HomeMy WebLinkAbout1983-11-30 MinutesMINUTES OF A SPECIAL BOARD OF DIRECTORS MEETING
A special meeting of the Board of Directors of the City of
Fayetteville was held on Wednesday, November 30, 1983 in the
Fayetteville Chamber of Commerce, Fayetteville, Arkansas.
PRESENT: Mayor Noland, Directors Bumpass, Johnson, Orton and
Sharp; City Manager Grimes; City Attorney McCord;
City Clerk Kennedy; members of the press and audience
ABSENT: Directors Lancaster and Osborne
CALL TO ORDER
Mayor Noland called the meeting to order at 4:45 P.M.
ANNOUNCEMENT FROM MAYOR
The Mayor announced the Department of Pollution Control and Ecology
meeting would be held on December 8 at 2:00 P.M. in Little Rock.
MEMORANDUM OF INTENT/ACT 9 BONDS/BALDWIN PIANO & ORGAN
ACQUISITION CORPORATION
City Attorney McCord explained he had been contacted last week by
a representative from Friday, Eldridge & Clark, law firm for the Baldwin
Piano and Organ Acquisition Corporation, inquiring whether the Board
would be willing to hold a special meeting to consider adoption of a
Memorandum of Intent to indicate the Board's willingness to' issue Act 9
bonds for the purpose of acquiring the existing Baldwin Piano and Organ
Company. Tom Leggett, representing Friday, Eldridge & Clark, was present,
as well as other representatives from the existing Piano and Organ Company.
Tom Leggett said the resolution they propose is similar in format
to others which have been adopted by the Board. He stated they intend to
ask for up to $5 million in bonds in the name of the Baldwin Piano and
Organ Acquisition Corporation which would acquire the assets of the current
plant as well as other facilities. He emphasized the City would not be
called upon for any tax revenues and would have no liability whatsoever,
that the bonds would be payable solely from payments made by the BPO
Acquisition Corporation through a loan or lease agreement. He said the
acquisition of the bonds was critical for the preservation of the plant
as it is now, as the parent Baldwin Piano Corporation is in bankruptcy at
this time.
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11-30-83
228.1 Director Bumpass asked if bonds presently held by the existing
Baldwin Piano and Organ Company (issued in 1974) would be retired
with the new issue. Mr. Leggett explained the old bonds could be
left outstanding or could be bought as part of the purchase price
and then paid off. He said at this time the plan is to pay off the
old bonds but that any plans would be subject to the Board's approval.
228.2 Harry Forbes, Vice President and Comptroller of the current
Baldwin Piano and Organ Company, stated the company has been in
operation successfully for 26 years. He stated their intent is to
preserve the company as it is and to increase employment. Mayor
Noland asked how many new jobs would be created. Mr. Forbes stated
they are considering some outside contract business and that he
envisions a 10-15% increase in production this year and again the
following year. There are about 260 employees presently and they
hope to eventually create about 100 more jobs. Forbes stated their
peak employment has been 500 employees.
228.3 Director Bumpass noted this request is similar to that which the
Board granted to the new Farm Coop Project. He stated, although the
Board's policy has been not to issue bonds unless it would attract
industry or increase employment, he thinks the preservation of existing
jobs is just as important.
228.4 Director Bumpass, seconded by Director Orton, made a motion to
approve the Memorandum of Intent for BPO Acquisition Corporation.
Upon roll call, the motion passed, 5-0, with Directors Lancaster and
Osborne absent.
228.5 Mayor Noland noted, although Director Osborne could not be present,
he had indicated he was in favor of granting this request.
RESOLUTION NO. 140-83 APPEARS ON PAGE '1Q 5 OF ORDINANCE AND RESOLUTION
BOOK XVit
ADJOLRNMENT
228.6 With no further business before the Board, the meeting adjourned
at 4:55 P.M.
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