ORD NO 23-1969 ORDINANCE NO. 23 -1969
AN ORDINANCE AUTHORIZING THE ISSUANCE CF INDUSTRLAL DEVELOPMENT
REVENUE BONDS UNDER ACT NO. 9 OE THE FIRST EXTR,505DINHRY SESSION
OF THE SIXTY- SECOND GENERAL ,SSEMi3LY OF THE STATE OF ARKANSAS,
APPROVED JANUARY 21, 1960, AS AMENDED, FOR THE PURPOSE OF SECURING
AND DEVELOPING INDUSTRY (THE PARTICULAR INDUSTRIAL PROJECT IS
DESCRI ➢Ell IN THE ORDINANCE): AUTHORIZING THE EXECUTION AND.DELIVERY
OF TRUST INDENTURE SECURING THE BONDS: AUTHORIZING AND PRESCRIBINL
OTHER :MATTERS PERTAINING TO SAID INDUSTRIAL PROJECT, THE CONSTRUCTI'0
THEREOF: AND DECLARING AN EMERGENCY.
WHEREAS, the City of Van Buren, Arkansas (called °City ")*is
authorized by Act Nc. 9 of the First Extraordinary Session of
Sixty second General Assembly of the State of Arkansas, apprcvud
January 21, 1960, as amended (called "Act No. 9 to acquire,
lands construct and equip manufacturing buildings, improvements
and facilities and to incur other costs and expenses and make ether
expenditures incidental to and for the implementing and accomplish-
ing of the conduct of manufacturing operations; and
WHERE /,S, the City is authorized by Act No.. 9 to issue
Industrial Development Revenue Bands payable from revenues derived
from the industrial project so acquired and constructed and secure'
by a lien thereon; and
WHEREAS, the necessary arrangements have been made with CEMENT
ASBESTOS PRODUCTS COXPf,NY, an Alabama corporation (called "CAPCO
to construct an industrial project, which project will consist of
lands;,buildings, improvements and facilities to be operated for
the manufacture and sale uf pipe and fittings and such other
items, as CAPCO should determine, with necessary incidental expenses
and cxpenditures in connection therewith (called the "Project" or
the "Industrial Project and to lease the Project to CiAPCO
pursuant to the terms uf a Lease Agreement (referred to as the
Lease Agreement"): and
WHEREAS, financing of the Project costs, necessary costs and
expenditures incidental thereto and the expenditiuus commancment of
manufatturing operations, the oust of the issuance of bonds and the
amount necessary to provide for interest Jr; bonds until Project
revenues are available is being furnished by the issuance of
Industrial Revenue Bonds by the City under the provisions of Act
No. 9 in the principal amount of Three Million Five Hundred
Thousand Dollars (;;3,5u0,000.00), Ucalled "Bonds" ur "Act No. 9
Bonds and
WHEREAS, there has been submitted to the electors of the City
at special- elections, the question of issuing Industrial Develop
ment`Revenue. Bonds under said Act 9 in an aggregate principal
amount not to exceed the sum of Three Million Five Hundred Thousand
Dollars (3,500,000.00), and at said special elections the electors
approved the issuance of the said bonds in an aggregate principal
`.a amount: not to exceed the sum of Three Million Five Hundred
Thousand Dollars and
WHEREAS, the City has made the necessary arrangernonts for the
sale of One Million Dollars (S1,000,000.00) of Industrial Developm t
Revenue Bonds to THE FIRST NATIONAL BANK OF BIRMINGHAM, Birmingham,
Alabama, and for the sale of Two Million Five Hundred Thuusand
Dollar's (02,500,000.00) of Industrial Development Revenue Bends to
THE CHASE NANHr,TT„N HANK N. 1., New York City, Now York, with the
bonds so sold being dated boring interest and maturing as hereaft
in said Indenture set forth in detail;
Page 2
NOW, THEREFORE, BE IT OREDAINED BY THE CITY COUNCIL OF THE
CITY OF VAN BUREN, ,vRKANS;,S:
Section 1. That there be, and there is hereby, approved,
authorized and directed the following:
a. The sale of the bends in the respective amounts to the
purchasers identified above; and
6 The acquisition of the title to the lands embodied ih
the Project (hereafter described in the form of Trust Indenture
authorized by this Ordinance).
Section 2. That Industrial Development Revenue Bonds of the
City under Act No. 9 in an aggregate principal amount not to
exceed 'Three Million Five Hundred Thousand (called
"bonds aro hereby authrrized and ordered issued, and to prescrib
the terms and conditions upon which the bonds are tu be secured,
executed, authenticated, accepted and held, the Mayor is hereby
authorized and ordered issued, and to prescribe the terms and
conditions upon which tho bends are tu be secured, executed,
authenticated, eccopted and held, the Mayor is hereby authorized an
directed to execute and acknowledge the Trust Indenture and to
affix.the seal of the City therutu, and the Mayor and City Clerk
are hereeby authorized and directed to cause the Trust Indenture to
be accepted, executed and acknowledged by the Trustee, with the
trust Indenture, which constitutes and is hereby node a part of
this Ordinance, to be in substantially the following form, tc .pit:
(idvice is hereby given that a copy of the form of Trust
Indenture is en file in the office of the City Clerk, and
reference may be had thereto by any interested person).
Section 3. That the Mayor and City Clerk, for and un behalf
of the City, be, and they are hereby authorized and directed to do
any and, all things necessary to effect the execution of the Trust
ndenturce, its execution and acceptance by the Trustee, the
erfori"ance of all obligations of the City under and pursuant to
he Trust Indenture, the execution and delivery cf the bonds, and
.he performance of all otnur acts of whatever nature necessary to
.:ffuct.,and carry out the authority conferred by this Ordinance and
by the Ttust Indenture. That the Mayur and City Clark be, and they
:re hereby, futher authorized and directed, for and on behalf of
he City of execute all papers, documents, certificates and other
_nstrum'ents that may be required fur the carrying out of the
uthurity conferred by this Ordinance and the Trust I ur
u evidence said authority and its exercise.
Section 4. That since we are here involved with the construct.
nd equipping of a complex industrial project requiring highly
pecialized work and specialized typos of machinery and equipment
.nd materials, it has been and is hereby determined that competitive
idding`is not feasible Ur practical. THEREFORE, an requirements
'odor ordinances of the City er under the general laws of the
tats of Arkansas for competitive bidding bo, and the same are
ereby'waived for this particular Project. This action is taken
'y the City Council pursuant to the authority conferred by Act
P. 9 and because the action so taken has been made a condition
:ocedent to the securing and developing of this particular Industri
reject.
Section 5. That the previsions of this Ordinance are hereby
.eclercd to be separable, and if any section, phrase, er prevision
hall for any reason be declared to be invalid, such declaration
'hall riot affect the validity of the remainder of the sections,
Asses and provisions.
Page 3
Section 6. That all ordinances, resolutions and parts thereof
in conflict herewith are hereby repealed to the extent of such cunflict.
Section 7. That there is hereby found and declared to be an
immediate need for the securing and developing of substantial
industrial operations in order to provide additional employment,
alleviate unemployment and other wise benefit the public health,
safety. and welfare of the City and the inhabitants thereof, and
the issuance of the bunds authorized hereby and the taking of the
other :action authorized herein are immediately necessary in
connection with the securing and developing of substantial Indus-
trial,operetions and deriving the public benefits referred tc
1
above.
IT I5 THEREFGRE declared that an emergency exists and this
Ordinance being necessary for the immediate preservtion of the
public health, safety and welfare shall bo in force and take
effect immediately upon and after its passage.
Passed the 22nd day of September, 1969.
0 Allen R. Toothaker (s)
Mayor
Attest:
Geo. L. Crofton (s)
City Clerk