HomeMy WebLinkAboutOrdinance 3399 FILED FOR RECORD
89 A 27 PIS 2 55
WASHING70N CO AR MICROFILMI6
ORDINANCE NO . 3399 A • KOLLMEYER
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE
PURPOSE OF PROVIDING PERMANENT FINANCING FOR
INDUSTRIAL FACILITIES ; AUTHORIZING A TRUST
INDENTURE SECURING THE BONDS ;, AUTHORIZING A
LEASE AND AGREEMENT BETWEEN THE CITY OF
FAYETTEVILLE , ARKANSAS , AS LESSOR , AND
SPECIALTY FASTENING SYSTEMS , INC . , AS
LESSEE ; AUTHORIZING THE SALE OF THE BONDS ;
AUTHORIZING AND PRESCRIBING OTHER MATTERS
PERTAINING THERETO ; AND DECLARING AN
EMERGENCY .
WHEREAS , the City of Fayetteville , Arkansas ( the
" City " ) is authorized and empowered under the provisions of
V Title 14 , Chapter 164 , Subchapter 2 of the Arkansas Code of 1987
Annotated ( the " Act " ) , to issue revenue bonds and to expend the
proceeds thereof to finance the acquisition , construction and
equipment of land , buildings or facilities which can be used in
V securing or developing industry ; and
WHEREAS , it is proposed that the City issue its
revenue bonds under the Act for the purpose of financing the
costs of acquiring , constructing and equipping an industrial
facility located in the City ( the " Project " ) , and that the City
lease the Project to Specialty Fastening Systems , Inc . , an
Arkansas corporation ( the " Company " ) ; and
WHEREAS , pursuant to and in accordance with the
provisions of the Act and Section 147 ( f ) of the Internal Revenue
Code of 1986 , as amended ( the " Code " ) , a public hearing was held
prior to the passage and approval of this Ordinance , before the
Board of Directors , on the question of the issuance of such
revenue bonds under the Act ; and
WHEREAS , after due consideration , the City is now
prepared to proceed with financing the Project and to issue and
sell $ 1 , 2001000 in principal amount of its Industrial
Development Revenue Bonds - Specialty Fastening Systems , Inc .
Project , Series 1989 ( 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 ;
NOW , THEREFORE , BE IT ORDAINED by the Board of
Directors of the City of Fayetteville , Arkansas :
IIBER 1305P„GE 410
Section 1 . The Board of Directors hereby finds that
the acquiring , constructing and equipping of the Project , and
the issuance of the Bonds to finance the same , will provide
substantial additional employment and payrolls and will thereby
secure and develop industry at the City .
Section 2 . That the issuance of the Bonds is hereby
authorized . The Bonds shall be issued in the forms and de -
nominations , shall be dated , shall be numbered , 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 ( hereinafter authorized ) securing the Bonds .
The Bonds shall bear interest at the rates per annum , and shall
mature in each of the years , as set forth in the following
table :
Year Principal Amount Interest Rate
1990 $ 85 , 000 6 . 500/b/
1991 95 , 000 6 . 75
1992 100 , 000 6 . 90
1993 105 , 000 7 . 00
1994 115 , 000 7 . 10
1995 120 , 000 7 . 20
1996 130 , 000 7 . 30
1997 140 , 000 7 . 40
1998 150 , 000 7 . 50
1999 160 , 000 7 . 60
Section 3 . That the Bonds be sold to T . J . Raney &
Sons , Inc . and Stephens Inc . , both of Little Rock , Arkansas ( the
" Purchasers " ) . for the purchase price of 98% of par , plus
accrued interest from the date of the Bonds to the date of
delivery , which price is recommended by the Company .
Section 4 . That 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 First National Bank of Lawrence County ,
Walnut Ridge , Arkansas , as Trustee thereunder ( 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 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 and others
in order to complete the Indenture in substantially the form
submitted to this meeting with such changes as shall be approved
L(BEE1305PPCE411
by such persons executing the document , their execution to
constitute conclusive evidence of such approval .
Section 5 . That there be , and there is hereby , au-
thorized the execution and delivery of a Lease and Agreement by
and between 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 in substantially the form submitted
to this meeting , and the Mayor is hereby authorized to confer
with the Company and others in order to complete the Lease
Agreement 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 6 . That there be , and there is hereby ,
authorized the preparation and distribution to various prospec -
tive and actual purchasers of the Bonds of an Official State -
ment , 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 Purchasers , the Company and the City . The Mayor is
authorized to execute such Official Statement on behalf of the
City .
Section 7 . That the City hereby elects to have the
provisions of Section 144 ( a ) ( 4 ) ( A ) of the Code apply to the
Bonds .
Section 8 . That the Mayor and 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
execution and delivery of the Lease Agreement and the
performance of all obligations of the City thereunder , the
execution and delivery of the Indenture and the performance of
all obligations of the City thereunder , 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
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 9 . That the City is hereby involved with the
acquiring , constructing and equipping of industrial facilities
LIBEn 1305?�GE AV
and pursuant to applicable laws of the State of Arkansas ,
including particularly the Act , competitive bidding is waived .
Section 10 . 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 adopt -
ed , 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 11 . That the law firm of Friday , Eldredge &
Clark , Little Rock , Arkansas , be appointed to act as Bond
Counsel on behalf of the City in connection with the issuance
and sale of the Bonds .
Section 12 . That the provisions of this Ordinance are
hereby declared to be separable , and if any section , phrase or
provision shall for any reason be declared to be invalid , such
declaration shall not affect the validity of the remainder of
the sections , phrases and provisions .
Section 13 . That all ordinances , resolutions and
parts thereof in conflict herewith are hereby repealed to the
extent of such conflict .
Section 14 . 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
unemployment and otherwise benefit the public health , safety and
welfare of the City and the inhabitants thereof , and the issu-
ance 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 immediate -
ly upon and after its passage .
PASSED : January 3 , 1989 .
APPROVED :
aar nrr tire..
/ ' ., Mayor /
of
Nn --y` y ?
+� ••... . . . . �� LIBER1305P1,GE413
CERTIFICATE
The undersigned , City Clerk of the City of
Fayetteville , Arkansas , hereby certifies that the foregoing
pages are a true and perfect copy of Ordinance No . 3399 ,
adopted at a regular session of the Board of Directors of the
City of Fayetteville , Arkansas , held at the regular meeting
place in the City at Z- 10 oIclocko . m . , on the 3rd day of
January , 1989 , and that the Ordinance s of record in Ordinance
Record Book No . at page , now in my possession .
GIVEN under my hand and seal on this day of
January , 1989 .
loft#,' C
Cit 1 rk
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; . ; ' • :. �S : ' ter :
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10
LIBEB1305PAGE414
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CERTIFICATE OF RECORD
I, Alma Kollmeyer, Circuit Clerk and
State of Arkansas $$ Ex-officlo Recorder for Washington County,
City of Fayetteville
I, Suzanne C. McWethy, City Clerk and�ument , do hereby certify that this ffi
Ex-Officio recorder for the City of Fayetteville,as
n Inl was filed for record in my office
W Indlcaled hereon end the same is now
do hereby certify that the annexed or fore +'A
duly recorded with the acknowled ement •`+�'ti�
going is of record in my office and the same ap- s
ears in Ordinance & Resolution book Indicated
and
certificate thereon in Record Book and
pPapa as ndicated thereon. '
at page. Witness my IN WITNESS WHEREOF, I have hereunto �
hand and seal thisOl� .�.yday ofol my hand and affixed the seal of said • ,5
„u` 191 p — Court on the date indicated hereon.
Alma Kollmeyer
City CleVk andel Ex--OCfkficio R .order im" Clark and '
Recadei •.,
by , � . , , •.t s
gg f1E6Ees1 el►f3Eo Ifeaa, (rD.; im 12, 'm fltlfhu ' .
F,.w„e1TrenLLd, Ae[ansAr copy a ordinance No. Sals.
Law wy� Mm leo Milo$ A:? to et A rpular MYIOn
war lluticu a me Board a DlrMon a } a3,
M polpplM N ire ✓Iy yMmined b o n«•saa1Y 1"e CITY N F•wryforift f
ORDINANCE NO. IM. ire ted IfawMa a ire K dnUaDla OY int Pun A/kaMaf, Mld al Me rpU
w N O R D I N A E BmM ro IIMM• 1M same. aMian. ire CanMnY abs lar mKllnp piece In ted Clry
AUTXORIZIN4 TX IS will pwlde wMl•nllal ab m• CIIY� The NyYOr Is •1 ):p o'<IKIt p.m., An Me
SUANCE OF INDUS AL • dltlmal employment am aollsylzad b execute each Sn d y a JetWan. IgM.
DEVELOPMENT R E "Vegas abs will 1 sty Official 3l•hm•nt On MMlI •"d role IM OMin•tN• ba ' ( - tl. hereby CenlfY lhatl
xuE carob$ FOR NE e«vn Are d.wlm lrewM am.city. /«Fe t" oralMnn R•®d ''IE NORTHWESTA ANSASTIMES, adall newspaper
PURIOSEOF PROVI N4 ' ' 1meClty. SMIm ). 'Test ted Clry Bek No:-. NpaM- , Ivr R Y
PERMANENT FIN G Section 2. That IM IN IyrODY •IMa b naw ire MmypOfwlM. E mailing prlvllege, and being n01 less than (our pages Of
FACILINGfITOIESinAUTHO IDUST Z- BenDY aL finance 1VmMLd.d The Provisions a 5«llm IY (el andlMN VENonnie SmYd Y mailing
at a fl%etl PIaCP O( business add dl8 fl%etl (daily)
IN4 A TRU$T ' INo M :EMWS IMII the Modest! In HN UI (AI NIM Cath apply - .. ��Ig
TURF STRUT - IN ere Banns. :.• . , .lanuarY. lm. n the City of Fayetteville, County of Washington. Arkansas
BONGS' AUTNO0.121N A. ,' ' 'Mons abs deMml"Nbni ' Sectio" a' TM11M Smear -y:Mlxa""•C.MCWmY Of twelve months, circulated and distributed from an
MmMaiM haled, Man b am her City,g am . r. dry ClNe hslness to subscribers and readers generally Df all classes
LEASE AND AGR - MmM1•d, •M N•IIMSuD M (SEAL
MENT BETWEEN T E maturity
M in r•d•mNlm Fear to they are MnaY. •lllWiz•d n ow ' an ly (Or a deflnle price for each copy, or a fixed price per
CITY OF S. AS LE IL ib an all ogre Inc farms •M dlrMed IO a0 any and annum, which rice was fixed at what Is Considered the value of the publication.
ARKANSAS. C LES abs ctheCmsrecommen@ all things necessary to N1«t p
AND SPEIIA L.1 Y ad DY me In Me TYandroM 1M execution Md delivery N based upanthe news vahleand serVicevaltle It COntains• that at least fifty percent
FASTENING SYSTE Sul lotto enMTrua lnd•m 1M Leese Agreement tip of thesubscrlbers thereto have id cash for their subscriptions tOthe newspaper
e N C „ A 5 LES 5 ') hero (IINelMlly sulMllo in• pe//OlmenCe OI all
AUTHOR RING TXE LE ,-ed) s«urlM the BpMs, TM the Performance
OI elle Calyl1 Or Its agents Or through recognized news dealers Over a period Of at least six
OF THE B O N :' ; til Begs Nyle Mir Interest at iherwreer, tM 'executl(Mli months: and that the said news y
A U T X O R I Z I N G ' D: ted reed par a"twm• abs paper publishes an average Of more than fort
OT •M aro tro a in• "ll percent news matter.
MATTERS PERTAI OI a"•II mature I" •am N the n'r• abs ms pere0lmu!c• IR
-yN/e. n til lFelt m il4 roh all Obligations of me„ally,
,THERETO; AND DEC 'UIIF;. '- ,.,_1{aw�tp table: ' thorwnder, ire- Ifwanw, I further Certifythat the legal notice hereto attached In the matter Of
• INGANEME RGENCY.e ' J) ' Mncipal�lrinnsl execution, ole abs delivery R
WHEREAS. ire CITFEgiymwa. Vast Amount Rab al the BNMs, IM execution.
Fayetteville
lis Alkets ed a ,i1W0 s MA00 a,SO% dellwry ere ElflrlWfyn at �/1 �l/ 11n
"Gifu"1. la aulblxed M .+lest -_9SA00 eels% Official Statement, abs' w!'f_.( tCq .- [
Oy�Ta Da 14 ped SM. Iq! IN= -."' a.s0% the performance a all acts Lc S�
WIc"am« S of the Areas. lq% Ips K0 T.p a w ?ever 'MWre MC
ICN ; 115LUO =';710% ury ro ~ ere carry Wi
Ms "ACC-LNM AMNNaa ,. less ' 'Ipppp A-LZO% fed authority elemental pY was Published In the regular dally Issue at said newspaper for
Una "ACY'4 b Issue raw' , less IN,= '' 7.20% this Onumns•. That the consecutive Insertions as follows:
nO absbex the 1997 1pA00 "7.40% Mayor and City Clark M,
pr ecee t w f w finY a Not ' . 150.0011 —.7s001, and inw are hereby. further. � .� ��f (�/��(e
Print •m'tlsnyn• canm'Kt%n len " 10m ”'�).cC% autherizep ra direct". for The first insertion On the ._[} (..day of V 19
and eaumnion1 N 1 $Koro $, Tedi NN BFMa ere m OMaN N ire Clry. ro ✓ �—
canWWeedInManor tib N -W"db T.J. R8mW & S nL M«Ne all papKy. tiara-•
l•n M ml b :: -Inc. ere Stepnem Inc.. Mm Monte. certificates and the second Insertion on the . day of 19
evebaM S. It It : a' Lime Rack. Ar%•Mse o1Mr Id rummfs that may
WHEREAS. It IS (ire "Purchases"). M ted M rebound for ire canYleq
mai m• CIry air t M Ymrch•M Wipe a ss% N mf a Such authority F to the third Insertion on the _ day of 19
ireDmOa uM•rIM ' .par, plus «crowd mf«nt evidence ,toe •%eras.
purpOM elrwMl ;`Monied defeat Me Bonds ft melMl. _ .. :. . - and the fourth MSerllon on the day of_
Ilrq ant, pulpplM M 1 .'lthe don a Mllvery, which S«tim Y; That in•the C- 1/�
trial (1 fry IMaM In �INlce N rKDmI - P by MIrJr Imgc with the ac-
CIry (abs PnIM'9/ '? Section -. iv : Oul/Ibi iNOIM and
mN IM CIry N the �%? Section 1. mss am SMIppam a lMuffrlN l all-
IM b Specially F• •' pre It up Items , ere pl«. M W& the la at, �
element. Dec. An Me cet' s of IM A "tell IM oilcans s. I cl ire Slay N Sworn t0 and subscribed before me ON 1)115 d `.. day oY
corporation (in* _ temps a1• b M •xecutepArkansas. Including yell / �j n
. , authenticating. Issued, ac: ticularlY Inc Acl. c m LL
MnY"I: eM ' ' iapleO,
Mid •M MCFwO. glliwe D141np iswalvwd. C1_19Q
WHEREAS, m m .+Y,the . Mayor IS hereby Section 10. Test M• Clry (/
atq'In «cDlpaM a FZM and dlr•ctep ro Clark Is Mrepy • lagrliep "
Fw an I a 1M AN ex«.tl1e abs acknowledge i Nw ai.«cad ro file in me Of.
'
Mem lq (n N Me I TNZI ItWanWr• M .M Do nee N IM City el«x, of a lery `
MIR COOe all
Iw•m ire cin abs Fleet N.. for? a RN minutes a ted [tub 1
pmetNed Ito COM'• ibnal BanA a LewrNRe eNIM n wnlcn this Odl- /. • ' 1 I ( :l (I
lane Marmq to ' r County. Walnut .Ridge, . naMa Is • w, a« Inge- My Commission Expires:
gravels MIS O rea P +'Arkansas, an Trustee few by any Interested nn • ' ,
�+fh•reubder Doe' "Indo sm a copy a IM Iremtum ( . . / V 1 ( 1 11 1,1
armor ire aunlld o a 1 s: '(' ' M� ). abs ted City Clerk y abs Lease Agreement. and
( - � � � / f '
' "i.+ rler•by . authorized and taco pocumnb N•uMm
silence
ill
r such l rev • - r :yr•aep ro axe un •M ac file M Inspection DY any M. q
WHEREAS. Ntn - • ' knowledM the Indenture tereatadgrfOn. •"'•
mMldnatbn. 1M C Is i• Nro be Nllx 1M fol a ere ycllon 11. That IM 'I•w • 1. I 1
noterFspwn0 l0 vMFCHY . are me A W firm N Friday; EIdeM 6 •,,11111"o'J;`
with IIMMIM Me '.iy City Clark aro helMY Clan. Little R xle, Arkem FPPs (Oi III toting .j `�'� � /
and to Iffu• end . II , l'•uRyrei•p and dlrMKl M W. M appointed b ale e3 R — S !M Y Y
and toll
I u andPrM1 ' MUM ted Indenture to M Bred Counsel m MMII N
or N In It d lnrrlal yt:'iycMled. •xecutW abs « Me CITY In connection with
Y'bywbdMa DY the Trustee. IM Issuance pp seta a the COSI Of Proof _. S
ImmMl Revmw •. l;NTM IMMIun Is herany At,- BpNs, t .•^)' .V. - r7y
S pec l a t lv Fasten 0 plpywd In substantially the S«IN" M That ley Favi
systems, tic. Prof form Submitted IO In N,sbnaa rob OnIMMe an Total S / •
Same
Pr 1l" such n 1, , _1✓: iAe111 11". �naHN t IIs rMONY MI i� in IN N Hills-
• WXEREAS. cOpin a. orf IM ted Tro3M abs phrase or provision thou for
Mr•I ERattoEr MS Iso T f • may, In FMr to commits v meson Medeclared ro M
• Im•nMe abs Lead o s ted lM•nlur• In substantial Invalid. Such . d«I•rallon
Agym t Mw MHr "ji le Mo Mm W broiled b MI5 MAII Mf Noce IM validity
Mfed b •M an halon Ie meetlM with Nxh changes a the rema1M•r a the f«-
meellM: n Wes M appwwd ev NNn Nm3. chraMs and, �I-
NOW. TNEREfORE, E n- persons ,executing the Nmi. ,:
ITORDAINE DDY the .' Cecomanf. eMlr execution b section lS.' Thai'attordl-
a DlrKron a IM Clty a %.4'StIMte, cacluslve w4 n•ncef, resclut(One and
FweMv111e.Arbnsn: ' 'Tp daM•a ouch appwaL .,peen thereof In camuct
More y 'a" `SKibtl S -That re M• herewith are Mean, mixed-
SKnon 1. Tera iI Ir.iabd there Is hereby, edrotn• exI•nla Svchcm-.
DlrMen MreM IIMs I ( . :aNhorind ted execution AM Inc.
•n. ...
Me KyuIrIM. condi r'p�Z:dallvery N a. Leado abs Soclyn m% Tnot them Is
r,. ,CantleW Mrag•as Ifo"[(.Agmrmnt M and MMeen Meeh bore ere declared
Via ire City As 1.•m, ere no b M •n IMI iateMed M
'CanpanY AS Lassie (abs the securing abs developing
'IMA YFAine"Cl: " Of Industry
inorderemployment go-
y,.. and melte :nere &c payratio, alleviate
Othe -
S,A ail l"W An czarina. M unemployment abs NMn
bwwlmw •M Mawr ire. wbe D•nenr ed am Of
if illlreemme Thabsm realm. am Niphab•na
DMell N ted City. The la•M ted Cityw, abs IM issuance
Of
0 the
Moll tMnOl. abs IMiHuaM• N
A doe City. The y W Nw him take"aNhFlZ JI MrMY
AOmmIn la ant• ll • e •M ma N IM am --_
form submitted
Substamuted to ire.halmiately no MrMy see
' form ig. Mol tied Ie Mainly
Is in*Immediately hKesMn M
meellnp, Mol filze Mayor Is Pu is bonslift a tluxes
our
with the
ro costly
and pu0I1c ' MnNlfi abs dor,
-twith abs COmp•nv and pouf, . If fano elere,
he I I . Age COenNm declared role m emnwrxr
-IM Ie•M)Y Im Win b In1101Mmis OfaMnrark
fuMtanto ha ale Mm with IM ryc•fnrY M IM Immo
'' .11UIlac roroleseeped with dials Foe . be a abs
• SUCn MAMssn"N set, safety MKL In
are
amuti by each Ment. t ear seb1Y Mall ua 10 bon abs
KNinp IM constitute
their NI«tImmeNW. upon and
sX•c01bn b Conaillvy CpF afN1 SED: Jae,
l ybNW wldNcea aucn ap�i PA$SE0.JaMary Saeed.
. :pzwN. �.G y,^'0,.: 'APPROVED 2
J SKIbn A .TMl mn� IN, ,-. " Wlummv,smorrn
:•':end there If hereby . r1✓j-:M3�ItiINYF
Y•v NdMrizM ted preparNfon ATTEST:._.:A� - '
'. ltOrNq o1Nr11Wlim ro v«map :S 0C:AbWeehy�' '•,'J•i
MaapSNlw are KIVal pw.. CIry Clerk :-•Maw;)' Imo
ornare a the Bares W a1' (SEAL)
-: Y+:bx'•SaNd..-
r7haM'�IcIN $taNnRnt. In� IM: 'GERTIPICATBjfF
oN
this City, describingp TM Undersigned, Cltr '
' Me clrv. me ENWS. hasAg Ion CI«1t N rkdvm a PMN
MnMF. IM LA.M Agreo buil•. met "t. Mostlym �.
relwnr, AM sery1M sortie earn venules met Mo MaeeIM
