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HomeMy WebLinkAboutOrdinance 2459 IF ILCJ i Uil RC.LUi} U 078 AUG 30 tip 9: 18 COU2459SgLMa }COLLI IEYER RK ORDINANCE NO . 24 i,LERK AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE PURPOSE OF PROVIDNIG PERMANENT FINANC- ING FOR INDUSTRIAL FACILITIES ; AUTHORIZING A TRUST INDENTURE SECURING THE BONDS ; AUTHORIZING A LEASE AND AGREEMENT BETWEEN ei THE CITY OF FAYETTEVILLE , ARKANSAS , AS Q, LESSOR , AND ARKANSAS BEST CORPORATION , AS LESSEE ; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO ; AND. DECLARING AMI EMERGENCY . WHEREAS , the City of Fayetteville Arkansas ( the " City " ) , is authorized by 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 acquire lands , construct and equip facilities and to incur other costs and expenses and make other expenditures incidental to and for the implementing and accomplishing of the conduct of .industrial development and WHEREAS , it is proposed that the City provide permanent financing , through the issuance of revenue bonds under the Act , of the costs of acquiring , constructing and equipping certain industrial facilities consisting of lands , . buildings , improvements and facilities ( the " Project " ) , and that the City lease the Project to Arkansas Best Corporation , a Delaware corporation ( the " Company " ) , as a trucking terminal to be operated by the Company ( or its successors or assigns ) at the City ; 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 to issue and sell $ 500 , 000 in principal amount of its Industrial Development Revenue Bonds - Arkansas Best Project , Series 1978 ( the " Bonds " ) , to provide such financing ; and WHEREAS , copies of the hereinafter described Trust Indenture , and Lease and Agreement have been presented to and are before this meeting ; m 972 471 MICRONLua, R NOW , THEREFORE , BE IT ORDAINED by the Board of Directors the City of Fayetteville , Arkansas . Section 1 . That the issuance of the Bonds is hereby authorized . The Bonds shall be issued in the forms and denomina- tions , shall be dated , shall be. numbered , shall mature ( over a period not to exceed thirty ( 30 ) years ) , shall bear interest ( at a rate or rates not to exceed ten percent ( 10 % ) per annum ) , and shall be subject to redemption prior to maturity all upon the terms and conditions recommended by the Company and to be set forth in the Trust Indenture securing the Bonds ( hereinafter authorized ) . Section 2 . That the Bonds have been sold to Powell & Satterfield , Inc . , Little Rock , Arkansas ( the " Purchaser " ) , for the purchase price of 98 cents on the dollar and upon the terms and conditions set forth in a Bond Purchase Contract recommended by the Company , and addressed to the City from the Purchaser ( the " Bond Purchase Contract " ) . The Mayor has accepted the Bond Purchase Contract on behalf of the City , and an executed copy is on file in the office of the City Clerk . Section 3 . To prescribe the terms and conditions upon which the Bonds are to be executed , authenticated , issued , accepted , held and secured , the Mayor is hereby authorized and directed to execute and acknowledge a Trust Indenture by and between the City and a bank or trust company which will act as Trustee thereunder , dated as of the date of the Bonds ( the " Indenture " ) , and the City Clerk is hereby authorized and directed to execute and acknowledge the Indenture and to affix the seal of the City thereto , and the Mayor and City Clerk are hereby ® 972 472 authorized and directed to cause the Indenture to be accepted , executed and acknowledged by the Trustee . The Indenture is hereby approved in substantially the form submitted to this meeting , and the Mayor is hereby authorized to confer with the Trustee , the Company and the Purchaser in order to complete the Indenture in substantially the form submitted to this meeting with such changes. as shall be approved by such persons executing the document , their execution to constitute conclusive evidence of such approval . Section n . That there be , and there is hereby authorized the execution and delivery of a Lease and Agreement by and be - tween the City as Lessor , and the Company as Lessee ( the " Lease Agreement " ) , and the Mayor and City Clerk be , and they are hereby , authorized to execute , acknowledge and deliver the Lease Agreement for and on behalf of the City . The Lease Agreement is hereby approved substantially in the form submitted to this meeting , and the Mayor is hereby authorized to confer with the Company , the Trustee and the Purchaser in order to complete the Indenture in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document , their execution to constitute conclusive evidence of such approval . Section 5 . That there be , and there is hereby , authorized the preparation and distribution to various prospective and actual purchasers of the Bonds of an official statement ( and preliminary official statement ) , in the name of the City , describing the City-, the Bonds , the Indenture , the Lease Agreement , and setting forth such other information as may be determined to be necessary or desirable by the Purchaser and the Company . The Mayor is authorized to execute such official statement on behalf of the City . Section 6 . That the Mayor and the City Clerk , for and on behalf of the City , be , and they are hereby , authorized and directed to do any and all things necessary to effect the ® 972 473 execution and delivery of the Lease Agreement , the performance of all obligations of the City under the Lease Agreement , the execution and delivery of the Indenture , the performance of all obligations of the City under and pursuant to the Indenture , the issuance , execution , sale and delivery of the Bonds , the execution , delivery and distribution of an official statement , and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by this Ordinance . That the Mayor and the City Clerk be , and they are hereby , further authorized and directed , for and on behalf of the City , to execute all papers , documents , certificates and other instruments that may be required for the carrying out of such authority or to evidence the exercise thereof . Section 7 . That the City is hereby involved with the acquiring , constructing and equipping of industrial facilities , and pursuant to applicable laws of the State of Arkansas , in - cluding particularly the Act , competitive bidding is waived . Section 8 . That the City Clerk is hereby authorized and directed to file in the .office of the City Clerk , as a part of the minutes of the meeting at which this Ordinance is adopted , for inspection by any interested person a copy of the Indenture , and Lease Agreement , and such documents shall be on file for inspection by any interested person . Section 9 . That the law firm of Friday , Eldredge & Clark , Little ?lock , Arkansas , be appointed to act as Bond Counsel on behalf of the City in connection with the issuance and sale of the Bonds . Section 10 . That the provisions of this Ordinance are hereby declared to be separable , and if any section , phrase or provision shall for any reason by declared to be invalid , such declaration shall not affect the validity of the remainder of the sections , phrases and provisions . we 97?. 474 Section 11 . That all ordinances , resolutions and parts . thereof in conflict herewith are hereby repealed to the extent of such conflict . Section 12 . That there is hereby found and declared to be an immediate need for the securing and developing of industry in order to provide employment and payrolls , alleviate unemploy- ment and otherwise benefit the public health , safety and welfare of the City and the inhabitants thereof , and the issuance of the Bonds authorized hereby and the taking of the other action authorized hereby are immediately necessary for the accomplishing of these public benefits and purposes . It is , therefore , declared that an emergency exists and this Ordinance being necessary for the immediate preservation of the public peace , health and safety shall be in force and effect immediately upon and after its pas - sage . PASSED : August 15 , 1978 . fpy�TT�% APPROVED : BST•.. ._ '• Mayor ;�C�ty Clerk Ccu, , ; . 1 (SEr1L)_ 1 CERTIFICATE OF RECORD State of Arhonsas l SS City of Fayetteville I( CERTIFICATE OF RECORD r, Darlene westbrook, City Clerk and Ex- .31 OF ARKANSAS I Officio recorder for the City of Fayetteville, Washington County ISS- (io liereuy c:e,•tify that the annexed or fore- 1, Alma L. Kollmeyer, Circuit Clerk and Ex-Officlo Recorder for going is of record in ujoffice and the same Washington County, do hereby certify Li..: ;he annexed or fore appears in &4t { k�ev-- – ---------- book going instrument was filed forret din my office on the kc:14 g�Q_�, ryitIIOas m 9i� ��__ at page __ Y of 19 77at _o'clomK M, and thesame� - duly recorded i record 9701 at pages L27/ hand and seal this — 1�— day of Witness my hand and seal this day of 19fy, 19- I t9- , Circuit Clerk and Ex-officio Recorded ;?d) City Clerk '::d Fs.- Officio Recorder By Deouty CWk ® 972 475