ORD NO 41-1975 ORDINANCE NO. 41 1975
AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE UPON
THE QUESTION OF AUTHORIZING BONDS 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, FOR THE PURPOSE
OF FURNISHING A PORTION OF THE PERMANENT FINANCING OF
THE COST OF SECURING AND DEVELOPING INDUSTRY (THE
PARTICULAR INDUSTRIAL PROJECT IS DESCRIBED IN THE ORDINANCE);
PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING
AN EMERGENCY.
WHEREAS, Bekaert Steel Wire Corporation, a New York corporation
"Bekaert has proposed a substantial industrial project which will furnish
employment and payrolls and otherwise result in public benefits, all in the
best interest of the City of Van Buren, Arkansas (the "City and its citizens
and inhabitants; and
WHEREAS, the proposed industrial project will consist of lands, buildings,
improvements, machinery, equipment and facilities for an industrial plant which
will be utilized for the manufacturing of field fence wire, barbed wire, or such
other products as Bekaert shall elect to manufacture (the "Project and
WHEREAS, in order to make the necessary provision for permanent
financing of a portion of the Project costs and the expenses of authorizing and
issuing bonds, it is proposed that there be authorized One Million Dollars
($1,000,000) in principal amount of bonds (the "Bonds 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
"Act No. 9 which may be issued in series from time to time; and
WHEREAS, the portion of the Project financed by the issuance of the
Bonds will be owned by the City and leased or sold to Bekaert pursuant to the
terms of a Lease and Agreement (tile "Lease Agreement or Sale Agreement
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(the "Sale Agreement and performance of the Lease Agreement or Sale Agreement
will be guaranteed by N. V. Bekaert S. A. (Zwevegem, Belgium), a Belgian
corporation (Bekaert is a wholly owned subsidiary of N. V. Bekaert S. A.); and
WHEREAS, it is anticipated that•the financing of the remaining Project
costs will be furnished by Bekaert and also through issuance by the City of
Pollution Control Revenue Bonds under Act No. 247 of the Acts of Arkansas
of 1973, as amended; and
WHEREAS, the purpose of this Ordinance is to submit the question of
authorizing the Bonds to the electors of the City at a special election called
for that purpose;
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NOW, THEREFORE, BE IT ORDAINED by the City Council of the City
of Van Buren, Arkansas:
Section 1. That a special election be, and the same is hereby, called
to be held in the City on the 20th day of January 1976, at which
election there will be submitted to the electors of the City the question of
authorizing One Million Dollars ($1,000,000) in principal amount of Industrial
Development Revenue Bonds for the purpose of furnishing a portion of the
permanent financing of the cost of securing and developing industry (the
particular project is described above). The Bonds will he dated, will bear
interest at the rate or rates, the interest will be payable on such dates,
the Bonds will mature 'on such date or dates, the Bonds will be subject to
redemption prior to maturity in such manner and upon such terms, and the
Bonds may be issued in series from time to time, all as the City Council
shall subsequently determine and specify in the ordinance or ordinances
authorizing the issuance of the Bonds.
Section 2. That the question shall be placed on the ballot for the
election in substantially the following form:
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Vote on measure by placing an "X" in the square above the
measure either FOR or AGAINST:
FOR the issuance of Industrial Development Revenue
Bonds by the City of Van Buren, Arkansas, in the
aggregate principal amount of up to $1,000,000.
AGAINST the issuance of Industrial Development Revenue
Bonds by the City of Van Buren, Arkansas, in the
aggregate principal amount of up to $1,000,000 1
It is proposed to authorize City of Van Buren, Arkansas (the "City
Industrial Development Revenue Bonds (the "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 "Act No. 9 in the aggregate principal. amount of up to
$1,000,000 for the purpose of furnishing a portion of the
permanent financing of the cost of securing and developing
industry (it is anticipated that the financing of the balance of
the costs will be furnished by Bekaert (hereinafter identified) and
by the issuance by the City of Pollution Control Revenue Bonds
under Act No. 247 of the Acts of Arkansas of 1973, as amended).
The Bonds will be dated, the Bonds will bear interest at such rate
or rates, the interest will be payable on such dates, the Bonds
will mature on such date or dates, the Bonds will be subject to
redemption prior to maturity in such manner and upon such terms,
and the Bonds may he issued in series from time to time, all as
the City Council shall subsequently determine and specify in the
ordinance or ordinances authorizing their issuance. The proposed
industrial project will consist of lands, buildings; improvements,
machinery, equipment and facilities for a new industrial plant (the
"Project and the proceeds of the Bonds will be sufficient, to-
gether with any funds furnished by Bekaert or by the issuance of
Pollution Control Revenue Bonds to pay Project costs and expenses
of issuing the Bonds. The Project will be owned by the City and
leased or sold to Bekaert Steel Wire Corporation, a New York
corporation "Bekaert for lease rentals or payments sufficient to
provide for the payment of the principal of and interest on the Bonds
that are issued, the performance of which lease rentals or payments
will be guaranteed by N. V. Bekaert S. A. (Zwevegem, Belgium),
a Belgian corporation (Bekaert is a wholly -owned subsidiary of
N. V. Bekaert S. A. The Bonds will not be general obligations of
the City but will be special obligations payable solely from revenues
derived from the Project, including particularly lease rentals or
payments under the lease or sale agreement with Bekaert, whichwill
be specifically pledged to the payment of the principal of and interest
on the Bonds, and the Bonds may be secured by a lien on and security
interest in all or any portion of the Project as authorized by Act No. 9.
Page 4
Section 3. That the election shall be held and. conducted and the
vote canvassed and the results declared under the lave and in the manner provided
for municipal elections, so far as the same may be applicable, and the Mayor
of the City shall give notice of the election by an advertisement published once
a week for four consecutive weeks in a newspaper having a bona fide circulation
in the City, with the last publication to be not less than ten days prior to
the date of the election, and only qualified electors of the City shall have the
right to vote at the election.
Section 4. That the results of the election shall be proclaimed by
the Mayor and his proclamation shall be published one time in a newspaper
having a bona fide circulation in the City, which proclamation shall advise
that the results as proclaimed shall be conclusive unless attacked in the courts
within thirty days after the date of the proclamation.
Section 5. That a copy of this Ordinance- shall he furnished to the
Crawford County Board of Election Commissioners so that the necessary election
officials and supplies may be provided.
Section 6. That there is hereby found and declared to be an immediate
0 need for the securing and developing of industry in order to provide employment
and payrolls, and the authorization of the Bonds referred to in this Ordinance
is essential to accomplishing those public benefits. It is, therefore, declared
that an emergency exists and this Ordinance being necessary for the immedate
preservation of the public health, safety and welfare shall be in force and take
effect immediately upon and after its passage.
PASSED: December 15 1975.
elt APPROVED:
ATTEST:
Mayor
City Clerk
(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 regular 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 December 1975, and that the Ordinance is of record
in Ordinance Record Book No. X Page 574 now in my possession.
GIVEN under my hand and the seal of the City this 15th day of
O Decemhpr 1975.
Al
City Clerk
(SEAL)
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