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809o,: ,~, .eti 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 i RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, Arkansas Lightweight Aggregate Corporation, an Arkansas corporation ("Arkansas Lightweight Aggregate") , has proposed a substantial in- ~> 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; -2- 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: - ;~ _. 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. h ~ • 7 . , v - 4 -- 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)