HomeMy WebLinkAbout18034I ORDINANCE NO. 18, 034
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3 AN ORDINANCE TO AUTHORIZE THE CITY TO ENTER INTO AN
4 AMENDMENT OF THE ARKANSAS SYSTEMS BUILDING
5 COMPANY LLC GROUND LEASE DATED April 18, 1997 (ACT 9
6 BOND ISSUE) AND CONSENT TO LEASEHOLD MORTGAGE AND
7 ESTOPPEL CERTIFICATE; DECLARING AN EMERGENCY; AND
8 FOR OTHER PURPOSES.
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10 WHEREAS, in 1997 the City of Little Rock, Arkansas (the "City") issued $5,211,723.56 in
Act 9 Industrial Development Bonds for the Arkansas Systems Building Company, LLC, Project;
12 and
13 WHEREAS, Arkansas Systems Building Co., LLC ( "Arkansas Systems "), proposes to pay
14 off the bonds with a loan from Mercantile Bank and continue the lease with the City; and
15 WHEREAS, in order to pay off the bonds, Arkansas Systems proposes to secure its
16 indebtedness to Mercantile bank with a mortgage of its leasehold interest in the property, and
17 WHEREAS, the lease must be amended to allow Arkansas Systems to continue to lease from
18 the City after prepayment of the bonds; and
19 WHEREAS, the purpose of this Ordinance is to authorize the City to enter into an
20 amendment of the lease to allow the lease to continue in effect after Arkansas Systems prepays the
21 bonds, to consent to Mercantile Bank's leasehold mortgage, and to notify Mercantile Bank if
22 Arkansas Systems defaults in the payment of rent or PILOT payments.
23 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
24 THE CITY OF LITTLE ROCK, ARKANSAS
25 SECTION 1. The Mayor is hereby authorized to execute a First Amendment to Lease to the
26 Arkansas Systems Lease dated April 17, 1997 and to execute a Consent to Leasehold Mortgage and
27 Estoppel Certificate between the City, Arkansas Systems Building Co., LLC., and Mercantile Bank
28 of Arkansas, subject to negotiation and approval of the documents by the City Attorney.
29 SECTION 2. EMERGENCY. It is hereby ascertained and declared that there is an
30 immediate need for the City to assist Arkansas Systems to take advantage of a favorable financial
31 opportunity to further develop its business and enhance and promote employment opportunities in
32 the City; and that the taking of these actions authorized hereby are immediately necessary for the
33 accomplishing of these public benefits and purposes. It is therefore declared that an emergency exists
34 and this Ordinance being necessary for the preservation of the public peace, health and safety shall
35 be in force and effect immediately upon and after its passage.
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I PASSED: June 15, 1999
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3 ATTEST:
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6 ROBBIE HANCOCK
7 CITY CLERK
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9 APPROVED AS TO FORM:
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THOMAS M. CARPENTE
12 CITY ATTORNEY
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APPROVED:
WJAILEY
OR
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