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RESOLUTION TO AUTHORIZE THE MAYOR AND CITY CLERK TO EXECUTE A FIRST SUPPLEMENTAL LEASE AND AGREEMENT AMENDING THE LEASE WITH DELTA, INC.
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WHEREAS, the City of Jonesboro, Arkansas (“City”) owns certain real property situated in Craighead County, Arkansas, which property is described in and mortgaged under two certain Trust Indentures dated as of June 1, 1976, by and between the City and Mercantile Bank, Jonesboro, Arkansas (the “Trustee”), securing, respectively, the City’s Industrial Development Revenue Bonds - Delta Project, Series A, dated June 1, 1976 and the City’s Industrial Development Revenue Bonds - Delta Project, Series B, dated June 1, 1976 (the “Bonds”) which Trust Indentures (the “Indentures”) appear of record in the office of the Circuit Clerk and Ex Officio Recorder of Craighead County, Arkansas, in, respectively, Record Book No. 194, at Page 155, and Record Book No.194, at Page 233; and
WHEREAS, the real property referred to above and the improvements thereon and facilities therein, have been leased by the City (as Lessor) to Delta, Inc. of Arkansas, an Arkansas corporation (“Delta”) by a Lease and Agreement (the “Lease”) dated as of June 1, 1976, appearing of record in the office of the Circuit Clerk and Ex Officio Recorder of Craighead County, Arkansas, in Record Book No.8 at Page 1; and
WHEREAS, the Bonds were issued under the authority 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 Lease provides, in Article XXIV thereof, for the withdrawal of lands from the terms of the Lease, upon compliance with the terms of Article XXIV, for the purpose of the construction of expansion facilities, and for the financing of such expansion facilities under the authority and provisions of Act No.9; and
WHEREAS, there is an immediate need for the expansion of the existing industrial plant operated by Delta and Delta proposes, pursuant to Article XXIV of the Lease, to construct expansion of the existing industrial plant operated by Delta and Delta purposes, pursuant to Article XXIV of the Lease, to construct expansion facilities upon a portion of the lands refereed to above; and
WHEREAS, Article VIII of the Indentures provide for the release of the lien thereof on any portion of the lands in connection with an expansion of Delta upon a sufficient showing to the Trustee that the terms provisions and conditions of the Lease pertaining to such release have been met and satisfied; and
WHEREAS, the purpose of this Resolution is to request the Trustee to release from the lien of the Indentures a portion of the lands in order that the City may finance the expansion facilities under Act No.9 and in order that Delta may proceed to construct the expansion facilities;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Jonesboro, Arkansas:
SECTION 1: Mercantile Bank, Jonesboro, Arkansas is hereby requested to release from the lien of the Indentures the lands situated in Craighead County, Arkansas and described in Exhibit A hereto.
SECTION 2: The Mayor and City Clerk, for and on behalf of the City, are hereby authorized and directed to execute a First Supplemental Lease and Agreement amending the Lease to conform to the withdrawal of the lands described on Exhibit A and to take such action and execute such documents as may be necessary to carry out the authority herein conferred or to evidence the exercise thereof.
SECTION 3: All resolutions in conflict herewith are hereby repealed to the extent of such conflict.
SECTION 4: The action authorized and directed by this Resolution is necessary in connection with an expansion program of Delta which result in the City and its inhabitants receiving public benefits in the form of payrolls and additional employment, and such benefits can be received only by the taking of the action authorized hereby. It is, therefore, declared that an emergency exists and that this Resolution being immediately necessary for the preservation of the public peace, health and safety shall be in force and take effect immediately upon and after its passage.
PASSED: November 7, 1977.