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AN ORDINANCE AMENDING ORDINANCE NO.1793 OF THE ORDINANCES OF THE CITY COUNCIL OF THE CITY OF JONESBORO, ARKANSAS, ADOPTED FEBRUARY 15, 1982; FIXING THE PRINCIPAL AMOUNT OF INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER ACT NO.9 OF 1960; AS AMENDED, AUTHORIZED TO BE ISSUED BY ORDINANCE NO.1793; PRESCRIBING OTHER MATTERS RELATING THERETO; 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 industrial buildings, improvements and expenditures incidental to and for the implementing and accomplishing of the conduct of industrial operations; and
WHEREAS, the City, in its Ordinance NO.1793, duly adopted by the City Council of the City of February 15, 1982 ("Ordinance 1793"), authorized the issuance of bonds under Act No.9 for the purpose of acquiring constructing, and equipping industrial facilities (the "Project"), which Project will be leased to Landco, a general partnership (the "Company"), and subleased to MDR Cartage, Inc., an Arkansas corporation (the "Guarantor"); and
WHEREAS, Ordinance No.1793 authorized the permanent financing of the Project costs, necessary costs and expenditures incidental thereto, and the cost of issuance of bonds to be furnished by the City issuing industrial development revenue bonds under the provisions of Act No.9 in the principal amount of not to exceed Five Hundred Thousand Dollars ($500,000) (the "Bonds"); and
WHEREAS, it has been determined that the initial phase of the Project may be accomplished with the issuance of industrial development revenue bonds under the provisions of Act No.9 in the principal amount of Four Hundred Twenty Thousand Dollars ($20,000); and
WHEREAS, the bonds are to be sold and delivered in the principal amount of $420,000, and are dated, bear interest, mature, and are subject to redemption as hereinafter set forth and as set forth in the form of an indenture authorized by Ordinance No.1793, as amended by this Ordinance, and
WHEREAS, the City proposes to enter into a bond purchase contract with Powell & Satterfield, Inc., of Little Rock, Arkansas, for the sale to it of the bonds;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Jonesboro, Arkansas:
Section 1: Section 1 (a) of Ordinance No.1793 is hereby amended to read as follows:
"(a) The sale of the bonds for the price of $405,300 plus accrued interest to the date of delivery, according to the terms of said bond purchase contract which contract in hereby approved and authorized to be executed by the Mayor and City Clerk on behalf of the City at the request of the Company and Guarantor;".
Section 2: The first sentence of Section 2 of Ordinance No.1793 is hereby amended to read as follows: "The bonds shall bear interest at the rates of 10.50%, 11.00%, 11.25%, 11.75%, 12.00%, 12.25%, 12.50%, 12.75% and 13.00% per annum, shall mature serially on December 1 in the years 1983 to 1991, inclusive, and shall be in the original principal amount of $420,000."
Section 3: Ordinance No.1793, as herein amended, is hereby ratified, confirmed and approved.
Section 4: That the provisions of this Ordinance are hereby declared to be severable, and if any section, phrase or provisions shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or provisions.
Section 5: That ordinances, resolutions and parts thereof that are 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 and 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 and approval.
PASSED and ADOPTED this 19th day of April, 1982.