ORD NO 04-1969 ORDINANCE NO. 4 -1969
AN ORDINANCE SUBMITTING TO THE VOTERS OF THE CITY OF VAN BUREN,
ARKANSAS THE _QUESTION WHETHER IT WILL ISSUE ADDITIONAL REVENUE
BONDS UNDER THE PROVISIONS OF ACT NO. 9 OF THE SPECIAL SESSION
OF THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS OF 1960, IN AA
PRINCIPAL AMOUNT NOT TG EXCEED $4,000,000.00 TO MAKE A TOTAL OF
INDUSTRIAL DEVELOPMENT REVENUE BONDS IN A PRINCIPAL AMOUNT NOT
TO EXCEED $5,000,000.00 FOR THE PURPOSE OF SECURING AND DEVEL-
OPING INDUSTRY WITHIN OR NEAR THE CITY OF VAN BUREN, ARKANSAS.
,WHEREAS, heretofore by an election held on the 1st day of October,
1968,-the electors of the City of Van Buren, Arkansas authorized the
City of Van Buren, Arkansas, to issue industrial development revenue
bonds in a total principal amount not to exceed $1,000,000 under the
provisions of Act No. 9 of the Special session of the General Assembly
of the State of Arkansas of 1960, for the purpose of securing and
developing industry within or near the City of Van Buren, Arkansas, by
assisting Cement Asbestos Products Company in constructing and op-
erating a plant for the manufacture and sale of pipe and fittings
and such other products as it may be authorized to manufacture; and
WHEREAS, the said bonds have not as yet been issued; and
WHEREAS, it has since been determined that under the provisions
of Section 103 (c) j,6) (D) of the Internal Revenue Code of 1954 the
City may elect to issue industrial development bonds in a total
princip al amount not to exceed $5,000,000 with the income paid thereon
exempt ffrom the Federal Income Tax; and
WHEREAS, in order to obtain the maximum usefulness of its man
ufactdring plant, the said Cement Asbestos Products Company has d
determined that it will need to expend in the construction and equipment
thereof a sum of money in sxcess of $1,000,000 but in no event in
excess of ;5,000,000; and
WHEREAS, the City Council finds that it is to the best interest
of the City of Van Buren that the said Cement Asbestos Products
Company construct and equip a plant fully suitable for its needs
and that the construction, equipment, and operation of the plant on
a more•complete scale will employ a gr.o.ter number of laborers and
thereby tend more effectively to alleviate the unemployment in and
about City of Van Buren;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
VAN BUREN, ARKANSAS:
Section 1. An election is hereby called to be held at the usual
polling places in the City of Van Buren, Arkansas, on the llth'day
of March, 1969, for the purpose of determining whether the City of
Van Buren, Arkansas, will .issue additional negotiable industrial
development revenue bonds under the provisions of Act No. 9 of the
special session of the General Assembly of the State of Arkansas of
1960, in a principal amount to to exceed ,,000,000 for a total prin-
cipal'amount of industrial development revenue bonds not to exceed
411 $5,000;000 for the purpose of securing and developing industry within
or neat the City of Van Buren, by assisting Cement Asbestos Products
Company in constructing equiping and operating a plant for the manufa-
cture and sale of pipe and fittings and such other products as it may
be authorized to manufacture, the scid bonds to be secured by a
statutory mortgage on the lands and buildings acquired from the pro-
of the said industrial development revenue bonds and o pledge of the
revenues therefrom.
The said additional bonds shall be dated December 1, 1968, bear interest
at the rate or rates payable on the first day of June and December,
mature an December 1, but subject to redemption prior to maturity in
such manner and upon such terms, and be issued at one time er in series
from time to time, or as the City Council may subsequently determine
and specify in the ordinance or ordinances authorizing the issuance of
the said bonds.
Section 2. Said election shall be conducted and the votes
thereat canvassed and the results declared under the law and in•the
manner now provided for municipal elections, and notice of said election
shall be given by the Moyor by advertisement weekly for at least four
(4) times in some newspaper published in the City of Van Buren,, and
having- bona fide circulation therein, the last publication to be
not less than ten (10) days prior to the date of said election.
The ballots for said election shall be marked: "Vote on measure
by placing an "X" in the square above the measure either for or
against.
"FOR issue of additional bonds in the principal
amount of 24,000,000.00
"AGAINST issue of additional bands in the principal
amount of ;4,000,000.00
"The electors of the City of Van Buren have heretofore author-
ized the City of Van Duren to issue industrial development revenue
bonds under the provisions of Act Nc. 9 of the Special Session of
the General Assembly of the State of Arkansas of 1960 in the prin-
cipal amount of "1,000,000.00 for the purpose of securing and
developing industry within or near the City of Van Buren by assisting
Cement•lsbestos Products Company in constructing and operating a
manufacturing plant for the manufacture and sale of pipe and fittings
and such other products as it may be authorized to manufacture.; The
purpose -of this election is to aut'Horize the City of Van Buren to
issue additional industrial development revenue bonds under the said
Act in the principal amount of "•x4,000,000.99 to make a total principal
amount of such bonds not to exceed $5,000,000.00 to assist Cement
Asbestos Products Company in constructing equipping, and operating
its plant as aforesaid. All bonds so issued shall nut be an obligation
of the.City of Van Buren but shall be secured by a mortgage on the
lands,, equipment and buildings acquired from the proceeds of the said
industrial development revenue bonds 3nd a pledge of the revenues
therefrom. The bonds may be sold and delivered all at one time,
or in.parcels from time to time, in a total amount not to exceed
$5,000,_000.00"
Section 3. A copy of this ordinance shall be given to the
Crawford County Board of Election Commissioners so that it may place
the question on the ballot for said election, providedthe proper
election officials and supplies, and canvass the vote on the question.
Section 4. At said election, only qualified voters of the.City
of Van Buren will have the right to vote. The result of said,election
shall be proclaimed by the Mayor by publication in some newspaper
published in the City of Van Buren and having a general circulation
therein for more than twelve (12) months last past, and his proclaim
ation .shall advise the citizens and property owners of said City of
Van Buren that the result as proclaimed will be conclusive unless
attacked in the courts within thirty (30) days after the date of such
proclamation.
Section 5. It is ascertained and declared that the safety and
health Of the City of Van Buren are jeopardized by the lack of suf-
ficient industry and that only by action made possible by this ordin-
ance can the City undertake to secure and develop industry and to
prrmnte the safety, health, and welfare of its citizens.
IT IS THEREFORE, declared that an emergency exists, and this
ordinance is necessary for the immediate preservation of the public
peace, health and safety, and that this ordinance shall take effect
and be in force from and after its passage.
PASSED AND APPROVED ON THIS 3RD DAY OF FESRU ;',RY, 1969.
Allen R. Toothaker (s)
Mayor
Attest:
George Crofton (s)
City Clerk