HomeMy WebLinkAbout1982-777-R i
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RESOLUTION 7 7
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WHEREAS, the Industrial Group Joint Venture, a Joint Venture
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composed of H. Paul Willmuth, Clem Moore, Edward L. House, Howard
L. House, Doyle W. Rogers and Preston W. Grace, Sr. , have proposed!
the acquisition, refurbishing and/or renovation, and leasing of
THE FOLLOWING LANDS AND IMPROVEMENTS LYING AND BEING IN
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II INDEPENDENCE COUNTY, ARKANSAS: i
Part of the West Half of Section 10, Township 13 North,
Range 6 West, described as follows: Beginning at a
point on West line of Highway 167, said point being 106 j
feet West and 659 feet and 10z inches South from the I
quarter Section corner between Section 3 and 10, said
point being also the Southeast corner the Felts
„Motel Tract, (see Deed recorded Book "Y-6" , page 381) ,
thence North 84 degrees West along the South line of
I said tract and extension thereof 861 feet to a point;
thence South 200 feet to a point; thence West 300 feet
y to a point; thence South 200 feet to a point, thence ,
West 914 feet to a point on the East Right of Way line 1
of Missouri Pacific Railroad; thence along said East
Right of Way line, South 36 degrees East 1300 feet and
South 32 degrees East 1120 feet to the West Right of i
i� Way line of Highway 167; thence along said West Right
of Way line North 32 degrees East 900 feet; thence
North 21 degrees East 300 feet; thence North 15 degrees
East 483 feet; thence North 800 feet to place of
beginning.
(the "Project") which will result in public benefits and will be j
in the best interests of the City of Batesville, Arkansas (the {
"City") and its citizens;
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WHEREAS, the proposed project will provide needed employment
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in the City and in Independence County, Arkansas and will create #
jobs for the City' s citizens; {
WHEREAS, this proposal has been submitted to the City Council1
for its determination and study, subject to the conditions and i
provisions hereinafter stated; and q
unemployment prevent WHEREAS, the proposed pro0ect will p p yment and
loss of population, will improve the local tax structure will
(reduce crime and disease and other hazards to persons and property,
and will be of general public benefit; and
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�w WHEREAS , in order to make the necessary provisions for the
permanent financing of project costs and the expenses of authoriz-
ing andissuing the bonds, Industrial Group Joint Venture has
requested that the City consider the execution of an Agreement
concerning the authorization and issuance of not to exceed
$5,000,000.00 in principal amounts of bonds (the "Bonds") to be
issued under the provisions of Act 9 of the 1960 Extended Session
of the Arkansas General Assembly, as amended, and other relevant
and applicable laws of the State of Arkansas (hereinafter referred
to as "Act 9" .)
WHEREAS, the City finds that the financing of the Project by
�w the issuance of bonds under the aforementioned provisions of law
is for a valid public purpose; and
WHEREAS, this Resolution and Agreement pursuant thereto is
intended to be the taking of official action within the meaning i
of Section 103 (b) (2) of the Internal Revenue Code of 1954, as
amended,
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF BATESVILLE, ARKANSAS:
Section 1. It is the present intent of the City, pursuant to
the authority granted to it in Arkansas Statutes Annotated 13-1602
to make a loan to Industrial Group Joint Venture, or to its
�w assigns, in an amount yet to be determined, but not to exceed
$5,000,000.00 and to finance said loan by issuing its revenue bonds
in an amount not to exceed $5,000,000.00, subject to the general
terms and conditions herein contained and Act 9 referred to above.
The loan agreement between Industrial Group Joint Venture, or its
assigns, and the City shall be upon such terms and shall contain
such provisions as the City, in its sole discretion, shall deem
desirable and proper in the circumstances. The loan agreement
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shall require such security as the City believes to be prudent.
Section 2. The issuance of such revenue bonds will be by
further resolution of the City to be adopted at such times and in
such manner as required by applicable law after the necessary
details of the revenue bonds are determined.
Section 3. In general, if the City' s revenue bonds are
issued, they will be issued upon the following terms and condi-
tions:
(a) The bonds shall be secured by a first mortgage
lien on the Project and such further security as the
City may require.
(b) The bonds will be purchased, in whole, and not
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in part, at such price consistent with Act 9, as
Industrial Group Joint Venture or its assigns, shall
recommend, subject to the approval of the City, by
such persons or firms as shall be acceptable to the
City, with all expenses related thereto, to be paid
from bond proceeds or other funds of Industrial Group
Joint Venture, or its assigns.
(c) The bonds will be issued under such terms that
the interest thereon will be exempt from federal taxation
in the opinion of bond counsel.
(d) The bonds shall be special obligations of the City,
and shall never be paid in whole, or in part out of any
funds derived from the assessment of benefits within
the City or any other revenues or funds of the District
except those derived from or in connection with the
Project.
(e) The bonds are to be issued, sold and delivered
under authority of Act 9 and all related actions and
�W documents shall be in conformity therewith.
Section 4. The City considers this Resolution to be an
official action of the City, acting by and through its City
lCouncil, toward the issuance of bonds in accordance with the
provisions of the aforementioned provisions of law and the
provisions of Section 103 (b) of the Internal Revenue Code, and
the regulations issued thereunder.
Section 5. The provision of the foregoing resolution shall
be in full force and effect from and after the date of its
adoption and approval.
CITY OF BATE$VILLE, ARKANSAS
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By
ATTEST: 'Aayor
%W Date:—
City Cle2k
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