878. ~.
ORDINANCE NO. .~'
AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL
~°` DEVELOPMENT REVENUE BONDS UNDER 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, FOR THE PURPOSE QF
PROVIDING PERMANENT FINANCING OF THE COSTS OF SECUR-
ING AND DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL
PROJECT IS DESCRIBED IN THE ORDINANCE); AUTHORIZING THE
EXECUTION AND DELIVERY OF A TRUST INDENTURE SECURING
THE BONDS; AUTHORIZING AND PRESCRIBING OTHER MATTERS
PERTAINING TO THE ACQUISITION, CONSTRUCTION AND
EQUIPMENT OF THE INDUSTRIAL PROJECT AND THE FINANCING
THEF.EOF; 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 Iands, construct and equip
manufacturing 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 manufacturing 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
security interest therein; and
WHEREAS, the necessary arrangements have been made with Delta
Case Company, Inc., an Arkansas corporation ("Delta Case"), for the
acquisition and construction of a manufacturing plant, consisting of Iands,
buildings, improvements, machinery, equipment and facilities, which will
be utilized for the manufacturing of such products as Delta Case shall elect
to manufacture (the "Project") and to lease the Project to Delta Case
pursuant to the-terms of a Lease and Agreement subsequently identified
herein and referred to as the "Lease Agreement"; and
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WHEREAS, permanent financing of the Project costs, necessary costs
and expenditures incidental thereto and expenses of authorizing and issuing
Bonds is being furnished by the City issuing Industrial Development Revenue
'" Bonds. under the provisions of Act No. 9 (the "Bonds"); and
WHEREAS , the Project will be owned by the City and leased to
Delta Case pursuant to a Lease Agreement; and
WHEREAS, the details of the Bonds and the nature and extent of the
security therefor is set forth in the Trust Indentur?; and
WHEREAS, the Bonds are in the principal amount, bear interest, mature
and are subject to redemption as hereinafter set forth in the form of Trust
Indenture 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 Bonds to Un-IIC,Inc. , Memphis,
Tennessee, and the execution by the Mayor and City
Clerk of a commitment with such purchaser for the
price and pursuant to the terms recommended by
Delta Case (a copy of which shall be filed in the
office of the City Clerk);
(b) The acquiring, constructing and equipping of the
Project in accordance with the provisions of the
Lease Agreement; and
(c) The performance of all obligations of the City under
the Lease Agreement pertaining to the acquiring,
constructing and equipping of the Project.
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Section Z. That the issuance of the Bonds is hereby authorized.
To prescribe the terms and conditions upon which the Bonds are to kie
executed, authenticated, issued, accepted, held and secured, the.
Mayor is hereby authorized and directed to execute and acknowledge a
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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 acknow-
ledged by the Trustee. The Indenture, which constitutes and is hereby
- made a 'part of this Ordinance, shall be in substantially the following
form, to wit:
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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 and delivery 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 Bonds, the execution and delivery of an
Official Statement, 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 City Clerk be, and they are
' hereby , further authorized and directed , for and on behalf of the City,
to execute alI 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, constructing
and equipping of industrial facilities , and pursuant to applicable. laws of
the State of Arkansas , including particularly Act No . 9 , competitive bidding
is waived .
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 industry in order to
provide employment and payrolls, alleviate unemployment and otherwise
benefit the public health, safety and welfare of the City and the inhabi-
tants 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 peace, health and safety shall be
in force and effect immediately upon and after its passage.
PASSED: ',i ,'' .. ,.; ., -~_, 1977.
APPROVED:
ATTEST:
City Clerk
(SEAL)
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