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HomeMy WebLinkAbout30-77 RESOLUTION• • • • • RESOLUTION NO. 30-77 A RESOLUTION AUTHORIZING A MEMORANDUM OF INTENT BY AND BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS, MTD HACKNEY BROS. BODY COMPANY PER- TAINING TO THE ISSUANCE OF INDUSTRIAL REVENUE BONDS FOR FINANCING THE COSTS OF ACQUIRING, CONSTRUCTING AND EQUIPPING INDUSTRIAL FACILITIES AND PRESCRIBING OTHER MATTERS RELATING THERETO. BE IT RESOLVED by the Board of Directors of the Fayetteville, Arkansas: Section 1. That there be, and there the execution and delivery of a Memorandum of • City of is hereby authorized Intent by and between the City of Fayetteville, Arkansas (the "Municipality"), Bros. Body Company (the "Company"), in substantially the and Hackney form and with substantially the contents hereinafter set forth, and the Mayor and City Clerk be, and they are hereby, authorized to execute and deliver the Memorandum of Intent for and on behalf of the Munici- pality. The form and contents of the Memorandum of Intent, which are hereby approved and which are made a part hereto, shall be substantially as follows: • • MICROFILM® DATE OCT p o MEG REEL 1'1 • • ' • • MEMORANDUM OF INTENT THIS MEMORANDUM OF INTENT is between the City of Fayetteville, Arkansas (the "Municipality"), and Hackney Bros. Body Company, a North Carolina corporation (the "Company"). The parties hereto have entered into discussions pertaining to the acquisition, construction and equipment of an industrial plant in or near the Municipality, and the purpose of this Memorandum is to set forth in general terms the intent of the parties in that regard. The parties recite knowledge of the following: 1. The Municipality is a City of the first class under the laws of the State of Arkansas and 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 ("Act No. 9"), to issue industrial development revenue bonds for defraying • the costs of acquiring, constructing and equipping industrial projects. 2. The proposed project is the acquisition, con- struction and equipment (the "construction") of lands, structures, • machinery, equipment and facilities to constitute an industrial plant (the "Project"). 3. The Company does not want to incur costs and expenses in connection with the Project without assurances from the Municipality that, if desired and requested by the Company, the proceeds of the sale of industrial development revenue bonds of the Municipality will be made available for the permanent financing of the costs and expenses of the construction. 4. The Municipality considers that the construction of the Project will promote industrial development and thereby promote the general welfare of the inhabitants of the Municipality. • -2- NOW THEREFORE, in consideration of the mutual undertakings of the parties set forth in this Memorandum, it is agreed by the Municipality and by the Company as follows: 1. The cost of the construction will be financed by the issuance by the Municipality of industrial development revenue bonds under the provisions of Act No. 9 (the "Bonds"). It is estimated that the cost of the construction, including costs incidental thereto and incidental to issuance of the Bonds, is approximately $1,250,000. The Bonds may be issued at one time or in series from time to time. The Municipality will take the necessary steps to issue and deliver the Bonds. Costs of issuance of the Bonds will be paid by the Company or from the proceeds of the Bonds. 2. The legal title to the Project will be placed in the Municipality and will be subject to a lease or other agreement between the Municipality and the Company, in the form generally utilized in Arkansas in connection with financing under Act No. 9. All terms and provisions thereof are to be mutually agreeable to the Municipality and the Company, but the Company shall be obligated to make payments thereunder in amounts and at times sufficient to provide for payment of the principal of, premiums, if any, interest on, and trustee's and paying agent's fees in connection with Bonds as due and payable. 3. The terms of the Bonds and of the sale of the Bonds must be acceptable and agreed to by the Company, and sale of the Bonds shall be the responsibility of the Company. 4. The Municipality and the Company shall enter into an agreement providing for payments by the Company in lieu of ad valorem taxes, the terms of which shall be mutually agreeable to the Municipality and the Company. 5. It is understood that the Company is proceeding with the construction, including the entering into of necessary contracts and purchase orders to accomplish that purpose. If . y• ^d'PT 4 -3- • • Bonds are issued, the Company will be reimbursed out of Bond proceeds for all expenditures made and expenses incurred in the construction of the Project. • • CITY OF FAYETTEVILLE, ARKANSAS By L/ii z/yy.:� `r -e ✓l ernc w. Mayor HACKNEY BROS. BODY COMPANY By :7-7=;;-_-flLc- Title: