1272RESOLUTION NO. Zj 7 Z
A RESOLUTION AUTHORIZING THE EXPENDITURE OF FUNDS FOR
THE PURCHASE AND UPGRADE OF THE TENARK BRANCH OF THE
UNION PACIFIC RAILROAD TO PROVIDE RAIL SERVICE TO
INDUSTRIES UTILIZING THE FACILITIES OF THE WEST MEMPHIS-
CRITTENDEN COUNTY, ARKANSAS PORT AUTHORITY.
WHEREAS, Roanoke Distributors has plans for industrial
development to utilize the facilities of the West Memphis-
Crittenden County Port Authority contingent upon the extension
and rehabilitation of rail services to the proposed site; and
WHEREAS, the proposed industrial development has been
approved for up to five hundred thousand dollars ($500,000.00)
in Economic Development Set-Aside Funds through the Arkansas
Industrial Development Commission and for up to one hundred
seventy-five thousand dollars ($175,000.00) from the West
Memphis-Crittenden County Port Authority; and
WHEREAS, subject to approval of the City Council, the City
of West Memphis has negotiated with Union Pacific Railroad
Company for the acquisition of the Tenark Branch of the Union
Pacific Railroad including 31.6 acres of right-of-way for a
total payment of one hundred twenty-three thousand two hundred
thirty-nine dollars ($123,239.00) payable over five years at no
interest; and
WHEREAS, the upgrade of the Tenark Branch may require an
additional expense of up to three hundred forty thousand dollars
($340,000.00); and
WHEREAS, the necessary funds for the acquisition and
rehabilitation of the Tenark Branch of the Union Pacific
Railroad can be made available through funds of the West Memphis
Utility Commission; and
WHEREAS, the West Memphis Utility Commission has considered
this matter and authorized the obligation of up to one hundred
twenty-three thousands two hundred thirty-nine dollars
($123,239.00) for the acquisition of the Tenark Branch of the
Union Pacific Railroad to be payable over five years at no
interest and, in edition thereto, up to three hundred forty
thousand dollars ($340,000.00) for the rehabilitation of said
rail line;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF WEST MEMPHIS, ARKANSAS, that the actions of the West
Memphis Utility Commission in obligating up to one hundred
twenty-three thousand two hundred thirty-nine dollars
($123,239.00) for the acquisition of the Tenark Branch of the
Union Pacific Railroad payable over five years at no interest
and the obligation of up to three hundred forty thousand dollars
($340,000.00) for the rehabilitation of said line are hereby
approved and the Mayor is hereby authorized to commit such funds
for such purposes on behalf of the City of West Memphis.
ADOPTED this 5th day of December, 1991.
SPONSORED BY: