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ORD;N1`.NCE NU.
AN ORDINANCE CALLING A SPECLA.L ELECTION TO VOTE
UPON TI-lE C~UESTIOl~1 OF ISSUING BONDS tT?~1DER THE
PIZOVIS]:OIJS OF ACT NO. 9 OF TH1; 1'IRS'.l' EXTRIiORDINARY
SESSION OF THL' SIXTY-SECOND GENERAL ASSEMBLY OF
THE STA1E OF ARI`'~1NSAS, APPROVED JANUARY 21, 1960,
AS AMENDED, FOR THE PURPOSE OF F'URNISI:IING THE
PERMANENT FINANCING OF THE COST OF SECURING AND
DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL PROJECT IS
DESCRIBED IN THE ORDINANCE); PRESCRIBING OTHER MATTERS
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RELATING THERETO; AND DECLARING AN EMERGENCY.
WHEREAS, Arkansas Lightweight Aggregate Corporation, an Arkansas
corporation ("Arkansas Lightweight Aggregate") , has proposed a substantial in-
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dustrial project which v~~ill furnish employment and payrolls and otherwise result
in public, benefits, ...all in the best interest of the City of West Memphis, Arkansas
(the "City") and its citizens and inhabitants; and
WHEREAS, the proposed industrial project will. consist of lands, build-
ings, improvements, machinery, equipment and facilities for an industrial project
which will be utilized for the manufacturing of such products as Arkansas Light-
weight Aggregate shall elect to manufacture (the "Project"); aid
I WHEREAS , in order to make the necessary provision for the permanent
financing of the Project costs and the expenses of authorizing and issuing the
bonds, t}ie City proposes to issue not to exceed Five Million Dollars ($5,000,000)
in principal amount of bonds (the "bonds") under the provisions 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 ("Act No. 9"); and
WHEREAS, the purpose of this Ordinance is to submit the question of
tlissuance of the bonds to the electors of the City at a special election called
for that purpose;
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NOW, '1'IIEREFOP,E, BE IT ORDAINED by the City Council of the City
of ~J'v't'st Memphis , Arkansas:
Section ].. That a special election be, and the same is hereby, called
to be held in the City on the 10 day of September 1974, at which
election there will be submitted to the electors of the City the question of issuing
not to exceed Five Million Dollars ($5, 000, 000) in principal amount of Industrial
Development Revenue Bonds for the purpose of furnishing permanent financing
of the cost of securing and developing industry (the particular project is described
above) . The bonds will be dated, will bear interest at the rate or rates, the
interest will be payable on such dates, the bonds will mature on such date or
dates, the bonds will be subject to redemption prior to maturity in such manner
and upon such terms, and the bonds will be issued in series from time to time,
all as the City Council shall subsequently determine and specify in the ordinance
or ordinances authorizing the issuance of the bonds.
Section 2. That the question shall be placed ors the ballot for the
election in substantially the following form:
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Vote' on measure by placing an "X" in the square above
the measure either POR or AGAIN„')':
1'OlZ the issuance of Industrial De~relopmet~t Revenue Bonds
by the City of West Memphis, Arkansas in the aggregate
principal amount of not to exceed $5, 000, 000 ~-~
AGAINST the issuance of Industrial Development Revenue
Bonds by the City of V4Test Memphis, Arkansas in the
aggregate principal amount of not to exceed $5, 000, 000 • •l.___~
It is proposed to issue City of West Memphis, Arkansas ("City")
Industrial Development Revenue Bonds ("bonds") under Act
No. 9 of the First )Jxtraordinary Session of the Sixty-Second
General Assembly of the State of Arkansas, approved January
21, 1960, as amended ("Act No. 9") , in the aggregate principal
amount of not to exceed $5,000,000 for the purpose of
furnishing the permanent financing of the costs of :>ecuring
and developing industry. The bonds will be dated, will bear
interest at such rate or rates, the interest will be payable on
such dates, the bonds will mature on such date or dates, the
bands will be subject to redemption prior to maturity in such
manner and upon such terms, and the bonds will be issued
in series from time to time, -all as the City Council
shall subsequently determine and specify in the ordinance or
ordinances authorizing their issuance. The proposed industrial
project will consist of lands , buildings , improvements ,
machinery, equipment and facilities for an industrial project
(the "Project") , and the proceeds of the bonds will. be sufficient
to pav Proiect costs and expenses of issuing the bonds. The
Project will be owned by-the City and will be leased to Arkansas
Lightweight Aggregate Corporation, an Arkansas corporation
("Arkansas Lightweight Aggregate") , for lease rentals sufficient
to provide for the payment of the principal of and interest on the
bonds. Arkansas Lightweight Aggregate is a subsidiary of
General Shale Products Corporation, a Delaware corporation
("General Shale") , and General Shale will unconditionally
guarantee performance of the obligations of Arkansas Lightweight
Aggregate under the Lease and Agreement. The bonds will not
be general obligations of the City but will be special obligations
payable solely from Project revenues including particularly
lease rentals under the Lease and Agreement with, Arkansas
Lightweight Aggregate referred to above, which will be specific-
ally pledged to the payment of the principal of and interest on
the bonds, and the bonds will be secured by a lien an and
security interest in the Project as authorized by Act No. 9.
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Section 3. That the election. shall. be held and conducted and the
vote canvassed and the results declared under the lava and in the manner
provfcied for municipal elections, so far as the same may be appli.cablc and the
Mayor shall give notice of such electioa by an advertisement published once a
vaee)c for four consecutive weeks in a newspaper having a bona fide circulation
in the City with the last publication to be not less than ten days prior to the
date of the election, and only qualified electors of the City shall have the right
to vote on the question.
Section 4. That the results of the election shall be proclaimed by the
Mayor and his proclamation shall be' published one time in,a newspaper having
a bona fide circulation i.n the City, which proclamation shall advise that the
results as proclaimed shall be conclusive unless attacked in the courts within
thirty days after the date of such proclamation.
Section 5. That a copy of this Ordinance shall be furnished to the
Crittenden Couniy Board of Election Commissioners so that the necessary election
officials and supplies may be provided.
Section 6. That there is 1lereby found and declared to be an immediate
need for the securing and developing of industry in order to provide additional
employment, increased payrolls, alleviate unemployment and provide other
benefits incidental thereto, and the issuance of the bonds referred to in this
Ordinance is essential to accomplishing those public benefits. It is, therefore,
declared that an emergency exists and this Ordinance being necessary for
immediate preservation of the public health, safety and welfare shall be in
force and effect immediately upon 1a/nd after its passage.
PASSED; ~~ ~~~ / 1974.
ATTEST:
__r_____-_-~ ____-
City Clerk
APPROVED:
By _ '~ _
Mayor
(SEAL)