ORD NO 49-1976 j
ORDINANCE NO. 4 C7----/??
AN ORDINANCE AUTHORIZING THE ISSUANCE OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS UNDER
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, FOR THE PURPOSE OF PROVIDING
PERMANENT FINANCING OF THE COSTS OF SECURING
AND DEVELOPING INDUSTRY (THE PARTICULAR
INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE);
AUTHORIZING THE EXECUTION AND DELIVERY OF A TRUST
INDENTURE SECURING THE BONDS; AUTHORIZING AND
PRESCRIBING OTHER MATTERS PERTAINING TO THE
ACQUISITION, CONSTRUCTION AND EQUIPMENT OF THE
INDUSTRIAL PLANT AND THE FINANCING THEREOF; AND
DECLARING AN EMERGENCY.
WHEREAS, the City of Van Buren, Arkansas (the "City is
authorized by 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 "Act No. 9 to acquire lands, construct and equip
industrial facilities and to incur other costs and expenses and make other
expenditures incidental to and for the implementing and accomplishing of
the conduct of manufacturing operations; and
WHEREAS, arrangements have been made with Diamond Shamrock
Corporation, a Delaware corporation "Diamond Shamrock" or the "Company
for an industrial plant consisting of lands, buildings, improvements, machinery,
equipment and facilities (the "Industrial Plant and
WHEREAS, the City has undertaken to furnish the permanent financing
of certain industrial machinery and equipment to be installed in the Industrial
Plant by the issuance of Industrial Development Revenue Bonds (the "Bonds
under Act No. 9 and of certain pollution control facilities to be installed in the
Industrial Plant by the issuance of Pollution Control Revenue Bonds under Act
No. 247 of the Acts of Arkansas of 1973, as amended; and
WHEREAS, there are being issued at this time $1,000,000 in principal
amount of Bonds and the proceeds will be used for acquiring certain machinery
and equipment to be installed in and operated as part of the Industrial Plant;
and
WHEREAS, the machinery and equipment financed by the Bonds will be
acquired by the City and sold to the Company pursuant to the provisions of a
Sale Agreement, dated as of December 1, 1976 (the "Sale Agreement and
WHEREAS, the Bonds will be dated, bear interest, mature and be
subject to redemption as hereinafter set forth in the form of.Indenture authorized
by this Ordinance;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City
of Van Buren, Arkansas:
Section 1. That there be, and there is hereby authorized and directed
the following:
(a) The sale of the Bonds to Thornton, Farish Gauntt,
Inc., Montgomery, Alabama, and the execution by
the Mayor and City Clerk of a Bond Purchase Agreement
with such purchaser for the price and pursuant to the
terms recommended by the Company (a copy of which
shall be filed in the office of the City Clerk);
(b) The acquiring, constructing and equipping of the
Industrial Plant in accordance with the provisions
of the Sale Agreement; and
(c) The performance of all obligations of the City under the
Sale Agreement pertaining to the acquiring, constructing
and equipping of the Industrial Plant.
1
Section 2. That industrial Development Revenue Bonds of the
City under Act No. 9 in the principal amount of S1,000,000 are hereby
authorized. 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 (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, which constitutes and is hereby made a
part of this Ordinance, shall be in substantially the following form, to wit:
Section 3. That the Mayor and 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 Indenture, its
execution and acceptance by the Trustee, the performance of all obligations
of the City under and pursuant to the Indenture, the execution and delivery
of the Bonds, the execution and delivery of an Official Statement, and the
performance of all acts of whatever nature necessary to effect and carry out
the authority conferred by the Indenture and 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 instruments that may be required for the carrying out of such authority
or to evidence the exercise thereof.
Section 4. That the City is here involved with the acquiring, con-
structing and equipping of industrial facilities, and therefore, pursuant to
applicable laws of the State of Arkansas, including particularly Act No. 9,
competitive bidding is waived.
Section 5. 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 6. That all ordinances, resolutions and parts thereof in con-
flict herewith are hereby repealed to the extent of such conflict.
Section 7. 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 public peace,
health and safety shall be in force and effect immediately upon and after its
passage.
PASSED: November 15 1976.
APPROVED:
ATTEST.-:
ZY /C i r j a te.-
.31 Mayor
City Clerk
(SEAL)
CERTIFICATE
The undersigned, City Clerk of Van Buren, Arkansas, hereby
certifies that the foregoing pages are a true, correct and compared copy of
Ordinance No. 49- 1976of the City of Van Buren, Arkansas, passed at a
special session of the City Council of Van Buren, Arkansas, held
at the regular meeting place of the Council at 9 :30 o'clock .m., on
the 15th day of November 1976, and that the Ordinance is of
record in Ordinance Record Book No. at Page now
in my possession.
GIVEN under my hand and the seal of the City this 15 th day of
November 1976.
City Clerk
(SEAL)