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HomeMy WebLinkAbout672ORDINANCE NO. 672 AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE UPON THE QUESTION OF ISSUING BONDS UNDER THE PROVISIONS OF ACT NO. 9 OF THE FIRST EXTRAORDINARY SESSION OF THE 62ND GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, APPROVED JANUARY 21, 1960, FOR THE PURPOSE OF FINANCING A PORTION OF THE COST OF SECURING AND DEVELOPING INDUSTRY WITHIN OR NEAR THE CITY OF BATESVILLE, ARKANSAS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY. WHEREAS negotiations have been under way with Seiberling Rubber Company, Inc., a corporation with headquarters at Barberton, Ohio (hereinafter sometimes called "Seiberling") for the location of a substantial industrial plant in or near Batesville, Arkansas, and one of the prerequisites to the location of the said industrial plant in or near Batesville, Arkansas, is the furnishing of adequate financing; and WHEREAS the location of the industry in or near Batesville, Arkansas, will result in increased employment, increased payrolls and will be beneficial to and in the best interest of Batesville, Arkansas and its inhabitants; and WHEREAS it is proposed to finance the project by the issuance of City of Batesville Industrial Development Revenue Bonds, under the provisions of Act No. 9 of the First Extraordinary Session of the 62nd General Assembly of the State of Arkansas, approved January 21, 1960, in an amount not to exceed $1,000,000, and by the issuance by Independence County of General Obligation Industrial Development Bonds, under the provisions of Amendment 49 to the Arkansas Constitution, in an amount not to exceed $500,000; and WHEREAS the proposed manufacturing plant will be leased to Seiberling, or an Arkansas subsidiary, and if the latter, Seiber- ling will guarantee the lease. The revenue bonds will have a first lien on all lease rental revenues, but lease rental revenues in ex- cess of the amount necessary to insure the prompt payment of the principal of and interest on the said revenue bonds and the paying agent's fees and to establish and maintain a reserve for contingencies, will be available for the payment of the principal of and interest on the bonds to be issued under Amendment 49, and the paying agent's fees in connection therewith; and Page 2 WHEREAS the providing for the financing by issuance of said bonds is a necessary prerequisite to the securing of the above mentioned industry; NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Batesville, Arkansas: Section 1. That a special election be, and the same is hereby, called to be held in Batesville, Arkansas, on the 15th day of lviarch , 1960, at which election there shall be submitted to the electors of the City the question of issuing Revenue Bonds under the provisions of Act No. 9 of the First Extraordinary Session of the 62nd General Assembly of the State of Arkansas, approved January 21, 1960, in an amount not to exceed $1,000,000 for the purpose of securing and developing industry within or near Batesville, Arkansas. The bonds shall be dated March 1, 1960, with interest thereon payable semi—annually on March 1 and September 1 of each year commencing September 1, 1960, at a rate accepted by the City at the public sale of the bonds, but not to exceed six per cent (6/) per annum, with the bonds to mature on March 1 of each year as follows, but to be callable for payment prior to maturity upon such terms as shall be specified by the City in the notice of the public sale of the bonds. YEAR AMOUNT 1961 $26,000 1962 28,000 1963 29,000 1964 31,000 1965 34,000 1966 36,000 1967 38,000 1968 41,000 1969 43,000 1970 46,000 1971 48,000 1972 52,000 1973 55,000 1974 58,000 1975 62,000 1976 66,000 1977 70,000 1978 75,000 1979 79,000 1980 83,000 Page 3 The bonds shall be sold at public sale and may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest with any such conversion to be upon such terms that the City receive no less and pay no more than it would receive and pay if the bonds were not converted and with the conversion to be subject to the approval of the City Council. Section 2. That said question shall be placed on the ballot for the special election in substantially the following form: Vote on measure by placing an "X" in the square above the measure either for or against: For the issuance of Revenue Bonds in an amount not to exceed $1,000,000 . . . . . . . Against the issuance of Revenue Bonds in an amount not to exceed $1,000,000 . . . . . C1 It is proposed to issue City of Batesville Revenue Bonds under Act No. 9 of the First Extraordinary Session of the 62nd General Assembly of the State of Arkansas, approved January 21, 1960, in an amount not to exceed $1,000,000, maturing serially on March 1 in each of the years 1961 to 1980, inclusive, for the purpose of paying a portion of the cost of securing and developing industry within or near Batesville, Arkansas. The particular project is a manufacturing plant to be operated by Seiberling Rubber Company, Inc., or an Arkansas subsidiary, and the Project property and improvements will be leased to Seiberling Rubber Company, Inc., or an Arkansas subsidiary, and if the latter, the lease will be guaranteed by Seiberling Rubber Company, Inc. The said revenue bonds will finance a portion of the cost of the project and it is proposed to finance the remaining portion by the issuance by Independence County of General Obligation Bonds under Amendment 49 to the Arkansas Constitution in an amount not to exceed $500,000. The bonds may be sold with the privilege of conversion to an issue bearing a lower rate or rates of interest. The Revenue Bonds will have a first lien on the revenues to be derived from the lease, but any surplus lease rentals over and above the amount needed to insure the payment of the principal of and interest on the revenue bonds and the paying agent's fees, and to establish a reserve for contingencies, will be used for the payment of the principal of and interest on bonds issued under Amendment 49 in advance of maturity until all of said General Obligation Bonds, with interest, are fully paid and retired. CM Sentinn -�_ ..r r..- n That the election shall be held and conducted and the vote canvassed and the results declared under the law and in the manner now or hereafter provided for municipal elections, so far as the same may be applicable, and the Mayor shall give notice of such election by an advertisement published once a week for four (4) consecutive weeks in a newspaper having a bona fide circulation in Batesville, Arkansas, with the last publication to be not less than ten (10) days prior to the date of the election, and only qualified electors of Batesville, Arkansas, shall have the right to vote at said electionon said question. Section 4. Thi the result of said election shall be proclaimed by the Mayor and his proclamation shall be published one time in a newspaper having a bona fide circulation in Batesville, Arkansas, which proclamation shall advise that the result as proclaimed shall be conclusive unless attacked in the courts within thirty (30) days after the date of such proclamation. Section 5. That the Mayor is authorized to advertise the public sale of the proposed bonds. Section 6. That a copy of this ordinance shall be given to the Independence County Board of Election Commissioners so that the necessary election officials and supplies may be provided. Section 7. There is hereby found and declared to be an immediate need for the development of industry within or near the City of Batesville in order to increase payrolls and provide greater employment opportunities. The industry in question can be secured only by the issuance of bonds. It is, therefore, de- clared that an emergency exists and this ordinance being necessary for the immediate preservation of the public health, safety and welfare shall be in force and take effect immediately upon and after its passage. PASSED: February 9 (SEAL) APPROVED: ATTEST: A Aayor City Cler , 1960. r7 C E R T I F I C A T E The undersigned, C.1erk of the City of Batesville, Arkansas, hereby certifies that the foregoing pages, numbered 1 to 4, inclusive, are a true and correct copy of Ordinance No. 672 adopted at a regular session of the Council of the City of Batesville, Arkansas, held at the regular meeting place of the Council in said City at 7:30 o1clock P. .m., on the 9th day of February , 1960, and that said ordinance is of record in Ordinance Record :Book No. C page 227 , nova in my possession. Given under my hand and seal this 10th day of February , 1J60. City CiexT (SEAL) )&X WEEMME MINUTES OF A MEETING OF THE CITY COUNCIL OF BATESVILLE, ARKANSAS HELD _.eebruary 9 , 1960 The City Council of the City of Batesville, Arkansas met in regular session at its regular meeting place in Batesville at 7:30 o'clock P .m., on the 9th day of r'ebruary , 1960. The following were present: Mayor Roy How, sr. ; City Clerk nichard Murch and Aldermen Jewell rounders, Audia itiiorris. C. L. T u2jpson ewey z0we, Jr., Frank 'iuhite, �. u. 3urt, Fred -1. otuart Absent: 0j. vv . Cjbb The Mayor stated that consideration should be given to an ordinance calling a special election to vote upon the question of issuing bonds under the provisions of Act No. 9 of the First Extraordinary Session of the 62nd General Assembly of the State of Arkansas, approved January 21, 1960, for the purpose of financing a portion of the cost of securing and developing industry within , the City of BE.tesville, Arkansas. This was a matter with which the Council was familiar and after a discussion Alderman Jewell t'OunderR introduced an ordinance entitled: "AN ORDINANCE CALLING A SPECIAL ELECTION TO VOTE UPON THE QUESTION OF ISSUING BONDS UNDER THE PROVISIONS OF ACT NO. 9 OF THE FIRST EXTRAORDINARY SESSION OF THE 62ND GENERAL ASSEMBLY OF THE STATE OF ARKANSAS, APPROVED JANUARY 21, 1960, FOR THE PURPOSE OF FINANCING A PORTION OF THE COST OF. SECURING AND DEVELOPING INDUSTRY WITHINt-THE CITY OF BATESVILLE, ARKANSAS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND DECLARING AN EMERGENCY" and the City Clerk read the ordinance in full. Alderman i`red L. atuart seconded by Alderman -iudia Dorris , then moved that the rule requiring the reading of an ordinance in full on three different days be suspended and that the ordinance be placed on its second reading. The Mayor put the question on the adoption of the motion and the roll being called, the following voted aye: Jewell rounders, "udis Morris, . ".. Thoiiir)son Lewey Rowe, Jr r'rank +ohite, ". U. bUrt, Fred x,. otuart. and the following voted nay: bone r rage 2 Thereupon the i�iayor declared that at least two-thirds of all members elected to the Council having voted in favor of the motion to suspend the rule, the motion was carried and the rule suspended. The ordinance was then read a second time by the City Clerk. alderman C. L. Thompson, seconded by alderman Frank +white, then moved that the rule requiring the reading of an ordinance in full on three different days be further suspended and that the ordinance be placed on its third reading. The i ayor put the question on tike adoption of the motion and the roll being called, the following voted aye: Jewell Founders, liudia Morris, C. L. Thompson, Dewey Rowe, Jr., r'ranx o�hite, a. C. burt, and 2red E. Stuart, and the following voted nay: None. Thereupon the iviayor declared that at least two-thirds of all members elected to the Council having voted in favor of the motion to suspend the rule, the .motion was carried and the rule suspended. The ordinance was then read in full by the City Clerk. alderman ". C. b urt, seconded by "lderman C. L. Thompson, moved that the ordinance be adopted. The question was put by the !Mayor on the adoption of the motion and the roll being called, the following voted aye: Jewell rounders, audia Akorris, C. L. Thompson, Lewey Rowe, Jr., Franiz shite, ii. G. .hurt, Fred E. Stuart, and the following voted nay: None. alderman Jewell Founders, seconded by alderman Lewey Rowe, Jr., moved that Section rt7, the emergency clause, be adopted, and on roll call the following voted aye: Jewell Pounders, audia Dorris, C. L. "Thompson, Lewey Rowe, Jr., Frank white, ,-i. C. Hurt, Fred o,. Stuart, and the following voted nay: hone. Page 3 The mayor thereupon declared tie ordinance and the emergency clause adopted and signed the ordinance, which was attested by the City Clem and impressed vaiti-1 the seal of the City, and the ordinance was given ilo. 672.