October 8, 1964N~iNUTES OF A SPECIAL 1~ETING OF THE CITY COUNCIL OF THE CITY OF WEST N,F2:PHIS, ARKANSAS,
HELD AT THE GTTr H_aL IN SAID CITY ON THE 8TH IlAY OF OCTOBER 1961. AT 3:00 P.M.
II
The Council of the City of West Memphis, in the County of Crittenden, State of
Arkansas, met in special session at the City Hall is said City, at 3:00 o'clock P.M.,
on the Bth day of October, 1964.
The meeting was called to order by the Nayor, and the roll being called, there
were:
Present: Hob Eden, Mayor, in the chair, and the following named Aldermen:
Kirby Leggett, F. C. Weis,
Paul Matthews, 0. I. Bollinger,
C. H. Rowton, R. C. Bowie,
Y. G. Sims, Earl Felts
City Attorney Y1. H. Dillahunty.
Absent: None.
Notice of Special Meeting having been accepted, the following proceedings were
had to-wit:
The Mayor stated that consideration should be directed by said Council to the
question of the passage and adoption of an ordinance to provide for the issuance of
bonds for the purpose of securing and developing industry within or near the City of
West Memphis.
After discussion by said Council, Alderman Rowton introduced in writing an
ordinance entitled, °An Ordinance Providing For the Issuance of $345,000.00 of
Industrial Revenue Bonds Under Authority of Act No. 9 of 1960, and X460,500.00 of
Industrial Development General Obligation Bonds Under Authority Of Amendment 49
To the Constitution Of The ate Of Arkansas For The Purpose Of Securing And
Developing Industry Within Or Near The City of West Memphis, Arkansas; Levying A
Tax For The Payment Of Said General Obligation :~Honds; Authorizing The Execution And
Delivery Of A Trust Indenture Securing The Said Honds; Authorizing And Prescribing
Other Matters Pertaining To Said Industrial Development And Its Financing; And Declaring
An Emergency", which ordinance he read in full.
Alderman Weis 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, which motion was seconded by Alderman Sims, and thereafter the
Mayor put the question on the adoption of said motion, and the roll being called, the
following voted:
Aye: Aldermen: Leggett, Matthews, Rowton, Sims, k`eis, Bollinger, Bowie, Felts,
and the following voted:
Nay: None.
'whereupon, the Mayor declared the motion duly passed and said Ordinance placed on
its second reading. The Ordinance then was read by the Clerk.
Alderman Bollinger then moved that the rules be Further suspended and the Ordinance
be placed on its third and final reading. This motion was seconded by Alderman Felts,
and after due consideration thereof by said Council, the Mayor put the question on the
adoption of the motion, and upon the roll being called, the following voted:
Aye: Aldermen: Leggett, Platthews, Rowton, Sims, ideis, Bollinger, Bowie, Felts,
and the following voted:
Nay: None.
Whereupon, the Mayor declared the motion duly carried and said Ordinance placed upon
its final reading.
Said Ordinance was then read in full by the Clerk, Alderman Leggett moved its
adoption, which motion was seconded by Alderman Bowie, 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: Aldermen: Leggett, N:atthews, Rowton, Sims, Weis, Bollinger, Bowie, Felts,
and the following voted:
Nay: None.
Whereupon, the Mayor declared said motion duly adopted and said Ordinance duly
passed, and signed his approval to said Ordinance; and same was attested by the Clerk
and impressed with the seal of the City.
Alderman Matthews then moved that said Ordinance go into immediate operation and
become effective without delay becuasa of the emergency declared in the final section
of said Ordinance, which section was then read in full, seconded by Alderman Rowton.
The N~yor put the question on the adoption of said motion, and the roll being called,
the following voted:
Aye: Aldermen: Leggett, Matthews, Rowton, Sims, Weis, Hollinger, Bowie, Felts,
and the following voted:
Nay: None.
Whereupon, the Mayor declared said motion duly passed.
Said Ordinance, to which no amendment was offered, read as follows:
ORDINANCE NO.~_
AN ORDINANCE PROVIDING FOR THE ISSUANCE OF $345,000.00 '~!~
OF INDUSTRIAL REVENUE BONDS UNDER AUTHORITY OF ACT N0.9
OF 1960 AND $460,500.00 OF INDUSTRIAL DEVELOPMENT ~''
GENERAL~OBLIGATION BONDS UNDER AUTHORITY OF AMENDMENT ~~~~1
49 TO THE CONSTITUTION OF THE STATE OF ARKANSAS FOR THE F~"fa
PURPOSE OF SECURING AND DEVELOPING INDUSTRY WITHIN OR ~i;.,;;,
NEAR THE CITY OF WEST MEMPHIS, ARKANSAS; IBVYING A TAX
FOR THE PAYMENT OF SAID GENERAL OBLIGATION BONffi; AUTHOR.- ~~
IZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE E
SECURING THE SAID BONDS; AUTHORIZING AND PRESCRIBING
r
OTHER MATTERS PERTAINING TO SAID INDUSTRIAL DEVELOPMENT
AND ITS FINANCING; AND DECLARING AN EMERGENCY f.,
WHEREAS, the City is authorized by Act No. 9 of the First
Extraordinary Session of the Sixty-Second General Assembly of the
State of Arkansas, approved January 21, 1960 (hereinafter sometimes .
~~~~ ;;
referred to as "Act No. 9"), to acquire lands and to acquire, construct
and equip buildings and manufacturing facilities thereon for the con-
duct of manufacturing operations and to lease the same for the pur-
pose of securing and developing industry within or near the City and
?';
to issue revenue bonds in connection therewith; and
WHEREAS, the City is authorized by Act No. 9 to issue
Industrial Development Revenue Bonds payable from lease rentals and
secured by a first mortgage on the lands, buildings and manufacturing
facilities so acquired or constructed through the issuance of such
revenue bonds; and
WHEREAS, for the purpose of securing and developing industry
within or near the City, the City is authorized by Amendment No. 49
to the Constitution of the State of Arkansas (hereinafter sometimes
referred to as "Amendment No. 49") to execute Industrial Development
General Obligation Bonds payable from a tax not Lo exceed five (5)
mills levied on the real and personal taxable property within the
City, which tax may be suspended in whole or in part, when not re-
!.
quired for the payment of the said Bonds; and
WHEREAS, the City has made the necessary arrangements with
Mid-South Foundry, Inc,, a corporation organized and existing under `'
the laws of the State of Arkansas (hereinafter sometimes referred to ;;i",
as "Mid-South") for the location of a plant for the manufacture of "4
~`:::
metal castings and appurtenant facilities within or near the City of k
West Memphis, Arkansas (hereinafter referred to as the "Project"), which `'~'
~:.:-
h,+a
indust will em to substantial numbers of ``'''
ry p y people in the City and in-
f,~'
F,!,,
crease the income of the residents of the City with a resulting ells- j!:„
viation of unemployment, increased employment, substantial payrolls
and other public benefits flowing from the operation of a metal cast-
ings plant and appurtenant facilities; and
WHEREAS, the said City heretofore, pursuant to ordinances duly
adopted, submitted to the qualified electors of said City the question
of issuing Industrial Development Rever.:ie Bonds in conformity with
the provisions of Act No. 9 in the amount of $30.0,000 and the question
of issuing Industrial Development General Obligation Bonds in confor-
mity with the provisions of Amendment No. 49 in the amount of
$450,000, for the purpose of financing the cost of the Project and
necessary expenses incidental thereto, and by more than a majority
', vote the electors of the City approved each issue of bonds for the i'~-'
~` purpose aforesaid at the special election held July lA, 1964; and f~~•~;~:~
WHEREAS, the City has at public sale, held September 3, 1964,
sold said Industrial Development General Obligation Bonds to 1Yulcck ~ ~~+
~.r `;;
iH ,;,''
Company, Inc., and W, H. Satterfield & Company, Inc., said bonds `~•°~~
s::. ~: ;
~.,,„..,
bearing interest at 3.65% per annimm, payable semiannually, at par ~'+"'
~,:
plug accrued interest, dated June 1, 1964, and maturing serially on Ih?
-2-
December 1 in each of the years 1967 to 1991, inclusive, but subject
to conversion at the option of the purchasers into an issue of bonds
bearing a lower rate or rates of interest, on the conditions that the
conversion he according to the Universal Bond Values Tables, that
the City receive no less, and pay no more, than it would receive or
pay for the bonds at the interest rate specified in the Notice of
Sale, and that the terms of conversion be approved by the City Council
of the City; and
WHEREAS, the said purchasers have elected to convert the said
issue of $450,000 of Industrial Development General Obligation Bonds
bearing interest at 3.65% per annum, into an issue of $460,500 of
bonds, $100,500 of bonds bearing interest at the rate of 3% per annum,
$64,000 of bonds bearing interest at 3-1/4~ per annum, $187,000 of
! bonds bearing interest at 3-1/?7. per annum, and $109,000 of bonds bear-
ing interest at 3.65% per annum, and which conversion the City Council
hereby finds and determines to be according to the terms of the Notice
of Sale, and the Universal Tiond Values Tables; and
WHEREAS, the City Council k.as entered into a contract with
Trulock & Company, Inc., and W. H. Satterfield & Company, Inc., for
the sale to it of the said $300,000 of industrial Development Revenue
Bonds bearing interest at the gate of 5.45% per annum, but subject to
conversion into an issue of bonds bearing a lower rate or rates of
interest, on the conditions that the conversion be according to the
Universal Bond Values Tables, that the City receive no less, and pay
no more, than it would rece=ve or pay for the bonds at the interest
-3-
rate contracted for, and that the terms for the conversion be approved
by the City Council of the City; and
WHEREAS, the said purchasers have elected to convert the said
issue of $300,000 of Industrial Development Revenue Bonds bearing in-
terest at the rate of 5.45% per annum, into an issue of $345,000 of
bonds, $104,000 of bonds bearing interest at 3-1/2% per annum, $38,000
of bonds bearing interest at 3-3/47. per annum, $74,000 of bonds bearing
interest at 4% per annum, $51,000 of bonds bearing interest at 4~%
per annum, and $78,000 of bonds bearing interest at 4'~'/, per annum,
which conversion the City Council hereby finds and determines to be
according to the terms of the contract and the Universal Bond Values
Tables; and
WHEREAS, the City has entered into a Lease Agreement with
Mid-South specifying the terms and conditions of the acquisition and
completion of construction and equipping of the Project and the leasing
of the same to Mid-South, which Lease Agreement was authorized by
Ordinance No. 466 of the City of West Memphis, Arkansas passed and
approved on the 17th day of September, 196!+, to which reference
may be made by any intereFted person for the rental, terms, conditions
and obligations of the parties thereto; and
WHEREAS. it is hereby determined that Industrial Development
Revenue Bonds in the principal amo~mt of $34 ,000 and Industrial
Development General Obligation Bonds in the principal amount of
$460,500 should be authorized for issuance, sale and delivery as
hereinafter provided,
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE
CITY OF WEST MEMPHIS, ARKANSAS:
Section 1. That there be, and there is hereby, authorized
and directed the following:
-4-
(a) The acquisition of the fee simple title to the lands
necessary for the Project (hereinafter described in the Trust
Indenture authorized by this ordinance);
(b) The performance of all obligations of the City, and
the acceptance of all promises and guarantees to the City, set fox
in the Lease Agreement pertaining to the construction and occupanc
of the Project.
Section 2. That to provide for the issuance of and to
secure Industrial Development Revenue Bonds of the City under Act
9 in the aggregate principal amount of $345,000, and Industrial
Development General Obligation Bonds of the City under Amendment N
49 in the aggregate principal amount of $460,500, described in the
form of the Trust Indenture hereinafter authorized, and to prescri
the terms and conditions upon which the Bonds are to be secured,
executed, authenticated, excepted and held, the Mayor is hereby
authorized and directed to execute and acknowledge the Trust Inden
and the City Clerk is hereby authorized and directed ~o execute an
acknowledge the Trust Indenture and to affix the seal of the City
thereto and to attest the same; and the Mayor and City Clerk are
hereby authorized and directed to cause the Trust Indenture to be
accepted, executed and acknowledsed by the Trustee, Simmons First
National Bank of Pine Bluff, in Pine Bluff, Arkansas, with the Tru
Indenture, which constitutes and is hereby made a part of this Ord
to be in substantially the following form, to-wit:
-5-
Section 3. That in order to pay the Industrial Development
Obligation Bonds as they mature, with interest thereon, there is ,~,
hereby levied upon all real and personal property within the City I~',
of West Memphis, Arkansas, a tax of three (3) mills for each of the L~'
years 1965 to 1991, inclusive, being a sum sufficient to pay said ''
Bonds and interest as they mature; and the City Clerk is directed
to transmit a certified copy of this section of this Ordinance to
4:w~::
the County Clerk of Crittenden County, to the end that said taxes
may be extended on the tax books of said county and collected annually
along with other taxes in the years 1965 to 1991, inclusive, until
the said Bonds and interest thereon are paid in full.
Whenever on the first day of November in any year there is V,,
on deposit with the City Treasurer of the City of West Memphis, or
with the Trustee, funds together with rentals reasonably certain
~1 ,
to be paid within the next year to apply on the a ~
p yment of the C '""~
principal of and interest on the Industrial Development General
Obligation Bonds of the City of West Memphis, together with all ~
paying agent's charges in connection therewith, and such funds are
sufficient and available for the said purpose, then the City may
suspend, in whole or in part, the collection of the said levy of
three (3) mills for the ensuing year. Immediately after November 1
of each year, the City Clerk of the City of West Memphis shall certify
to the County Clerk of Crittendeni County, Arkansas, each year the
sufficiency of the funds for the payment of principal of and interest
on the said Industrial Development General Obligation Bonds for the
ensuing year, and, in the event the said funds are not sufficient to
pay in full the next annual maturity of principal of and interest on
-6-
the said Industrial Development General Obligation Bonds of the
City, then the rate at which the said levy of three (3) mills
shall be collected for the ensuing year.
The collection of the said levy is hereby suspended, and
the said levy of three (3) mills shall not be collected in the
year 1965.
Section 4. For the prompt payment of the Industrial
Development General Obligation Bonds herein authorized, with interest
accruing thereon, the City of West Memphis hereby pledges its full
faith, credit, and taxing power, including the tax levied hereinabove
in Section 3.
Section 5, That the Mayor and City Clerk be, and they
are hereby, authorized and directed for and on behalf of the City
to do all things, execute sll instruments and otherwise to take all
action necessary *_o the realization of the City's rights and to
the discharge of the City's obligations as Lessor under said Lease
Agreement, and as party of the first part under said Trust Indenture,
Section 6. That this Ordinance shall not create any right
of any character, and r~ right of any character shall arise under
or pursuant to it, until the Bonds authorized by this Ordinance
shall be issued and delivered.
Section 7. That the provisions of this Ordinance are hereby
declared to be separable and if any section, phrase or provision
shall, for any reason, be declared to be invalid, such declaration
shall not effect the valid'_ty of the remainder of the section, phrases
or provisions.
-7-
35
.. j
Section 8. That all ordinances and parts thereof in conflict
s ~ ~.
herewith ar hereby repealed to the extent of such conflict.
Section 9. It is ascertained and declared that the
safety and health of the City of West Memphis are jeopardized by
the lack of sufficient industry and that only by action rude
possible by this Ordinance can the City undertake to secure and
-develop industry and 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.
PASSED• , 1964.
APPROVED:
Mayor
ATTEST:
City Clerk
(SEAL) -
There being no further business, the Council adjourned.
s~
~g
ATTEST L..~lc ~%~ et
APPROVED: OCTOBER 15, 1961y