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A RESOLUTION TO AUTHORIZE THE EXECUTION AND DELIVERY OF AN ESCROW DEPOSIT AGREEMENT IN CONNECTION WITH THE DEFEASANCE OF BONDS ISSUED TO SUPPORT COLSON CASTER LLC AND ITS AFFILIATES; TO AUTHORIZE THE CONVEYANCE OF REAL PROPERTY RELATED TO THE BONDS; AND FOR OTHER PURPOSES
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WHEREAS, the City previously issued its $11,000,000 Taxable Economic Development Revenue Bonds (ADFA/AEDC Guaranty Programs) (Colson Caster Project) Series 2022A (the “Series 2022A Bonds”) and its $4,000,000 Taxable Economic Development Revenue Bonds (Colson Caster Project) Series 2022B (the “Series 2022B Bonds,” and collectively with the Series 2022A Bonds, the “Defeased Bonds”) pursuant to the terms of a Trust Indenture dated as of April 19, 2022 between the City and First Security Bank (the “Trustee”); and
WHEREAS, contemporaneous with the issuance of the Defeased Bonds, the City issued its not to exceed $9,000,000 Taxable Economic Development Revenue Bonds (Colson Caster Project), Series 2022C (the “Series 2022C Bonds” and together with the Defeased Bonds, the “2022 Bonds”); and
WHEREAS, proceeds of the 2022 Bonds were loaned to Colson Caster LLC and its affiliates (the “Company”) to finance the acquisition and construction of manufacturing facilities, infrastructure and improvements and the acquisition and installation of facilities and equipment for the development, manufacture, warehousing and distribution of casters and wheels located at 2121 Barnhill Road, Jonesboro, Arkansas (the “Project”) ; and
WHEREAS, contemporaneous with the issuance of the 2022 Bonds, the Company (i) granted a mortgage to First Security Bank, as collateral agent, to secure the Company’s obligations under guarantees from the Arkansas Development Finance Authority and the Arkansas Economic Development Commission supporting the Series 2022A Bonds and the Company’s obligations with respect to the Series 2022B Bonds and (ii) implemented a sale-leaseback transaction with the City in order for the ...
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