Loading...
ORD NO 19-1986 ORDINANCE NO. 1911 AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE PURPOSE OF PROVIDING PERMANENT FINANCING FOR INDUSTRIAL FACILITIES; AUTHORIZING A FIRST SUPPLEMENTAL TRUST INDENTURE SECURING THE BONDS; AUTHORIZING A FIRST SUPPLEMENTAL LEASE AND AGREEMENT BETWEEN THE CITY OF VAN BUREN, ARKANSAS, AS LESSOR, AND ARKANSAS POLY BAG AND FILM COMPANY, AS LESSEE; AUTHORIZING THE SALE OF THE BONDS; AUTHORIZING AND PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY. WHEREAS, the City of Van Buren, Arkansas (the "City is authorized and empowered under the provisions of 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 (the "Act to issue revenue bonds and to expend the proceeds thereof to finance the acquisition, construction and equipment of land, buildings or facilities which can be used in securing or developing industry; and WHEREAS, the City has heretofore authorized and issued its Industrial Development Revenue Bonds Arkansas Poly Bag Project, Series 1981, in the original principal amount of $600,000, for the purpose of financing the costs of acquiring, constructing and equipping a manufacturing plant (the "Plant which has been and is being leased by the City to Arkansas Poly Bag and Film Company (formerly Arkansas Poly Bag Company), an Arkansas corporation (the "Company and WHEREAS, it is proposed that the City provide perma- nent financing, through the issuance of additional revenue bonds under the Act, of the costs of acquiring, constructing and equipping an expansion to the Plant (the "Project and WHEREAS, pursuant to and in accordance with the provisions of the Act and Section 103 of the Internal Revenue Code of 1954, as amended (the "Code a public hearing was held on March 17, 1986, before the Mayor and City Council at a regular meeting on the question of the issuance of such revenue bonds under the Act; and WHEREAS, after due consideration, the City is now prepared to proceed with financing the Project and to issue and sell $665,000 in principal amount of its Industrial Development Revenue Bonds Arkansas Poly Bag and Film Company Project, Series 1986 (the "Bonds to provide such financing; and WHEREAS, the Company presently employs approximately 46 persons at the Plant and advises that upon completion of the Project, it expects to employ approximately 10 additional persons at the Plant; and WHEREAS, copies of the hereinafter described First Supplemental Trust Indenture and First Supplemental Lease and Agreement have been presented to and are before this meeting; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Van Buren, Arkansas: Section 1. The City Council hereby finds that the acquiring, constructing and equipping of the Project, and the issuance of the Bonds to finance the same, will provide a substantial increase in employment and payrolls and will thereby secure and develop industry within the City. Section 2. That the issuance of the Bonds is hereby authorized. The Bonds shall be issued in the forms and de- nominations, shall be dated, shall be numbered, and shall be subject to redemption prior to maturity all upon the terms and conditions recommended by the Company and to be set forth in the First Supplemental Trust Indenture (hereinafter authorized) securing the Bonds. The Bonds shall bear interest at the rates per annum, and shall mature in each of the years, as set forth in the following table: Year Principal Amount Interest Rate 1987 $50,000 5.25% 1988 55,000 5.50 1989 55,000 6.00 1990 60,000 6.25 1991 65,000 6.50 1992 65,000 6.70 1993 70,000 6.90 1994 75,000 7.00 1995 80,000 7.25 1996 90,000 7.50 Section 3. That the Bonds be sold to T.J. Raney Sons, Inc. and Stephens Inc., both of Little Rock, Arkansas (the "Purchasers for the purchase price of 98% of par, plus accrued interest from the date of the Bonds to the date of delivery, which price is recommended by the Company. Section 4. That to prescribe the terms and conditions upon which the Bonds are to be executed, authenticated, issued, accepted, held and secured, the Mayor is hereby authorized and directed to execute and acknowledge a First Supplemental Trust Indenture by and between the City and The First National Bank of Fort Smith, Fort Smith, Arkansas, as Trustee thereunder (the "First Supplemental Indenture and the City Clerk is hereby authorized and directed to execute and acknowledge the First Supplemental Indenture and to affix the seal of the City there- to, and the Mayor and City Clerk are hereby authorized and directed to cause the First Supplemental Indenture to be accept- ed, executed and acknowledged by the Trustee. The First Supplemental Indenture is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby au- thorized to confer with the Trustee and others in order to complete the First Supplemental Indenture in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Section 5. That there be, and there is hereby, au- thorized the execution and delivery of a First Supplemental Lease and Agreement by and between the City as Lessor, and the Company as Lessee (the "First Supplemental Lease Agreement and the Mayor and City Clerk be, and they are hereby, authorized to execute, acknowledge and deliver the First Supplemental Lease Agreement for and on behalf of the City. The First Supplemental Lease Agreement is hereby approved in substantially the form submitted to this meeting, and the Mayor is hereby authorized to confer with the Company and others in order to complete the First Supplemental Lease Agreement in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval. Section 6. That there be, and there is hereby, authorized the preparation and distribution to various prospec- tive and actual purchasers of the Bonds of an Official State- ment, in the name of the City, describing the City, the Bonds, the First Supplemental Indenture, the First Supplemental Lease Agreement, and setting forth such other information as may be determined to be necessary or desirable by the Purchasers, the Company and the City. The Mayor is authorized to execute such Official Statement on behalf of the City. Section 7. The City hereby makes the election provided by Section 103(b)(6)(D) of the Code. Section 8. That the Mayor and City Clerk, for and on behalf of the City, be, and they are hereby, authorized and II/ directed to do any and all things necessary to effect the execution and delivery of the First Supplemental Lease Agreement and the performance of all obligations of the City thereunder, the execution and delivery of the First Supplemental Indenture and the performance of all obligations of the City thereunder, the issuance, execution, sale and delivery of the Bonds, the execution, delivery and distribution of an Official Statement, and the performance of all acts of whatever nature necessary to effect and carry out the authority conferred by this Ordinance. That the Mayor and City Clerk be, and they are hereby, further authorized and directed, for and on behalf of the City, to execute all papers, documents, certificates and other instru- ments that may be required for the carrying out of such authori- ty or to evidence the exercise thereof. Section 9. That the City is hereby involved with the acquiring, constructing and equipping of industrial facilities, and pursuant to applicable laws of the State of Arkansas, including particularly the Act, competitive bidding is waived. Section 10. That the City Clerk is hereby authorized and directed to file in the office of the City Clerk, as a part of the minutes of the meeting at which this Ordinance is adopt- ed, for inspection by any interested person a copy of the First Supplemental Indenture and First Supplemental Lease Agreement, and such documents shall be on file for inspection by any interested person. Section 11. That the law firm of Friday, Eldredge Clark, Little Rock, Arkansas, be appointed to act as Bond Counsel on behalf of the City in connection with the issuance and sale of the Bonds. Section 12. That the provisions of this Ordinance are hereby declared to be separable, and if any section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions. Section 13. That all ordinances, resolutions and parts thereof in conflict herewith are hereby repealed to the extent of such conflict. Y Section 14. That there is hereby found and declared to be an immediate need for the securing and developing of industry in order to provide employment and payrolls, alleviate unemployment and otherwise benefit the public health, safety and welfare of the City and the inhabitants thereof, and the issu- ance of the Bonds authorized hereby and the taking of the other action authorized hereby are immediately necessary for the accomplishing of these public benefits and purposes. It is, therefore, declared that an emergency exists and this Ordinance being necessary for the immediate preservation of the public peace, health and safety shall be in force and effect immediate- ly upon and after its passage. PASSED: November 17, 1986. APPROVS ATTEST: ie d iv i Mayo ?ity Clerk' SEAL 4