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AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER 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 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 FINANCE 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 from revenues derived from the industrial project so acquired and constructed and secured by a lien thereon and security interest therein; and
WHEREAS, the necessary arrangements have been made with Arkansas Aero, Inc., an Arkansas corporation (“Aero”), for an expansion of its existing industrial facilities consisting of buildings, improvements, machinery, equipment and facilities (the “Project”) and to lease the Project to Aero pursuant to the terms of a Lease and Agreement subsequently identified herein and referred to as the “Lease Agreement”; and
WHEREAS, permanent financing of the Project costs, necessary costs and expenditures incidental thereto and expenses of authorizing and issuing Bonds, is being furnished by the City issuing industrial development revenue bonds under the provisions of Act No. 9 (the “Bonds”); and
WHEREAS, Ordinance No. 1518 of the ordinances of the City, adopted and approved July 19, 1976, (“Ordinance No. 1518”) authorized the issuance of Bonds in the aggregate principal amount of $225,000; and
WHEREAS, it has now been determined that in order to accomplish the Project there will be required to be issued Bonds in the aggregate principal amount of $265,000; and
WHEREAS, additional authority is necessary from the City providing for the issuance of the Bonds; and
WHEREAS, the Bonds are in the principal amount, bear interest, mature and are subject to redemption as hereinafter set forth in the form of Indenture authorized by this Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
Section 1: That there be, and there is hereby authorized and directed the following:
(a) The sale of the Bonds to purchasers recommended by Aero for the price and pursuant to the other terms recommended by Aero which purchasers and price shall be set forth in a Delivery Letter at the closing signed by the Mayor and approved by an Authorized Lessee Representative;
(b) The acquiring of the Project in accordance with the provisions of the Lease Agreement; and
(c) The performance of all obligations of the City under the Lease Agreement pertaining to the acquiring of the Project.
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 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, certificated and other instruments that may be required for the carrying out of such authority or to evidence to exercise thereof.
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 Ordinance No. 1518 is hereby repealed, and that all other ordinances, resolutions and parts thereof in conflict hereby are 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 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 20th day of September, 1976.