Good afternoon, everybody.

It is four o'clock, so we're going to go ahead and we're going to call the order.

The City of Jonesboro Finance and Administration Council Committee meeting today.

We have an absolute council.

Come in as fast as you can.

And once uh Dr.

Coleman takes a seat, we will we will take roll for the day.

Delaying the proceedings as usual.

If you would mark your attendance on the device in front of you, please.

Okay.

I do show four members present today, and that does give us a quorum today.

Um moving into the first item on our agenda will be the approval of minutes from the previous finance committee meeting, which was on Tuesday, April 28th, 2026.

Move to approve unless there's a noted change.

Second.

Okay, I have a motion and a second to approve the minutes as presented.

Uh, if we don't have any questions or any comments regarding those minutes, if you will vote on the approval of the minutes on the device in front of you, please.

Okay, and that item does carry.

Thank you all very much.

Moving on to the next item on the agenda is new business, and this will fall underneath ordinances to be introduced.

Our first ordinance and only ordinance of today is ordinance or ordinance 26016.

And uh just for um the record, I will go ahead and I will read that ordinance in its entirety.

So if uh anybody has anything else that they need to do for about five minutes, we'll be we'll be we'll be good.

So this um we have ordinance 26016, an ordinance to authorize the issuance of industrial development revenue bonds under the municipalities and counties industrial development revenue bond law for the purpose of securing and developing industry to authorize the sale of the bonds and the approval of a bond purchase agreement and a payment in lieu of taxes agreement in connection therewith to authorize the execution and delivery of a trust indenture securing the bonds to authorize and prescribe certain matters pertaining to the project, the acquisition, the construction and equipping thereof, and the financing thereof to authorize the execution and delivery of a lease agreement relating to the project and for other purposes.

Whereas the City of Jonesboro, Arkansas is authorized under the provisions of Amendment 65 to the Arkansas Constitution and the municipalities and counties industrial development revenue bond law, Arkansas Code annotated 14164201, Arkansas annotated 14164701, each as amended from time to time to own, acquire, construct, equip, and lease facilities to secure and develop industry and to assist the financing thereof by the issuances of bonds payable to the revenues derived from such facilities.

And whereas Nietzsche Ray.

And whereas the city and the company intend to enter into a lease agreement relating to the real estate and personal property constituting the project, which contemplates that the project will be leased to the company with an option to purchase for a nominal price and the rental payments, therefore, together with other monies available shall be sufficient to pay the debt service on the bonds and all related cost.

And whereas to induce the city to proceed with the issuance of bonds for the purposes indicated, which will in your to the benefit of the company, the city and the company will enter into a payment in lieu of taxes agreement, insubstantially the form presented at this meeting, which provides 65% ad virum tax abatement for the period of 30 years.

And whereas the city and the company caused a form of a notice of a public hearing to be published on May 8th and May 15, 2026, and the city hereby ratifies the form of the notice to be published.

And whereas an open an open public hearing on the question of the issuance of the bonds was held before the city council on May 19th, 2026, following publication of notice of the hearing, and that having heard all persons desiring to be heard in that manner, the city has taken under advisement the comments and statements of such persons and declared the public hearing duly closed.

And whereas the city proposes to sell the bonds to an affiliate of the company pursuant to the bond purchase agreement by and between the city and the purchaser, and whereas the company has obtained or may obtain independent loans from one or more lenders secured by liens on or security interest in title to all of part of the project granted pursuant to various agreements, instruments, and documents.

Whereas the city acknowledges and consents to all liens, encumbrances on security interest in and rights to the title to the project granted by the company and acknowledges that the company's interest in the project will be transferred to the city subject to such liens, encumbrances, and security interest and such acknowledgement and consent may be evidenced through the execution of the recognition of prior interest, non disturbance, and attorment agreement between the city, the company, the lenders of the company benefiting from such lien encumbrances or security interest.

Whereas copies of the here in copies of the herein described bond purchase agreement, indenture, lease agreement, RNA agreement, and pilot agreement have been presented to and are before this meeting, and a copy of each are on file with the city clerk and available for inspection by any interested persons.

And whereas the completion of the project will furnish additional employment and other benefits to be the best interest of the city and its residents.

Now, therefore, be it ordained by the city council of the city of Jonesboro, Arkansas, Section 1.

There be and there is hereby authorized the directed the following.

The execution and delivery of the pilot agreement by the mayor and city clerk on behalf of the city in substantially the forms submitted to this meeting with such changes shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval is hereby authorized and directed.

An executed copy of the pilot agreement shall be filed in the city clerk's office.

Section C.

The acquisition, construction, and equipping of the project and in connection therewith to the extent covenant or net convenient convenient or necessary, the execution of any necessary architectural engineering or construction contracts or the acceptance of any assignment of such contracts previously executed by the company for the construction and equipping of the project on behalf of the city is hereby authorized and directed.

Section two.

That to further prescribe the terms and conditions upon which the bonds are to be executed, authorized issue, accepted, held and secured, the mayor is hereby authorized and directed to execute and acknowledge the trust indentiture, and the city clerk is hereby authorized and directed to execute and acknowledge the trust indentiture and affix the seal of the city hereto.

And the mayor and the city clerk are hereby authorized and directed to cause the trust indentiture to be accepted, executed, and acknowledged by the trustee.

The trust indentiture is hereby approved and substantially in the form and submitted to in this meeting, the mayor is hereby authorized to confer with the trustee and the company in order to complete the trust indentiture in sustainability, the form submitted to this meeting with such changes shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval.

Section three.

The lease agreement is hereby approved in substantially the form submitted to this meeting, and the mayor is hereby authorized to confer with the company in order to complete the lease agreement in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence for such approval.

Section 4.

There be and there is hereby authorized and directed the execution and delivery of the bond purchase agreement, and the mayor and the city clerk are hereby authorized to execute, acknowledge, and deliver the bond purchase agreement for and on behalf of the city.

The bond purchase agreement is hereby approved in substantially the form submitted to this meeting, and the mayor is hereby authorized to confer with the purchaser in order to complete the bond purchase agreement in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval.

Section 5.

There be there is hereby authorized and directed execution and delivery of the RNA agreement if the company determines that such an agreement is required by its lenders.

The mayor and the city clerk are hereby authorized to execute, acknowledge, and deliver the RNA agreement for and on behalf of the city.

The RNA agreement is hereby approved in substantially the form that's been submitted to this meeting, and the mayor is hereby authorized to confer with the company and lenders of the company in order to complete the RNA agreement in substantially the form submitted to this meeting with such changes as shall be approved by such persons executing the document, their execution to constitute conclusive evidence of such approval.

The mayor and city clerk for and on behalf of the city are hereby authorized and directed to do any and all things necessary to affect the execution of lease agreement, the performance of the city's obligations under the lease agreement, the execution and delivery of the trust indentiture, the performance and all obligations of the city under and pursuant to the trust indentiture, the execution and delivery of bonds, the execution and delivery of the pilot agreement, the performance of the city's obligations under the pilot agreement, the execution and delivery of the bond purchase agreement, the purchase of the city's obligations under the bond purchase agreement, the execution and delivery of the RNA agreement, the performance of the city's obligations under the RNA agreement, the performance of all other acts of whatever nature necessary to effect and carry out authority conveyed, conferred by this ordinance.

The mayor and the city clerk are further authorized and directed foreign on behalf of the city in connection with the issuance of the bonds and in connection with ongoing rights and obligations that arise after issuance and prior to the maturity of the bonds to execute all papers, documents, certificates, and other instruments that may be required for carrying out such authority or to evidence exercise thereof, including but not limited to the execution of a home office payment agreement, a memorandum of lease, delivery instructions, and other closing certifications.

Section 7.

The project involves the acquisition, constructing, and equipping of a complex industrial project requiring highly specialized work and specialized types of machinery and equipment.

In compliance with Arkansas Code annotated 14164204, it has been and is hereby determined by the city council that competitive bidding be and the same is hereby waived as this particular industrial.

Let's make sure I get that right.

Waived as to this particular industrial project.

This action is taken by the city council pursuant to applicable laws of the state of Arkansas, including particularly the Act.