ORD NO 31-1980 ORDINANCE NO. 3/- /9 $m
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR
THE PURPOSE OF PROVIDING PERMANENT
FINANCING FOR INDUSTRIAL FACILITIES;
AUTHORIZING A TRUST INDENTURE SECURING THE
BONDS; AUTHORIZING A LEASE AND AGREEMENT
BETWEEN THE CITY OF VAN BUREN, ARKANSAS, AS
LESSOR, AND STAPLETON FOLDING LADDER
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 lands, buildings or facilities which can be
used in securing or developing industry; and
WHEREAS, it is proposed that the City provide permanent
financing, through the issuance of revenue bonds under the Act,
for the costs of acquiring, constructing and equipping certain
industrial facilities consisting of lands, buildings,
improvements, machinery, equipment and facilities (the
"Project and that the City lease the Project to Stapleton
Folding Ladder Company, an Arkansas corporation (the
"Company as part of an industrial plant to be operated by
the Company (or its successors or assigns) at the City; and
WHEREAS, pursuant to and in accordance with the provisions
of the Act, the City is now prepared to proceed with financing
the Project and to issue and sell up to $300,000 in principal
amount of its Industrial Development Revenue Bonds Stapleton
Project (the "Bonds to provide such financing; and
WHEREAS, copies of the hereinafter described Trust
Indenture and Lease and Agreement have been presented to and
are before this meeting;
WHEREAS, the Bonds are to be sold and delivered in one
series, Series A bonds in the principal amount of up to
$300,000, dated, bearing interest, maturing and subject to
redemption as hereinafter set forth in the form of Indenture
authorized by the Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the
City of Van Buren, Arkansas:
Section 1. That the issuance of the Bonds is hereby
authorized. The Bonds shall be issued in the forms and
denominations, shall be dated, shall be numbered, shall mature
(over a period not to exceed thirty [30] years), shall bear
interest (at a rate or rates not to exceed ten percent [10
per annum), 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 Trust Indenture (hereinafter
authorized) securing the Bonds.
Section 2. That the Bonds be sold to various Purchasers
(the "Purchasers for the purchase price recommended by the
Company and upon the terms and conditions set forth in the
Indenture (identified hereinbelow).
Section a. 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 Trust Indenture by and
between the City and a bank or trust company which will act as
Trustee thereunder, dated as of the date of the Bonds (the
"Indenture and the City Clerk is hereby authorized and
directed to execute and acknowledge the Indenture and to affix
the seal of the City thereto, and the Mayor and City Clerk are
hereby authorized and directed to cause the Indenture to be
accepted, executed and acknowledged by the Trustee. The
Indenture is hereby approved in substantially the form
submitted to this meeting, and the Mayor is hereby authorized
to confer with the Trustee, the Company and the Purchasers in
order to complete the Indenture in substantially the form
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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 I. That there be, and there is hereby authorized
0 the execution and delivery of a Lease and Agreement by and
between the City as Lessor, and the Company as Lessee (the
"Lease Agreement and the Mayor and City Clerk be, and they
are hereby, authorized to execute, acknowledge and deliver the
Lease Agreement for and on behalf of the City. The Lease
Agreement is hereby approved substantially in the form
submitted to this meeting, and the Mayor is hereby authorized
to confer with the Company, the Trustee and the Purchasers in
order to complete the 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 a. That the Mayor and the City Clerk, for and on
behalf of the City, be, and they are hereby, authorized and
directed to do any and all things necessary to effect the
execution and delivery of the Lease Agreement, the performance
of all obligations of the City under the Lease Agreement, the
execution and delivery of the Indenture, the performance of all
obligations of the City under and pursuant to the Indenture,
the issuance, execution, sale and delivery of the Bonds, 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 the 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
instruments that may be required for the carrying out of such
authority or to evidence the exercise thereof.
fection 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,
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including particularly the Act, competitive bidding is waived.
Section 2. 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 adopted,
0 for inspection by any interested person, a copy of the
Indenture and Lease Agreement, and such documents shall be on
file for inspection by any interested person.
Section That the law firm of Wright, Lindsey
Jennings, 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 2. 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 Ifl. That all ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent
of such conflict.
Section 1.1. 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
issuance 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
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public peace, health and safety shall be in force and effect
immediately upon and after its passage.
PASSED: October 20, 1980.
0 ATTEST: APPROVED:
Ag e
1: ,7
City Clerk Mayor
(SEAL)
0
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