2191 RESOLUTION NO.
RESOLUTION OF INTENT TO ISSUE
INDUSTRIAL DEVELOPMENT REVENUE BONDS
WHEREAS,the City of West Memphis,Arkansas(the "City") is authorized by the laws of
the State of Arkansas, including particularly Title 14, Chapter 164, Subchapter 2 of the Arkansas
Code of 1987 Annotated (the "Act"), to issue revenue bonds for financing the costs of acquiring,
constructing and equipping industrial facilities; and
WHEREAS, it is proposed that the City issue its revenue bonds under the Act for the
purpose of financing an industrial project to be located in the City(the "Project")for use by Project
Delta (the "Company"), pursuant to a lease agreement to be entered into between the City, as
lessor, and the Company, as lessee (the Lease Agreement"); and
WHEREAS, the Project will generally consist of the expansion of an existing industry
located in West Memphis, Arkansas 72301, to be used for manufacturing purposes; and
WHEREAS, in order to secure and develop industry in furtherance of the public purpose
of the Act, the City is willing to proceed with the issuance of the bonds as and when requested by
the Company, subject to compliance with all conditions set forth in the Act;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of West
Memphis, Arkansas:
Section 1. The City hereby states its intention to assist in the accomplishment of the
Project and at such time as it may be properly called upon to do so to issue its revenue bonds to
finance the same, subject to the following:
(a) It is estimated at this time that revenue bonds in the approximate
principal amount of$35,000,000 will be issued to finance the Project. However,
the City's commitment is to issue revenue bonds under the Act in such amount for
accomplishing all or any part of the Project, whether that amount is more or less
than the above estimate.
(b) The bonds will be special obligations of the City, and in no event
will they constitute an indebtedness for which the faith and credit of the City or any
of its revenues are pledged.
(c) The City will not be called upon to pay any costs or expenses
incurred in connection with the authorization and issuance of the bonds, and all
such costs and expenses will be paid out of the proceeds of the bonds or by the
Company.
Section 2. The City is informed and understands that the properties comprising the
Project may be exempt from ad valorem taxes. In such case, the City desires to enter into an
agreement with the Company for payments in lieu of taxes. The amount and other details
concerning such payments will be embodied in an appropriate agreement which is mutually
acceptable to the Company and the City. Such agreement to reflect a minimum annual abatement
of 65% over the life of a 20-year bond.
Section 3. This Resolution shall be effective immediately upon its passage.
PASSED: , 2019.
APPROVED:
ATTEST:
Mayor
ity Clerk
(SEAL)
RECEIVED
Ci Clerk'
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CERTIFICATE
The undersigned, City Clerk of the City of West Memphis, Arkansas, hereby certifies that
the foregoing is a true copy of a Resolution duly passed at a regular session of the City Council of
the City of West Mem his,Arkans s,held at the regular meeting place of the City Council at_:_
o'clock p.m., on the day o ) 2019. The Resolution appears in the official minutes
if
of the meeting which are in my custody.
CERTIFIED this 4—day of 52019.
C�-4s-m U— V11 cl-,t
City Clerk
(SEAL)