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AN ORDINANCE PROVIDING FOR THE ISSUANCE OF INDUSTRIAL REVENUE BONDS IN THE CITY OF JONESBORO; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES
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WHEREAS, the City of Jonesboro is duly authorized by Act 9 of the Acts of the General Assembly of the State of Arkansas for 1960 to promote industrial development within or near the City of Jonesboro, to issue Industrial Revenue Bonds, and to use the proceeds thereof for the accomplishment of the said purpose, to pledge the gross revenues derived from the lands, buildings and facilities acquired or constructed, in whole or in part, with proceeds of the said Industrial Revenue Bonds, and to secure the payment of the said Industrial Revenue Bonds by a statutory mortgage lien on the lands, buildings, and facilities so acquired or constructed; and
WHEREAS, the City of Jonesboro has undertaken to assist Alton Box Board Company, a corporation organized and existing under the laws of the State of Illinois, but qualified to do business in the State of Arkansas, to establish and operate a factory within or near the City of Jonesboro; and
WHEREAS, the City of Jonesboro has further undertaken to assist the Jonesboro Industrial Development Corporation to purchase land for the location of additional industries within or near the City of Jonesboro; and
WHEREAS, by Ordinance duly passed on the 1st day of May, 1961, there was submitted to the qualified electors of the City of Jonesboro, Arkansas, the question whether it should issue Industrial Revenue Bonds under the provisions of said Act 9 to the extent of $200,000.00 for the purpose of securing and developing industry with or near the City of Jonesboro; and
WHEREAS, due notice of the election was given, as required by law, and at said election 696 votes were cast in favor of the said bond issue for industrial development and only 16 votes were cast against it; and
WHEREAS, it is presently unnecessary to issue the entire authorized amount of $200,000.00 in Industrial Revenue Bonds, but to secure funds to pay the costs of acquisition of lands and construction of buildings, the City Council has sold to Mercantile Bank and Citizens Bank of Jonesboro, Jonesboro, Arkansas, at par plus accrued interest, a portion of said authorized amount, such portion being in the amount of $145,000.00, of Industrial Revenue Bonds, bearing interest at the rate of 4 ½ per annum from date, dated August 1, 1961, and maturing serially on August 1 in each of the years 1962 to 1965, inclusive, and thereafter on February 1, and August 1 in each of the years 1966 to 1984, inclusive; and
WHERAS, the desires now to issue a first series of said Industrial Development Bonds in the amount of $145,000.00 to be known as “Series A”,
NOW, THEREFORE, be it ordained by the City Council of the City of Jonesboro:
Section 1: That the City of Jonesboro, Arkansas, issue its Industrial Revenue Bonds under the provisions of Act 9 of the Acts of the General Assembly of the State of Arkansas for 1960, in the principal amount of $145,000.00, payable solely from the rentals derived from the leases executed by the City of Jonesboro to Alton Box Board Company and Jonesboro Industrial Development Corporation; that the said bonds be designated “City of Jonesboro 4 ½ Industrial Revenue Bonds, Series A” be dated as of August 1, 1961. bearing interest at the rate of 4 ½ per annum from date, payable semiannually on the first day of February and August in each years, beginning February 1, 1962, evidenced by coupons attached thereto; and that the bonds be in the denominations, numbered and maturing of February 1 and August 1 in the amounts and years, respectively, as follows, but subject to redemption before maturity on the conditions hereinafter set out:
DATE BOND NUMBERS DENOMINATION AMOUNT
1962 1-2 $1,000 $ 2,000
1963 3-4 1,000 2,000
1964 5-6 1,000 2,000
1965 7-8-9-10 1,000 4,000
1966 11-12-13-14-15 1,000 5,000
1967 16-17-18-19-20 1,000 5,000
1968 21-22-23-24-25 1,000 5,000
1969 26-27-28-29-30 1,000 5,000
1970 31-32-33-34-35-36 1,000 6,000
1971 37-38-39-40-41 1,000 5,000
1972 42-43-44-45-46-47 1,000 6,000
1973 48-49-50-51-52-53-54 1,000 7,000
1974 55-56-57-58-59-60-61 1,000 7,000
1975 62-63-64-65-66-67-68 1,000 7,000
1976 69-70-71-72-73-74-75 1,000 7,000
1977 76-77-78-79-80-81-82 1,000 7,000
1978 83-84-85-86-87-88-89-90 1,000 8,000
1979 91-92-93-94-95-96-97-98-99 1,000 9,000
1980 100-101-102-103-104-105-
106-107 1,000 8,000
1981 108-109-110-111-112-
113-114-115-116-117 1,000 10,000
1982 118-119-120-121-122-
123-124-125-126 1,000 9,000
1983 127-128-129-130-131
132-133-134-135-136 1,000 10,000
1984 137-138-139-140-141-
142-143-144-145 1,000 9,000
TOTAL $145,000
All bearing Interest Coupons at rate of 4 ½.
That the bonds be signed in the name and on behalf of the City by the Mayor and City Clerk, and sealed with the corporate seal of the City, and that the interest upon the bonds be evidenced by coupons thereto attached, the coupons to be signed by the Mayor, by his facsimile signature; that said Mayor shall, by the execution of the bonds, adopt as and for his own proper signature his facsimile signature appearing on the said coupons: that the bonds and coupons be payable in lawful money of the United States of America at the office of Mercantile Bank, in Jonesboro, Arkansas; and that each bond contain a recital that it is issued pursuant to said Act 9 of the Acts of the General Assembly of Arkansas for the year 1960.
The bonds, together with interest thereon, shall be payable solely out of the Industrial Revenue Bond Fund, as hereinafter defined, and shall be a valid claim of the holder thereof only against such Fund, and the amount of the revenues pledged to said Fund, which amount of said revenues is hereby pledged and mortgaged for the equal and ratable payment of the bonds, and shall be used for no other purpose than to pay to the principal of and interest on the said bonds.
Section 2: That said bonds and coupons be in substantially the following form:
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF CRAIGHEAD
CITY OF JONESBORO
4 ½ INDUSTRIAL REVENUE BOND, SERIES A
No.___________ $________________
KNOWN ALL MEN BY THESE PRESENTS:
THAT the City of Jonesboro (herein called the “City”), in the County of Craighead, and State of Arkansas, hereby acknowledges itself to owe, and for value received promises to pay to bearer, solely from the special Fund provided as hereinafter set forth, the principal sum of $__________
On the first day of_____________, 19___, and to pay, solely from said special Fund, interest hereon at the rate of four and one-half per centum (4 ½) per annum from August 1, 1961, payable semiannually on the first days of February and August of each year, upon presentation and surrender of the annexed interest coupons as they severally become due. Both principal hereof and interest hereon shall be payable in lawful money of the United States of America at the office of Mercantile Bank, in Jonesboro, Arkansas.
This bond is one of a duly authorized series of ________________( ) bonds, aggregating One Hundred Forty-Five Thousand Dollars ($145.000.00), dated August 1, 1961, number from 1 to 145, inclusive, all of like tenor and effect except as to interest rate, maturity, and right of prior redemption, issued for the purpose of providing for the payment of the costs of acquisition of lands and the construction of buildings thereon in the industrial development within or near the City of Jonesboro, Arkansas.
This bond and the series of which it forms a part are issued under and pursuant to and in full compliance with the Constitution and laws of the State of Arkansas, including particularly Act No.9 of the special session of the General Assembly of the State of Arkansas for the year 1960, and pursuant to ordinances and proceedings of the City Council duly passed, and do not constitute an indebtedness of the said City within any constitutional or statutory limitations.
That bonds of this series in the principal amount of $145,000.00 are a part of a total authorized issue of $200,000.00 of bonds, and the City reserves the right to issue, at such time, or times, as it may select, the remaining $55,000.00 of bonds on a parity of security with this bond and the series of which it forms a part.
Both principal of an interest on said bonds are payable solely from a fixed amount of the gross revenues derived from the non-cancelable pure net rental lease of the lands and buildings acquired and constructed from the proceeds of the bonds of this issue, which shall be sufficient to pay the principal of and interest on the bonds as the same become due and payable. This amount has been duly set aside and pledged as a special Fund for the purpose and identified as the “Industrial Revenue Bond Fund” created by Ordinance No. 1026, duly passed by the City Council of said City of Jonesboro on the 5th day of June, 1961, under which this bond is authorized to be issued.
By virtue of the authority of said Act No.9 of the special session of the General Assembly of the State of Arkansas for the year 1960, there is granted and created a statutory mortgage lien on the said lands and buildings to and in favor of the holders of the said bonds and each of them, and to and in favor of the holders of each of the coupons evidencing the interest on said bonds; and said lands and buildings shall remain subject to such bonds, both principal and interest, shall have been made.
This bond is expressly made negotiable under said Act No.9 and is issued with the intent that the laws of the State of Arkansas shall govern the construction thereof.
The bonds of this issue may be called for redemption before maturity, at the option of the City, from time to time, in such order as the City may elect, in lawful money of the Unites States of America, at par and accrued interest, on any interest payment date only from proceeds from the sale of the said bonds in excess of the amounts necessary to pay the costs of acquiring the lands and the construction of improvements hereon for which purpose the said bonds are issued, and may be called for redemption before maturity, at the option of the City, form time to time, in inverse numerical order, in lawful money of the United States or America, at par and accrued interest, on any interest payment date from any other available funds. Notice of the call for the redemption shall be published by the City Clerk of the City for one insertion more than thirty (30) days before such date of such redemption in a newspaper of general circulation published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, and after the date mentioned in said call, the bond or bonds so called will cease to bear interest; provided, funds for their payment are on deposit at that time.
IT IS HEREBY CERTIFIED, RECITED, AND DECLARED that all acts, conditions and things required by the Constitution and laws of the State of Arkansas to exist, happen and be performed precedent to and in the issuance of this bond have existed, have happened, and have been performed in due time, form and manner, as required by law, and that sufficient of the income and revenue which is deemed to be derived from the said industrial lease has been pledged to and will be set side into said special Fund for the payment of the principal of and interest on said bonds; and that the total amount of the bonds issued by the City, including this bond, does not exceed any constitutional or statutory limitation.
This bond shall not be valid until it shall have been authenticated by the certificate hereon, duly signed by Citizens Bank of Jonesboro.
IN WITNESS WHEREOF, the City of Jonesboro, by its City Council, has caused this bond to be signed by the Mayor and the City Clerk thereof, and sealed with the corporate seal of said City, and has caused the coupons hereto attached to be authenticated by the facsimile signature of its Mayor, all as of the first day of August, 1961.
CITY OF JONESBORO, ARKANSAS
By: Herbert Sanderson, Mayor________
ATTEST:
__________________________
CITY CLERK
(SEAL)
(FORM OF COUPON)
No._________ $_________________
On the first day of February and August, 19___, the City of Jonesboro, Craighead County, Arkansas, promises to pay to bearer the sun of $___________________ Dollars ($___________) solely out of the special Fund specified in the bond to which this coupon appertains, at the office of Mercantile Bank, in Jonesboro, Arkansas, in lawful money of the United States of America, being six months’ interest then due on its 4 ½ Industrial Revenue Bond, Series A, dated the first day of August, 1961, and numbered ________,, unless the bond to which it appertains is sooner called for payment.
CITY OF JONESBORO, ARKANSAS
By: Herbert Sanderson, Mayor_______
(The signature of the Mayor may be lithographed or engraved.)
On the back of said bonds is to appear the following:
C E R T I F I C A T E
This is one of the bonds aggregating $145,000.00 described within.
CITIZENS BANK OF JONESBORO
By: __________________________
Authorized Signature
Jonesboro. Arkansas
_________________
Section 3: That all moneys paid as accrued interest on the bonds issued hereunder shall be deposited into the Industrial Revenue Bond Fund hereinafter created, and applied to the payment of interest payable on said bonds on the next interest payment due.
Section 4: That so long as any of the principal of and interest on any of the bonds herein authorized to be issued are outstanding the entire income and revenues from the non-cancelable pure net rental lease of the lands and buildings acquired and constructed from the proceeds of the bonds of this issue (which lease is hereinafter called the “Industrial Lease”), shall be set aside and deposited in a special Fund, hereby created and ordered to be established with Citizens Bank of Jonesboro (hereinafter called “Trustee”), to be known as the “Industrial Revenue Fund”, and disbursements therefrom shall be made as hereinafter provided for, in the following order of priority:
(a) There shall be set aside and deposited into a separate fund, hereby created and ordered to be established with the Trustee, to be known as the “Industrial Revenue Bond Fund,” the amounts necessary to provide funds for the payment of principal of and interest on the bonds as they mature and paying agents’ charges, according to the following schedule, and to pay the principal of and interest on the Industrial Revenue Bonds, Series B, when such Series B Bonds, shall be issued and delivered, which amounts are hereby irrevocably pledged for said purposes:
DATE PRINCIPAL FEBRUARY 1 AUGUST 1 TOTAL
1962 $2,000 $3,262.50 $3,262.50 $8,525.00
1963 2,000 3,217.50 3,217.50 8,435.00
1964 2,000 3,172.50 3,172.50 8,345.00
1965 4,000 3,127.50 3,127.50 10,255.00
1966 5,000 3,037.50 2,992.50 11,030.00
1967 5,000 2,925.00 2,880.00 10,805.00
1968 5,000 2,812.50 2,767.50 10,580.00
1969 5,000 2,700.00 2,655.00 10,355.00
1970 6,000 2,587.50 2,520.00 1,107.50
1971 5,000 2,452.50 2,407.50 9,860.00
1972 6,000 2,340.00 2,272.50 10,612.50
1973 7,000 2,205.00 2,115.00 11,320.00
1974 7,000 2,047.50 1,980.00 11,027.50
1975 7,000 1,890.00 1,822.50 10,712.50
1976 7,000 1,732.50 1,665.00 10,397.50
1977 7,000 1,575.00 1,485.00 10,060.00
1978 8,000 1,417.50 1,327.50 10,745.00
1979 9,000 1,237.50 1,125.00 11,362.50
1980 8,000 1,035.00 945.00 9,980.00
1981 10,000 855.00 742.50 11,597.50
1982 9,000 630.00 540.00 10,170.00
1983 10,000 427.50 315.00 10,742.50
1984 9,000 202.50 90.00 9,292.50
Section 5: That it is hereby covenanted and agreed by the City with the holder or holders of the bonds herein authorized to be issued that it will not pledge, mortgage, or otherwise encumber the lands and buildings subject to the said Industrial Lease, or any part thereof, or any revenues derived therefrom, and that it will not sell, lease or otherwise dispose of the lands and buildings subject to the said Industrial Lease, or any portion thereof, unless and until the principal of and interest on all of the bonds issued hereunder shall be paid in full, or unless and until provision shall have been made for the payment of all the bonds and interest thereon in full, and the City further covenants and agrees with the holder or holders of the bonds to cause the said lands and buildings, subject to the said Industrial Lease to be maintained in a satisfactory condition and under a continuous lease.
Section 6: That there shall be, and there hereby is, as provided in said Act No.9, a statutory mortgage lien on the following described lands and the buildings and improvements thereon in the Western District of Craighead County, State of Arkansas, to wit:
Part of the Northwest Quarter of the Northwest Quarter of Section 29, Township 14 North, Range 4 East, more particularly described as follows: Commence at the Southwest Corner of Veon C. Kiech Addition; thence East along the South line of Veon C. Kiech Addition 500 feet; thence North 250 feet to the South right-of-way line of Arkansas State Highway NO.18; thence East along said South right-of-way line 50 feet; thence South 250 feet to the South line of Veon C. Kiech Addition; thence East along the South line of Veon C. Kiech Addition 627.5 feet to the East line of said Northwest Quarter of the Northwest Quarter; thence South along said East line 965 feet to the North right-of-way line of the St. Louis-San Francisco Railroad; thence Westerly along said North Railroad right-of-way line 1290.8 feet to the point of intersection with the East right-of-way line of Kathleen Street; thence North along the East right-of-way line of Kathleen Street 140 feet; thence in a Northwesterly direction 93 feet along said East right-of-way line of Kathleen Street around a curve to the West line of Section 26: thence North along said West line 128 feet to the South line of Earl Kiech Fourth Addition; thence East 126 feet tot eh Southeast corner of Earl Kiech Fourth Addition; thence North 350 feet to the Northeast Corner of Earl Kiech Fourth Addition; thence East 15 feet to the Southeast Corner of Earl Kiech Addition; thence North 300 feet to the pint of beginning, containing 27.62 acres, more or less;
ALSO, Part of the Northeast Quarter of the Northeast Quarter of Section 27, Township 14 North, Range 4 East, more particularly described as follows: Commence at the Southeast Corner of Sarah Avenue and Kathleen Street; thence East along the South line of Sarah Avenue 74 feet to the East line of Section 27; thence South along said East line 128 feet to the East right-of-way line of Kathleen Street; thence in a Northwesterly direction along said East right-of-way line around a curve to the point of beginning; containing 0.01 acres, more or less; which shall exist in favor of the holders of the bonds, and each of them, and to and in favor of the holders of the coupons attached to the bonds, and the said lands and buildings shall remain subject to such statutory mortgage lien until the payment in full of the interest on and principal of the said bonds. To the end that a record of the statutory mortgage lien on the said lands and buildings, the pledge of revenues, and the agreement not to mortgage the said lands and buildings, as set out in this Ordinance, may be preserved, the Mayor and City Clerk are hereby authorized and directed to file with the Recorder of Craighead, Arkansas, a copy of this Ordinance, duly certified, with the direction that the same be recorded in the office of the Recorder, as in the case of deeds and mortgages.
Section 7: That if there be any default in the payment of either the interest on, or principal of any of the bonds, and such default shall continue for thirty (30) days thereafter, and if default shall be made in the due and punctual performance of any of the other covenants and agreements contained in the bonds or in this Ordinance, the holder, or holders, of any of the bonds may enforce the statutory mortgage lien upon the said lands and buildings in accordance with the provisions of Section 9 of said act No.9, and may be proper suit compel the performance of the duties of the officials of the City, as set forth in said Act and in this Ordinance. If there be default in the payment of the principal of or interest on the bonds, and such default shall continue for thirty (30) days thereafter, any court having jurisdiction in any proper action may appoint a receiver to administer the said lands and buildings on behalf of the City, with power to enforce the provisions of the said Industrial Lease.
Section 8: That no remedy conferred by this Ordinance upon any holder or holders of the bonds herein authorized is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by this Ordinance or said Act, or be any other law. No waiver of any default or breach of duty or contract by any holder of the bonds shall extend to or shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies thereon. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver of any such default or acquiescence therein. Every substantive right and very remedy conferred upon the holder of the bonds herein authorized may be enforced and exercised from tint to time and as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and then discontinued or abandoned, or shall be determined adversely to the holder or holders of the bonds, then and in every such case the City and such holder or holders shall be restored to their former positions and rights and remedies as if no such suit, action or proceeding had been brought or taken.
Section 9: That all bonds, paid or called for redemption, either at or before maturity, shall be canceled when such payment or redemption is made, together with all non-matured coupons appertaining thereto, and held by the City Treasurer. All unpaid interest coupons maturing on or prior to the date of such payment or redemption shall continue to be payable to the respective bearers thereof.
Section 10: That the bonds, together with interest thereon, shall be payable solely out of the Industrial Revenue Bond Fund, as hereinafter defined, and shall be a valid claim of the holders thereof only against said Fund, and the amount of the revenues pledged to said Fund, which amount of said revenues is hereby pledged for the equal and ratable payment of the bonds an shall be used for no other purpose than to pay the principal of and interest on the bonds as the same accrue.
Section 11: The City further covenants and agrees that so long as any of the Industrial Revenue Bonds, Series A and B, are outstanding and the interest thereon has not been paid in full, it will issue no additional bonds payable from the rentals from the said Industrial Lease, or secured by a lien on the lands and buildings subject to the said Industrial Lease, or a par with the said Industrial Revenue Bonds, Series A and B.
Section 12: The bonds of this issue may be called for redemption before maturity, at the option of the City, from time to time, in such order as the City may elect, in lawful money of the United States of America, at par and accrued interest, on any interest payment date only from proceeds from the sale of the said bonds in excess of the amounts necessary to pay the costs of acquiring the lands and the construction of improvements thereon for which purpose the said bonds are issued, and may be called for redemption before maturity, at the option of the City, from time to time, in inverse numerical order, in lawful money of the United States of America, at par and accrued interest, on any interest payment date from any other available funds. Notice of the call for the redemption shall be published by the City Clerk of the City of one insertion more than thirty (30) days before the date of such redemption in a newspaper of general circulation published in the City of Little Rock, Arkansas, and having a general circulation throughout the State of Arkansas, and after the date mentioned in said call, the bond or bonds so called will cease to bear interest; provided, funds for their payment are on deposit at that time.
Section 13: After the bonds herein authorized to be issued have been executed by the Mayor and City Clerk, as herein provided, they shall be delivered by the Mayor to Citizens Bank of Jonesboro, which shall authenticate and deliver them to the purchaser, upon the payment of the purchase price in the sum of $145,000.00, with accrued interest.
The purchase price, less the amount of the accrued interest paid by the purchaser, shall be deposited in Citizens Bank of Jonesboro, in trust, secured as its other trust funds are secured, and disbursed by it solely in payment of the costs of the acquisition of lands and construction of the buildings subject to the said Industrial Lease, including all expenses incidental to the acquisition, construction and issuance of the bonds, on checks or vouchers signed by President and Secretary of Jonesboro Industrial Development Corporation, briefly specifying the disbursements or expenditures. Any unexpended balance remaining after the final completion of the construction shall be deposited in the Industrial Revenue Bond Fund defined herein.
The accrued interest paid by the purchaser of the bonds shall be deposited into the Industrial Revenue Bond Fund, in addition to the other amounts required to be paid into the Fund.
Section 14: That if any provision of this Ordinance shall, for any reason, be held illegal or invalid by the courts, it shall not affect the validity of the remainder of the Ordinance.
Section 15: That, all ordinances or resolutions or parts thereof in conflict herewith are hereby repealed to the extent of such conflict.
Section 16: That this Ordinance shall not create any right of any pursuant to it, until the bonds authorized by this Ordinance shall be issued and delivered.
Section 17: It is ascertained and declared that the safety and health of the City of Jonesboro are jeopardized by the lack of sufficient industry and that only by action made possible by this Ordinance can the City undertake to secure and develop industry and to promote the safety, health, and welfare of its citizens. It is, therefore, declared that an emergency exists, that this Ordinance is necessary for the immediate preservation of the public peace, health and safety, and that this Ordinance shall take effect and be in force from and after its passage.
PASSED AND ADOPTED this 5th day of June, 1961.