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HomeMy WebLinkAbout13229c ORDINANCE NO. 13_ 229 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 PERMA- NENT FINANCING OF THE COST 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 THE ACCEPTANCE OF A GUARANTY AGREEMENT; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING TO THE INDUSTRIAL PROJECT, THE CONSTRUCTING THEREOF AND THE FINANCING THEREOF; AND DECLARING AN EMERGENCY. WHEREAS, Leird Church Furniture Mfg. Co., Inc. (herein- after referred to as LEIRD) an Arkansas corporation has pro- posed a substantial industrial project which will furnish employment and payrolls and other benefits, all in the best interest of the City of Little Rock, Arkansas, (hereinafter referred to as CITY) and its citizens and inhabitants; and will involve the acquring and construction of manufacturing facilities and will consist of lands, buildings and improve- ments utilized for the manufacturing of such products as LEIRD shall elect to manufacture (hereinafter referred to as the PROJECT); and WHEREAS, the PROJECT will be used by LEIRD; and WHEREAS, in order to make the necessary provision for the permanent financing of the PROJECT, and the costs and expenses of authorizing and issuing the bonds, the CITY proposes to authorize and issue Six Hundred Thousand Dollars ($600,000.00) in principal amount of bonds under the pro- visions 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 (hereinafter referred to as ACT NO. 9) to be issued in series; and WHEREAS, the CITY is authorized by ACT NO. 9 to acquire, construct and equip lands, buildings, improvements and facilities and to incur other costs and expenses and make other expenditures incidental to and for implementing and accomplishing 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, constructed and equipped and secured by a lien thereon and security interest therein; and WHEREAS, the necessary arrangements have been made with LEIRD for a substantial industrial facility which will consist of lands, buildings and improvements for a manufac- turing plant which will be utilized for the designing and manufacturing of church furniture and to lease the PROJECT to LEIRD pursuant to the terms of a Lease Agreement sub- sequently identified herein and referred to as the LEASE AGREEMENT: and WHEREAS, the Bonds are to be sold and delivered in series, with there being a Series A and Series B in the principal amounts, dated, 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 at a purchase price of $500,000.00, plus accrued interest, a Series B Bonds at a purchase price of $100,000.00, plus accrued interest to Stephens, Inc. of Little Rock, Arkansas, pursuant to the recommendation of LEIRD and, in con- nection therewith the execution by the Mayor of a Bond Purchase Contract with such purchaser; (b) The acquiring and construction of the PROJECT, and in connection therewith, the execution of contracts and the acceptance of an assignment of any contracts Page two i previously executed by LEIRD, for the acquiring and construction of the PROJECT; and (c) The performance of all obligations of the CITY under the LEASE AGREEMENT pertaining to the acquiring and construction of the PROJECT and the performance of all obligations of the CITY under the contracts referred to in (b) above. Section 2. That Industrial Development Revenue Bonds of the CITY under ACT NO. 9 are hereby authorized, and immediate delivery of the Series A and Series B Bonds is hereby authorized. To prescribe the terms and conditions upon which the Bonds are to be secured, executed, authen- ticated, accepted and held, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture (hereinafter referred to as 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 acknowl- edged by the Trustee. The INDENTURE, which constitutes and is hereby made a part of this Ordinance, shall be in sub- stantially the form and with substantially the following terms and conditions, to -wit: (Advice is hereby given that a copy of the form of Trust Indenture is on file in the office of the City Clerk, and reference may be had thereto by any in- terested person.) 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 performance of all obligations of the CITY under and pursuant to the INDENTURE, the execution and delivery of the Series A and Series B Bonds, the execution and delivery of an Official Statement or Offering Calendar, Page three i 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 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 thereof. Section 4. That there be and there is hereby authorized the execution and delivery of a Lease Agreement wherein CITY is Lessor and LEIRD is Lessee, in substantially the form and with substantially the contents hereinafter set forth, 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 form and contents of the Lease Agreement, which are hereby approved and which are made a part hereof, shall be substantially as follows: (Advice is hereby given that a copy of the form of Lease and Agreement is on file in the office of the City Clerk, and reference may be had thereto by any interested person.) Section 5. That the CITY is here involved with the acquiring, and construction of a complex manufacturing plant, requiring specialized work to conform to the needs of LEIRD, and, therefore, competitive bidding is waived. This action is taken by the Board of Directors pursuant to applicable laws of the State of Arkansas,-including partic- ularly ACT NO. 9. Section 6. 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 re- mainder of the sections, phrases and provisions. Section 7. That all ordinances, resolutions and parts thereof in conflict herewith are hereby repealed to the Page four extent of such conflict. Section 8. 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 take effect immediately upon and after its passage. PASSED: December 21 1976. ATTEST: Page five