of land, buildings or facilities
which can be used in securing or developing industry; and
WHEREAS, it is proposed that the City provide
permanent financing, through the issuance of revenue bonds under
the Act, of a portion of the costs of acquiring, constructing
and equipping an industrial project located within the corporate
limits of the City (the "Project "), and that the City lease the
Project to Don Kirkpatrick and Carolyn Kirkpatrick, Little Rock,
Arkansas (collectively, the "Lessee "), to be operated by Quality
Foods, Inc., an Arkansas corporation (the "Company "), under a
sublease from the Lessee; and
WHEREAS, pursuant to and in accordance with the
provisions of the Act, the City is now prepared to proceed with
financing the Project and to issue and sell $2,150,000 in
aggregate principal amount of its Industrial Development Revenue
Bonds - Quality Foods, Inc. Project, Series 1985 (the "Bonds "),
to provide such financing; and
WHEREAS, copies of the hereinafter described Trust
Indenture and Lease and Agreement have been presented to and are
before this meeting;
NOW, THEREFORE, BE IT ORDAINED by the Board of
Directors of the City of Little Rock, Arkansas:
Section 1. The Board of Directors hereby finds that
the acquiring, constructing and equipping of the Project, and
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the issuance of the Bonds to finance the same, will provide a
substantial increase in employment and payrolls and will thereby
secure and develop industry within the City.
Section 2. That the issuance of the Bonds is hereby
authorized. The Bonds shall be issued in the forms and
denominations, shall be dated, shall be numbered and shall be
subject to redemption prior to maturity all upon the terms and
conditions recommended by the Lessee and to be set forth in the
Trust Indenture (hereinafter authorized) securing the Bonds.
The Bonds shall bear interest at the rates per annum, and shall
mature in each of the years, as set forth in the following
table:
Year
Principal Amount
Interest Rate
1987
$130,000
7.00%
1988
140,000
7.25%
1989
150,000
7.50%
1990
160,000
8.00%
1991
175,000
8.30%
1992
185,000
8.50%
1993
205,000
8.75%
1994
220,000
9.00%
1995
240,000
9.25%
1996
260,000
9.40%
1997
285,000
9.50%
Section 3. That the Bonds be sold to T. J. Raney &
Sons, Inc. and Stephens Inc. (the "Purchasers "), for the
purchase price of 97% of the principal amount thereof, plus
accrued interest from the date of the Bonds to the date of
delivery, which price is recommended by the Lessee.
Section 4. To prescribe the terms and conditions upon
which the Bonds are to be executed, authenticated, issued,
accepted, held and secured, the Mayor is hereby authorized and
directed to execute and acknowledge a Trust Indenture by and
between the City and The State First National Bank of Texarkana,
Texarkana, Arkansas, as Trustee thereunder (the "Indenture "),
and the City Clerk is hereby authorized and directed to execute
and acknowledge the Indenture and to affix the seal of the City
thereto, and the Mayor and City Clerk are hereby authorized and
directed to cause the Indenture to be accepted, executed and
acknowledged by the Trustee. The Indenture is hereby approved
in substantially the form submitted to this meeting, and the
Mayor is hereby authorized to confer with the Trustee and
others, in order to complete the Indenture in substantially the
form submitted to this meeting with such changes as shall be
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approved by such persons executing the document, their execution
to constitute conclusive evidence of such approval.
Section 5. That there be, and there is hereby
authorized the execution and delivery of a Lease and Agreement
by and between the City and the Lessee (the "Lease Agreement ")
and the Mayor and City Clerk be, and they are hereby, authorized
to execute, acknowledge and deliver the Lease Agreement for and
on behalf of the City. The Lease Agreement is hereby approved
in substantially the form submitted to this meeting, and the
Mayor is hereby authorized to confer with the Lessee and others
in order to complete the Lease Agreement in substantially the
form submitted to this meeting with such changes as shall be
approved by such persons executing the document, their execution
to constitute conclusive evidence of such approval.
Section 6. That there be, and there is hereby,
authorized the preparation and distribution to various
prospective and actual purchasers of the Bonds of an official
Statement in the name of the City, describing the City, the
Bonds, the Indenture, the Lease Agreement, and setting forth
such other information as may be determined to be necessary or
desirable by the Purchasers, the Lessee and the City. The Mayor
is authorized to execute such Official Statement on behalf of
the City.
Section 7. That the Mayor and City Clerk, for and on
behalf of the City, be, and they are hereby, authorized and
directed to do any and all things necessary to effect the
execution and delivery of the Lease Agreement and the
performance of all obligations of the City thereunder, the
execution and delivery of the Indenture and the performance of
all obligations of the City thereunder, the issuance, execution,
sale and delivery of the Bonds, the execution, delivery and
distribution of an Official Statement, and the performance of
all acts of whatever nature necessary to effect and carry out
the authority conferred by this Ordinance. That the Mayor and
City Clerk be, and they are hereby, further authorized and
directed, for and on behalf of the City, to execute all papers,
documents, certificates and other instruments that may be
required for the carrying out of such authority or to evidence
the exercise thereof.
Section 8. That the City is hereby involved with the
acquiring, constructing and equipping of industrial facilities,
and pursuant to applicable laws of the State of Arkansas,
including particularly the Act, competitive bidding is waived.
Section 9. That the City Clerk is hereby authorized
and directed to file in the office of the City Clerk, as a part
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of the minutes of the meeting at which this Ordinance is
adopted, for inspection by any interested person a copy of the
Indenture and the Lease Agreement, and such documents shall be
on file for inspection by any interested person.
Section 10. That the law firm of Friday, Eldredge &
Clark, Little Rock, Arkansas, be appointed to act as Bond
Counsel on behalf of the City in connection with the issuance
and sale of the Bonds.
Section 11. That the provisions of this Ordinance are
hereby declared to be separable, and if any section, phrase or
provision shall for any reason be declared to be invalid, such
declaration shall not affect the validity of the remainder of
the sections, phrases and provisions.
Section 12. That all ordinances, resolutions and
parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
Section 13. That there is hereby found and declared
to be an immediate need for the securing and developing of
industry in order to provide employment and payrolls, alleviate
unemployment and otherwise benefit the public health, safety and
welfare of the City and the inhabitants thereof, and the
issuance of the Bonds authorized hereby and the taking of the
other action authorized hereby are immediately necessary for the
accomplishing of these public benefits and purposes. It is,
therefore, declared that an emergency exists and this Ordinance
being necessary for the immediate preservation of the public
peace, health and safety shall be in force and effect
immediately upon and after its passage.
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PASSED: February 19, 1985.
APPROVE
ATTEST: �k 2
Mayor Thomas A. Prince
City C1 Jane Cz
(SEAL)