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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 COST OF SECURING AND DEVELOPING INDUSTY (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 INDUSTRIAL PROJECT; THE CONSTRUCTING THEREOF AND THE FINANCING THEREOF; AND DECLARING AN EMERGENCY
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WHEREAS, the City of Jonesboro, Arkansas ("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
WHEREAS, the necessary arrangements have been made with Southern Cast Products, Inc., an Arkansas corporation ("Southern") for an industrial project consisting of lands, buildings, improvements, machinery, equipment and facilities for an industrial plant which will be utilized for the manufacturing of such products as Southern shall elect to manufacture (the "Project"), and to lease the Project to Southern 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 cost and expenditures incidental thereto and to the expeditious commencement of manufacturing operations, the cost of the issuance of bonds and the amount necessary for interest on bonds until Project revenues are available is being furnished by the issuance of Industrial Development Revenue Bonds by the City under the provisions of Act. No. 9 in the principal amount of not to exceed One Million Dollars ($1,000,000.00) (the "bonds" or Act 9 Bonds"): and
WHEREAS, in accordance with Act 9 as amended, (specifically by Act 1239 of 1975, extended session) a public hearing was held before the City Council of Jonesboro, Arkansas, at 6:30 P.M. on April 19, 1976, on the question of this Ordinance and notice of such hearing was published in a newspaper of general circulation in Jonesboro, Arkansas, more than 10 days prior to such hearing and notice of such hearing was filed with the Director of the State Department of Industrial Development and the State Security Commissioner more than 10 days prior to such hearing; and
WHEREAS, the bonds are dated, bear interest, mature and are subject to redemption as hereafter in the Indenture set forth in detail;
NOW, THEREFORE, BE IT ORDIANED by the City Council of the City of Jonesboro, Arkansas:
Section 1: That there be, and there is hereby, authorized the following:
(a) The sale of $1,000,000.00 in aggregate principal amount of bonds;
(b) The execution of all necessary architectural, engineering and construction contracts for the constructing and equipping of the Project, with executed copies of all such contacts to be filed in the office of the Clerk; and
(c) The performance of all obligations of the City under performance of all obligations of the City under the architectural, engineering and construction contracts referred to in (b) above.
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 total principal amount not to exceed $1,000,000.00 to provide for the immediate execution and delivery of the bonds, and to proscribe the terms and conditions upon which the bonds are to be secured, executed, authenticated accepted and held, the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture and the City Clerk is hereby authorized and directed to execute and acknowledge a Trust Indenture and to affix the seal of the City thereto, and the Mayor and City Clerk are hereby authorized and directed to cause the Trust Indenture to be accepted, executed and acknowledged by the Trustee, with the Trust Indenture, which constitutes and is hereby made a part of this Ordinance, to be in substantially the following form, to wit: (a form of the bond of indebtedness is on file in the office of the City Clerk for inspection by any interested parson.)
Section 3: That the Mayor and City Clerk, for and on behalf of the City, to 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 be the Trust Indenture. That the Mayor and the 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 the authority and its exercise.
Section 4: That since the City is here involved with the constructing and equipping of a complex industrial project, requiring highly specialized work and specialized typed of machinery and equipment, it has been and is hereby determined by the City Council that competitive bidding is not feasible or practical. Therefore, any requirements under ordinances of the City or under the laws of the State of Arkansas for competitive bidding be and the same are hereby, waived as to the particular industrial project. This action is taken by the City Council pursuant to applicable laws of the State of Arkansas, including particularly Section 5 of Act No. 28 of the Acts of Arkansas of 1959 (Ark. Stats. Section 19-4425).
Section 5: 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 separable, phrase or provision shall for any reason be declared to be separable, and if any section phrase or provision for any reason be declared to be invalid, such declaration shall not effects the validity of the remainder of the sections, phrases or provisions.
Section 6: That, all ordinances, resolutions, and parts of thereof in conflict herewith, are hereby 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 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 effects immediately upon and after its passage.
PASSED and ADOPTED this 17th day of May, 1976.