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670ti* ORDINANCE NO . 670 AN ORDINANCE PROVIDING FOR THE ISSUANCE OF X265,000.00 OF INDUSTRIAL REVENUE BONDS UNDER AUTHORITY OF ACT N0. 9 OF 1960 FOR THE PURPOSE OF SECURING AND DEVELOPING INDUSTRY WITHIN OR NEAR THE CITY OF WEST D4EMPHIS, ARKANSAS; AUTIiORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE SECURING THE SAID BONDS; AUTHOR- IZING AND PRESCRIBING OTHER MATTERS PERTAINING TO SAID INDUSTRIAL DEVELOPb1ENT, ITS CONSTRUCTION, AND ITS FINANCING; AND DECLARING AN EMERGENCY WHEREAS, 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 (herein- after sometimes referred to as "Act No. 9"), to acquire lands and to acquire, construct and equip manufacturing buildings, improve- ments and facilities thereon for the conduct of manufacturing oper- ations and to lease the same for the purpose of securing and de- veloping industry within or near the City and to issue revenue bonds in connection therewith; 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 or constructed and secured by a lien thereon; and WHEREAS, the City has made the necessary arrangements with Mid-South Foundry, Inc., a corporation organized and existing under the laws of the State of Arkansas (hereinafter sometimes referred to as "Mid-South") for the expansion of its plant for the manu- facture of metal castings and appurtenant facilities within or near the City of West Memphis, Arkansas (hereinafter referred to as the "Project"), which Project will provide additional employ- ment for substantial numbers of people in the City and increase the income of the residents of the City with a resulting alle- viation of unemployment, increased employment, substantial payrolls and other public benefits flowing from the operation of the plant and appurtenant facilities; and WHEREAS, the said City heretofore, pursuant to ordinances duly adopted, submitted to the qualified electors of said City the question of issuing Industrial Development Revenue Bonds in conformity with the provisions of Act No. 9 in the amount of $250,000 for the purpose of financing the cost of the Project and necessary expenses incidental thereto, and by more than a majority vote the electors of the City approved each issue of bonds for the purpose aforesaid at the special election held February 9, 1971; and WHEREAS, the City Council has entered into a contract with Powell $ Satterfield, Inc., and W. H. Satterfield $ Company, Inc., for the sale to it of the said $250,000 of Industrial Development Revenue Bonds bearing interest at the rate of 7.250 per annum, but subject to conversion into an issue of bonds bearing a lower rate or rates of interest, on the conditions that the conversion be according to the Universal Bond Values Tables, that the City receive no less, and pay no more, than it would receive or pay for the bonds at the interest rate contracted for, anal that the terms for the conversion be approved by the City Council of the City; and WHEREAS, the said purchasers have elected to convert the said issue of $250,000 of Industrial Development Revenue Bonds bearing interest at the rate of 7.250 per annum, into an issue of $265,000 of bonds bearing interest at the rate of 6o per annum, which conversion the City Council hereby finds and determines to be according to the terms of the contract and the Universal Bond Values Tables; and WHEREAS, the City proposes to enter into a Lease Agreement with Afid-South specifying the terms and conditions of the acqui- sition and completion of construction and equipping of the Project and the leasing of the same to raid-South, which Lease Agreement -2- r' , was authorized by Ordinance No. 669 of the City of West Memphis, Arkansas passed and approved on the 4th day of. March , 1971, to which reference may be made by any interested person for the rental, terms, conditions and obligations of the parties there- to; and WHEREAS, it is hereby determined that Industrial Develop- went Revenue Bonds in the principal amount of $265,000 should be authorized for issuance, sale and delivery as hereinafter provided, NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WEST NIEr1PH I S , ARKANSAS Section 1. That there be, and there is hereby, authorized and directed the following: (a) The sale of the bonds in the amount aforesaid to the purchasers identified above; and (b) The acquisition of the fee simple title to the lands necessary for the Project (hereinafter described in the Trust Indenture authorized by this Ordinance). Section 2. That to provide for the issuance of and to secure Industrial Development Revenue Bonds of the City under Act No. 9 in the aggregate principal amount of $265,000 described in the form of the Trust Indenture hereinafter authorized, and to pre- scribe the terms and conditions upon which the Bonds are to be secured, executed, authenticated, excepted and held, the Mayor is hereby authorized and directed to execute and acknowledge the Trust Indenture, and the City Clerk is hereby authorized and directed to execute and acknowledge the Trust Indenture and to affix the seal of the City thereto and to attest the same; and the ATayor and City Clerk are hereby authorized and directed to cause the Trust Indenture to be accepted, executed and acknowledged by the Trustee, Simmons First National Bank of Pine Bluff, in Pine Bluff, Arkansas, with the Trust Indenture, which constitutes and is hereby made a part of this Ordinance, to be in substantially the following form, to-wit: -3- r Section 3. That the Niayor and City hereby, authorized and directed for and on do all things, execute all instruments and action necessary to the realization of the the discharge of the City's obligations as Agreement, and as party of the first part Indenture. Clerk be, and they are behalf of the City to otherwise to take all City's rights and to Lessor under said Lease under said Trust Section 4. That since there is here involved the construct- ing and equipping of a complex industrial project requiring highly specialized work and specialized types of machinery and equipment and materials, it has been, and is hereby, determined that com- petitive bidding is not feasible or practical. Therefore, any requirements under ordinances of the City or under the general laws of the State of F.rkansas for competitive bidding be, and the same are hereby, waived for this particular Project. This action is taken by the City Council pursuant to the authority confer- red by Act No. 9 and because the action so taken has been made a condition precedent to the securing and developing of this particular Industrial Project. Section 5. That this Ordinance shall not create any right of any character, and no right of any character shall arise under or pursuant to it, until the Bonds authorized by this Ordinance shall be issued and delivered. Section 6. 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 effect the validity of the remainder of the section, phrases or provisions. Section 7. That all ordinances and parts thereof in con- flict herewith or hereby repealed to the extent of such conflict. Section 8. It is ascertained and declared that the safety and health of the City of West Memphis are jeopardized by the lack of sufficient industry and that only by action made possible by this Ordinance can the City undertake to secure and develop industry and promote the safety, health and welfare of its citizens. It is, therefore, declared that an emergency exists, that this Ordinance is necessary for the immediate preservation of the public peace, health and safety, and that this Ordinance shall take effect and be in force from and after its passage. PASSED: March 4 1971. APPROVED: Mayor ATTEST: ~~ ~_ ity er (SEAL)