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AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER ACT NO. 9 OF THE FIRST EXTRORDINARY SESSION OF THE SIXTY-SECOND GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, APPROVED JANUARY 21, 1960, AS AMENDED, FOR THE PURPOSE OF PROVIDING PERMANENT FINANCING OF THE COSTS OF SECURING AND DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE); AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE SECURING THE BONDS; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING TO THE ACQUISITION, CONSTRUCTION AND EQUIPMENT OF THE INDUSTRIAL PROJECT AND THE FINANCING THEREOF; AND DECLARING AN EMERGENCY
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WHEREAS, the City of Jonesboro, Arkansas (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, as amended ("Act No. 9"), to acquire lands, construct and equip manufacturing buildings, improvements and facilities and to incur other costs and expenses and make other expenditures incidental to and for the implementing and accomplishing of the conduct of manufacturing operations; and
WHEREAS, the City is authorized by Act No. 9 to issue Industrial development Revenue Bonds payable form revenues derived from the Industrial Project so acquired, constructed and equipped and secured by a lien therein and securing interest therein; and
WHEREAS, the necessary arrangements have been made with Delta of Arkansas, Inc., an Arkansas corporation ("Delta"), for the acquisition, construction and equipment of an industrial which will consist of lands, buildings, improvements, machinery, equipment and facilities (the "Industrial Plant"); and
WHEREAS, the Industrial Plant will be financed by funds furnished by Delta and by the proceeds of Industrial Development Revenue Bonds of the City issued under Act No. 9 (the "Bonds"); and
WHEREAS, there are being issued at this time $100,000 in principal amount of Bonds and the proceeds will be used for acquiring certain of the machinery and equipment to be installed in and operated as part of the Industrial Plant; and
WHEREAS, the properties financed by Bonds will be owned by the City and leased to Delta pursuant to the provisions of a Lease and Agreement, dated as of June 1, 1976 (the "Lease Agreement"); and
WHEREAS, the Bonds will be dated, will bear interest, mature and be subject to redemption as hereinafter set forth in the form of Indenture authorized by this Ordinance;
NOW, THEREFORE, BE IT ORDAIEND by the City Council of the City of Jonesboro, Arkansas:
Section 1: That there be, and there is hereby authorized and directed the following:
1. The sale of the Bonds to the purchaser and the execution by the Mayor and City Clerk of a Bond Purchase Contract with such purchaser for the price and pursuant to the terms recommended by Delta (a copy of which shall be filed in the office of the City Clerk);
2. The acquiring, installing and equipping of the Industrial Plant in accordance with the provisions of the Lease Agreement; and
3. The performance of all obligations of the City under the Lease Agreement pertaining to the acquiring, installing and equipping of the Industrial Plant.
Section 2: That the issuance of the Bonds is hereby authorized, to prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, issued, accepted, held and secured, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture (the "Indenture"), and the City Clerk is hereby authorized and directed to execute and acknowledge the Indenture and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Indenture to be accepted, executed and acknowledged by the Trustee. The Indenture, which constitutes and is hereby made a part of this Ordinance, shall be in substantially the following form, to wit:
Section 3: That the Mayor and City Clerk, for and on behalf of the City, be, and they are hereby, authorized and directed to do any and all things necessary to effect the execution and delivery of the Indenture, its execution and acceptance by the Trustee, the performance of all obligations of the City under and pursuant to the Indenture, the execution and delivery of the Bonds, the execution and delivery of an Official Statement, and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by the Indenture and by this Ordinance. That the Mayor and City Clerk be, and they are hereby, further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof.
Section 4: That the City is here involved with the acquiring, constructing and equipping of complex industrial facilities, and pursuant to applicable laws of the State of Arkansas, including particularly Act No. 9, competitive bidding is waived.
Section 5: That the provisions of this Ordinance are hereby declared to be separable, and if any section, phrase of provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the section, phrases and provisions.
Section 6: That all ordinances, resolutions and parts thereof in conflict herewith are herby repealed to the extent of such conflict.
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, alleviate unemployment and otherwise benefit the public health, safety and welfare of the City and the inhabitants thereof, and the issuance of the Bonds 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 and ADOPTED this 7th day of June, 1976.