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AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE UPON THE QUESTION OF ISSUING BONDS UNDER THE PROVISIONS OF ACT NO. 9 OF THE FIRST EXTRAORDINARY SESSION OF THE SIXTY-SECOND GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, APPROVED JANUARY 21, 1960 AS AMENDED, FOR THE PURPOSE OF FURNISHING THE PERMANENT FINANCING OF THE COST OF SECURING AND DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE); PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY
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WHEREAS, the General Tire and Rubber Company, an Ohio corporation (“General”), has proposed a substantial industrial plant which will furnish employment and payrolls and otherwise result in public benefits, all in the best interest of the City of Jonesboro, Arkansas (the “City”) and its citizens and inhabitants; and
WHEREAS, the proceeds of the bonds will be used to acquire machinery, equipment and facilities (the “facilities”) to be installed and operated in an industrial plant being constructed by General for the manufacturing of such products as General shall elect to manufacture; and
WHEREAS, in order to make the necessary provision for the permanent financing of the facilities and the expenses of authorizing and issuing the bonds, the City proposes to issue not to exceed One Million Dollars ($1,000,000) in principal amount of bonds (the “bonds”) under the provisions of Act No.9 of the First Extraordinary session of the Sixty-Second General Assembly of the State of Arkansas, approved January 21, 1960, as amended (“Act No. 9”); and
WHEREAS, the purposes of this Ordinance is to submit the question of the issuance of the bonds to the electors of the City at a special election called for that purpose;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
Section 1: That a special election be, and the same is hereby called to be held in the City on the 9th day of July, 1974, at which election there will be submitted to the electors of the City the question of issuing not to exceed One Million Dollars ($1,000,000) in principal amount of Industrial Development Revenue Bonds for the purpose of furnishing permanent financing of the cost of securing and developing industry (the industrial facilities are described above). The bonds will be dated, will bear interest at the rate or rates, the interest will be payable on such dates, the bonds will be subject to redemption prior to maturity in such manner and upon such terms, and the bonds may be issued at one time or in series from time to time, all as the City Council shall subsequently determine and specify in the ordinance authorizing the issuance of the bonds.
Section 2: that the question shall be placed on the ballot for the election in substantially the following form:
Vote on measure by placing an “X” in the square above the measure either FOR or AGAINST:
FOR THE Issuance of Industrial Development Revenue Bonds by the City of Jonesboro, Arkansas, in the aggregate principal amount of not to exceed $1,000.000.
AGAINST THE Issuance of Industrial Development Revenue Bonds by the City of Jonesboro, Arkansas in the aggregate principal amount of not to exceed $1,000,000.
It is proposed to issue City of Jonesboro, Arkansas (the “City”) Industrial Development Revenue Bonds (the “bonds”) under Act No. 9 of the First Extraordinary Session of the Sixty-Section General Assembly of the State of Arkansas, approved January 21, 1960, as amended (“Act No. 9”), in the aggregate principal amount of not to exceed $1,000,000 for the purpose of furnishing the permanent financing of costs of securing and developing industry. The bonds will be dated, the bonds will bear interest at such rate or rates, the interest will be payable on such dates, the bonds will mature on such date or dates, the bonds will be subject to redemption prior to maturity in such manner and upon such terms, and the bonds may be issued at one time or in series from time to time, all as the City Council shall subsequently determine and specify the ordinance authorizing their issuance. The proceeds of the bonds will be used to acquire machinery, equipment and facilities (the “facilities”) to be installed and operated in an industrial plant being constructed by the General Tire & Rubber Company, an Ohio corporation (“General”) and to pay the expenses of issuing the bonds. The facilities will be owned by the City and leased to General for lease rentals sufficient to provide for the payment of the principal of the interest on the bonds. The bonds will not be general obligations of the City but will be special obligations payable solely from revenues derived from the facilities, including particularly lease rentals under the Lease Agreement with General referred to above, which will be specifically pledged to the payment of the principal of the interest on the bonds, and the bonds will be secured by a security interest in the facilities as authorized by Act No. 9.
Section 3: That the election shall be held and conducted and the vote canvassed and the results declared under the law and in the manner provided for municipal elections, so far as the same may be applicable and the Mayor shall give notice of such election by an advertisement published once a week for four consecutive weeks in a newspaper having a bona fide circulation in the City with the last publication to be not less than ten days prior to the date of the election, and only qualified electors of the City shall have the right to vote at said election on the questions.
Section 4: That the results of the election shall be proclaimed by the Mayor and his proclamation shall be published one time in a newspaper having a bona fide circulation in the City, which proclamation shall advise that the results as proclaimed shall be conclusive unless attacked in the courts within thirty days after the date of such proclamation.
Section 5: That, a copy of this Ordinance shall be furnished to the Craighead County Board of Election Commissioners so that the necessary election officials and supplies may be provided.
Section 6: That the Mayor and City Clerk are hereby authorized to execute, for and on behalf of the City, a Memorandum of Intent in the usual form setting forth a general understanding of the undertakings of the parties with respect to the construction and equipment of the facilities, their operation and their financing by the issuance of the bonds referred to in this Ordinance.
Section 7: That there is hereby found and declared to be an immediate need for the securing and developing of industry in order to provide employment and payrolls and alleviate unemployment , and the issuance of the bonds referred to in this Ordinance is essential to accomplishing those public benefits. It is, therefore, declared that an emergency exists and this Ordinance being necessary for immediate preservation of the public health, safety and welfare shall be in force and effect immediately upon and after its passage.
PASSED and ADOPTED this 20th day of May, 1974.