1535ORDINANCE NO . J 5 3 5
AN ORDINANCE AUTHORIZING THE ISSUANCE OF AN
INDUSTRIAL DEVELOPMENT REVENUE BOND FOR THE
PURPOSE OF FINANCING INDUSTRIAL FACILITIES;
AUTHORIZING A MORTGAGE SECURING THE BOND;
AUTHORIZING AND PRESCRIBING OTHER MATTERS
PERTAINING THERETO; AND DECLARING AN
EMERGENCY.
WHEREAS, the City of West Memphis, Arkansas (the "City")
proposes to acquire a branch railroad line (the "Project") from
Missouri Pacific Railroad Company ("MOP") for a purchase price of
$123,239 for the trackage and appurtenances thereto, for the
purpose of providing rail service for an industrial plant at the
City; and
WHEREAS, the real property associated with the branch
line will be donated to the City; and
WHEREAS, it is proposed that the City issue its revenue
bond under Subchapter 2 of Chapter 164, Title 14, Arkansas Code of
1987 Annotated (the "Act"), for the purpose of financing part of
the cost of acquiring the Project; and
WHEREAS, pursuant to and in accordance with applicable
provisions of Arkansas law a public hearing was held prior to the
passage and approval of this Ordinance before the City Council on
the question of the issuance of such revenue bond under the Act;
and
WHEREAS, after due consideration, the City is now
prepared to proceed with acquiring and financing the Project and,
to issue and sell its $98,591.20 Industrial Development Revenue
Bond (the "Bond") to provide part of such financing; and
WHEREAS, copies of the hereinafter described Donative
Quitclaim Deed, Bill of Sale, Bond and Mortgage have been presented
to and are before this meeting;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the
City of West Memphis, Arkansas:
SECTION 1. The City hereby finds that acquiring the
Project, and the issuance of the Bond to f finance the same, will
provide substantial employment and payrolls and will thereby secure
and develop industry at the City and the surrounding area.
SECTION 2. The issuance of the Bond is hereby
authorized. The Bond shall be issued in the form presented to this
meeting. The Bond shall bear no interest. It shall mature in
annual installments of $24,647.80 on June 1 of each of the years
' 1993 through 1996.
SECTION 3. The City hereby accepts the donation of
the real property associated with the branch line.
SECTION 4. The Project shall be acquired from MOP by
Donative Quitclaim Deed and Bill of Sale in substantially the form
submitted to this meeting. The City shall pay $24,647.80 of the
trackage purchase price in cash and pay the balance by issuing and
delivering the Bond to MOP.
SECTION 5. To secure the Bond the Mayor is hereby
authorized and directed to execute and acknowledge a Mortgage from
the City to MOP and the City Clerk is hereby authorized and
directed to execute and acknowledge the Mortgage and to affix the
seal of the .City thereto. The Mortgage is approved in
substantially the form submitted to this meeting.
,SECTION 6. The Bond will be issued under the Act. It
will not be a general obligation of the City, but will be a special
obligation payable solely from and secured by a pledge of "Surplus
Utility Revenues," as defined below.
The City owns and operates its water, sewer and electric
utility facilities (the "Utility System"). The Surplus Utility
Revenues which are pledged are those Utility System revenues
remaining after adequate provision has been made for expenses of
operation, maintenance and depreciation of the Utility System and
all requirements (pertaining to the payment of principal, interest
and fees in connection with bonds, and establishing and maintaining
reserves) of ordinances securing bonds, heretofore or hereafter
issued, to finance or refinance the cost of constructing,
reconstructing, extending, improving or equipping the Utility
System, including any other utility facilities owned by the City
which are at the time declared by the City Council to be
interrelated municipal activities and concerning which utility
(meaning here all such interrelated activities, i.e., electric,
sewer, water, gas, solid waste, or any combination thereof) system
revenue bonds are being issued, have been fully met and complied
with. Such bonds (or other obligations), heretofore or hereafter
issued, are referred to as "Utility Bonds."
It is understood that this pledge of Surplus Utility
Revenues shall not prohibit the City from issuing Utility Bonds, or
expending Utility System revenues, for extensions and improvements
to the Utility System (including any interrelated utility
facilities referred to in the preceding paragraph) from time to
time in the future. Any pledge made of Utility System revenue to
the payment of Utility Bonds shall be superior to the pledge of
Utility System revenues to bonds secured, in whole or in part, by
Surplus Utility Revenues. This pledge of Surplus Utility Revenues
is subject and subordinate to the prior pledge of Surplus Utility
Revenues to the City of West Memphis, Arkansas Municipal Airport
Refunding and Improvement Revenue Bonds, Series 1991. However, the
pledge of the Surplus Utility Revenues herein made shall be
superior and prior to any pledge of Surplus Utility Revenues
hereafter made to any bonds or other obligations of the City, other
than Utility Bonds.
SECTION 7 The City Clerk is hereby authorized and
directed to file in the office of the City Clerk, as a part of the
minutes of the meeting at which this Ordinance is adopted, for
inspection by any interested person copies of the Bond, the
Donative Quitclaim Deed and the Mortgage and such documents shall
be on file for inspection by any interested person.
SECTION 8. The provisions of this Ordinance are
hereby declared to be separable, and if any section, phrase or
provisions shall for any reason be declared to be invalid, such
declaration shall not affect the validity of the remainder of the
sections, phrases and provisions.
SECTION 9. All ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent of
such conf 1 ict .
SECTION 10. There is hereby found and declared to be
an immediate need for the securing and developing of industry in
order to provide substantial employment and payrolls, thereby
alleviating unemployment and otherwise benefiting the public
health, safety and welfare of the City and the inhabitants thereof,
and the issuance of the Bond authorized hereby and the taking of
the other action authorized hereby are immediately necessary for
the accomplishing of these public benefits and purposes. It is,
therefore, declared that an emergency exists and this Ordinance
being necessary for the immediate preservation of the public peace,
health and safety shall be in force and effect immediately upon and
after its passage.
PASSED: fi,~,~~aa, , 1992.
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A ROVED:
ATTEST: '`
Ma or
City Clerk
(SEAL)
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ARKANSAS SECURITIES COMMISSIONER: ~{~_~.~~.~~~~.(,~
ACT NO. 9 - INFORMATION F~3N,~ ~ U ~~ _
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In conformity with the provisigr~s, of~ Title 14, Chapter
164, Subchapter 2 of the Arkansas Code "t~P~~'2~8'7-~s~4~iti~i~~d, the
following notice is given:
A. The City of West Memphis, Arkansas (the "City"), will
hold a public hearing on TUt..y o1 a 1992, at
a: °~ o'clock noon , in the usual meeting place of
the City Council, at City Hall, on the question of an
ordinance authorizing the issuance of an industrial
development revenue bond to finance the project described
below. The City has published a notice of the hearing in
a newspaper of general circulation in the City at least
ten (10) days prior to the date of hearing. The notice
will be filed in the off ice of the City Clerk of the City
and a copy is attached hereto.
B. The maximum aggregate face amount of the bond to be
issued with respect to the project is $98,591.20. The
bond will bear no interest. It will mature in four
installments of $24,647.80. Installments will be payable
on June 1 of each of the years 1993 through 1996. The
bond will be issued to pay part of the cost of the
project.
C. The project is the acquisition of a branch railroad line
to serve an industrial site. The real property assocated
with the branch line will be donated to the City. The
City is acquiring the trackage and appurtenances thereto
for a purchase price of $123,239 and paying $24,647.80 in
cash. The bond will be retired from surplus revenues of
the City's electric, water and sewer utility system, as
permitted by the Act.
D. The names and addresses of the persons authorized to
receive correspondence on behalf of the City are:
Honorable Keith Ingram
Mayor
City Hall
P.O. Box 1728
West Memphis, Arkansas 72301
Mr. Dan Craft
City Clerk
City Hall
P.O. Box 1728
West Memphis, Arkansas 72301
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E. The name and address of counsel is:
Mr. David C. Peeples
Attorney at Law
P.O. Box 768
West Memphis, Arkansas 72303-0768
Executed This -~- day of ` , 1992.
CITY OF WEST MEMP ARKANSAS
BY
David ep s
Counsel for the City
V
RECEIPT OF NOTICE
The undersigned, Commissioner of the Securities
Department of the State of Arkansas, hereby acknowledges
receipt of a notice of a public hearing to be held before
the City Council of West Memphis, Arkansas, on July 22,
1992, regarding the issuance of industrial development
revenue bonds pursuant to Arkansas Code Annotated Sections
14-164-201 to 224 (1987 & Supp. 1991).
DATED THIS ~ DAY OF JULY, 1992.
~~ Alrkansas $ecurities Co~dnissioner
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NOTICE OF PUBLIC HEARING
Notice is hereby given that a public hearing will be held before
the Mayor and City Council of the City of West Memphis, Arkansas
(the "City"), at 12:00 noon, on July 22, 1992, in the usual meeting
place of the City Council, at City Hall, on the question of the
adoption of an ordinance authorizing the issuance of an industrial
development revenue bond. The bond will be issued under the
authority of Title 14, Chapter 164, Subchapter 2 of the Arkansas
Code of 1987 Annotated, for the purpose of financing a part of the
cost of the project described below. Interested individuals may
appear at the public hearing and express their views, both orally
and in writing, on the proposed issuance of the bond and the nature
of the proposed project to be financed.
The public is advised that:
1. The project consists of the acquisition from Missouri
Pacific Railroad Company of a railroad branch line to serve an
industrial plant site. The purchase price is $123,239.
2. The maximum aggregate face amount of the bond to be
issued with respect to the project -is $98,591.20.
At the hearing all objections and suggestions will be heard and
considered, and the Mayor and City Council will take such actions
as are deemed proper in the premises.
DATED: July 9, 1992.
APPROVED:
CITY OF WEST MEMPHIS, ARKANSAS
jsj Dan Craft
jsj Keith M. Ingram City Clerk
Mayor
Note: To be publist.~d in a newspaper of general circulation at
least ten (10) days prig to date of hearing.
ARKANSAS
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SECURITIES DEPARTMENT
HERITAGE WEST BUILDING • THIRD FLOOR
201 EAST MARKHAM
LITTLE ROCK, ARKANSAS 72201-1692
TELEPHONE 501-324-9260
July 13, 1992
Mr. John C. Echols
Friday, Eldredge & Clark
2000 First Commercial Building
400 West Capitol
Little Rock, Arkansas 72201
RE: City of West Memphis, Arkansas Industrial
Development Revenue Bonds - (Purchase of Branch
Railroad Line from Missouri Pacific Railroad)
Series 1992
Dear Mr. Echols:
The Arkansas Securities Department is in receipt of
your Act 9 information filing. You are being forwarded a
copy of this filing together with a signed Receipt of
Notice. By copy of this letter, those individuals shown
below are also being notified of your filing.
At such time as the details pertaining to the interest
rate, maturity, and other such provisions of the proposed
bonds have been finalized, please advise this Department of
these details, together with the manner in which the bonds
were sold.
Please understand that these securities, when issued,
may ultimately be marketed and sold to the public. For this
reason, it is important that those responsible perform a
reasonable investigation to ascertain the economic soundness
of this issue together with careful analysis of those
persons who are connected with the creation and management
of this project.
i
JEM/pjs
Very trul yours,
OE E. MADDEN, JR.
Securities Commissio
Enclosure
Mr. John C. Echols
July 13, 1992
Page 2
cc: Honorable Keith M. Ingram
Mayor
City Hall
Post Office Box 1728
West Memphis, Arkansas 72301
Mr. Dan Craft
City Clerk
City Hall
Post Office Box 1728
West Memp:~is, Arkansas 72301
Mr. David C. Peeples
Attorney at Law
Post Office Box 768
West Memphis, Arkansas 72303
Mr. Dave Harrington, Director
Arkansas Industrial Development Commission
No. 1 Capitol Mall Building
4C-300
Little Rock, Arkansas 72201
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