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Home My WebLink AboutOrdinance 03-1984 . • u�.w_ •' ` , • . • � � . � • ORDINANCE N0. 3-84 AN ORDINANCE AUTHORIZING THE ISSUANCE OF SUPPLEMENTARY AND ADDITIONAL ECONOMIC DEVELOPMENT REVENUE BOhDS , SERIES 1984 (AREA DEVELOPM�NT CORPORATION PROJECT) TO SUPPLF.MEI�T IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF SECTION 209 QF THE TRUST INDENTURE DATED AS OF APP.IL 1 , 1983 , BETWEEN THE CITY OF BROOKINGS, SOUTH DAKOTA, AS CITY, AND FIRST BANK OF SOUTH DAKOTA (NATIONAL ASSOCIATION) , ABERDEEN, SOUTH DAKOTA, AS TRUSTEE, C�IHICH INITJAL INDENTURE PROVIDED FOR $480 ,OOOo00 ECOtdOMIC DEVELOPMENT REVENUE BONDS , SERIES 1983 , WHICH SUPPLEMENTAL TSSUF. IS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $300 ,000 . 00 FOR THE PURPOS� OF PROVIDING ADDITIONAL FUNDS TO BE LOANED TO AREA DEVELOPMENT CORPORATION, A SOUTH DAKOTA CORPORATION, TO CONSTRUCT AN EXPANSION AND OTHER IMPRCzVE�fENTS FOR COi�'R�'IERCIAL AND INDUSTRIAL �EVELOPMEPIT PURPOSES �,THICH FACILITY WTLL BE SUBLEASED TO THE P�OUNTED BEAR.ING DIVISION OF SAFEGUARD POjJERTECH SYSTEMS , ABERDEEN, SOtITH DAKOTA; APPROVING � AND A.UTHORIZING THE EXECUTIOrd OF A SUPPLEMENTAL TRUST INDENTURE RELATING TO THIS PROJECT; APPROVING AND AUTHORIZING THE EXECUTION OF A SUPPLEMENTAL LOAN AGREEMENT �aITH AREA DEVELOPMENT CQRPORATION 4JITH RESPECT TO THE PROJECT; APPROVING THE FORM OF A SECOND MORTGAGE WITH RESPECT TO SAID BONDS; MAKING CERTAIN FINDINGS A1�D DETERMINATIOI�S tJITH RESPECT TO SAID PROJECT AND BONDS; AND AUTHORIZING THE EXEC,UTION AND DELIVERY OF CERTAIN ' � RELATED INSTRUMENTS. BF IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BROOKINGS , SOUTH DAKOTA, AS FOLLOT��S : Section One. The City Commission of the City of Brookings, South Dacota, �reby finds and determines : (a) In accordance with the provisions af SDCL 9-54 , as amended (the "Act") , and in accordance with the Trust Indenture betcveen Area Development Corporation and First Bank (National Association) ! Aberdeen, South Dakota , as Trustee, dated April 1 , 1983 , and in order to promote, stimulate and develop the general economic welfare and prosperity of, said City and of the State of South Dakota through the promotion and advancement of commercial and industrial development and to encourage and assist :in the expansion af business in said city and state by providing greater employment opportunities , thus promoting the general welfare of the citizens of said city and state , it is necessary and advisable and in the best interest of said city and state to loan the proceeds of the additional and supplemental bonds hereinafter described to Area Development Corporation, a South Dakota corporation, (the "Company") to expand and equip the additional facility subject to the additional loan arrangement between the same. parties pursuant to Ordinance No. 2-83 and to issue for the aforesaid purposes the industrial revenue bonds , Series 1984 (Area Development Corporation project) , dated February, i ► - . . ' � ' 1984 , or thereafter, of said City in the principal amount not to exceed $300 ,000 .00 (the "Bonds") , the Aonds to be issued under and secured by a Supplemental Trust Indenture between the City of Brookings and First Bank (N.A. } , Aberdeen, in the city of Aberdeen, South Dakota (the "Trustee") , and (b) The project will promote the welfare of the State and, the Project being situated within the limits of said City, the governing body hereby finds and declares that the Project will promote the welfare of said City. Section Two. The Supplemental Trust Tndenture dated as af February��$T+ , or thereafter, between the City and First Bank (N.A. ) , Aberdeen, as Trustee , in the form and content require and the pledge and assignment of� the property referred to therein shall be and they hereby are in a11 respects authorized, approved and confir�ed, and the Mayor and City Finance Officer shaZ? he and they are hereby authorized and directed to execute and deliver said Supplemental Indenture for and on behalf of the City to the Trustee as provided for therein for the security of the bonds and the interest thereon. Section Three. The issuance of up to $300 ,000 .00 principal amount o Econor:iic Development Revenue Bonds , Series 1984 , supplementing Economic Development Revenue Bonds Series 1983 , ZArea Development Corporation Project) , dated February 1 , 1984 , or thereafter, of the City in the form and cor_tent as set forth in said Supplemental Indenture shall be and the same is in all respects hereby author�zed, approved and con£ir�ec�, and the Mayor, City Finance Officer and other appropriate officials shall be and they are hereby authorized and directed to execute and seal the bonds and to deliver the bonds to the purchasers thereof, for and on behalf of the City, upon receipt of the purchase price , and to deposit the proceeds thereof in the manner provided for by the Supplemental Indenture and the Supplemental Loan Agreement. Section Four. The Supplemental Loan Agreement dated as of February , , or thereafter (the "Loan Agreement") , between the City and Area Development Corporation, was generally in the form prescribed by the initial issuance pursuant to Ordinance No. 2-83 and the pledging of the loan payments thereunder for the security of the bonds and the interest thereon shall be and they are hereby in all respects authorized, approved and confirmed, and the Mayor and City Finance Officer shall be and they are hereby authorized and directed to execute and del.iver said Supplemental Loan Agreement in substantially the same form and content as the initial Loan Agreement for and on .behalf of the City. Section Five. The Supplemental Mortgage or Second Mortgage - One Hun re Eighty Day Redemption, dated as of February 1, 1984 -2- . - . � , , . . � r . � • (the "Supplemental and Second Mortgage") , from the Company to the Trustee pursuant to which the Company has given a Second Mortgage for the additions to the project for the benefit of the City is hereby approved and which Mortgage the Trustee is authorized to accept. Section Six. The additional Bonds , together with the interest t�iereon, shall be limited obligations of the City payable solely out of the payments , revenue and receipts received by the City pursuant to the Supplemental Loan Agreement and the note , which payments , revenues and receipts are hereby and in the Indenture pledged and assigned for the equal and ratable payment of the Supple�ental Bonds and shall be used for no other purpose than to pay the principal of and interest on the bonds , except as may be otherwise expressly authorized in the Supplemental Indenture or in the Supplemental Loan Agreement. The Supplemental Bonds and the interest thereon shall not consti�ute an indebtedness of the City within the meaning of any constitutional provisions of statutory limitation and shall not constitute or give rise to a pecuniary liability of the City or� its officers , agents or empl_oyees , or a charge against the City s general credit or taxing powers . Section Seven. If any section, paragraph, clause or provision o t is Ordinance be hel� invalid, the invalidi_ty of such section, paragraph, clause or provision shall not af£ect any �� of the other provisions of this Ordinance . Section Ei ht. The Supplemental Loan Agreement provides that the City s a e reimbursed by the Company f_or any costs or expenses (including attorney' s fees) it shall incur in connection with the issuance of the Supplemental Bonds and the loan of the Bond proceeds to the Company. The City shall not incur any costs or expenses (including attorney' s f.ees) unless and until it has received adequate assurance that such costs or expenses will in fact be paid by the Company. Section Nine. The Mayor , City Finance Officer , City Attorney anc�ot�r City officials shall be and they are hereby authorized to execute and deliver for and on hehalf of the City any and all other certificates , documents or other papers and to perform such other acts as they may deem necessary or appropriate in order to implement and carry out the matters herein authorized. . Section Ten. The Company or irs sublessee and/or subassignee, s all execute any and all appropriate documents needed or required by the City to constitute an acknowledgment that the Company and/or its sublessee or subassignee must pay to the City of Brookings a fee in lieu of taxes for the term of the bonds . -3- y •, . , ` - � ,. . . s ' - , Section Eleven. This Ordinance shall take effect a.nd be in full orce on t e twentieth day after its publication unless suspended by a referendum. PASSED FIRST READING: January 17, 1984 PASSED SECOND READING: January 24 , 1984. ADOPTED: January 24, 1984 � PUBLISHED: January 31, 1984 EFFECTIVE DATE: February 20, 1984 ______� ____ __----- __--- c (SEAL) . ayor ATTEST: Cit na ce` icer � -4-