692ORDINANCT' NO. 692
AN ORDINANCE CAL LING A SPECIAL ELEC'I'ION TO VOTE
UPON THE QUESTION OF ISSUING BONi~S UNDER THE
PROVISIONS OP ACT NO. 9 OF THE FIRST EXTRAORDINARY
SESSION OF THE SIXTY-SECOND GENERAL ASSEMBLY OF
i
THE STATE OF ARKANSAS, APPROVED JANUARY 21, 1960,
AS AMENDED, FOR THE PURPOSE OF FURNISHING THE
PERMANENT FINANCING OF `I'I-IE COST' OF SECURING AND_
DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL
PROJECT IS DESCRIBED IN THE ORDINANCE); PRESCRIBING
,OTHER MATTERS RELATING TI~ERETO; AND DECLARING AN
EMERGENCY
WHEREAS arrangements have been made with Evans Products Company,
a Delaware corporation, for the location of a substantial industrial plant in
the City of West Memphis, Arkansas ("City"); and
WHEREAS the location of the industrial plant in the City will result
in increased employment, will result in increased payrolls, will alleviate un-
employment, and will result in other public benefits incidental to the operation
of a substantial industrial plant, all of which will be in the best interests of the
City and its citizens and inhabitants; and
WHEREAS in order to obtain funds for the financing of necessary lands,
buildings, improvements, machinery, equipment and facilities ("Project"),
essential to the location and operation of the industrial plant, the City Council
of the City has determined to issue, subj.ECt_.to the approval of the electors of
the City, Industrial Development Revenue 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")
in an amount not to exceed $l, 300, 000 for the purpose of financing the Project
costs and necessary incidental costs and expenses, the cost of the issuance of
costs and necessary incidental costs and expenses and the cost of the issuance
of the bonds .
Page 2
WI3EREAS the purpasc of this Ordinance is to submit the question
of the issuance of the bonds under Act lvTo. 9 to tine electors of the City at a
special election called for that purpose;
NOW, THEREFORE, BE IT ORDAINED b}= the City Council of the City
of West Memphis, Arkansas:
Section 1 . That a special election be, and the same is hereby, called
to be held in the City on the 24th day of Augst ~~j, at which
election there will be submitted to the electors of the pity the question of
issuing Industrial Development Revenue Bonds ("bonds") under Act No. 9 in an
amount not to exceed bne Million Three Hundred Thousand Dollars ($1, 300 , 000)
for the purpose of furnishing permanent financing of the costs of securing and
developing industry (the particular industrial project is described above) . The
bonds will be dated, the bonds 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 bonds will be subject to redemption prior to maturity in such manner
and upon such terms, and the bonds will be issued at one time or in series from
time to time, all as the City Council shall subsequently determine and specify
in the ordinance authorizing the issuance of the bonds.
Section 2. That the question shall be placed on the ballot for the special
election in substantially the following form:
P~?ge 3
Vote on meas~.ire by placing an "X" in t:he square
above the measure either for or against:
FOR the issuance of Industrial Development
Revenue Bonds by the City of West Memphis ,
Arkansas in the ~iggregat.e principal amount
of not to exceed $1, 300, 000. ~1
AGAINST the issuance of Industrial Development
Revenue Bonds by the City of Wost Memphis ,
Arkansas in the aggregate principal amount
of not to exceed $ l , 3.00, 000. ~_ f
It is proposed to issue City of West Memphis, Arkansas ("City")
Industrial Development Revenue Bonds ("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 ("Act No. 9") in the aggregate principal amount of
not to exceed $1,300,000 for the purpose of furnishing the permanent
financing of the costs of securing and developing industry, The
bonds will be dated, the bonds 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 bonds will be subject to redemption prior to
maturity in such manner and upon such terms, and the bonds will be
issued at one time or in series from time to time, all as the City
Council shall subsequently determine and specify in the ordinance
anthnri~inn Chair icciianra ThA nrnnr,cr~ri inrlnetr;al r,r.,;~.-+ ~~~;ll
consist of lands, buildings, improvements, machinery, equipment
and facilities for an industrial plant ("Project") , and the procF:eds of
the bonds will be sufficient to pay the Project costs, necessary
incidental costs and expenses and the cost of the issuance of the
bonds . The Project will be owned by the City and will be leased
to Evans Products Company, a Delaware corporation, or a subsid-
iary, for lease rentals sufficient to provide for the payment of the
principal of and interest on the bonds. If the Project is leased to
a subsidiary, all obligations of the subsidiary will be unconditionally
guaranteed by Evans Products Company. The bonds will not be
general obligations of the City but will be special obligations pay-
able solely from Project revenues, including particularly lease
rentals under the Lease and Agreement referred to above, which
will be specifically pledged to the payment of the principal of and
interest on the bonds, and the bonds will be secured by a lien on
and security interest in the Project as authorized by Act No. 9.
.,
Pagt~ 4
Section 3_. That tl-ie elert.ion shall be held and cond~ictrd and the
vote canvassed and the results declared under t:he lava and i_n the manner
provided for municipal elections, so far as the same may be applicable, and
the Mayor shall give notice of such election by an advertisement published once
a week for four consecutive weeks in a ne~aTspaper 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 quaJ.ified electors of the City shall have the
right to vote at the election.
Section 4. That the results of said election shall be proclaimed by the
Mayor and his proclamation sl'aall be published one time in a newspaper having
a bona fide circulation in 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 the proclamation.
Section 5. That a copy of this Ordinance shall be furnished to the
r._!. 1 _ r i r r~
Vtl1,LC111iC11 V~VUllly DVC11U Ut li1C(:L1U11 1. Uillfi115SlUilei~S SO Lnat Lne necessary P.1P.Ctlnn
officials and supplies may be provided.
Section 6. That there is hereby 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 tfle 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 the
immediate preservation of the public health, safety and welfare shall be in force
and take effect immediately upon and after its passage.
PASSED: JULY 2G 1971. - ~~ ..
APPROVED:
$ -
Y
Mayor ~~
ATTEST:
_ _._
City Clerk
(S Ell L)