605ORDINANCE NO . 605
AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE
UPON THE QUESTION OF ISSUING 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, FOR THE PURPOSE OF FURNISHING THE PER-
MANENT FINANCING OF THE COST OF SECURING AND
DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL
PROJECT IS DESCRIBED IN THE ORDINANCE); PRESCRIBING
OTHER MATTERS RELATING THERETO; AND DECLARING AN
EMERGENCY
WHEREAS arrangements have been made with Texas Gypsum Company,
Inc . , a Texas corporation ("Texas ") 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 unem-
ployment, and will result in other public benefits incidental to the operation of
a substantial industrial plant, all of which will be in the best interest 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, subject 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 $5,000, 000 for the purpose of financing the Project costs
and necessary costs and expenses incidental thereto, the costs of the issuance
of the bonds , and providing adequately for debt service on the bonds until Pro-
ject revenues are available therefor; and
WHEREAS the purpose of this Ordinance is to submit the question
of the issuance of the bonds under Act No. 9 to the electors of the City at a
Page 2
special election called for that purpose;
NOW, THEREFORE, BE IT ORDAINED by 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 26tiiay of August 1969, at
which election there will be submitted to the electors of the City the question
of issuing Industrial Development Revenue Bonds ("bonds") under Act No. 9 in
an amount not to exceed Five Million Dollars ($5, 000, 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:
Page 3
Vote on measure by placing an "X" in the 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 aggregate principal amount
of not to exceed $5,000,000----------------------------~
AGAINST the issuance of Industrial Development
Revenue Bonds by the City of West Memphis ,
Arkansas in the aggregate principal amount
of not to exceed $5,000,000----------------------------~
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 $5, 000, 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 authorizing their issuance.
The proposed industrial project will consist of lands, buildings,
improvements, machinery, equipment and facilities for an indus-
trial plant ("Project"), and the proceeds of the bonds will be
sufficient to pay the Project costs and necessary incidental costs
and expenses, the cost of the issuance of the bonds and to make
any needed provision for the payment of interest until Project
revenues are available. The Project will be owned by the City
and will be leased to Texas Gypsum Company, Inc., a Texas
Corporation ("Texas ") for lease rentals sufficient to provide for
the payment of the principal of and interest on the bonds . All
obligations of Texas will be unconditionally guaranteed by Temple
Industries , Inc. , a Texas corporation. 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 referred to above,
which will be specifically pledged to the payment of the princi-
pal 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.
Page 4
Section 3. That the election shall be held and conducted and the
vote canvassed and the results declared under the law and in the manner pro-
vided 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 newspaper having a bona fide circula-
tion 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 at the election.
Section 4. That the results of said election shall be proclaimed by
the Mayor and his proclamation shall 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
Crittenden County Board of Election Commissioners so that the necessary elec-
tion 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 other bene-
fits incidental thereto, and the issuance of the bonds referred to in this Ordi-
nance 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 ~~ 1~ 1969.
APPROVED:
'~' ATTE ~
.~ :~~ ~
City Clerk
By
2~~~
PRESIDENT PRO TEMPORE, CITY COUNCIL
CITY OF WEST MEMPHIS, ARKANSAS
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