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HomeMy WebLinkAbout68-84 RESOLUTIONWar RESOLUTION NO, 68-84 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS AUTHORIZING THE ENTRY INTO AN AGREEMENT TO ISSUE BONDS FOR THE PURPOSE OF ASSISTING IN THE FINANCING OF AN INDUSTRIAL FACILITY WITHIN OR NEAR THE CITY. WHEREAS, the City of Fayetteville, Arkansas, is authorized under the provisions of Act No. 9 of the First Extraordinary Session of the General Assembly of the State of Arkansas for the year 1960, as amended ("Act 9"), to acquire,•construct and equip facilities"to—secure and -develop industry and to assist in the financing thereof by the issuance of bonds payable from the revenues derived from such facilities; and • WHEREAS, Scheduled Skyways, Inc, an Arkansas corporation (the "Company"), has evidenced its interest in expanding its existing industrial facilities within or near the City of Fayetteville by acquiring, constructing and equipping an additional industrial facility upon airport property owned by the City of Fayetteville if the permanent financing can be provided through the issuance of bonds under the authority of said Act 9; and WHEREAS, the City of Fayetteville desires to assist the Company in order to secure and develop industry within or near_ the City of Fayetteville, and to aid in the financing thereof under the provisions of.said Act 9; and WHEREAS, it is desirable that the City of Fayetteville enter into an Agreement to Issue Bonds for such purpose; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS, that: 1. The Board of Directors makes the following findings and determinations: A. The Company is an industry which owns and operates a scheduled airline and related flight service operations at Drake Field, the City's airport. al cope. 4., B. The is and will economic well inhabitants. Company's presence in the City of Fayetteville continue to be an important factor in the being and employment base for the City and its C. The improvement of efficient and regularly scheduled passenger air service into and out of the City of Fayetteville is an integral part of the City's efforts to further secure and develop industry. D. The City's assistance to the Company in financing further improvements to and an expansion of the facilities at Drake Field under Act 9, with such facilities to be leased to the Company, will serve the best interests of the City and its inhabitants and satisfies a proper public purpose, within the meaning of Act 9, toward the further securing and developing of industry. 2. The Mayor and the City Clerk of the City of Fayetteville, Arkansas, be authorized to enter into an Agreement to Issue Bonds in substantially the form and substance as follows: AGREEMENT TO ISSUE BONDS THIS AGREEMENT is made as of June 19, 1984, by and between the City of Fayetteville, Arkansas, a municipal corporation under the laws of the State of Arkansas (the "City'), and Scheduled Skyways, Inc., an Arkansas corporation (the "Company"), for the purpose of carrying out the purposes set forth in Act No. 9 of the First Extraordinary Session of the General Assembly of the State of Arkansas for the year 1960, as: amended (the "Act"). WITNESSETH: WHEREAS, the City is authorized by the Act to own, acquire, construct, equip, operate, maintain, sell, lease or contract concerning- or 'otherwise 'deal -a in ---or .-dispose._of. .,any.: land, buildings or facilities of any and every nature whatsoever that can be used in securing or developing industry within or near the City; and WHEREAS, the City has determined that in light of existing unemployment rates and the need to increase employment within or near the City, such purposes will be served by cooperation with the Company for the further development of the Company's industrial facility within or near the City, by the acquisition, construction and equipping of additions, expansions and improvements to certain existing facilities located at the -2- • City's airport, Drake Field, and presently leased by the City to the Company, such additional industrial facilities (the "Project") to be used for the purpose :of improving and expanding the Company's operations, maintenance and support activities related to the Company's airline and flight support business located at Drake Field, thereby alleviating unemployment, increasing employment and otherwise serving the best interests of the City and its inhabitants by improving and making more efficient air service and flight support operations at Drake Field; and WHEREAS, the City has determined that the accomplishing of the Project in the manner described herein will serve a proper public purpose and will help the City to further secure and develop industry; and WHEREAS, the City and the Company desire to cooperate in the acquisition; constructing and equipping of the Project and to have the costs of acquiring, constructing and equipping the Project financed from the proceeds of revenue bonds of the City (the "Bonds") to be issued pursuant to the Act in an aggregate principal amount now estimated not to exceed $400,000 (excluding any bonds issued to refund the Bonds); and WHEREAS, the City and the Company contemplate that the Project will be leased to the Company, and the rental payments therefor, together with other moneys available, shall be at least sufficient to pay debt service on the Bonds and all related costs; NOW, THEREFORE, in consideration of the premises and other good and valuable consideration under the mutual benefits, covenants and agreements herein expressed, the City and the Company agree as follows: 1. Proceedings. All proceedings in connection with the issuance of. the Bonds shall be consistent with the requirements of the Act, including notice to all state agencies, and the publication of notice as required by the Act. All references contained herein to the issuance of the Bonds shall be subject to compliance with 'the formalities of the Act when the facts required to do so are determined. 2. Acquisition, Constructing and Equipping. The City and the Company will cooperate in causing to be commenced and continued the required acquisition, construction and equipping of the Project, and the Company may provide, or cause to be provided, the necessary interim financing to permit such acquisition of the Project to commence pending the issuance of interim and/or permanent bonds. Not later than the time of issuance of the, Bonds for any portion of the Project, the -3- ,1 fa Company will convey and transfer or cause to be conveyed and transferred to the City, for an amount approximately equal to that then expended by the Company for the Project or portions thereof which are financed by the Bonds then issued (including at the Company's option any costs of interim financing), the Project or portions thereof to be then financed. 3. Lease. The City shall enter into a lease, or leases, under which the Company will lease from the City, such Project or portions thereof and will agree to make rental payments at least sufficient to pay the principal of, premium, if any, and interest on the Bonds, together with all charges of any Trustee and/or any Paying Agent for the Bonds, together with such additional amounts as shall be negotiated and mutually agreed upon between the City and the Company. 4. Sale of Bonds, Security. The City will take such steps as are necessary to issue, sell and deliver, pursuant to the terms of the Act, the Bonds for the purposes of financing the costs of the Project, in each case only upon receipt of the written designation by the Company of the purchaser(s) or underwriter(s) thereof, such Bonds to be in such principal amounts, to mature in such amounts and times, to bear interest at such rate or rates and to be payable on such date or dates and to have such optional and mandatory redemption features and prices as are determined by the City and approved in writing by the Company. The City further agrees that it will enter into the lease, and if required, an indenture of trust with a bank or trust company, qualified to exercise trust powers where necessary, for the purpose of providing rental payments sufficient, with other amounts available from the Company or directly or indirectly from the proceeds of the Bonds, to pay the principal of, premium, if any, and interest on the Bonds as they become due, together with the charges of any Trustee,and/Qr_ any Paying Agent for the Bonds, and pledging and/or otherwise securing the payment of such rental payments for the benefit of the holder(s) of the Bonds. The lease, the indenture and other related documents, and the Bonds shall contain such terms and conditions as are agreed upon by the City and the Company. The City will cooperate in consummating the transaction so contemplated and in attempting to -~realize the desire of the parties hereto that the interest on all Bonds be exempt from federal income taxation. 5. Bonds to be Special Obligations. The. City shall have no financial responsibility with respect to the Project, the Bonds or the costs associated with either, and the Bonds shall be special and limited obligations only, and shall never constitute a general obligation, indebtedness or pledge of the credit of the City within the meaning of any constitutional or statutory provision, and shall never be paid in whole or in part -4- • ft out of any funds raised or to be raised by taxation or any other revenues or other funds of the City except those (including unexpended Bond proceeds) derived from or in connection with the lease of the Project as provided for herein. 6. Conditions of Issuance. The Bonds may be issued either at one time or in several series and/or issues from time to time, in such aggregate principal amount or amounts as the Company shall request in writing; provided, however, that all conditions of the Act shall have been met. It is further agreed that the proceeds of the Bonds shall not be invested so as to constitute any of the Bonds as arbitrage bonds within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, and applicable regulations promulgated pursuant thereto. 7. Costs to be Financed. The costs of the Project may include any costs permissible under the Act, including but not limited to reasonable and necessary costs, expenses and fees incurred by the City in connection with the issuance of the Bonds or in connection with the Project, such as out-of-pocket expenses incurred by any employee of the City; fees and out-of-pocket expenses, if any, of counsel for the City, fees and out-of-pocket expenses of Rose Law Firm, a Professional Association, bond counsel, and any trustee; fees and expenses, if any, required in connection with the underwriting or placement of the Bonds; recording costs; rating agency's fees, if any; and printing costs. The City will upon request provide or cause to be provided any data or information which may be reasonably required to verify any of the costs, expenses and fees enumerated. above. 8. Termination. In the event that the Bonds shall not be sold within three years from the date hereof, this Agreement_ shall automatically terminate unless the parties hereto shall agree in writing to its extension for a further period of time specified in such writing. The Company may unilaterally terminate this Agreement without liability to the City (except for any amounts due and owing by the Company to the City arising out of the transactions occurring on or before the time of such termination, which shall be promptly -paid -by the Company to the City) by giving notice by ordinary mail, postage prepaid, to the City specifying therein the date of termination which may be the date of the notice. 9. Protection to the City. The Company shall pay all of the City's costs and expenses reasonably and necessarily incurred in connection with this Agreement or any other related document or instrument. The Company will at all times indemnify and hold harmless the City against any and all losses, costs, damages, expenses and liabilities of whatsoever nature directly or indirectly resulting from, arising out of, or related to matters in connection with this Agreement. -5- • 10. Purpose and Effect. The Bonds are to be issued, sold and delivered under the authority of the Act and all related actions and documents shall be in conformity therewith. The City intends this Agreement to be the expression of its present intent, pursuant to the terms hereof, to issue the Bonds up to $400,000 aggregate principal amount outstanding at any one time, and also to issue additional Bonds if the Project costs exceed such amount, and to expend the Bond proceeds to defray the costs of the Project. The City considers this Agreement to be an official action for all purposes of the federal Income Tax Regulations. IN WITNESS WHEREOF, the City of Fayetteville, Arkansas, acting pursuant to a resolution of its Board of Directors, has caused its name to be hereunto subscribed, and the Company has caused its corporate name to be subscribed hereto by its duly authorized officers, all as of the year and date first above written. t"AT Ir\i CITY FAYETTEVILLE, ARKANSAS /City C S ,,„., -L), Mayor SGi3EDULED1 SKYWAYS, INC. \ce Pr 1 at F'laa�c,_. By: Title -6- 4- 7 d t 9 • e ,r •s 3. This Resolution shall be in full force and effect from and after its adoption. ADOPTED this 19th day of June, 1984. '`Clerk f -7- „a/(F May r "%let -40 • • • • • CERTIFICATE 1 The undersigned, Clerk of the City of Fayetteville, Arkansas, hereby certifies that the foregoing is a perfect copy of Resolution No. 68-84 adopted by of Directors of the City of Fayetteville, Arkansas, at meeting held at the City Hall in said City, at P.M., on the 19th day of June, 1984. GIVEN under my hand and seal on this 19th day of June, 1984. 7•ln true and the Board a regular o'clock, 1 • -8- J