478ORDINANCE N0, q- ~ 0
t
AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE UPOj~ THE
QUESTION OF ISSUING BONDS UNDER THE PROVISIONS OF ACT
N0. 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 FINANCING THE COST OF SECURING AND DEVELOPING INDUSTRY;
PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING
AN EMERGENCY.
WHEREAS arrangements have been made with Pidgeon-Thomas Co., Inc.,
a Tennessee corporation (hereafter sometimes referred to as "Pidgeon-Thomas"),
for the location of a substantial industrial plant within or near the City
of West Memphis, Crittenden County, Arkansas (hereafter sometimes referred
to as the "City");
and
WHEREAS the location of said industrial plant will result in
increased employment, will result in increased payrolls, will alleviate unemploy-
ment, 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 project costs,
necessary costs and expenditures incidental thereto, the amount to provide for
debt service until project revenues are available, and the amount necessary for
a debt service reserve, the City has determined to issue, subject to the approval
of the electors of the City, City of West Memphis, Arkansas 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 (herein sometimes called "Act No. 9"), in an amount not to exceed
$400,000,; and
WHEREAS the industrial project will be leased to Pidgeon-Thomas
for net lease rentals sufficient to provide for the payment of the principal of
and interest on the bonds, as the same become due and payable, and the bonds will
be secured by a mortgage on the industrial project as authorized by Act No. 9;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WEST MEMPHIS, ARKANSAS:
Page 2
Section 1. That a special election be, and the same is hereby,
called to be held in the City on the 22nd day of April, 1965, at which election
there shall be submitted to the electors the question of issuing Industrial
Development Revenue Bonds under the provisions of Act No. 9 in an amount not to
exceed $400,000. for the purpose of securing and developing industry (the particular
industrial project is described above);. The bonds will be dated June 1, 1965
and interest on the bonds will be payable semi-annually on June 1 and December 1
of each year commencing December 1, 1966, at a rate or rates to be hereafter
fixed. The bonds will mature serially on June 1 in each year on a schedule to be
hereafter fixed for a period not to exceed twenty-five years and will be callable
for payment prior to maturity upon such terms as shall be set forth in the face
of the bonds and in the ordinance authorizing their issuance and delivery:
YEAR AMOUNT
1966 15,000.
1967 16,000.
1968 16,000.
1969 16,000.
1970 16,000.
1971 17,000.
1972 17,000.
1973 17,000.
1974 17,000.
1975 18,000.
1976 18,000.
1977 18,000.
1978 18,000.
1979 19,000.
1980 19,000.
1981 12,000.
1982 12,000.
1983 12,000.
1984 13,000.
1985 14,000.
1986 14,000.
1987 15,000.
1988 16,000.
1989 17,000.
1990 18,000.
Section 2. That said question shall be placed on the ballot for
the special election in substantially the following form:
Vote on measure by placing an "X" in thef'quare above the
measure either for or against:
For the issuance of Industrial Development Revenue Bonds
by the City of West Memphis, Arkansas, in an amount not
to exceed $400,000. ./ /
Against the issuance of Industrial Development Revenue Bonds
by the City of West Memphis, Arkansas, in an amount not to
exceed $400,000. / /
It is proposed to issue City of West Memphis, Arkansas Industrial
Development Revenue fonds 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 (herein called rrAct No. 9rr)~
in an amount not to exceed $400,000. for the purpose of financing the
cost of securing and developing industry within or near the City.
Page 3
The bonds will be dated June 1, 1965 and interest theremn
will be payable semiannually on June 1 and December 1 of
each year commencing December 1, 1965 at a rate or rates to
be hereafter determined. The bonds will mature serially in
annual installments on June 1 in each of the years 1966 to
1990, inclusive. The particular industrial project will
consist of lands and a factory building and manufacturing
facilities which industrial project will be leased to
Pidgeon-Thomas Co., Inc. a Tennessee corporation (herein
called Pidgeon-Thomas") and operated for the manufacturing
and fabrication of steel and iron products and such other
items as Pidgeon-Thomas shall elect to manufacture or
fabricate. The rentals derived from the leasing of the
industrial project will be pledged to and used for the pay-
ment of the principal of and interest on the bonds, as the
same become due and payable, and the Lease Agreement will
provide for net rentals sufficient in amount for that
purpose. The bonds will not be general obligations of the
City but wi1.1 be special obligations payable solely from
lease rentals and revenues derived from the industrial
project and will be secured by a mortgage on the industrial
project as authorized by Act No. 9.
Section That the election shall be held and conducted and the vote
canvassed and the results declared under the law and in 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
consee~ztive weeks in a newspaper having a bona fide circulation in the City of
West Memphis, Arkansas, with the last publication to be not less than ten days
prior to the date of the election, and only qualified electors of said City
shall have the right to vote at said election on said question.
Section ~+. 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 said City of West Memphis, Arkansas, which proclama-
tion shall advise that the results as proclaimed shall be conclusive unless
attacfied in the courts within thirty days after the date of such proclamation.
Section 5. That a copy of this ordinance shall be furnished the
Crittenden County Boaxd of Election Commissioners ~o that the necessary election
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 within the City of West Memphis,
Arkansas in order to provide employment, provide increased payrolls, alleviate
Page ~+
unemployment and provide other public benefits incidental to the securing and
operation of a substantial industry, and the issuance of the above described
bonds is essential to the financing and obtaining of said industry. It is,
therefore, declared that an emergency exists and this ordance 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 : N~arch 1~ , 1965
APPROVED:
}``' ~ '
Mayor
ATTEST:
.--
City Clerk
(SEAL)