ORD NO 13-1978 ORDINANCE NO. /3'/27 a
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR
THE PURPOSE OF PROVIDING PERMANENT FINANC-
ING 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 TATE CONTAINERS, INC., AS LESSEE;
AUTHORIZING THE SALE OF THE BONDS TO THE
PURCHASER THEREOF; AUTHORIZING AND PRESCRIB-
ING 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, it is proposed that the City provide permanent
financing, through the issuance of revenue bonds under the Act,
of the costs of an expansion to an industrial plant at the City
consisting of lands, buildings, improvements, machinery, equipment
and facilities (including existing lands, buildings and improve-
ments) (the "Project and that the City lease the Project to
Tate Containers, Inc., an Arkansas corporation (the "Company to
be operated by the Company (or its successors or assigns); 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 $500,000 in principal amount
of its Industrial Development Revenue Bonds Tate Containers,
Inc. Project, Series A (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;
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 securing the Bonds (hereinafter
authorized).
Section 2. That the Bonds be sold to The City National
Bank of Fort Smith, Arkansas (the "Purchaser for the purchase
price of 1000 on the dollar and upon the terms and conditions
set forth in a Bond Purchase Agreement to be recommended by the
Company, and addressed to the City from the Purchaser (the "Bond
Purchase Agreement The Mayor is hereby authorized to accept
the Bond Purchase Agreement on behalf of the City, and an executed
copy shall be filed in the office of the City Clerk.
Section 3. 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 The City National Bank of Fort Smith,
Arkansas, as Trustee, 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 f=lavor is hereby authorized to confer with the
Trustee, the Company and the Purchaser in order to complete the
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 4. That there be, and there is hereby authorized
the execution and delivery of a Lease and Agreement by and be-
tween 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 Purchaser in order to complete the 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', authorized
the preparation and distribution to various prospective and actual
purchasers of the Bonds of an official statement (and preliminary
official statement), in the name of the City, describing the City,
the Bonds, the Indenture, the Lease Agreement, and setting forth
such other information as may be determined to be necessary or
desirable by the Company. The Mayor is authorized to execute
such official statement on behalf of the City.
Section 6. 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, the execution
and delivery of the Bond Purchase Agreement, 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 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.
Section 7. 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, in-
cluding particularly the Act, competitive bidding is waived.
Section 8. 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,
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 9. 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 10. That the provisions of this Ordinance are
hereby declared to be separable, and if any section, phrase or
provision shall for any reason by declared to be invalid, such
declaration shall not affect the validity of the remainder of
the sections, phrases and provisions.
Section 11. That all ordinances, resolutions and parts
thereof in conflict herewith are hereby repealed to the extent
of such conflict.
Section 12. 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 unemploy-
ment 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 public peace, health and safety
shall be in force and effect immediately upon and after its pas-
sage.
PASSED: May 15, 1978.
APPROVED:
ATTEST:
Ar
Mayor
City lerk
(SEAL)'
CERTIFICATE
The undersigned, City Clerk of the City of Van Buren,
Arkansas, hereby certifies that the foregoing pages are a true
and compared copy of an Ordinance passed at a /,�Q� session
of the City Council held at the regular meeting place of the
City Council at 7:30 o'clock p.m., on the 15th day of May, 1978,
and that the Ordinance is of record in Ordinance Record Book
No. Page Q now in my possession.
GIVEN under my hand and the seal of the City this 15th
day of May, 1978.
City Clerk
(SEAL;'