HomeMy WebLinkAbout17436ORDINANCE NO. 17,436
AN ORDINANCE AUTHORIZING THE ISSUANCE OF AN
INDUSTRIAL DEVELOPMENT REVENUE BOND TO FINANCE
CERTAIN INDUSTRIAL FACILITIES; AUTHORIZING THE 263
LEASING OF SUCH FACILITIES TO ARKANSAS SYSTEMS
BUILDING CO., LLC; APPROVING THE SUBLEASING OF
SUCH FACILITIES TO ARKANSAS SYSTEMS, INC.;
AUTHORIZING THE SALE OF THE BOND AND THE
EXECUTION OF A BOND PURCHASE AGREEMENT IN
CONNECTION THEREWITH; AUTHORIZING AND
PRESCRIBING OTHER MATTERS PERTAINING THERETO;
AND DECLARING AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the "City "),
is authorized and empowered under the provisions of Title 14,
Chapter 164, Subchapter 2 of the Arkansas Code of 1987 Annotated
(the "Act ") , to issue revenue bonds and to expend the proceeds
thereof to finance facilities which can be used in securing or
developing industry; and
WHEREAS, pursuant to and in accordance with the
provisions of the Act, it is proposed that (i) the City issue its
single Industrial Development Revenue Bond in the principal amount
of not to exceed $6,500,000 (the "Bond ") for the purpose of
financing certain industrial facilities located at 17500 Chenal
Parkway, Little Rock, Arkansas (the "Project "), and (ii) the City
lease the Project to Arkansas Systems Building Co., LLC, an
Arkansas limited liability company (the "Company "), to be operated
by Arkansas Systems, Inc., an Arkansas corporation ( "Arkansas
Systems ") under a sublease from the Company; and
WHEREAS, the Bond will be sold to the Arkansas State
Highway Employees Retirement System (the "Purchaser "), for the
price hereinafter provided; and
WHEREAS, pursuant to and in accordance with applicable
provisions of Arkansas law, a public hearing was held on the date
hereof before the Board of Directors on the question of the
issuance of the Bond; and
WHEREAS, copies of the hereinafter described Bond
Purchase and Credit Agreement, Lease Agreement, and Payment in Lieu
of Tax 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
accomplishment of the Project, and the issuance of the Bond to
finance the same, will provide substantial employment and payrolls
and will thereby secure and develop industry in the City.
Section 2. The issuance of the Bond in the aggregate
principal amount of $6,500,000, or such lesser amount as shall be
requested by the Company, is hereby authorized. The Bond shall be
designated "City of Little Rock, Arkansas Industrial Development
Revenue Bond - Arkansas Systems, Inc. Project" and shall be issued
in the form, shall be dated, and shall be subject to redemption 264
prior to maturity all upon the terms and conditions recommended by
the Company and set forth in the Bond Purchase and Credit Agreement
(hereinafter authorized) securing the Bond. The Bond shall bear
interest at the rate of 8.75% per annum, shall be payable in equal
monthly installments based upon a twenty -five year amortization
schedule, and shall mature in the year 2007, all as more fully set
forth in the Bond Purchase and Credit Agreement.
Section 3. The Bond shall be sold to the Purchaser for
the purchase price of 100% of par, and upon the terms and
conditions set forth in a Bond Purchase and Credit Agreement among
the City, the Purchaser and the Company (the "Bond Purchase
Agreement "). The Mayor and City Clerk are hereby authorized to
execute, acknowledge and deliver the Bond Purchase Agreement for
and on behalf of the City. The Bond Purchase Agreement is hereby
approved in substantially the form submitted to this meeting, and
the Mayor is hereby authorized to confer with the Purchaser, the
Company and others in order to complete the Bond Purchase 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 4. There is hereby authorized the execution and
delivery of a Lease Agreement between the City and the Company (the
"Lease Agreement "), and the Mayor and City Clerk 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 Company 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 5. There is hereby authorized the execution and
delivery of a Payment in Lieu of Tax Agreement between the City and
the Company (the "PILOT Agreement "), and the Mayor is hereby
authorized to execute and deliver the PILOT Agreement for and on
behalf of the City. The PILOT Agreement is hereby approved in
substantially the form submitted to this meeting, and the Mayor is
hereby authorized to confer with the Company and others in order to
complete the PILOT 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.
M= M Im M M� 85M s� M�
Section 6. The operation of the Project by Arkansas
Systems pursuant to a sublease agreement between the Company and
Arkansas Systems is hereby approved.
Section 7. The acquiring, constructing and equipping of
the Project, and the issuance and sale of the Bond, are exceptional
situations in which the City has no responsibility for payment of
the costs and expenses thereof, all of which are payable by the 265
Company, and the Company's recommendations with respect thereto are
acceptable to the City. In particular the Board of Directors finds
that (i) the Project consists of industrial facilities within the
meaning of the Act, and (ii) the Company's selection of Bond
Counsel is a nationally recognized firm in the field of municipal
bonds, familiar with the Company, Arkansas Systems, the Act, and
the policies of the City with respect to the issuance of bonds of
the type now being issued. Therefore, pursuant to applicable laws
of the State of Arkansas, including the Act and Section 14 -47 -138
of the Arkansas Code of 1987 Annotated, competitive bidding is
hereby waived.
Section 8. The Mayor and City Clerk are hereby
authorized and directed to do any and all things necessary to
effect the execution and delivery of the Bond Purchase Agreement,
the Lease Agreement, and the PILOT Agreement and the performance of
all obligations of the City thereunder, the issuance, execution,
sale and delivery of the Bond, the securing of the payment of the
Bond by a lien on and security interest in the properties
comprising the Project, and the performance of all acts of whatever
nature necessary to effect and carry out the authority conferred by
this Ordinance. The Mayor and City Clerk are hereby further
authorized and directed 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 9. The City Clerk is hereby authorized and
directed to file in the office of the City Clerk, as a part of the
minutes of the meeting at which this Ordinance is adopted, for
inspection by any interested person copies of the Bond Purchase
Agreement, the Lease Agreement and the PILOT Agreement, and such
documents shall be on file for inspection by any interested person.
Section 10. 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 11. All ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent of
such conflict.
Section 12. There is hereby found and declared to be an
immediate need for the securing and developing of industry in order
to provide substantial employment and payrolls, thereby alleviating
as M M M M M
unemployment and otherwise benefiting the public health, safety and
welfare of the City and the inhabitants thereof, and the issuance
of the Bond 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
preservation of the public peace, health and safety shall be in 6 s
force and effect immediately upon and after its passage.
PASSED: March 18, 1997.
ATTEST:
2 1:. Q t'b C.CT,
City Clerk
Robbie Hancock
(SEAL)
APPROVED:
�$ft &�A
U Mayor
Jim Dailey