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AN ORDINANCE AUTHORIZING AMENDMENTS TO CERTAIN LEASES, PREPARATORY TO THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS, DECLARING AN EMERGENCY; AND FOR RELATED PURPOSES.
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WHEREAS, the City of Jonesboro, Arkansas (the “City”) has, as lessor, entered into various outstanding lease agreements with (“Hytrol”) as follows:
Lease and Agreement dated November 1, 1969;
Lease and Agreement dated July 1, 1973;
Lease and Agreement dated October 1, 1975;
Lease and Agreement dated August 1, 1979
(The “Lease Agreements”); and
WHEREAS, the Lease Agreements were entered into as necessary to, and in connection with, the issuance, by the City, of its industrial development revenue bonds, as follows:
City of Jonesboro, Arkansas Industrial Development Revenue Bonds $750,000 dated November 1, 1969 (Hytrol Project);
$600,000 City of Jonesboro, Arkansas Industrial Development Revenue Bonds - Hytrol Project Series A, Dated July 1, 1973;
$250,000 City of Jonesboro, Arkansas Industrial Development Revenue Bonds Hytrol Project, dated October 1, 1975;
$1,750,000 City of Jonesboro, Arkansas Industrial Development Revenue Bonds Hytrol Project 1979 Series A - $1,000,000, 1979 Series B - $750,000
(The “Bonds”); and
WHEREAS, the Lease Agreements provide for rental to be paid by Hytrol in amounts and at times sufficient to provide for payment of principal of and interest on the Bonds as due; and
WHEREAS, the Bonds are not general obligations of the City but are special obligations, secured by a pledge of and payable from rentals paid and to be paid pursuant to the Lease Agreements; and
WHEREAS, the Lease Agreements provide for renewal or extension of the terms thereof after payment or discharge of the Bonds, at the option of Hytrol, but, unlike lease agreements typical in similar undertakings, provide for renewal or extension only for rentals on the basis of fair market value of the unimproved lands subject thereto (the “Leased Premises”) and do not provide for pur...
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