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HomeMy WebLinkAboutOrdinance 18-1983 ------------------------------------------------------------------- ------------------------------------------------------------------- ORDINANCE NO. 18-83 OF THE CITY OF BROOKINGS, SOUTH DAKOTA (Daktronics, Inc. , Project) ORDINANCE NO. 18-83 AN ORDINANCE AUTHORIZING THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 1983 (DAKTRONICS, INC. , PROJECT) , DATED AUGUST 1, 1983, OF THE CITY OF BROOKINGS, SOUTH DAKOTA, IN THE PRINCIPAL AMOUNT OF $710, 000, FOR THE PURPOSE OF PROVIDING FUNDS TO BE LOANED TO DAKTRONICS, INC. , A SOUTH DAKOTA CORPORATION, TO ACQUIRE CERTAIN REAL ESTATE, BUILDINGS AND IMPROVEMENTS FOR COMMERCIAL AND INDUSTRIAL DEVELOPMENT PURPOSES; APPROVING AND AUTHORIZING THE EXECUTION OF A TRUST INDENTURE RELATING TO THE PROJECT; APPROVING AND AUTHORIZING THE EXECUTION OF A LOAN AGREEMENT WITH DAKTRONICS, INC. , WITH RESPECT TO THE PROJECT; APPROVING THE FORM OF A MORTGAGE WITH RESPECT TO SAID BONDS; MAKING CERTAIN FINDINGS AND DETERMINATIONS WITH RESPECT TO SAID PROJECT AND BONDS; AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN RELATED DOCUMENTS. BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF BROOKINGS, SOUTH DAKOTA, AS FOLLOWS: Section 1. The City Commission of the City of Brookings, South Dakota, hereby finds and determines that: (a) In furtherance of the provisions o.f SDCL 9-54 , as amended (the "Act") , 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 commer- cial and industrial development and to encourage and assist in the expansion of 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 bonds hereinafter described to Daktronics, Inc. , a South Dakota corporation, (the "Company") to purchase and acquire the real estate, buildings and improvements (the "Project") , and to issue for the aforesaid purposes the Economic Development Revenue Bonds, Series 1983, ("Daktronics, Inc. , Project") , dated August l, 1983, of said City in the principal amount of $710, 000 (the "Bonds") , the Bonds to be issued under and secured by a Trust Indenture (the "Indenture") , between the City and First National Bank in Brookings, in the City of Brookings, South Dakota, (the "Trustee") , and (b) The Project will promote the welfare of the State of South Dakota, 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 2. The Trust Indenture, dated as of August 1, 1983, between the City and First National Bank in Brookings as Trustee, in the form and content attached hereto as Exhibit A, and the pledge and assignment of the property referred to therein shall be, and they hereby are, in all respects hereby authorized, approved and confirmed, and the Mayor and City Finance Officer shall be and they are hereby authorized and directed to execute and deliver said Indenture in substantially the form and content as Exhibit A, 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 3. The issuance of $710,000 principal amount of Economic Development Revenue Bonds, Series 1983 (Daktronics, Inc. ) dated August l, 1983, of. the City in the form and content set forth in said Indenture shall be and the same is in all respects hereby authorized, approved and confirmed, 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 Indenture and the Loan Agreement. Section 4. The Loan Agreement dated as of August 1, 1983 , (the "Loan Agreement" ) , between the City and Daktronics, Inc. , in the form and content attached hereto as Exhibit B, and the pledging of the loan payments thereunder for the security of the Bonds and the interest thereon shall be, and they hereby are, in all respects hereby authorized, approved and confirmed, and the Mayor and City Finance Officer shall be and they are hereby authorized and directed to execute and deliver said Loan Agreement in substantially the form and content as Exhibit B, for and on behalf of the City. Section 5. The D�ortgage - One Hundred Eighty Day Redemption dated as of August l, 1983, (the "Mortgage") , from the Company to the Trustee, pursuant to which the Company has mortgaged the Project for the benefit of the City is hereby approved in the form attached to this Ordinance and marked Exhibit C, which Mortgage the Trustee is authorized to accept. Section 6. The Bonds, together with the interest thereon, shall be limited obligations of the City payable solely out of the payments, revenue and receipts received by the City pursuant to the 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 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 Indenture or in the Loan Agreement. The Bonds and the interest thereon shall not constitute an indebtedness of the City within the meaning of any constitutional provision or statutory limitation and shall not constitute or give rise to a pecuniary liability of the City or its officers, agents or -2- - . , ,. . " ' ` � � � . employees, or a charge against the City' s general credit or taxing powers. Section 7. If any section, paragraph, clause or provision of this Ordinance (including the Exhibits hereto attached which are made a part hereof and incorporated herein by reference) shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this Ordinance or of the said Exhibits. Exhibits A, B and C herein referred to and made a part of this Ordinance are on file in the office of the City Finance Officer, and are available for inspection by any interested party. Section 8. The Loan Agreement provides that the City shall be reimbursed by the Company for any costs or expenses (including attorney' s fees) it shall incur in connection with the issuance of the Bonds and the loan of the Bond proceeds to the Company. The City shall not incur any costs or expenses (including attorney' s fees) unless and until it has received adequate assurance that such costs or expenses will in fact be paid by the Company. Section 9. The Mayor, City Finance Officer, City Attorney and other City of icials shall be and they are hereby authorized to execute and deliver for and on behalf 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 10. This Ordinance shall take effect and be in full force on the twentieth day after its publication unless suspended by a referendum ADOPTED this 5th d .._..-,--- . , _._,�-_ ._____ 0 ..._ J/ [S EAL] �''� ATTEST: - FI�READING: June 28, 1983 / � � SECOND READING: July 5, 1983 i ance icer -3- �