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(Ratified by Ord. No. 13,521)
ORDINANCE NO. 13,490
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR
THE PURPOSE OF PROVIDING PERMANENT FINANCING
FOR INDUSTRIAL FACILITIES; AUTHORIZING A
LEASE AND SECURITY AGREEMENT BETWEEN THE
CITY, AS LESSOR, AND ORBIT VALVE COMPANY,
AS LESSEE, AUTHORIZING A SECURED REVENUE
NOTE, AN ASSIGNMENT, AND AN EQUIPMENT AC-
QUISITION AGREEMENT; AUTHORIZING THE SALE
OF THE BONDS; AUTHORIZING AND PRESCRIBING
OTHER MATTERS PERTAINING THERETO; AND DECLARING
AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (the "City "),
is authorized by 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 acquire lands, con-
struct and equip facilities and to incur other costs and expenses
and make other expenditures incidental to and for the implementing
and accomplishing of the conduct of manufacturing operations; and
WHEREAS, the City is authorized by the Act to issue
Industrial Development Revenue Bonds payable from revenues derived
from the Industrial Project so acquired and constructed and secured
by a lien thereon and security interest therein; and
WHEREAS, the necessary arrangements have been made with
Orbit Valve Company, an Arkansas corporation (.the "Company "), for
the acquisition of industrial facilities, consisting of machinery,
equipment and other facilities, which will be utilized for the
manufacturing of such products as the Company shall elect to manu-
facture (the "Project ") , as part of an industrial expansion, and
to lease the Project to the Company pursuant to the terms of a
Lease and Security Agreement hereinafter described; 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 $1,000,000 in principal amount of
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its Industrial Development Revenue Bonds, in the form of a single
Secured Revenue Note, Series 1978
financing; and
(the "Bonds "), to provide such
WHEREAS, copies of the hereinafter described Lease and
Security Agreement, Secured Revenue Note, Assignment and Equipment
Acquisition 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. That the issuance of the Bonds is hereby
authorized.
Section 2. That the Bonds be sold to First Tennessee
Bank N.A. Memphis, Memphis, Tennessee (_the "Purchaser "), for the
purchase price and upon the terms and conditions recommended by
the Company.
Section 3. That to prescribe the terms and conditions
upon which the Bonds are to be executed, issued, accepted and
held, to provide for the security and payment of the Bonds, there
be, and there is hereby authorized the execution and delivery of
a Lease and Security Agreement, Secured Revenue Note, Assignment
and Equipment Acquisition Agreement (all being designated collec-
tively herein as the "Documents ") , and the Mayor and City Clerk
be, and they are hereby authorized to execute, acknowledge and
deliver the same for and on behalf of the City, all being hereby
approved substantially in the form submitted to this meeting; and
the Mayor is hereby authorized to confer with the Company and
the Purchaser in order to complete the same in substantially the
form submitted to this meeting, their execution to constitute con-
clusive evidence of such approval.
Section 4. That the Mayor and the 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 Documents, the performance of any obligations
of the City under the Documents 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 the 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 hereof, including, with-
out limitation, the acceptance of such guaranties (executed by the
Company and /or by affiliates of the Company) as may be appropriate.
Section 5. 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 par-
ticularly the Act, competitive bidding is waived.
Section 6. That 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, a copy of all the Docu-
ments, and the Documents shall remain on file for inspection by
any interested person.
Section 7, 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 8. That all ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent
of such conflict.
Section 9. That there is hereby found and declared to
be an immediate need for the securing and developing of industry
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in order to provide employment and payrolls, alleviate unemploy-
ment 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 pas-
sage.
PASSED: August 15
ATTEST:
'/75
v
(SEAL)
, 1978.
APPROVED:
EN pi