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AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE 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 SECURING AND DEVELOPING INDUSTRY (AS DESCRIBED IN THE ORDINANCE); AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST INDENTURE SECURING SAID BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO AND DECLARING AN EMERGENCY
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WHEREAS the City of Jonesboro, Arkansas (called “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 (hereinafter sometimes referred to as “Act No.9”), to acquire and own lands and improvements and to construct and equip buildings and manufacturing improvements and facilities thereon for the conduct of manufacturing operations and to lease the same for the purpose of securing and developing industry within or near the City; and
WHEREAS the City is authorized by Act No.9 to issue Industrial Development Revenue Bonds payable from lease rentals and surplus utility revenues and secured by a mortgage on the lands, buildings and manufacturing improvements and facilities so leased; and
WHEREAS the City is the owner of certain lands and buildings, manufacturing improvements and facilities thereon, which lands and improvements have been heretofore leased to Crane Company, an Illinois corporation (called “Crane”) by a Lease Agreement dated January 28, 1960, wherein the City of Jonesboro and Jonesboro Airport Commission, a department of the City, and the Leaser and Crane is the Lessee; and
WHEREAS, the said Lease Agreement was executed and delivered in connection with an industrial project constructed and owned by the Leaser and, as above stated, leased to Crane, which industrial project and expense relating thereto and the financing thereof were financed by an issue of General Obligation Improvement Bonds of 1960, dated April 1, 1960, issued by the City under the provisions of Amendment No.49 to the Constitution of the State of Arkansas, to the payment of the principal of an interest on which there was pledged the proceeds derived from a five mill special tax levy under Amendment No. 49; and
WHEREAS the City and Crane agreed that it would be in their best interest if the City would permitted to issue bonds under the provisions of Act No. 9 in an amount sufficient to retire all of the outstanding bonds of the City issued under Amendment No. 49 so as to release the said five mill special tax pledged to the Amendment No. 49 Bonds and put the City in a position to have available substantial additional industrial financing potential in order, if necessary, to take care of the industrial development requirements of industries within and near the City, including, without limitation, Crain and in connection therewith the City and Crane have executed a First Supplemental Lease Agreement dated April 1, 1965 (with the original Lease Agreement as amended and supplemented by said First Supplemental Lease Agreement to be herein collectively referred to as the “Lease Agreement”); and
WHEREAS in order to accomplish said purpose the City submitted to the electors of the City at a special election duly called and held on the 13th day of October, 1964 the question of issuing $1,000,000 in principal amount of industrial development revenue bonds under Act No. 9 and at said election the electors of the City approved the issuance of the bonds; and
WHEREAS the City has contracted with Stephens, Inc. and T.J. Raney & Sons of Little Rock, Arkansas, for the sale of Industrial Development Revenue Bonds in the principal amount of $917,000 (being the amount necessary to refinance the General Obligation Improvement Bonds of the City dated April, 1, 1960) to be dated October 1, 1964, bearing interest at the rates of 3 ¾% and 4 % pre annum (which bonds are hereafter described in detail);
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas;
Section 1. That the sale of City of Jonesboro, Arkansas Industrial Development Revenue Bonds to Stephens, Inc. and T.J. Raney & Sons, Little Rock, Arkansas at a price of par and accrued interest, all as set forth above, be, and the same is hereby authorized, approved and confirmed.
Section 2. That to provide for the authorization of and to secure Industrial Development Revenue Bonds of the City under Act No. 9 in the aggregate principal amount of Nine Hundred Seventeen Thousand Dollars ($917,000) to furnish the amount necessary to accomplish the refinancing, and to prescribe the terms and conditions upon which the bonds are to be secured, executed, authenticated, accepted, held and paid, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture, and the Clerk is hereby authorized and directed to execute and acknowledge the Trust Indenture and to affix the seal of the City thereto, and the Mayor and Clark are hereby authorized and directed to cause said Indenture to be accepted, executed, and acknowledged by the Trustee named therein, with the Trust Indenture, which constitutes and is hereby made a part of this Ordinance, to be in substantially the following form, to-wit:
Section 3. That the Mayor and 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 of the Trust Indenture, its execution and acceptance by the Trustee, the performance of all obligations of the City under and pursuant to the Trust Indenture, the execution and delivery of the bonds, and the performance of all other acts of whatever nature necessary to effect and carry out the authority conferred by this ordinance and by the Trust Indenture. That the Mayor and 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 the authority conferred by this Ordinance and the Trust Indenture, or to evidence said authority and its exercise.
Section 4. 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 affect the validity of the remainder of the sections, phrases, and provisions.
Section 5. That all ordinances, resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Section 6. That there is hereby found and declared to be an immediate need for the securing and developing of substantial industrial operations in order to provide additional employment, 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 herein are immediately necessary in connection with the securing and developing of substantial industrial operations and deriving the public benefits referred to above. It is, therefore, declared that an emergency exists and this ordinance being necessary for the immediate preservation of the public health, safety, and welfare shall be in force and take effect immediately upon and after its passage.
Passed March 2, 1965.