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HomeMy WebLinkAbout13348ORDINANCE NO. 13,348 AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER 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, FOR THE PURPOSE OF PROVIDING PERMANENT FINANCING OF THE COSTS OF SECURING AND DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE); AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE SECURING THE BONDS; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING TO THE ACQUISITION, CONSTRUCTION AND EQUIPMENT THEREOF; 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 ( "Act No. 9 "), 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 Act No. 9 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 Ershigs, Inc., a Washington corporation ( "Ershigs "), for the acquisition, construction and equipment of a manufacturing plant consisting of lands, buildings, improvements, machinery, equipment and facilities which will be utilized for the manufacturing of such products as Ershigs shall elect to manufacture (the "Project ") and to lease the Project to Ershigs pursuant to the terms of a Lease and Agreement subsequently identified herein and referred to as the "Lease Agreement "; and WHEREAS, permanent financing of the Project costs, necessary costs and expenditures incidental thereto and expenses of authorizing and issuing Bonds, is being furnished by the City issuing Industrial Development Revenue Bonds under the provisions of Act No. 9 (the "Bonds "); and WHEREAS, the Bonds are to be sold and issued in series, with there being initially issued Series A Bonds in the principal amount, bearing interest, maturing and subject to redemption as hereinafter set forth in the form of Indenture authorized by this Ordinance; NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of the City of Little Rock, Arkansas: Section 1. That there be, and there is hereby authorized and directed the following: (a) The sale:of the Series A Bonds to Stephens Inc., Little Rock, Arkansas, and the execution by the Mayor and City Clerk of a Contract of Purchase with such purchaser for the price and pursuant to the terms recommended by Ershigs (a copy of which shall by filed in the office of the City Clerk); (b) The acquiring, constructing and equipping of the Project, and in connection therewith, the execution of contracts, and the acceptance of assignments of contracts, for the acquiring, con - structing and equipping of the Project; (c) The performance of all obligations of the City under the Lease Agreement pertaining to the acquiring, constructing and equipping of the Project and the performance of all obligations of the City under the contracts referred to in (b) above; and (d) The application for guaranty of the Series A Bonds by the Arkansas Industrial Development Commission. Ershigs is hereby authorized to make application on behalf of the City for the Arkansas Industrial Development Commission Guaranty. Section 2. That the issuance of the Bonds from time to time is hereby authorized, and the immediate delivery of the Series A Bonds is hereby authorized. 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 (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, which constitutes and is hereby made a part of this Ordinance, shall be in substantially the following form, to wit: Section 3. 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 of the Indenture, its execution and acceptance by the Trustee, the perform- ance of all obligations of the City under and pursuant to the Indenture, the execution and delivery of the Series A Bonds, and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by the Indenture and 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 4. That the City is here involved with the acquiring, constructing and equipping of industrial facilities, and therefore competitive bidding is waived, pursuant to applicable laws of the State of Arkansas, including particularly Act No. 9. Section 5. 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 6. That all ordinances, resolution and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Section 7. 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 �r 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. ATTEST: City erk (SEAL) PASSED: October 4, 1977.