Loading...
1106_, RESOLUTION N0. ~ ~ fl ~p A RESOLUTION AUTHORIZING A SUPPLEMENT TO MEMORANDUM OF INTENT BY AND AMONG THE CITY OF WEST MEMPHIS, ARKANSAS AND AUTOMATED CONVEYOR SYSTEMS, INC., PERTAINING TO THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR FINANCING THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING INDUSTRIAL FACILITIES; AND PRESCRIBING OTHER MATTERS RELATING THERETO. BE IT RESOLVED by the City Council of the City of West Memphis, Arkansas: Section 1. That there be, and there is hereby autho- rized the execution and delivery of a Supplement to Memorandum of Intent by and among the City of West Memphis, Arkansas (the "Municipality"), and Automated Conveyor Systems, Inc., a Tennessee corporation (the "Company"), and the Mayor and City Clerk be, and they are hereby, authorized to execute and deliver the Supplement to Memorandum of Intent for and on behalf of the Municipality. The Supplement to Memorandum of Intent is ap- proved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Company and the Partnership in order to complete the Memorandum of Intent in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the docu- ment, their execution to constitute conclusive evidence of such approval. Section 2. That the Mayor and City are hereby authorized and directed, for an< Municipality, to do all things, execute otherwise take all action necessary to the Municipality's right and the discharge of obligations under the Supplement to Memorandum PASSED: June 4, 1987. ATTEST: City 1 (SEAL) Clerk be, and they on behalf of the 11 instruments and realization of the the Municipality's of Intent. h" t '. ,(~it~ ~~~ ~~Q ~~ ~~' ,R-~ ~u"~ SUPPLEMENT TO MEMORANDUM OF INTENT This SUPPLEMENT TO MEMORANDUM OF INTENT is between the CITY OF WEST MEMPHIS, ARKANSAS (hereinafter referred to as the "Municipality"), and AUTOMATED CONVEYOR SYSTEMS, INC., a Tennessee corporation (hereinafter referred to as the "Compa- ny„). WHEREAS, the Municipality and the Company have hereto- fore entered into a Memorandum of Intent dated as of Febru- ary 20, 1986 (the "Memorandum of Intent"), authorized by Resolu- tion No. 1038 of the City Council of the Municipality, adopted and approved February 20, 1986, pertaining to the financing of certain industrial facilities generally described therein (the "Project"); and WHEREAS, it is now expected that the Project will consist of an approximately 55,000 square foot building addition together with various machinery and equipment; and WHEREAS, it is now estimated that revenue bonds will be issued in the aggregate principal amount of approximately $1,000,000; NOW, THEREFORE, in consideration of the purposes set forth in the Memorandum of Intent, as supplemented by this Supplement to Memorandum of Intent, and the benefits to be derived therefrom, and of good and valuable considerations, receipt of which is hereby acknowledged by each party, the Municipality and the Company AGREE: Section 1. Section 1(b) of the Memorandum of Intent is hereby amended to read as follows: (b) The Company presently operates, under lease from the Municipality, an industrial plant located within the corporate boundaries of the Municipality (the "Plant"). It is proposed by the Company that certain additional facilities be acquired, constructed and equipped as part of an expansion to the Plant (the "Project"). It is expected at this time that the Project will consist of an approximately 55,000 square foot building addition together with various machinery and equipment. The Company will use the Project for the manufacture of conveyors. Section 2. Section 2(a) of the Memorandum of Intent is hereby amended to read as follows: (a) That when requested by the Company, it will authorize and take, or cause to be taken, the neces- sary steps to issue revenue bonds under the Act, in the aggregate principal amount necessary to furnish the permanent financing of all or any part of the costs of accomplishing the Project. In this regard, it is estimated at this time that revenue bonds in the aggregate principal amount of $1,000,000 will be issued. However, the Municipality's commitment is to issue revenue bonds under the Act in such amount as shall be requested by the Company for accomplishing all or any part of the Project, whether that amount is more or less than the above estimate and whether the facilities finally acquired, constructed and equipped are identical to or are different from the facilities presently expected to constitute the Project. It is understood that as specified in the Act such bonds will not be general obligations of the Municipality, but will be special obligations, and in no event will they constitute an indebtedness of the Municipality within the meaning of any constitutional or statutory limitation. The Municipality 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 3. The Municipality hereby confirms and ratifies its obligations contained in the Memorandum of Intent, including particularly the commitment of the Municipality to issue revenue bonds as set forth therein in the aggregate principal amount necessary to furnish the financing of the costs of accomplishing the Project or any portion thereof. IN WITNESS WHEREOF, the parties hereto have entered into this Supplement to Memorandum of Intent by their officers thereunto duly authorized as of the 4th day of June, 1987, CIT WEST MEMPHIS,;AR SAS ATTEST : ~% r By C May City C er / (SEAL) ATTEST: (title) AUTOMATED CONVEYOR SYSTEMS, INC. By (title (SEAL)