1028. ,r
Y
ORDINANCE NO. / ~ v
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
SPECIAL TAX REVENUE BONDS FOR THE PURPOSE
OF PROVIDING PERMANENT FINANCING FOR MUNICIPAL
PORT FACILITIES; AUTHORIZING A TRUST INDENTURE
SECURING THE BONDS; AUTHORIZING THE SALE OF
THE BONDS AND THE EXECUTION OF A BOND PURCHASE
AGREEMENT IN CONNECTION THEREWITH; AUTHORIZING
AND PRESCRIBING OTHER MATTERS PERTAINING
THERETO; AI~TD DECLARING AN EMERGE?JCY.
WHEREAS, the City is authorized by Act No. 231 of
the Acts of Arkansas of 1937, as amended (`'Act No. 231"), to
acquire land, construct and equip lands, buildings, improvements
and other facilities and to incur other costs and expenses
and make other expenditures incidental to and for the
securing and developing of m~znicipal port facilities; and
WHEREAS, the Port Authority of the City has
determined, with which determination the City Council concurs,
that it is essential that the City develop municipal port
facilities on the Mississippi River if the industrial and
economic development of the City is to continue, to the
benefit of the inhabitants of the City and of Crittenden
County, Arkansas; and
' WHEREAS, the total cost of the lands, buildings,
improvements and facilities to be developed (the "Port"),
is estimated to be approximately $4,000,000, and development
of the Port is being financed by revenue bonds (payable
from municipal .port revenues) to be issued by the City,
as set forth herein (the "Bonds"), bonds to be issued by
West Memphis, Arkansas Road, Water and Sewer Improvement
District No. 10, funds on hand, and by federal grant funds
in an amount not less than $3,000,000; and
WHEREAS, the City, proceeding under Act No. 185
of the Acts of Arlansas of 1965, as amended ("Act No. 185"),
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has, by Ordinance No. 917, adopted and approved November 23,
1977, levied a tax of one percent (lg) upon the gross receipts
from hotel and motel accommodations and upon the gross receipts
of restaurants, cafes, cafeterias and other establishments
selling food for on-premises consumption (the "City gross
receipts tax"); and
WHEREAS, in order to assure the saleability of
the Bonds, the Bonds must be additionally secured by a pledge
of the revenues derived by the City from the City gross
receipts tax, as set forth herein, under the provisions of
Act No. 977 of the Acts of Arkansas of 1975, as amended
("Act No. 977"); and
NOW, THEREFORE, BE IT ORDAINED by the City Council
of the City of West ?4emphis, Arkansas
Section 1. That the issuance of the Bonds is -
hereby authorized. The Bonds shall be in the principal amount
of $900,000 .(subject to approved conversion as set forth
below). Interest on the Bonds shall be payable on April 1
and October 1 of each year, commencing April 1, 1981, and the
Bonds shall mature on October 1 of each year as follows:
YEAR Al~lOUNT
1981 $10,000
1982 10,000
1983 15, 000
1984 15,000
1985 25,000
1986 25,000
1987 30,000
1988 35,000
1989 40,000
1990 40,000
1991 45,000
1992 50,000
1993 50,000
1994 55,000
1995 60,000
1996 65,000
1997 70,000
1998 80,000
lggg 85,000
2000 95,000
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The Bonds shall bear interest at the rate of 9.54 per annum.
However, the Underwriters (identified below) may convert the
Bonds to a lower rate or rates of interest, provided that the
City shall receive no less and pay no more than if the Bonds
were not converted and any conversion shall be in accordance
with the Universal Bond Values Tables. Any conversion shall
be subject to approval of the City Council, expressed in a
resolution duly adopted. The Underwriters may select the
Trustee and Paying Agent for the Bonds, which selection shall
also be subject to the approval of the City Council.
The Bonds shall be issued in the form and denomination,
shall be dated, shall be numbered, shall mature and shall
be subject to redemption prior to maturity all upon the
terms and conditions. set forth in the Trust Indenture
(hereinafter authorized) securing the Bonds.
Section 2. That Stephens Inc., T. J. Raney & Sons,
Inc. and E. F. Hutton & Company, Inc. (the "Underwriters") are
authorized to offer the Bonds for sale to prospective purchasers
and, upon -such sale, and subject to approval of conversion
as provided in Section 1 hereof, the Bonds shall be sold to
the Underwriters at a purchase price of par ($900,000) plus
accrued interest.
Section 3. 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
by and between the City and a bank or trust company which
will act as Trustee thereunder, dated as of the date of
the Bonds (.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