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HomeMy WebLinkAboutOrdinance 2009 JU , I - 4 „ i , . ,T Y ORDINANCE NO . 2009 C . Cu , T CLE AN ORDINANCE PROVIDING FOR THE CONSTRUCTION OF A NEW AIRPLANE HANGER FACILITY AT THE MUNICIPAL AIRPORT (DRAKE FIELD ) IN THE CITY OF FAYETTEVILLE , ARKANSAS ; PROVIDING FOR THE ISSUANCE OF REVENUE BONDS ; PRESCRIB - ING OTHER MATTERS RELATING THERETO ; AND FOR OTHER PURPOSES . WHEREAS , the Fayetteville Board of Directors deems it desirable to construct a new airplane hanger facility having approximate dimensions of seventy - five feet by one hundred twenty feet ( 75 x 120 ) at the Fayetteville Municipal Airport (Drake Field ) ; and WHEREAS , the estimated cost of said airplane hanger facility is $ 50 , 000 and the estimated expenses incidental to the financing thereof is $ 500 . 00 ; and WHEREAS , the City does not have funds available sufficient to accomplish the improvements but can obtain the necessary funds by the issuance of revenue bonds under the provisions of Act No . 135 of 1929 . NOW , THEREFORE , BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF - FAYETTEVILLE , ARKANSAS ; Section 1 . That the construction of a new airplane hanger facility having approximate dimensions of seventy - five feet by one hundred twenty feet ( 75 x 120 ) at the Fayetteville Municipal Airport (Drake Field ) is hereby authorized . Section 2 . Under the authority of the Constitution and laws of the State of Arkansas , including particularly Act No . 135 of 1929 , Airport Improvement Revenue Bonds ( the "bonds " ) are hereby authorized and ordered issued in the principal amount of Fifty Thousand Five . Hundred . Dollars ( $ 50 , 500 . 00 ) for the purpose of financing the cost of accomplishing the construction of said hanger facility , paying necessary expenses incidental thereto , paying the expenses of issuing the bonds and proviAlag M1CR0FJZMFZ DATE . 6 1978 REEL 6 1ft 869 153 for interest on the bonds , if necessary , until the revenues are available . The bonds have been sold to First National Bank , Fay - etteville , Arkansas , and McIlroy Bank , Fayetteville , Arkansas , for a price of par and accrued interest . The bonds shall be dated July 1 , 1974 , and shall bear interest at the rate of six and one - half ( 6k % ) per annum . The bonds shall be in the denomination of $ 24250 each and shall be numbered consecutively from 1 to 2 inclusive . Principal and interest payments in the amount of $ 7 , 024 . 80 shall be payable on July 1 of each year , commencing July 1 , 1975 , until the principal and interest are fully paid , except that final payment of the entire indebtedness if not sooner paid shall be due and payable ten ( 10 ) years from the date of the bonds . The bonds shall be initially issued as two bonds ( either typewritten or printed ) registered as to principal and interest , in the principal amount of $ 25 , 250 each , maturing as set forth above . Section 3 . The bonds shall be executed on behalf of the City by the Mayor and City Clerk and shall have impressed thereon the seal of the City . The bonds , together with interest thereon , shall be payable out of the 1974 Airport Improvement Revenue Bond Fund , as hereafter set forth , and shall be a valid claim of the holders thereof only against such fund and the revenues pledged to such funds , which revenues are hereby pledged and mortgaged for the equal and ratable payment of the bonds and shall be used for no other purpose than to pay the principal of and interest on the bonds . The bonds and interest thereon shall not constitute an indebtedness of the City within any constitutional or statutory limitation . Section 4 . The bonds shall be in substantially the following form , and the Mayor and City Clerk are hereby expressily author - ized and directed to make all recitals contained therein : ( Form of single registered bond ) (To be typewritten ) UNITED STATES OF AMERICA STATE OF ARKANSAS COUNTY OF WASHINGTON CITY OF FAYETTEVILLE 611 % AIRPORT IMPROVEMENT REVENUE BOND No . R - $ KNOW ALL MEN BY THESE PRESENTS That the City of Fayetteville , Washington County , Arkansas ( the " City" ) for value received , hereby acknowledges itself to owe and promises to pay to the registered owner , or registered assigns , solely from the special fund provided as hereinafter set forth , the principal sum of TWENTY - FIVE THOUSAND TWO HUNDRED FIFTY DOLLARS with interest on the unpaid balance of the aggregate principal sum at the rate of six and one - half percent ( 6k % ) per annum from the interest commencement date hereof . The principal and interest shall be payable in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America and shall be payable in the following installments , on or before the following dates : principal and interest in the amount of .$ 3512 . 40.' on July 1 , 1975 , and each July 1 thereafter until the principal and interest are fully paid , except that the final payment of the entire indebt - edness , if not sooner paid , shall be due and payable ten ( 10 ) years from the date of this bond . Payments of the principal and interest installments due hereon shall be made , except for final payment , without presentation and surrender of this bond , directly to the registered owner at his address shown on the bond registration book of the City , and such payments shall fully discharge the obligation of the 'City to the extent of the pay - ments so made . 869 > ,,. 55 This bond is issued for the purpose of financing the cost to the City of constructing an airplane hanger facility at the Fay - etteville Municipal Airport (Drake Field ) , and costs of authorizing and issuing the bonds , and is issued pursuant to and in full compliance with the Constitution and laws of the State of Arkansas , including particularly Act No -. 135 of 1929 , and pursuant to Ordinance No . 2009 of the City , duly adopted and approved on the 21st day of May 1974 ( the "Authorizing Ordinance " ) . Prepayments of principal installments , or any portion thereof , may be made at any time . Such prepayments shall not affect the obligation of the City to pay the remaining installments . This bond does not constitute an indebtedness of the City within any constitutional or statutory limitation or provision , and the taxing power of the City is not pledged to the payment of the principal of or interest on the bond . The bond is a special obligation secured by a pledge of and payable solely from revenues derived from the lease of the airplane hanger facility to be constructed and financed by the sale of this bond . A sufficient amount of airport facility hanger revenues has been duly set aside and pledged as a special fund for that purpose , identified as the 111974 Airport Improvement Revenue Bond Fund , " created by the Authorizing Ordinance . The City has covenanted and agreed to maintain lease rates for use of said airport hanger facility which shall be sufficient at all times at least to provide for the payments of principal and interest installments on all - the outstanding. bonds to which said hanger facility revenues are pledged as they become, due . This bond may be assigned , and upon assignment the assignor shall promptly notify the City Clerk .. :: . by registered mail , and the assignee shall surrender this bond to the City. Clerk '. ,) for transfer on the registration records . Every assignee shall take this bond subject to all payments - and prepayments of principal and interest '( as reflected by the Payment Record maintained by the City Clerk ) , prior to such surrender for transfer . IT IS HEREBY CERTIFIED , RECITED AND DECLARED that all acts , conditions and things required by the Constitution and statutes of the State of Arkansas to exist , happen and be performed precedent to and in the issuance of this bond , do exist , have happened and have been performed in regular and due time , form and manner as required by law ; that the bond does not exceed any constitutional or statutory limitation of indebtedness , and that provision has been made for the payment of the principal of and interest on this bond , as provided in the Authorizing Ordinance . IN WITNESS WHEREOF , the City of Fayetteville , Arkansas , has caused this bond to be executed in its name by its Mayor and City Clerk , thereunto duly authorized , with the manual signatures of the Mayor and City Clerk , and its corporate seal to be affixed , all as of the first day of July , 1974 . The interest commencement date of this bond is ]Da o)/ 99 CITY OF FAYETTEVILLE , ARKA SAS BY : &MAYOR ATTEST : CITDYE ERK 869 r. 157 REGI'STRATION 'CE'RTI`FI'CATE Date of Registration : Name of Registered : Manner of Signature of ; Owner Regi:s'tration : City Clerk ( Form of Assignment ) For value received , the registered owner last listed below sells , conveys , transfers , assigns and delivers this bond to the assignee last listed below : REGISTERED OWNER ASSIGNEE 86� :: 159 ( The following Payment Record shall be attached to the bond . ) /9 -7y AL -O . i, - ° PAYMENT RECORD z3 " Principal Signature Principal Balance Interest Appropriate Date Due Payment Due Payment Date Paid Official F, Title ,SV, S9 0 O-D, July 1 , 1975 July 1 , 1976 July 1 , 1977 July 1 , 1978 July 1 , 1979 July 1 , 1980 July 1 , 1981 July 1 , 1982 July 1 , 1983 July 1 , 1984 SCHEDULE "A" PRINCIPAL INSTALLMENTS ON WHICH PAYMENTS HAVE BEEN MADE PRIOR TO MATURITY SIGNATURE OF PRINCIPAL DUE PRINCIPAL DATE APPROPRIATE DATE AMOUNT PAYMENT BALANCE PAID OFFICIAL AND TITLE 161 Section S . The City covenants and agrees that it will at all times while any of the bonds are outstanding operate as a revenue producing undertaking the airport hanger facility authorized hereby , fix and collect rates and charges for the lease of said hanger facility , which shall be sufficient to make the required deposits into the 1974 Airport Improvement Revenue Bond Fund . Section 6 . All moneys received from the lease of the airplane hanger facility authorized hereby shall be deposited in such depository or depositories for the City as may be lawfully designated from time to time by the Board of Directors , provided that such depository or depositories shall hold member - ship in the Federal Deposit Insurance Corporation . All deposits shall be designated so as to indicate the particular fund to which the revenues belong . Any deposit in - any fund in excess of the amount insured by the Federal Deposit Insurance Corporation must be secured by bonds or other direct or fully guaranteed obligations of the United States of America , unless invested as herein authorized . Section 7 . 1974 Airport Improvement Revenue Bond Fund . All revenues derived from the lease of the hanger facility author - ized hereby shall be paid into a special fund , which is hereby created and designated the " 1974 Airport Improvement Revenue Bond Fund" . Such revenues so deposited in the 1974 Airport Improvement Revenue Bond Fund are hereby pledged and shall be applied as hereinafter set forth . This pledge in favor of the bonds is hereby irrevocably made according to the terms of this ordinance , and the City and the officer and employees of the City shall execute , perform and carry out the terms thereof in strict conformity with the provisions of this ordinance . Section 8 . The City hereby agrees that all payments on the bonds and interest shall be made only as provided in this ordinance . All bonds paid or purchased either at or before maturity shall be cancelled when such payment or purchase is made and shall not be 869 ; lb" - reissued . Section 9 . It is hereby covenanted and agreed by the City with the holders of the bonds that the City will faith - fully and punctually perform - all duties with reference to the airplane hanger facility authorized hereby required by the Constitution and laws of the State of Arkansas and by this Ordinance , including the charging and collecting of sufficient lease rates , as herein specified and covenanted , the segregating of the revenues to the respective funds created hereby and the applying of the pledged revenues to the respective funds created hereby . Section 10 . The bonds shall be subject to prepayment prior to maturity in a manner in accordance with the terms set out in the Bond Form in Section 4 hereof . Section 11 . The City will keep or cause to be kept proper books of accounts and records ( separate from all other accounts and records ) in which complete and correct entries shall be made of all transactions relating to the airplane hanger facility authorized hereby and the operation thereof , and such books shall be available for inspection by the holder of any of the bonds at reasonable times and under reasonable circum - stances . Section 12 . Upon the occurrence of an event of default , any bondholder may by filing written notice with the City Clerk declare the entire principal to be accelerated and due and payable and may exercise and pursue any remedy or remedies available at law or in equity , including without limitation mandamus and receivership . Section 13 . '(a) Moneys held for the credit of any fund may , at the option of the City , be invested and reinvested pursuant to the direction of the City in direct obligations of or obligations of , or obligations the principal of and interest on which are unconditionally guaranteed by the United States of 8u9 °, : 163 America , which shall mature , or which shallbe subject to redemption by the holder thereof , at the option of such holder , not later than the date or dates when the moneys held for the credit of the particular fund will be required for the purposes intended as specified by the City . (b ) Obligations so purchased as an investment of moneys in any such fund shall be deemed at all times to be a part of such fund and the interest accruing thereon and any profit realized from such investments shall be credited to such fund and -.any loss resulting from such investment shall be charged to such fund . Section 14 . In the event the office of Mayor , City Clerk , or Board of Directors shall be abolished or any two or more of such offices shall be merged or consolidated or in the event the duties of a particular office shall be transferred to another office or officer , or in the event of a vacancy in any such office by reason of death , resignation , removal from office or otherwise , or in the event any such officers shall become incapable of performing the duties of his office by reason of sickness , absence from the City of otherwise , all powers conferred and all obligations and duties imposed upon such office or officer shall be performed by the office or officer succeeding to the principal functions thereof , or by the office or officer upon whom such powers , obligations and duties shall be imposed by law . Section 1S . The provisions of this Ordinance shall constitute a binding contract between the City and the holders of the outstanding bonds , and the City will at all times strictly adhere to the terms and provisions hereof and fully discharge all of its obligations hereunder . Subject to the terms and provisions contained in this section and not otherwise , the holders of not less than seventy - five percent in aggregate principal amount of the bonds then outstanding shall have the right , from time to time , anything contained in this Ordinance to the contrary notwithstanding , to consent to and approve the adoption by the City of such ordinance supplemental hereto as shall be necessary or desirable for the cow - 164