HomeMy WebLinkAbout58-71 RESOLUTION•
RESOLUTION NO. :57.9/
WHEREAS, flie.Fayetteville Municipal Airport, hereinafter
called Drake Field, is badly in need of improvements; and
WHEREAS, the improvements needed consist generally of
preparation and installation of subgrade, paving and the re-
paving of existing runways as described in detail in plans
prepared by J. E. McClelland, Consulting Engineer, which are
on file in the office of the City Clerk and available for
inspection by any interested person; and,
WHEREAS, the estimated cost of accomplishing the improve-
ments, including the payment of expenses incidental thereto
and incidental to the financing thereto is $342,00.0.00, and,
WHEREAS, the City does not have the funds available
sufficient to accomplish the improvements but can obtain the
necessary funds from the Mcllroy Bank of Fayetteville, Arkansas.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS
OF THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. The accomplishment of the improvements is
hereby authorized.
Section 2. Under the authority of the Constitution and
Laws of the State of Arkansas, including particularly Act
13S of 1929 as amended, the Mayor and City Clerk shall be and
they hereby are, authorized and directed to execute the loan
obligation attached hereto marked Exhibit "A" in the principal
amount of $145,000.00 for the purpose of financing the cost
of accomplishing the improvements, paying necessary expenses
incidental thereto, paying the expenses of preparing the loan
obligation and providing for interest on the loan obligation,
if necessary, until revenues are available.
Section 3. The loan obligation will not be a general
obligation of the City, but will be a special obligation
secured by a pledge of and payable solely from net revenues
("net revenues" as used herein being gross revenue less the
costs of operating and maintaining Drake Field) derived from
the operation of Drake Field and will not constitute an
indebtedness of the City within any constitutional or statu-
tory limitation. A special fund has been created and designated
"1971 Municipal Airport Revenue Loan Obligation Fund" (The
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"Obligation Fund") and the revenues in the obligation fund
are hereby pledged and mortgaged for the equal and ratable
payment of the loan obligation. The principal and interest
on the loan obligation shall not constitute an indebtedness
of the City within any constitutional or statutory limitations.
Section 4. So long as the loan obligation is outstand-
ing, the City shall continuously operate Drake Field as a
revenue producing undertaking and shall not issue or attempt
to issue any bonds or incur any loan obligations on a parity
of security with this loan obligation or issue any bonds or
incur any obligation claimed to be entitled to a priority of
lien on, or pledge of, airport revenues over the lien and
pledge in favor of this loan obligation, including revenues
derived from the herein authorized and any and all future
improvements of Drake Field.
PASSED AND APPROVED this 9.46( day of
1971.
APPROVED:
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Exp"As
UNITED STATES OF AMERICA
STATE OF ARKANSAS
COUNTY OF WASHINGTON
CITY OF FAYETTEVILLE
7 1/2% AIRPORT IMPROVEMENT REVENUE LOAN OBLIGATION
KNOW ALL MEN BY THESE PRESENTS:
That the City of Fayetteville, Washington County, Arkansas,
acknowledges itself to owe and for value received promises to pay
to Mcllroy Bank, Fayetteville, Arkansas, or assigns, from the
Special Fund hereinafter identified, the principal sum of
ONE HUNDRED FORTY-FIVE THOUSAND DOLLARS
payable in annual installments on October first in the years and
amounts set forth below:
YEAR 'PRINCIPAL
October 1, 1972 $1.0,000.00
October 1, 1973 17,000.00
October 1, 1974 22,000.00
October 1, 1975 24,000.00
October 1, 1976 25,000.00
October 1, 1977 27,000.00
October 1, 1978 20,000.00
in such coin or currency of the United States of. America as at
the time of payment shall be legal tender for payment of debts
to the United States of America, and to pay interest on the
principal sum hereof outstanding, from time to time, in like coin
or currency at the rate of 7 1/2% per annum from the interest
commencement date hereof, annually on October first of each year
commencing October 1, 1972..
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This loan obligation is for the purpose of financing the
cost to the City of constructing improvements to Drake Field and
paying related costs and expenses.
This loan obligation is issued pursuant to and in full com-
pliance withthe constitution and laws of the State of Arkansas,
including particularly Act no. 135 of the Acts of Arkansas for the
year 1929 as amended and pursuant to Resolution No. ay
adopted and approved on the 9th day of September, 1971. A Special
Fund has been created by, and identified in, the authorizing
resolution as the "1971 Municipal Airport Revenue Loan Obligation
Fund" (The "Obligation Fund"), and reference is hereby made to
the authorizing resolution for a detailed statement of the
nature and extent of the security and of the rights and obligations
of the City. The loan obligation is not a general obligation of
the City but is a special obligation payable from and secured by
a pledge of the net revenue derived from operation of Drake Field
("net revenues" as used herein being gross revenue less the costs
of operating and maintaining Drake Field), all as specified in the
authorizing resolution.
The principal of the loan obligation with accrued interest
shall be subject to prepayment prior to maturity at the option
of the City, in any amount without penalty, from funds from any
source on any interest payment date on or after October 1, 1972.
Monies available for prepayment shall be applied proportionately
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to all the outstanding loan obligation,
Notice of any prepayment shall be given at least fifteen
(15) days prior to the date fixed for such prepayment.by first
class mail to McIlroy Bank specifying the amount of principal to
be prepaid and the amount of accrued interest thereon to the
:date of such prepayment.
This loan obligation may be assigned and upon such assignment
the assignor shall promptly notify the City for verification of
the notations on, and completion, if need by, of the payment
record attached hereto of the principal and interest paid and
prepaid, and every such assignee shall take this loan obligation
subject to such condition.
IT IS HEREBY CERTIFIED, RECITED AND DECLARED that all acts,
conditions and things required to exist, happen and be performed
precedent to and in the issuance of the loan obligation, have existed,
have happened and have been performed in due time, form and manner,
as required by law; that the indebtedness represented by the loan
obligation does not exceed any constitutional or statutory limita-
tions; and that sufficient revenues have been pledged to and will
be set aside into the Loan Obligation Fund, referred to above, for
the payment of the principal of and interest on the loan obligation.
IN WITNESS WHEREOF, the City of Fayetteville, Arkansas, by
its Board of Directors, has caused this loan obligation to be
signed by the Mayor and City Clerk thereof and sealed with the seal
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'of the City,"all as of the fd day of" Age/
1971
• The interest commencement date of this loan obligation
is
ATTEST:
ateleakowe
(SEAL)
CITY CLERK
CITY OF FAYETTEVILLE, ARKANSAS-
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Due Date
Oct. 1,
1972
Oct. 1,
1973
Oct. 1,
1974
Oct. 1,
1975
Oct. 1,
1976
Oct. 1,
1977
Oct. 1,
1978
PAYMENT RECORD
Principal Name of Paying
Principal Balance Interest Agent, Authorized
Payment Due Payment Official and Title
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