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AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE PURPOSE OF PROVIDING THE FINANCING FOR INDUSTRIAL FACILITIES; AUTHORIZING AN INDENTURE OF TRUST SECURING THE BONDS; AUTHORIZING A LOAN AGREEMENT BETWEEN THE CITY AND FARR COMPANY; AUTHORIZING THE SALE OF THE BONDS AND THE EXECUTION OF A PLACEMENT AGENT AGREEMENT IN CONNECTION THEREWITH; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY (NOTE: THIS ORDINANCE WAS AMENDED BY ORD-85:1596 ON DECEMBER 16, 1985)
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WHEREAS, the City of Jonesboro, Arkansas (the “City”), is authorized and empowered under the provisions 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 (the “Act”), to issue revenue bonds and to expend the proceeds therefore to finance the acquisition, construction and equipment of land, buildings or facilities which can be used in securing or developing industry; and
WHEREAS, it is proposed that the City issue its revenue bonds under the Act and loan the proceeds thereof to Farr Company a California corporation (the “Company”), for the purpose of financing the cost of acquiring, construction and equipping an industrial project located within the corporate limits of the City (the “Project”); and
WHEREAS, pursuant to and in accordance with the provisions of the Act, the City is now prepared to proceed with financing the Project and, at the request of the Company, to issue and sell $8,000.000 in principal amount of its revenue bonds (the “Bonds”), to provide such financing; and
WHEREAS, the Bonds will be secured by an irrevocable letter of credit issued by Security Pacific National Bank, Los Angeles, California (the “Bank”); and
WHEREAS, the Company advises that it expects to initially employ approximately 100 persons and that upon final completion of the Project it expects to employ a total of approximately 220 persons in th...
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