HomeMy WebLinkAbout12521ORDINANCE NO. 12,521
AN ORDINANCE AUTHORIZING THE ISSUANCE OF PORT
FACILITIES REVENUE BONDS, SERIES OF 1970, UNDER `
ACT NO. 9 OF THE FIRST EXTRAORDINARY SESSION OF
THE SIXTY- SECOND GENERAL ASSEMBLY OF THE STATE
OF ARKANSAS, APPROVED JANUARY 21ST, 1960, AS
AMENDED, FOR THE PURPOSE OF PROVIDING FINANCING
OF THE COST OF SECURING AND DEVELOPING INDUSTRY
(THE PARTICULAR INDUSTRIAL PROJECT IS DESCR121ED
IN THE ORDINANCE); AUTHORIZING THE EXECUTION AND
DELIVERY OF A TRUST INDENTURE SECURING THE BONDS;
AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAIN-
ING TO SAID INDUSTRIAL PROJECT, THE CONSTRUCTION
THEREOF AND THE FINANCING THEREOF; AND DECLARING
AN EMERGENCY.
WHEREAS, the City of Little Rock, Arkansas (called "City ")
is authorized by Act No., 9 of the First Extraordinary'Session of
the Sixty- second General Assembly of the State of Arkansas, ap-
proved January 21, 1960, as amended (called "Act No. 9 "), to
acquire, construct and equip industrial buildings, improvements
and facilities and to incur other costs and expenses and make
other expenditures incidental to and for the implementing and
accomplishing of the conduct of industrial 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 a security interest therein;
and
WHEREAS, the necessary arrangements have been made with
EASTERN ASSOCIATED TERMINALS COMPANY, a Delaware corporation
(called "EATC "), to construct an industrial project, which Project
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will consist of lands, buildings, improvements and facilities
to be operated by EATC as a port facility on the Arkansas
River, with necessary incidental expenses and expenditures
in connection therewith (called the "Project" or the "Indus-
trial Project ") and to lease the Project to EATC pursuant to
the terms of a Lease Agreement and an Equipment Lease Agreement
(referred to collectively as the "Lease Agreements "); and
WHEREAS, financing of the project costs, necessary costs
and expenditures incidental thereto and to the expeditious com-
mencement of operation, the cost of the issuance of bonds and
the amount necessary to provide for interest on bonds until
Project revenues are available is being furnished by the issu-
ance of Port Facilities Revenue Bonds, Series of 1970, by the
City under provisions of Act No. 9 in the principal amount of
Two Million Seven Hundred Fifty Thousand Dollars ($2,750,000.00)
(called "Act No. 9 Bonds "); and
WHEREAS, there has been submitted to the electors of the
City the question of issuing the said Act No. 9 Bonds at a special
election, and at said election the electors approved the issuance
of said Act No. 9 Bonds; and
WHEREAS, the City has heretofore sold the said Act No. 9
Bonds to Dabbs Sullivan - Trulock & Co., Inc. of Little Rock,
Arkansas, and John Nuveen & Co. of Chicago, Illinois, with the
bonds so sold being dated, bearing interest and maturing as in
the Trust Indenture set forth in detail;
Page 2
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, approved,
authorized and directed the acquisition of the title to the
industrial equipment and machinery embodied in the Project
(hereafter described in the form of Trust Indenture authorized
by this Ordinance).
Section 2. That Port Facilities Revenue Bonds, Series
of 1970, of the City under Act No. 9 in the total principal
amount of Two Million Seven Hundred Fifty Thousand Dollars
($2,750,000.00) (called "Act 9 Bonds "), are hereby authorized
and ordered issued; and to prescribe the terms and conditions
upon which the bonds are to be secured, executed, authenticated,
accepted and held, the Mayor is hereby authorized and directed
to execute and acknowledge the Trust Indenture, and the City
Clerk is hereby authorized and directed to execute and acknowl-
edge the Trust Indenture and to affix the seal of the City
thereto, and the Mayor and City Clerk are hereby authorized and
directed to cause the Trust Indenture to be accepted, executed
and acknowledged by the Trustee, with the Trust Indenture, which
constitutes and is hereby made a part of this Ordinance, to be
in substantially the following form, 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 interested person.)
Page 3
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 Trust Indenture, its execution and acceptance
by the Trustee, the performance of all obligations of the City
under and pursuant to the Trust Indenture, the execution and
delivery of the Act 9 Bonds, and the performance of all other
acts of whatever nature necessary to effect and carry out the
authority conferred by this Ordinance and by the Trust Indenture.
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 instru-
ments that may be required for the carrying out of the authority
conferred by this Ordinance and the Trust Indenture, or to
evidence said authority and its exercise.
Section 4. That since the City is here involved with the
constructing and equipping of a complex industrial project re-
t
quiring highly specialized work and specialized types of machinery
and equipment and materials, it has been and is hereby determined
that competitive bidding is not feasible or practical. THEREFORE,
any requirements under Ordinances of the City or under the general
laws of the State of Arkansas for competitive bidding be, and
the same are hereby, waived for this particular Project. This
action is taken by the Board of Directors pursuant to the author-
ity conferred by Act No. 9, as amended by Act No. 208 of 1971 and
pursuant to Section 2 -44 of the Code of Ordinances of the City
of Little Rock; and because the action so taken has been made
Page 4
a condition precedent to the securing and developing of this
particular Industrial Project.
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, resolutions 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 substan-
tial industrial operations in order to provide additional employ-
ment, 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 herein are immediately
necessary in connection with the securing and developing of
substantial industrial operations and deriving the public bene-
fits referred to above. IT IS, THEREFORE, declared that an
emergency exists and this Ordinance being necessary for the
immediate preservation of the public health, safety and welfare
shall be in force and take effect immediately upon and after its
passage.
PASSED: July 19 , 1971.
— Tice Irayor
City Cle#k
(SEAL)