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AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF BUILDING AT THE JONESBORO MUNICIPAL AIRPORT: PROVIDING FOR THE CITY AIRPORT COMMISSION TO CONTRACT FOR THE CONSTRUCTION THEREFORE; APPROVING LEASE OF SAID PREMISES: PROVIDING FOR THE ISSUANCE OF REVENUE BONDS PAYABLE SOLELY FROM INCOME TO BE RECEIVED FROM THE PREMISES; AUTHORIZING LEASE AND AGREEMENT TO SELL SURPLUS PROPERTY; PLEDGING LEASE PAYMENTS AND INTEREST IN PROPERTY TO THE PAYMENT OF BONDS; AND PRESCRIBING OTHER MATTERS IN RELATION THERETO AND DECLARING AN EMERGENCY (NOTE: THIS ORDINANCE WAS AMENDED BY ORD-57:1997 ON AUGUST 5, 1957)
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WHEREAS, the City Council of Jonesboro, Arkansas, has, by Resolution, approved the improvement of, the lease and sale of property acquired for airport purposes and no longer required for such purposes, and has found it to be to the interest and benefit of the citizens of Jonesboro to accomplish such improvements, lease and sale; and
WHEREAS, in order to accomplish the planned improvement it has been found desirable and in the public interest to raise the cost of such improvement by the issue of revenue bonds to be payable from the lease-purchase payments to be made under an agreement with the Jonesboro Industrial Development Corporation, which, in turn may sublease or contract with others for such payments, and to further secure said bonds by a Pledge or Mortgage of the improved premises; and
WHEREAS, it has been determined that bonds in the total sum of Five Hundred Thousand Dollars ($500,000.00) will be required for such purposes and can be sold and disposed of at a rate of interest equal to 3 percent per annum, with semi-annual payments of principal and interest, the last maturity not exceeding 21 years, and that the bonds would be more readily marketable if converted as to interest rate so that certain of the bonds be designated "First Lien Bonds" and should bear not less than 3 ½ percent interest, and certain of same to e designated "Second Lien Bonds" and bear no interest; and
WHEREAS, the City council has determined that it is to the best interest of City of Jonesboro and the inhabitants thereof to sell the land upon which such improvements are to be constructed, and as described herein, for a total consideration of Twenty Thousand Dollars (20,000.00), to be paid after all of the First Lien Bonds of said issue are retired, and to accept the note or obligation of Jonesboro Industrial Development Corporation to pay said sum, which obligation shall be secured by an escrow of an equal amount of Second Lien Bonds, and that the deed of conveyance of the City should be executed and delivered in escrow, to be further delivered to the Jonesboro Industrial Development Corporation, or its assigns, upon payment of the purchase price.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
SECTION 1: That the Mayor and City Clerk be authorized and directed to execute and deliver a deed in escrow to the Mercantile Bank, Jonesboro, Arkansas, and sign, on behalf of the City, an escrow agreement providing that said deed should be delivered to the Jonesboro Industrial Development Corporation upon the payment of Twenty Thousand Dollars ($20,000.00) from rents to be obtained from the premises conveyed, the escrow agreement to provide that said Corporation secure its obligation by deposit with said escrow agent Second Lien Bonds of the issue authorized by this Ordinance, of a par value equal to said purchase price. The lands to be deeded are to be described as:
A tract of approximately 16 acres in the Northeast Quarter of Section 21 and Northwest Quarter of Section 2, Township 14 North, Range 4 East, with 400 feet front on the Airport access road, beginning 840.1 feet from the North intersection of said road and the right-of-way of the St. Louis San-Francisco Railroad, and extending Northwesterly to the right-of-way of the St. Louis Southwestern Railway, or as may be more particularly described.
SECTION 2: The Airport Commission of the City of Jonesboro is authorized and directed to plan, approve plans, and contract or sub-contract for the construction and accomplishment of site improvement and an industrial-type building of approximately 90,000 square feet, together with appurtenances, according to plans and details of construction and contract as shall be approved by said Commission and found by it to be suitable to a prospective Lessor or purchaser, to be determined by said Commission, and to do all things and make, on behalf of the City, all contracts and agreements necessary to accomplish the purpose of this ordinance. The Mayor and City Clerk are authorized to execute, sign and deliver any such contracts as shall be approved by or made by the Jonesboro Airport Commission on behalf of the City.
SECTION 3: The Mayor and the City Clerk, together with the President and Secretary of the Jonesboro Airport Commission, are authorized and directed to enter into a Lease Agreement with the Jonesboro Industrial Development Corporation, which lease may also provide for monthly payments sufficient to amortize principal and interest, together with paying agent or other charges of the bond issue herein authorized, together with amounts contracted to e paid for the deed mentioned above, within not more than 21 years.
SECTION 4: Be it further obtained by the City Council, in order to obtain funds for the improvement and construction aforesaid, that the Mayor and the City Clerk shall execute, sign, seal and deliver the bonds described in the following Pledge and Assignment to the purchasers thereof upon payment of par in cash or credits and the Pledge and Assignment to the Trustee named therein. Said Pledge and form or Bond to be substantially as set out in words and figures as follows:
PLEDGE, ASSIGNMENT AND AGREEMENT
This Pledge, by and between the CITY OF JONESBORO, ARKANSAS, and the MERCANTILE BANK, of Jonesboro, Arkansas, TRUSTEE, WITNESSETH:
WHEREAS, the City, in full compliance with ordinances, duly and lawfully adopted, and in full compliance with laws of the State of Arkansas for the improvement of public property, has authorized and directed that revenues for said property be pledged and interest therein assigned and pledged to the payment of such bonds; and
WHEREAS, pursuant to such laws and ordinances and in strict compliance with the terms thereof, the City of Jonesboro has, by signature of its Mayor and City Clerk, issued its negotiable serial bonds dated as of May 1, 1957, with interest payable semiannually on May 1 and November 1 of each year, as follows:
1958 $19,000 1968 $27,000
1959 20,000 1969 30,000
1960 20,000 1970 30,000
1961 21,000 1971 30,000
1962 22,000 1972 31,000
1963 22,000 1973 32,000
1964 24,000 1974 32,000
1965 24,000 1975 34,000
1966 25,000 1976 31,000
1967 26,000
The bonds bear interest at the following rates per annum: Bonds Nos. 1 through 420, at 3 ½ percent and Bonds Nos.421 through 500 bear not interest.
The bonds shall be executed by the Mayor and the City Clerk, and the coupons attached to certain of the bonds, by the facsimile signature of the Mayor, who, by his execution of the bonds, shall adopt as and payable before maturity, as hereinafter set out, and shall be substantially the following form:
CITY OF JONESBORO
COUNTY OF CRAIGHEAD
STATE OF ARKANSAS
3 ½ % Revenue Bond
No.______________ $_________________
KNOW ALL MEN BY THESE PRESENTS:
That the City of Jonesboro, in the County of Craighead, State of Arkansas, acknowledges itself to owe, and, for value received, promises to pay to the bearer the sum of One Thousand Dollars ($1,000.00) in lawful money of the United States of America, on the first day of May, 19___, with interest thereon form date hereof at the rate of 3 ½ percent per annum until paid (Bonds Nos. 421 through 500 to state without interest), interest payable semi-annually on the first day of May and of November of each year, commencing November 1, 1957, on presentation and surrender of the annexed coupons as they severally mature. Both the principal and interest of this bond are hereby made payable at the office of any bank in Jonesboro, Arkansas.
This is one of a series of bonds aggregating Five Hundred Thousand Dollars ($500,000.00), all of like tenor and effect, except as to number, maturity and interest rate, issued for the purpose of improving a site and constructing a building on property owned by the City adjacent to the Municipal Airport, and the City hereby warrants and covenants that in issuing this bond it has proceeded in according with the provisions of applicable law and under ordinances duly adopted by the City Council, and all conditions facts and things required to exist, to be performed, and to happen, precedent to and in the issuance of this bond, have existed, have been performed and have happened in due time, form and manner as required by law and ordinance, and that the issuance, execution, delivery and payment of this bond and the interest coupons attached are not prohibited by any provision of the Constitution or laws of the State of Arkansas, and that no part of the City's tax or governmental funds are used, to be used, or pledged for the payment thereof.
All income, rents and profits, and amounts received or to be received from the use or ownership of the premises improved by this issue are assigned to payment of the bonds and interest and paying charges of this issue, and cannot be used for any other purpose.
The bonds of this issue are callable for payment prior to maturity, either in whole or in inverse numerical order, beginning with Bond No.421, on any date after 30 days' notice which shall be published once a week for two weeks in a newspaper published in Jonesboro, Arkansas. All bonds so called shall cease to bear interest after the date fixed for their redemption, provided funds for their payment are on deposit with the paying agents at that time.
IN WITNESS WHEREOF, the City of Jonesboro, Arkansas, has executed this bond by the hands of its Mayor and City Clerk, and attested it with its Corporate Seal, and has caused the coupons attached to be authenticated by the facsimile signature of its Mayor as of the first day of May, 1957.
CITY OF JONESBORO
By________________________
Mayor
ATTEST: _________________________
City Clerk
(SEAL)
To each of Bonds nos.1 through 420 there shall be attached coupons for semi-annual interest in the following form:
BOND NO.______________
COUPON NO.___________ $17.50
On the first day of ___________, 19___, unless the bond to which this coupon is attached is paid prior thereto, the City of Jonesboro promises to pay to the bearer Seventeen and 50/100 Dollars ($17.50) at the office of any bank in Jonesboro, Arkansas, being 6 months' interest then due.
CITY OF JONESBORO
By_________________________
Mayor
NOW, THEREFORE, In consideration of the sum of One Dollar ($1.00) and other good and sufficient consideration, and for the purpose of securing the payment of each and all of the aforesaid bonds and interest thereon, the City of Jonesboro, Arkansas, does hereby pledge, assign, transfer and set over to the Mercantile Bank, of Jonesboro, Arkansas, as Trustee, and to its successors in trust and their assigns, all revenue, rents, income, or profits derived or to be derived from the following lands and improvements now or hereafter placed thereon in the City of Jonesboro, Craighead County, Arkansas:
(Description)
The City covenants and agrees:
(1) That the property described herein has been leased to the Jonesboro Industrial Development Corporation, with the right and privilege in the Lessee to sublease or to assign same, and the premises are leased for an amount of monthly payments, to continue for sufficient time to pay the principal and interest of bonds secured by this Pledge and described above.
(2) No part of the rents, issues, profits or gain from or growing out of said tract under the lease described above, or any other lease, or obtained in any other manner from said tract, shall be used for any other purpose than the payment of the bonds secured by this Pledge, together with interest and paying agents' chares. Such revenue shall be deposited in Jonesboro banks, subject to withdrawal only for such purposes so long as any of said bonds or interest coupons remains outstanding.
(3) The Lease Contact and any subsequent such contract shall provide, in addition to payments necessary to amortize the principal and pay the interest and paying agents' charges of this issue, that the properties will be kept fully insured as to fire, windstorm and the casualties generally denoted as and covered by policies of extended coverage for amounts not less than the principal amount of said bonds at the time outstanding and unpaid. Said policies hall be written by companies approved by the Trustee named herein, and standard loss payable clauses shall be attached to said policies and the original thereof delivered to said trustee to secure the holders of said bonds. Proceeds of such insurance shall be used only for repair or casualty damage to the premises, or for payment of the bonds and coupons aforesaid, so long as any of them remain unpaid.
(4) Any lease of the premises shall provide that the Lessee shall keep the same in a useable state of repair and shall do all inside and outside maintenance necessary to so maintain the premises.
(5) The bonds of this issue shall be callable at any time before maturity for payment, according to the terms set out in the bond forms. No payments shall be made on said bonds or interest except to the designated paying agents. All bonds and all interest coupons that are either paid or called shall be cancelled and returned to the City and shall not be reissued. The charges for paying bonds and interest coupons shall be 1/8 of 1 percent on the principal, and 5 cents per interest coupon paid. Deposit of amounts in the bond payment funds shall not operate as a payment of bonds or coupons until so applies.
(6) It is hereby declared that the provisions of this Pledge constitute a contract by and between the City and the holders of the bonds and interest coupons issued hereunder, and after said bonds have been issued and paid for by the purchasers, the terms of this Pledge shall not be changed except with the written consent of the holders of all said bonds and coupons then outstanding.
(7) It is hereby declared that the provisions of this Pledge are separable, and if any provisions hereof shall, for nay reason, be held illegal or invalid, it shall not affect the validity of the remainder of the Pledge, and in any event, the holders of said bonds and coupons shall be entitled to the income, gain, or profit form the trace described above and any improvements now or hereafter located hereon, and, if default occur, the Trustee named herein shall be entitled to foreclose the lien hereby created thereon and have possession, ownership and control of said property, and shall be entitled to a Receiver to take chare thereof, and to take any and all other steps to collect amounts due on said bonds and interest coupons. The holder of any bond or interest coupon that is in default shall have like powers, and no delay or failure to exercise such powers shall act as any waiver of any rights or privileges to collect the amounts due to or enforce the terms of this Pledge.
(8) The Mercantile Bank, of Jonesboro, Arkansas, is designated as Trustee and authorized to act for and on behalf of the bondholders, but it shall be responsible only for willful wrong in the execution of its trust, and recitals of facts contained herein and in the bonds are statement of the City and not the Trustee. The Trustee shall not be required to take notice of any default or to take any action hereunder until it shall have been notified in writing of such default and indemnified to its satisfaction against any loss, expense or cost that it may incur by taking action. The holders of the majority in value of the outstanding bonds may, at any time, by an instrument duly executed and recorded in the office of the City Clerk, appoint a new Trustee, who shall have all the powers of the Trustee originally named. The Trustee is authorized, in its discretion, to release any lien on real or personal property or any assignments or pledges made to secure the obligations described herein.
IN WITNESS WHEREOF, The City of Jonesboro, Arkansas, has caused this instrument to be executed under the hands of their designated officers and under the Corporate Seal of said City, this 8th day of April, 1957.
CITY OF JONESBORO
By: HERBERT SANDERSON, MAYOR
PHYLLIS STRINGER, CITY CLERK
(SEAL)
ACKNOWLEDGEMENT
STATE OF ARKANSAS
:
(COUNTY OF CRAIGHEAD)
BE IT REMEMBERED, that on this day came before me, the undersigned, a Notary Public within and for the County aforesaid, duly commissioned and acting, HERBERT SANDERSON and PHYLLIS STRINGER, to me personally well known, who stated that they were the MAYOR and CITY CLERK, respectively, of the City of Jonesboro, Arkansas, and that they were fully authorized in such capacities to execute the foregoing instrument for and in the name and behalf of the City of Jonesboro, and further stated and acknowledged that they had so signed, executed and delivered the forgoing instrument for the consideration, uses and purposes therein mentioned and set forth.
WITNESS my hand and seal as such Notary Public this _____day of ___________, 19___.
___________________________________
Notary Public
My commission expires:
________________________
SECTION 5: The Mayor and City Treasurer are directed to assign, pay and deliver the proceeds of the bonds described in Section 4 to the Jonesboro Airport Commission, who shall use same to accomplish improvements set out in Section 2 of this Ordinance. Said sums shall be deposited in banks in the City of Jonesboro, to be designated "Construction Fund" and shall be used for no other purpose than payment for the improvements to be constructed on the lands described, as authorized by this Ordinance.
SECTION 6: It is ascertained and declared that the vacant and unimproved land within the City of Jonesboro lying West of the Municipal Airport, and described in this Ordinance, constitutes a hazard to the life, health and well-being of residents of the municipality, and its improvement and use will contribute to the economic welfare, health and wellbeing of citizens and improvement of property values; and this ordinance being necessary for the immediate protection of the public peace, health and safety and being made necessary by the demands of public welfare, an emergency is declared to exist, and this Ordinance shall be in full force and effect immediately upon and after its passage.
PASSED and ADOPTED this 8th day of April, 1957.