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RESOLUTION NO. 53-87
A RESOLUTION AUTHORIZING THE MAYOR AND CITY
CLERK TO EXECUTE AN AMENDMENT TO THE CITY'S
MEMORANDUM OF INTENT WITH ELKHART PRODUCTS
CORPORATION FOR THE ISSUANCE OF INDUSTRIAL
DEVELOPMENT REVENUE BONDS TO INCREASE THE
AGGREGATE PRINCIPAL AMOUNT OF THE BONDS.
WHEREAS, the City of Fayetteville, Arkansas (the "City") has
executed a Memorandum of Intent with Elkhart Products Corporation
(the "Company") dated March 18, 1986 for the issuance of in-
dustrial development revenue bonds; and
WHEREAS, a copy of said Memorandum of Intent is attached
hereto marked Exhibit "A" and made a part hereof; and
WHEREAS, the Company now estimates that the cost of the
project will be approximately $.6,250,000.- . :,instead of approxi-
mately $4,000,000.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD ,OF.DIRECTORS OF
THE CITY OF FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to execute an amendment to the City's
Memorandum of Intent with Elkhart Products Corporation to increase
the aggregate principal amount of industrial development revenue
bonds contemplated thereby to an amount not to exceed $6,250,000.
A copy of the Amendment to. Memorandum of Intent authorized for
execution hereby is attached hereto marked Exhibit "B" and made a
part hereof.
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PASSED AND APPROVED this 7th day of July , 1987.
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APPROVED
By: ??a42€4)
Mayo
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MiCROFILMED
FIRST AMENDMENT TO
MEMORANDUM OF INTENT
4
This FIRST AMENDMENT TO MEMORANDUM OF INTENT is
between the City of Fayetteville, Arkansas, party of the
first part (hereinafter referred to as the "City"), and
Elkhart Products Corporation, an Indiana corporation, party
of the second part (hereinafter referred to as the
"Company").
IN CONSIDERATION of the circumstances set forth in
Section 1 hereof, the City and the Company hereby agree as
follows:
1. Preliminary Statement.
(a) On March 18, 1986, the City and the Company
entered into a Memorandum of Intent, a copy of which is
attached hereto as Exhibit A (the "Memorandum"), pursuant to
which the City agreed that it will issue revenue bonds (the
"Bonds") under Act 9 (as defined in the
finance the costs and expenses incurred
acquiring, renovating,
Project (as defined in
was then estimated not
Memorandum) to
by the Company in
constructing and equipping the
the Memorandum), the cost of which
to exceed $4,000,000.
(b) The Company has determined that, as a result
of cost increases and minor changes in the configuration and
composition of the Project, the costs and expenses of
acquiring, renovating, constructing and equipping the
Project will exceed $4,000,000.
(c) The City has agreed in the Memorandum to issue
the Bonds in principal amounts necessary to furnish,
permanent financing for the Project.
(d) The City and the Company now desire to amend
the Memorandum to reflect the increased costs and expenses
of acquiring, renovating, constructing and equipping the
Project.
2. Amendment to Memorandum. Section 2(a) of the
Memorandum is hereby amended by deleting the number
"$4,000,000" in the sixth line of Section 2(a) and inserting
in place thereof the number "$6,250,000."
3. Continuing Effect. All obligations and
agreements undertaken by the City and the Company in the
Memorandum, except as amended herein, shall continue to be
in full force and effect, and the terms of this First
Amendment to Memorandum of Intent shall be incorporated by
reference into the Memorandum as if fully rewritten therein.
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IN WITNESS WHEREOF, the parties hereto have entered
into this First Amendment to Memorandum of Intent
officers thereunto duly authorized as of
July, 1987.
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ATTEST: -44,4
Clerk
(SEAL)
ATTEST:
By: feeteiront.t.,
Title: Aril eSicareEtn,
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by their
the day of
CITY OF FAYETTEVILLE, ARKANSAS
By
ELKHART PRODUCTS CORPORATION
By:CP44-d. CRIL44.—
Title: PeFWE'vr—