January 5, 1967MINUTES OF A REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF WEST MEMPHIS, ARKANSAS,
HELD AT THE CITY HALL IN SAID CITY ON THE 5TH DAY OF JANUARY, 1967.
-____._ ..._.~...______r_____.__~..~___~ _ _._ ~ ._._~ __._._._~----.~~_s_~_ -______.__-- -.-
The Council of the City of West A'emphis, in the County of Crittenden, State of
Arkansas, met in regular session in the City Ha11 in said City, at 3:00 o'clock P.M.
on the 5th day of January, 1967.
The meeting was called to order by the Mayor, and the roll being called, there
were:
Present: Bob Eden, Mayor in the chair, and the following named Aldermen:
0. I. Bollinger Paul Matthews
Sonny Haley C. T. Rodgers
Pritchard Horton R. L. Smith
Kirby Leggett F. C. ideis
and also W. H. Dillahunty, City Attorney::
Absent: None.
Council Minutes of December 15, 1966, were approved as read.
The new members of the Council were welcomed by the Mayor.
Mayor Eden appointed the following:
Charles F. Young, Chief of Police
Motion was made by Alderman Bollinger: That the appointment of Chief of Police
Charles F. Young be confirmed. Motion was seconded by Alderman Leggett. Upon vote, the
voting was as follows:
Aye: Aldermen: Bollinger, Haley, Horto3~, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
R. L. Simmons, Chief of Fire Department
Motion was made by Alderman Matthews: That the appointment of Fire Chief R. L. Simmons
be confirmed. Motion was seconded by Alderman Smith. Upon vote, the voting was as follows:
Aye: Aldermen: Bollinger, Haley, Horton, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
W. A. Perrine as Building, Electric, Plumbing, and Gas Inspector
Motion was made by Alderman Rodgers: That the appointment of 4d. A; Perrine as Building,
Electric, Plumbing, and Gas Inspector be confirmed. Motion was seconded by Alderman Haley.
Upon vote, the voting was as follows:
Aye: Aldermen: Bollinger, Haley, Horton, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
Mayor Eden brought to the Council's attention the July U, 1966, order of the County
Court of Crittenden County annexing certain territory to the City of West Memphis. The
1l~ff.5 acres known as part of the Rainer property includes the site of Flint Steel
Corporation. After discussion, Alderman Weis introduced an ordinance entitled: "An
Ordinance Annexing The Following Described Real Estate Lying And Being Situate In The
County Of Crittenden, State of Arkansas" and City Attorney Dillahunty read the ordinance
in full.
Alderman Matthews, seconded by Alderman Horton, moved that the rule requring the
reading of an ordinance in full on three different days be suspended and that the
ordinance be placed on its second reading. The Mayor put the question on the adoption
of the motion and the roll being called, the following voted:
Aye: Aldermen: Bollinger, Haley, Horton, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
Thereupon the Mayor declared that at least two-thirds of all members of the Council
having voted in favor of the motion to suspend the rule, the motion was carried and the
rule suspended. The ordinance was then read by City Attorney.
Alderman Smith, seconded by Alderman Weia then moved that the rule requiring the
reading of an ordinance in full on three different days be further suspended and that the
ordinance be placed on its third reading. The Mayor put the question on the adoption of
the motion and the roll being called the following voted:
Aye: Aldermen: Bollinger, Haley, Horton, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
The Mayor declared that at least two-thirds of all members elected to the Council
having voted in favor of the motion to suspend the rule, the motion was carried and the
rule suspended.
The ordinance was then read by Alderman Leggett.
~.9
~~ Alderman Bollinger, seconded by Alderman Rodgers, moved that the ordinance be
adopted. The question was iput by the Mayor on the adoption of the motion and the i
roll being called, the following voted: ',
Aye: Aldermen: Bollinger, Haley, Horton, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
Alderman Aatthews, seconded by Alderman Horton, moved that Section 2, the
emergency clause be adopted, and „on roll call the following voted:
Aye: Aldermen: Bollinger, Haley, Horton, Leggett, Matthews, Rodgers, Smith, Weis.
Nay: None.
The Mayor thereupon declared the ordinance and the emergency clause adopted and
signed the ordinance, which was attested by the City Clerk and impressed with the seal
of the City. The ordinance was given No. 51l~.
AN ORDINANCE ANNEXING THE FOLLOWING DESCRIBED REAL ESTATE LYING AND
BEING SITUATE IDI THE COUNTY OF CRIT'I'ENDEN, STATE OF ARKANSAS, TO-WIT:
Beginning at the point of intersection of the east line
of Section 23, Township 6 North, Range 8 East and the center
line of the Chicago, Pock Island & Pacific Railroad, said
point being on the existing city limits of the City of West
Memphis, thence south 76 degrees 26 minutes west along the
center line of the Chicago, Rock Island & Pacific F.ailroad ~'~~
to the point of intersection with the west line of Section
23, thence south 1225 feet, thence north 76 degrees 26
minutes east on a line parallel to the center line of the
Chicago, Rock Island & Pacific Railroad to a point on the
east line of Section 23, thence north 1225 feet along the
east line of Section 23 to the point of beginning, containing
148.5 acres more or less.
WIiEREAS, on the 4th day of May, 1966, owners of the above
described land filed a petition in the County Court of Crittenden
i
'; County, Arkansas; pursuant to the petition the County Court on the 6th
day of June, 1966, heard said petition and issued its order granting
the petition for annexation of said land to the City of West Memphis;
I
i
that no objections were filed and on the 8th day of July, 1966,
~I
(a day more than 30 days after the original order of annexation), a
final order of annexation was entered by the County Court; and
WHEREAS, it would be to the best interest of the City of i~;est
Memphis and the citizens thereof that said property be annexed to
the City of West Memphis; DIOW THEREFORE
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WEST MEMPHIS:
SECTION I: That the following described land lying and being
situate in the County of Crittenden, State of Arkansas, to-wit:
Beginning at the point of intersection of the east line
of Section 23, Township 6 P7orth, Range 8 East and the center
line of the Chicago, Rrclc Island & Pacific Railroad, said
100
1
,I
point being on the existing city limits of the City of Gdest
Memphis, thence south 76 degrees 26 minutes ~.*est along the
center line of the Chicago, Rock Island & Pacific Railroad ,'
to the point of intersection with the west line of Section `
23, thence south 12?.5 feet, thence north 76 degrees 2.6 6~
minutes east on a line parallel to the center line of the
Chicago, Rock Island & Pacific Railroad to a point on the
east line of Section 23, thence north 1225 feet along the
east line of Section 23 to the point of beginning, containing
148.5 acres more or less;
be and the same is hereby annexed and incorporated into the City
of West Memphis, Arkansas.
SF,CTION II: EMERGENCX CLAUSE - It is hereby ascertained and
declared to be a fact that said land is in the process of development;
that the extension of the city limits represents the natural growth
of the city of G•?est Memphis, and that the passage of this ordinance
is in the interest of the public peace, health, safety .and welfare
of the citizens of West Memphis; therefore, an emergency is hereby
declared to exist, and this ordinance shall be in full force and
effect from and after its passage and approval.
SECTION III; COPY OF ORDIDTADICE FILED FOR RECORD - A Copy of
this ordinance, when duly certified by the City Clerk shall be
subject to being filed for record in the office of the Circuit Clerk
and Ex-Officio Recorder within and for Crittenden County, Arkansas,
and any other office in which there may be necessity for filing same.
The Council was informed the preliminary documents for the Southwest Chemical
Corporation bond issue are being prepared by Attorneys Rose, Meek, House, Barron, Nash &
Williamson of Little Rock, and the following Memorandum of Intent was read by City
Attorney Dillahunty for the Council's consideration:
1(~1
---
MEMORANDUMS OF INTENT
THIS MEMORAMIDUMI Ok° INTENT entered into this ~;,~,~, day of
January, 1967, by and between the City of West Memphis, Arkansas,
by its Mayor and City Clerk, hereinafter referred to as "City",
and Southwest Chemical Corporation, a corporation organized and
exisr.ing under the lacas of the State of Arkansas, hereinafter
referred to as "Company",
W I T N E S S E T H:
For the purpose of expressing their intent to cooperate
for the establishment and development of industry within or near
the City of 4lest Memphis, it is hereby agreed betcaeen the parties
as follows:
1. The Company is anxious to establish manufacturing and
sales facilities for the production and distribution of chemical
fertilizers on lands now owned by the Company in or near the City
of tdest Memphis. The. Company desires that the acquisition and
construction of these facilities be financed by the issuance of
Industrial Development Revenue Bonds, under provisions of Act 9
of 1960, of the laws of the State of Arkansas. .The term "facilities"
as used in this memorandum, includes not only lands, buildings, and
similar irnpro~ements, but also includes the necessary machinery and
equipment for the operation and utilization of the facilities.
2. The City is desirous of assisting the Company in locat°
ing and constructing its facilities, and wishes to cooperate in
the issuance of bonds for the necessary financing.
102
_ _. ---
_-. ---
3, The City hereby agrees, subject to the conditions here-
inafter set forth, to expend for the costs of the facilities, in-
chiding the costs incidental to the financing of the project which
includes a reserve for debt service, and certain preliminary operat-
ing expenses, not to exceed a total of $28,500,000, subject to
modification as the parties hereto may agree in the alteration of
plans and specifications.
4. The City will finance the costs of the undertaking by
causing to be issued under the provisions of Act 9 of 1960, its
Industrial Development Revenue Bonds, in the aggregate principal
amount of $28,500,000. Said bonds are to be sold in one or more
series, and may be delivered in one or more installments, and are
to mature and bear interest as may be subsequently determined by
mutual a;reement between the City and-the Company. The security
for said bonds cai11 be a statutory mortgage on the lands and build-
ings constructed thereon, the pledge of the lease rentals to be
received therefrom, and a security interest in such items of
personal property as may be procured from the bond proceeds. The
bonds will not be general obligations of the City, but will be
special obligations, payable only from the rentals of the industrial
facilities. At the present time it is not contemplated that the
bonds will be subject to conversion to a higher principal amount
at a lower interest cost, but if requested by the Company and the
purchaser of the bonds, appropriate provisions will be provided
in the ordinances for the conversion of the bonds provided that
the total principal and interest requirements remain substantially
the same as though the bonds were not converted.
1~3
5. The City will hold title to the said lands and improve-
ments and will lease them under a pure net rental lease agreement
to r_he Company, for a term and rental sufficient to meet the debt
service requirements of the said bonds. It is anticipated that the
principal amount of the bond issue will include the approximate
amount of $286,000 which will be used to purchase the land now
owned by the Company in or near the City of West Memphis, which
represents the actual cost of the land and the indebtedness due
on it.
6. The said lease of the lands and improvements thereon
may (if requested by the Company) include an option to purchase
the demised premises during the term of the lease, but after the
bonds become subject to redemption, for a purchase price equal to
the amount necessary to pay in full the unpaid balance of the bonds
outstanding, and at the end of the lease term at a nominal price
to be subsequently agreed upon. The said lease may also provide
such renewal options as the Company may specify, consistent with
the prior payment in full of the said bond issue.
7. So long as the title to the said land and buildings
is held by the City, the City will not levy any property tax
thereon, but commencing one year after the plant has been in
operation, the Company will pay in lieu of such taxes a sum of
money comparable to the tax which the Company would pay if it were
the o~~mer of said lands and buildings and were situated in the City
of Glest riemphis. The amount of the tax shall be the same rate paid
by all property owners similarly situated in the City of West
Memphis, and shall be for the joint benefit (in proportion to the
1a4
t<.x.:s levied by each) of the local School District, the County,
the City, and any other taxing authority levying taxes in the City
of West t•:emphis .
8. All proceedings and instruments hereunder shall be
consistent caith the issuance of bonds under said Act No. 9 of 1960,
and this Memorandum Agreement, and shall be subject to the approval
of the City Attorney.
9. This Memorandum Agreement is conditioned upon a suc-
cessful election under Act 9 of 1960 to authorize the issuance of
the said Industrial Development Revenue Bonds. The City will
cause the election to be held as early as permitted under the
law, and ~oi11 in all things proceed diligently in the financing
of the project. In the event, however, that said election shall
fail, then this Memorandum Agreement shall stand cancelled, and
neither party shall be liable to the other.
10. The Company has, or will contemporaneously with the
execution of this Memorandum, deposit with the City the sum of
$1,000 which will be applied to defray the costs of the election
mentioned in Paragraph 9 hereof. The costs of the election shall
include the publication of all ordinances and notices in connection
therewith, the printing of ballots, and the costs of election
officials. Should the actual costs of the election be less than
the sum of $1,000 any balance remaining shall be refunded to the
Company.
l.l. The terms and conditions of the sale of said bonds
shall fu-tthe be subject to an agreement entered into on the ~~
day of 1967, by and between the City of West
Memphis and the investment banking firm of Rowles, Winston
Corporation of Texas, cuhich is attached hereto and marked Exhibit
"A" and made a part hereof. This agreement has been examined and
approved by the Company, and the Company represents that it has
actively participated in negotiations with said investment banking
fixm, and agrees to all conditions contained in the said proposal.
The city will take such steps as requested by Rosales, Winston
Corporation of Texas, and its bond counsel, to complete all neces-
sary acts on the part of the City, and the Company agrees to promptly
perform such acts as may be required under the agreement by it.
12. In executing this agreement, the City and Company
represent that all of the terms contained in this agreement and
in the exhibits attached thereto have been fully discussed in
legally held. meetings of the City Council and the Board of Directors,
respectively, and that the officers executing and attesting the
execution of this agreement are acting within the scope of their
authority under authorization of the appropriate body.
IN WITNESS WHEREOF, we .have hereunto set our hands and
seals, the date first above written.
AT~T :? ~ a: / /,
._~, City Clerk
ATTEST : ~~ ~ ~
~i
CITY OF WEST MEMPHIS, ARKANSAS
-~
By ,~;~~. ~~`~- c ~ ~;~ G ~ ,
Mayor
SOUTHWEST CHEMICAL CORPORATION
1
B y <<~fi C~ ~ r ~:-
.`7r; U~'~=ePresident
1Q5
~o~xrl®~~ ~7V"ixz.~ton Cor~orata.ozZ
Of Tearas
td. M. HATCHER
VIC E~PFESIDENT
IN V[:ST1A f.NT OANICERS
200 FIRST NATION AI_ GANI< OUILDING
DALLAS, TEYAS 75202
PHONE 214-740.0741
January ~, 1966.
HOUSTON OFFICE
SOUTHWEST TOWER
Honorable Mayor and City Council
City of West Memphis, Arkansas
Gentlemen;
We have examined numerous studies and reports related
to the prospective construction of a fertilizer manufacturing
facility to be located in or adjacent to West Memphis, Arkansas,
Information which tae have in our possession contemp7.ates the
financing of the project with proceeds from the issuance of
City of [lest Memphis, Arkansas, Industrial Revenue Bonds to be
issued under authority granted in Section 9 of the State of
Arkansas Code,
Our studies of the report of Moore Engineers, Inc,
of Dallas, Texas, studies and proposals of the Girdler Corpora-
tion of Louisville, Kentucky, and information furnished us by
the Arkansas Industrial Development Commission, together with
background i.nfo.rmation and industry studies, it is our firm
conclusion that the construction and operation of the proposed
plant with the incorporation of some modifications and changes
is feasible and the bonds proposed to be issued can be sold at
interest rates and maturities commensurate with the ability of
the plant to produce a cash flow in accordance with projections
of the Moore Engineers, Inc,
We would suggest the acceptance of Case II as de-
scribed in the Moore Engineers, Inc, report and the Girdler
Corporation reports as the most feasible, This case stl_u.}y
would, of course, be subjr~ct to modifications and changes in
keeping with changes in market conditions, costs or other
factors influencing the feasibility of the plant, The total
projected amount of bonds tD be issued under Case II would be
$28,221,000 which would include total financing including a
plant operating fund as enumerated herein below,
Ammonia Plant $4,850
000
Ammonia Storage ,
685
000
Nitric Acid Plant ,
1
5].0
000
Prilled Ammonium Nitrate Pla ,
,
nt 1,270
000
Prilled Urea Plant ,
2
(350
000
Nitrogen Sollztions Plant ,
,
95
000
Diammonium Phosphate Plant ,
1 035 000
Offsites 7,100
000
Catalysts for Nitric Acid ,
105
000
Spare parts ,
335,000
Office Lab & Maintenance Shop
Erluipment & Apparatus $ 85
000
Plant Safety Apparatus ,
25
000
Site work ,
50
000
Engineering ,
318
000
Land Cost ,
286
000
Financing Cost ,
1,400
000
Plant Operating Funds ,
.1,500
000
3 Years Bond Interest ,
4,722,000
TOTAL CAPITAL REQUIRED $28,221,000
Based upon recommendations of the Engineers, it is
our belief that the Ammonia Plant and the Diammonium Phosphate
P7.ant and certain offsite facilities be financed in the ini-
tial stage. Financing costs, land acquisition and escrowed
interest should be included for a total of approximately
$.10,000,000. The exact amount must be based upon a final
recommendation of Moore Engineers, Inc,
We propose to act in the capacity of Fiscal Agent
for the City of [Vest Memphis, Arkansas, to plan the installments,
maturities, options, interest rates and pledges securing the
proposed bonds, to plan in conjunction with the City, its
Attorneys and Bond Counsel and Engineers the several stages
of financing,
We further propose to use our best efforts to place
the First Mortgage Revenue Bonds of the City of West Memphis
in the principal amount of approximately $28,500,000 to be
issued and delivered in stages to be approved by the City„
Our best effort would include preparation of necessary
brochures, planning of the financing of the several stages,
together with the Engineers, so that the anticipated cash
flow will be sufficient to serve the debt and to provide the
necessary coverage on the part of the lessee,
__ -- _
_. _ _
Our best effort shall consist of the efforts of our
most experienced and qualified personnel in a thorough market
offering in the sources of financing known in the financing
field, inclyding if necessary association caith other dealers
nationally recognized and experienced in the field of indus-
trial revenue financing, Our proposal is subject to all of
the following conditions:
1, A total bond .issue of $28,500,000 with maturities
to be determined and approved by the City, Said bonds shall be
authorized by delivery and payment in logical installments
consistent with the facility to he constructed,
?, The City of West Memphis, Arkansas, shall have
entered into a contract with an acceptable lessee on a net net
lease pahrnent of the facility to be constructed by r?roce.^ds of
each installment to fixrnish satisfactory assurance that the
lease payments will equal or exceed the principal and inter-
est installments as they mature and to provide for payment of
any and all other expenses to be incurred by the City, or its
agents such as the Trustee, Paying Agents, Attorneys or Con-
srt].tants, Said lease payment requirement may be so planned
that the first three years of installments may be somewhat
less than otl;er installments to assure adjustments and correc-
tions usually allotted to a "shakedown" period, If the lessee
to be approved by the City and ourselves is not of national
repr.rtation and experience in the field of fertilizer p.r.oduction
and distribution and having sufficient repr.ttation to finance
the project with the approval of the City and ourselves, the
lessee shall have :entered into a contract with the Girdler
Corporation of Louisville, Kentucky, or a similar. firm engaged
in the construction and operation of similar facilities for a
period of not less than three years and such contract shall
provide for a guarantee of production costs and output of the
plant 3D that the lessee shall reasonably be expected to earn
one..-and one-half times (1 1/2) annual lease payment requirement,
3. A national bank with full trust powers shall have
entered into an indenture of Mortgage and Deed of Trust cover-
ing the properties so that the annual lease payments be re-
quired in four equal installments so arranged that they will be
required immediately following the production season and coinci-
dental with the collection from sales and accounts receivable
in. the fertilizer production season,
4, The Southwest Chemical Corporation, or a surviving
successor shall have obtained through the sale of stock in its
cooperative capacity, sufficient "take or pay" contracts to
insure demand at current market prices for 60°6 of each stage
of the plant capacity or a sufficient amount to insure payment
of the lease payments to the City of West Memphis through sale
of fertilizer t_o the satisfaction of the City of West. Memphis
and ourselves.
5. One Hundred percent (100%) of t_he funds derived
from the delivery and sale of the proposed bonds (with the ex-
ception of the financing cost and lawyers fees) be escrowed
with the Trustee Bank to be paid only upon Engineer's estimates
in installments as the plant is constructed with ttte exception
of required payments from the fund such as engineering, land
costs, bond interest and operating funds which may be withdrawn
upon written request of the City Council of West Memphis and
distributed in accordance with the terms of the Indenture
securing the bonds.
6, That a contract shall have been entered into
prior to and delivered with the bonds with a reputable con-
tractor who shall have posted an acceptable performance bond
to insure completion of that portion of the plant to be
financed by the installment authorized,
7, The bonds shall be authorized to bear a rate of
interest of six percent (6%) per annum, but our best effort
will be to place the bonds at a rate of interest consistent
with the market and other issues of similar charact.erist.ics
and security,
8, The Indenture of Mortgage and Deed of Trust shall
have been prepared by Rose, Meek, House, Barron, Nash &
~~ Williamson of Little Rock, Arkansas, containing the usual
provisions required in securing and marketing bonds of similar
nature and including insurance coverage, audits, legal, inde-
pendent engineering inspection and maintenance, and all con-
tracts of the Southwest Chemical Company be assigned to the
Trustee while any debt is outstanding,
9. Simultaneously with delivery and payment of each
installment of bonds there shall be delivered to us the unqual-
ified approving opinion of Roae, Meek, House, Barron, Nash &
Williamson of Little Rock, Arkansas,
10, Simultaneoulsy with payment of each installment
of bonds to the purchaser at a price of par and accrued inter-
est we shall be paid from the proceeds of the Issue Two and one-
half percent (? l,/2%) of the total amount of bonds so issued,
11. The lessee shall have entered into a satisfac -
tory contract for a supply of natural gas and evidence of
availability of raw products necessary for successful opera -
tion of the facilities.
With our commitment or evidence of commitment, we
will agree to pay printing of the bonds, preparation and print-
ing of the Indenture, delivery of the bonds and required
approving legal opinion,
Should we fail to furnish satisfactory evidence of commitments
for the agreed stages of financing, we shall be due nothing for our efforts.
Respectfully submitted,
ROWLES, WINSTON CORPORATION
OF TEXAS
BY /S/ M. M. HATCHER
_{ V ce es en
r r~
The Mayor stated that consideration should be directed by said Council to the question of the
passage and adoption of an ordinance to authorize an election upon the question of whether or not
industrial revenue bonds of said City should be issued in an amount not to exceed $28,500,000 for
the purpose of securing and developing industry within or near the City of [Jest 2lemphis, Arkansas.
After discussion by said Council, Alderman Smith'~introduced in writing an ordinance entitled,
"AN ORDINANCE SUBMITTING TO THE VOTERS OF THE CITY OF WEST i~.Fl^1PHIS ARKANSAS, THE QUESTION WHETHER
IT WILL.ISSUE INDUSTRIAL REVENUE BONDS IN AN AMOUNT NOT TO EXCEED 28,500,000 FOR THE PURPOSE OF
SECURING AND DEVELOPING INDUSTRY WITHIN OR NEAR THE CITY OF vJEST NlEP1PHIS, ARKANSAS!', and moved that
the same be .read in full. The motion being seconded by Alderman Haley, the question was but by the
Mayor on the adoption of said motion, and the roll being called, the following voted:
Aye: 0. I. Bollinger, Sonny Haley, Pritchard Horton, Kirby Leggett, Paul Matthews, C. T. Rodgers,
R. L. Smith, F. C. Weis, and the following voted:
Nay: None.
t^Wereupon, the Mayor declared the motion duly passed and ordered that said ordinance be read.
Said ordinance was then read in full by the City Attorney.
Alderman Leggett then moved that the rule requiring an ordinance or resolution to be read in
full on three different days be suspended and that said ordinance be placed on its second reading,
seconded by Alderman Rodgers, and thereafter the Mayor put the question on the adoption of said
motion, and the roll being called, the following voted:
Aye: 0. I. Bollinger, Sonny Haley, Pritchard Horton, Kirby Leggett, Paul Matthews, C. T. Rodgers,
ft. L. Smith, F. C. Weis., and the following voted.:
Nay: None.
Whereupon, the Mayor declared the motion duly passed and said ordinance placed on its second
reading. The ordinance was then read by the City Attorney.
Alderman Bollinger moved that the rules be further suspended and the ordinance be placed on its
third and final reading. This motion was seconded by Alderman Horton, and thereafter the Mayor put
the queation on the adoption of the said motion, and the roll being called, the following voted:
Ay®: U. I. i3otlinger, Sonny Haley, r'ritcharu Horton, iiirby Leggett, Yaul Matthews, C. T. Rodgers,
R. L. Smith, F. C. ~1eis., and the following voted.:
Nay: None.
luher®upon the Mayor declared said motion duly adopted and said ordinance placed upon its final
reading.
Said ordinance was read in full by the City Attorney. Alderman P~atthewa moved its adoption,
seconded by Alderman [de is, and after due consideration thereof by said Council, the Mayor put the
question upon the adoption of said motion and the passage of said ordinance, and the roll being
called, the following voted:
Aye: 0. I. Bollinger, Sonny Haley, Prichard Horton, Kirby Leggett, Paul Patthews, C. T. Rodgers,
R. L~ Smith, F. C. Weis, and the following voted.:
Nay: None.
'6hereupon the Mayor declared said motion duly adopted and said ordinance duly passed, and signed
his approval. The said ordinance was attested by the Clerk and impressed with the seal of the City.
Alderman Smith, then moved that said ordinance go into immediate operation and become effective
without delay because of the emergency declared in the final section, which section was then read in
full. The motion was seconded by Alderman Haley.
The riayor put the question on the adoption of the said motion, and the roll being called, the
following voted:
Rye: 0. I. Bollinger, Sonny Haley, Pritchard Horton, Kirby Leggett, Paul Matthews, C. T. Rodgers,
R. L. Smith, F. C: '~Jeis, and the following voted:
Nay: None.
ORDINANCE N0.
!•, AN ORDINANCE SUBMITTING TO THE VOTERS OF THE CITY OF
~~ WEST MEMPHIS, ARKANSAS, THE QUESTIOfI WHETHER IT WILL
ISSUE INDUSTRIAL REVENUE BONDS IN AN AMOUNT NOT TO
EXCEED $28,500,000 FOR THE PURPOSE OF SECURING AND
~'~i DEVELOPING INDUSTRY WITHIN OR NEAR THE CITY OF WEST
MEMPHIS, ARKANSAS.
~~
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WEST MEMPHIS:
SECTION 1. An election is hereby called to be held at the
usual polling places in the City of West Memphis on the ~~ day of
~'t=' {)'~ L~, 1967, for the purpose of determining whether the City
of West Memphis will issue negotiable industrial 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 for the year
1960, as amended, in an amount not to exceed $28,500,000 for the pur-
pose of securing and developing industry within or near the City of
West Memphis to be secured by a statutory mortgage on the lands and
buildings acquired and constructed from the proceeds of the said indus-
trial revenue bonds and a pledge of the revenues therefrom. A security {
interest shall also be given in machinery and equipment acquired or
purchased from the proceeds of the said Industrial Revenue Bonds. The
particular industrial project consists of the acquisition of lands,
the construction and equipping of manufacturing buildings and storage
and sales facilities thereon, and the industrial project will be leased
to Southwest Chemical Corporation, an Arkansas corporation, for the
manufacture, storage, and sale of fertilizers, chemical products, and
other related items.
SECTION 2. The bonds will not be general obligations of the City
of West Memphis, but will be special obligations payable solely from
4~
revenues derived from the industrial project, and secured by the mortgage
110
.._.___.
., _, , , , ~ :y.,..x ,:,...._
~;
:~
!'.:
+.,
and security interests as aforesaid. The bonds may be issued in one or morel,
,~
;,
series, may bear such date or dates, may mature at such time or times, may F;', j
F ':
bear interest at such rate or rates, not exceeding 6% per annum, may be I '
. _. !!
sold with the privilege of conversion to an issue bearing other rate or
rates of interest as provided by said Act No. 9, and may provide such
terms for redemption before maturity as may be established by appropriate
ordinances of the City of West Memphis, which ordinances shall be con-
sistent ~•~ith the provisions of the Arkansas Municipalities and Counties
Industrial Development Revenue Bond Law.
SECTION 3. Said election shall be conducted and the votes there-
at canvassed and the results declared under the law and in the manner
now provided for municipal elections, and notice of said election shall
be given by the Mayor by advertisement weekly for at least four (4)
times in some newspaper published in the City of West Memphis and having
a bona fide circulation therein, the last publication to be not less
than ten (10) days prior to the date of said election.
The ballots for said election shall be marked:
"Vote on measure by placing an "X" in the square above
the measure either for or against.
"FOR BOND ISSUE IN AN AMOUNT NOT TO EXCEED - - - - - - ~~/
$28,500,000 - - - - - - - - - - - - - - -
"AGAINST BOND ISSUE IN AMOUNT NOT TO EXCEED- - - - - -
$28,500,000----- --- -- ---
"Bond issue in an amount not to exceed $28,500,000 under the
provisions of Act No. 9 of the First Extraordinary Session
of the Sixty-second General Assembly of the State of Arkansas..
for the year 1960, as amended, for the purpose of securing
and developing industry within or near the City of West
Memphis, Arkansas, to be secured by a statutory mortgage
on the lands and buildings acquired and constructed from
the proceeds of the said industrial revenue bonds and a
pledge of the revenues therefrom. The bonds may be issued
in two or more series and delivered in two or more install-
ments, and may be sold cJith the privilege of conversion to
an issue bearing other rate or rates of interest as provided
by said Act No. 9, as the City Council may provide by appro-
priate ordinance.
11:1.
. ~:_ -=».
'I
"The particular industrial project consists of the acqui-
'' sition of lands, the construction and equipping of manu- ,
if
facturing buildings and storage and sales facilities thereon ~ ji
(herein called the "industrial project"), and the industrial (;
it project will be leased to Southwest Chemical Corporation, an ~. i
~~ Arkansas corporation, for the manufacture, storage, and sale ~
'~ of fertilizers, chemical products, and other related items. !
~~~ ~ I~
"The bonds will not be general obligations of the City of
West Memphis, but ~a~ll be special obligations payable solely
from revenues derived from the industrial project."
SECTION 4. A copy of this ordinance shall be given to the
Crittenden County Board of Election Commissioners so that it may place
the question on the ballot for said election, provide the proper election
officials and supplies, and canvass the vote on the question.
SECTION 5. At said election, only qualified voters of theCity
of West Memphis will have the right to vote. The result of said election
shall be proclaimed by the Mayor by publication in some newspaper pub-
lished in the City of West Memphis and having a general circulation
therein for more than twelve (12) months last past, and his proclamation
shall advise the citizens and property owners of said City of West
Memphis that the result as proclaimed will be conclusive unless attacked
in the courts within thirty (30) days after the date of such proclamation.
SECTION 6. It is ascertained and declared that the safety and
health of the City of West Memphis are jeopardized by the lack of suf-
ficient industry and that only by action made possible by this ordinance
can the City undertake to secure and develop industry and to 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.
The r~ayor informed the Council it will be necessary to discuss the aroposed Budget
prior to the January 19th Council Meeting; thereupon a tentative date of January 12th at
6:30 P.r".. was set.
No further business being presented, the meeting was adjourned.
/?
t
~, ~~
~-
~~~ ~~
ATTES¢.~c%.-.. G'.~ ~~
CI Y
APPROVED: JANUARY 19, 1967