HomeMy WebLinkAboutOrdinance 2009 JU , I - 4
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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
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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
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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
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