MISSISSIPPI LEGISLATURE

2001 Regular Session

To: Local and Private

By: Senator(s) Browning

AN ACT TO AUTHORIZE THE CITY OF PONTOTOC, MISSISSIPPI, TO ACQUIRE AN INDUSTRIAL ENTERPRISE AND REPAIR AND MAINTAIN SUCH ENTERPRISE; TO AUTHORIZE THE CITY TO ACQUIRE RAW MATERIALS TO BE USED BY SUCH ENTERPRISE; TO AUTHORIZE THE CITY TO PROVIDE WORKING CAPITAL FOR SUCH ENTERPRISE; TO AUTHORIZE THE CITY TO LEASE, SELL OR OTHERWISE DISPOSE OF THE ENTERPRISE; TO AUTHORIZE THE CITY TO ISSUE GENERAL OBLIGATION INDUSTRIAL BONDS IN THE AMOUNT OF $6,000,000.00 TO CARRY OUT THE PURPOSES OF THIS ACT; TO AUTHORIZE PONTOTOC COUNTY AND THE CITY TO ENTER INTO CONTRACTS AND AGREEMENTS BY WHICH EACH MAY CONTRIBUTE TAX REVENUES OR OTHER FUNDS NOT OTHERWISE OBLIGATED TOWARD THE PAYMENT OF THE BONDS ISSUED UNDER THIS ACT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The City of Pontotoc, Mississippi (the "city"), acting by and through its Mayor and Board of Aldermen (the "governing body"), is hereby authorized and empowered to accomplish the following project (the "project"): the acquisition of an industrial enterprise, comprised of land and a building or buildings thereon and equipment and machinery for warehousing, storing, distributing, manufacturing or processing goods or industrial products; the repair and maintenance of the industrial enterprise; the acquisition of raw materials to be used by the enterprise; and the provision of working capital for the enterprise. The city is further authorized to issue its general obligation industrial bonds for the project, and to lease or sell the project. Such enterprise may be acquired by the city on such terms and conditions and for such consideration as the governing body may determine is in the public interest without the necessity for appraisal, advertisement or bidding, notwithstanding any other statute or rule of law. The city may pay from the proceeds of the bonds or otherwise all costs of the project, including, but not limited to, expenses, premiums, fees and commissions that it may deem necessary or advantageous in connection with the issuance and sale of bonds thereof. Capitalized interest for a period ending six (6) months after the projected completion of the project may be deemed to be a cost of the project.

SECTION 2. The governing body is hereby authorized to lease, sell or otherwise dispose of the project acquired under the provisions of Section 1 of this act on such terms and conditions and with such safeguards as will best promote employment and promote and protect the public interest; and the governing body is authorized to transfer title or possession to such project by warranty deed, lease, lease/purchase, bill of sale, contract or other customary business instrument in the same manner and to the same extent that any private corporation, association or person may now contract with reference to property of a similar nature without the necessity for appraisal, advertising or bidding, notwithstanding any other statute or rule of law. All income derived from the sale or lease of the project authorized hereunder may be applied to the retirement of bonds issued pursuant to this act or deposited into the general fund of the city to be used for any lawful purpose.

SECTION 3. The general obligation industrial bonds of the city issued for the purpose set forth in Section 1 of this act shall not exceed an aggregate principal amount of Six Million Dollars ($6,000,000.00) and shall be payable over a term not to exceed twenty-five (25) years.

SECTION 4. All bonds issued, as hereinabove provided, shall not be subject to any debt limitation, notwithstanding any other statute or rule of law. Such bonds shall be issued and the proceeds managed in accordance with the terms and provisions of Sections 21-33-307, 21-33-309, 21-33-311, 21-33-313, 21-33-315 (other than the provisions pertaining to required bond maturities, which shall not apply to bonds issued pursuant to this act), 21-33-317, 21-33-319, 21-33-321 and 21-33-323, Mississippi Code of 1972.

SECTION 5. The bonds issued, as hereinabove provided, may be sold at public or private sale. If sold privately, such sale shall be on such terms and in such manner as the governing body shall determine. If sold publicly, such sale shall be conducted in accordance with the provisions of Section 31-19-25, Mississippi Code of 1972.

SECTION 6. The city or its designee is hereby authorized to negotiate contracts for the acquisition and construction of all or any part of the project if the governing body makes a finding that, because of the particular nature of the project and each of its components, it would be in the best public interest of the city to negotiate the acquisition and construction of all or any part of the project and such finding is placed in the minutes of the governing body.

SECTION 7. This act, without reference to any other statute not referred to herein, shall be deemed to be full and complete authority for the acquisition and/or construction of the project, the borrowing of money and the issuing of bonds, and shall be construed as an additional and alternate method therefor.

SECTION 8. Any bonds issued under the provisions of this act shall be validated in the manner provided by law.

SECTION 9. (1) Any bonds issued under this act and the income from such bonds shall be exempt from all State of Mississippi taxation, except inheritance and gift taxes.

(2) Any bonds issued under this act shall be legal investments for commercial banks, savings and loan associations and insurance companies organized under the laws of this state.

SECTION 10. The governing body is further authorized and empowered to adopt any and all lawful resolutions, orders and/or ordinances; to agree to any covenants regarding the project; to execute necessary documents, contracts, leases, certificates and indentures; and to do and perform any and all acts and things necessary and requisite to carry out the purposes of this act.

SECTION 11. Pontotoc County and the city are hereby authorized to enter into contracts and agreements by which each may contribute tax revenues or other funds, not otherwise obligated by law or contract to another specific purpose, toward the payment of the bonds issued pursuant to this act.

SECTION 12. This act shall take effect and be in force from and after its passage.