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ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS UNDER ACT NO. 9 OF THE
FIRST EXTRAORDINARY SESSION OF THE SE~CTY-SECOND GENERAL
ASSEMBLY OF THE STATE OF ARKANSAS, APPROVED JANUARY 21,
1960, AS AMENDED, FOR THE PURPOSE OP PROVIDING PERMA-
NENT PIIVTANCING OF THE COST OF SECURING AND DEVELOPII~TG
INDUSTRY (TI-IE PARTICULAR INDUSTRIAL PROJECT IS DESCRIBED
IN THE ORDINANCE); AUTHORIZING THE EXECUTION AND
DELIVERY OF A TRUST INDENTURE SECURING THE BONDS; THE
ACCEPTANCE OF A GUARANTl' AGREEMENT; AUTHORIZING AND
PRESCRIBING OTHER MATTERS PERTAINING TO THE ACQUISITION,
CONSTRUCTION AND EQUIPMENT OF THE INDUSTRIAL PROJECT
• AND THE FINANCING THEREOF; AND DECLARING AN EMERGENCY.
WHEREAS, the City of West Memphis, Arkansas (the 'City") is authorized
by 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 ") , to acquire , construct and equip lands , manufacturing buildings ,
improvements- and facilities and to incur other costs and expenses and make
other expenditures incidental to and for the accomplishing of the securing and
developing of industry; and
WHEREAS, the City is authorized by Act No. 9 to issue Industrial
Development Revenue Bonds payable. from revenues derived from the Industrial
I?roject so acquired, constructed and equipped and secured by a lien thereon
and security interest therein; and
WHEREAS, the necessary arrangements have been made with Arkansas
Lightweight Aggregate Corporation, an Arkansas corporation ("Arkansas Lightweight
Aggregate") for the acquisition and construction of manufacturing facilities which
will consist of lands , buildings , improvements , machinery, equipment and facilities
which will be utilized for the manufacturing of such products as Arkansas Lightweight
Aggregate shall elect to manufacture (the "Project") and to lease the Project to
Arkansas Lightweight Aggregate pursuant to the terms of a Lease and Agreement
subsequently identified herein and referred to as the "Lease Agreement"; and
WHEREAS, Arkansas Lightweight Aggregate is a subsidiary of General
Shale Products Corporation, a Delaware corporation ("Leneral Shale") and General
Shale has agreed to unconditionally guarantee performance by Arkansas -~ Lightweight
Aggregate of its obligations under the Lease Agreement by an Lnstrument ~identifled
as the "General Shale Guaranty Agreement''; and
WHEREAS, permanent financing of the Project costs, necessary costs
and expenditures incidental thereto and expenses of authorizing and issuing bonds,
fs being furnished by the City issuing Industrial Development Revenue Bonds
under the provisions of Act No. 9 in the principal amount of not to exceed Five
Million Dollars ($5, 000, 000) (the "bonds") , which have been approved by the
electors of the City at a special election; and
WHEREAS, the bonds are to be sold and delivered in series, with there
being initially issued Series A in the principal amount, dated, bearing interest,
maturiuy at1C] .7 ~.l~Jf. liL Ll1 rC UCnlptlVn aS 11e rC1 rlalLCr sGL 1V1 Lll iii LllCi 1VL111 vi 111.A ~. al ~.uav
authorized by this Ordinance;
NOW, THEREFORE, BE IT ORDAINED BY THE City Council of the City
of West Memphis, Arkansas:
Section 1 . That there be , and there is hereby, authorized and directed
the following:
(a) The sale of the Series A Bonds;
(b) The acquiring, constructing and equipping of the Project,
and in connection therewith, the execution of architectural,
engineering, construction and other contracts or the acceptance
of an assignment of any such contracts previously executed by
Arkansas Lightweight Aggregate, for the acquiring, constructing
and equipping of the Project; ,
(c) The performance of all obligations of the City under the
Lease Agreement pertaining to the acquiring, constructing and
equipping of the Project and the performance of all obligations
of the City under the contracts referred to in (b) above; and
(d) The acceptance and execution and delivery of the General
Shale Guaranty Agreement in substantially the form presented to the
City Council. After execution and delivery a copy shall be filed
in the office of the City Clerk.
Section 2. That Ilidustrial Development Revenue Bonds of the City
under Act No. 9 in the total principal amount of not to exceed $5, 000, 000
are hereby authorized, and the immediate delivery of Series A is hereby
authorized. 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 a Trust Indenture
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 acknowledged by the Trustee.
T.he Indenture, which constitutes and is hereby made a part of this Ordinance,
shall be in substantially the following form to-wit:
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 Bonds, the execution
and delivery of an Official Statement or Offering Circular, 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 the City is here involved with the acquiring, con-
strutting and equipping of complex industrial facilities, requiring highly specialized
work and specializied types of equipment, and, therefore, competitive bidding
is waived. This action is taken by the City Council pursuant to applicable
laws of the State of Arkansas ,including particularly Act No . 9 .
Section 5. That the Mayor and City Clerk for and 'on behalf of the
City, be and they are hereby authorized and directed to take all action, and
execute and file all documents, necessary to perfect an election to proceed under
Section 103 (c) (6) (D) of the Internal Revenue Code of 1954 , a s amended, to the
end of insuring that interest on the bonds is exempt from federal income taxes.
Section 6. That the provisions of this Ordinance are hereby declared
to be severable, 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 7. That all ordinances, resolutions and parts thereof in conflict
herewith are hereby repealed to the extent of such conflict.
Section B. That there is hereby found and declared to be an immediate
need for the securing and developing of industry in order to provide employment
acid payrolls, alleviate unemployment and otherwise benefit the public health,
safi~ty 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 health,
safety and welfare shall be in force and effect immediately upon and after its
passage.
PASSED ~! / / ~ 1974.
APPROVED:
..
Mayor
ATTEST:
i
- -~~'" City Clerk
(SEAL)
i