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Home My WebLink AboutOrdinance 15-1980 ,' �' � . • w � • �� _.. ' ��_��______�_��__��--_��-______��_��_�-__��___-��_�__�� _____�_�_��_�_____�_-_��_��_--�__��__��_..'�_��_�_��- ORDINANCE NO. 15-80 OF CITY OF BROOKINGS, SOUTH DAKOTA ----------------------------------------------------------------- ----------------------------------------------------------------- February 21, 1980-2 � � „ , . , . ORDINANCE NO. 15-80 AN ORDINANCE AUTHORIZING THE ISSUANCE OF ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES APRIL l, 1980, DATED APRIL 1, 1980, OF THE CITY OF BROOKINGS, SOUTH DAKOTA, IN THE PRINCIPAL AMOUNT OF $1, 000, 000, TO ACQUIRE CERTAIN REAL ESTATE AND TO CONSTRUCT A MANUFACTURING FACILITY, INCLUDING BUILDINGS, IMPROVEMENTS, MACHI- NERY AND EQUIPMENT THEREON FOR INDUSTRIAL DEVELOPMENT PURPOSES (ALL HEREINAFTER REFERRED TO AS THE "PROJECT" ) , TO BE LEASED TO JOHN M.. PREST AND SARAH N. PREST, RESIDENTS OF � n, COUNTY, MINNESOTA; APPROVING AND AUTHORIZING THE EXECUTION O A MORTGAGE AND INDENTURE OF TRUST RELATING TO THE PROJECT; APPROVING AND AUTHORIZING THE EXECUTION OF A LEASE AND AGREEMENT WITH JOHN M. PREST AND SARAH N. PREST COVERING THE PROJECT; APPROVING THE FORM OF A GUARANTY AGREEMENT BY JOHN M. PREST, SARAH N. PREST AND PREST EQUIPMENT COMPANY, A MINNESOTA CORPORATION, WITH RESPECT TO SAID BONDS; AUTHORIZING THE SALE OF SAID BONDS; MAKING CERTAIN FINDINGS AND DETERMINATIONS WITH RESPECT TO SAID PROJECT AND BONDS; AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN RELATED INSTRUMENTS . BE IT ORDAINED BY THE CITY CONIl�IISSION OF THE CITY OF BROOKINGS, SOUTH DAKOTA, AS FOLLOWS: Section l . The City Commission of the City of Brook- ings, South Dakota, hereby finds and determines that: (a) In furtherance of the provisions of SDCL 9-54, as amended (hereinafter referred to as 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 industrial development and to encourage and assist in the expansion of existing 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, solely from the proceeds of the Bonds hereinafter described, to acquire the real estate and to purchase and construct the building, improvements and machinery and equip- ment (being referred to herein as the "Project" ) on the real estate described in Schedule 1 attached hereto, and to lease the Project to John M. Prest and Sarah N. Prest, residents of County, Minnesota, for the rentals and upon the terms and condi- tions hereinafter set forth, and to issue, for the purpose of purchasing and constructing the Project, the Economic Development Revenue Bonds, Series April 1, 1980 (Prest Equipment Company Project} , dated April 1, 1980, of said City in the principal amount of $1, 000, 000 (hereinafter referred to as the "Bonds" ) under and pursuant to the Act, the Bonds to be issued under and secured by a Mortgage and Indenture of Trust (hereinafter refer- . • , y . ' ' . ' . red to as the "Mortgage" ) upon the Project, between the City and First National Bank in Brookings, in the City of Brookings, South Dakota (hereinafter referred to as the "Trustee" ) , and (b) The Project, when in being, will promote the wel- fare of the City and the State, and, the Project being situated inside the limits of said City, the governing body hereby finds and declares that the Project, if in being, will promote the welfare of said City. Section 2 . The Mortgage and Indenture of Trust (the "Mortgage" ) , dated as of April 1, 1980, between the City and First National Bank in Brookings, in the City of Brookings, South Dakota, as Trustee, in the form and content attached hereto as Exhibit A, and the pledge and mortgage of the property referred to therein be, and they hereby are, in all respects hereby auth- orized, approved and confirmed, and the Mayor and City Finance Officer be and they are hereby authorized and directed to execute and deliver said Mortgage 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 inter- est thereon. Section 3 . The issuance of $1, 000, 000 principal amount of Economic Development Revenue Bonds, Series April 1, 1980 (Prest Equipment Company Project) , dated April 1, 1980, of the City in the form and content set forth in said Mortgage be and the same is in all respects hereby authorized, approved and confirmed, and the Mayor, City Finance Officer and other appro- priate officials be and they are hereby authorized and directed to execute and seal said Bonds and to deliver the same to the purchaser thereof, for and on behalf of the City upon receipt of the purchase price and to deposit the proceeds thereof with the Trustee in the manner provided for by the Mortgage and the Lease _ (hereinafter referred to) . Section 4. The Lease and Agreement dated as of April l, 1980, between the City, as Lessor, and John M. Prest and Sarah N. Prest, as Tenants, in the form and content attached hereto as Exhibit B, and the pledging of the rentals therefrom for the security of the Bonds and the interest thereon be and the same is in all respects hereby authorized, approved and confirmed, and the Mayor and City Finance Officer be and they are hereby author- ized and directed to execute and deliver said Lease and Agreement (the "Lease" ) , in substantially the form and content as said Exhibit B, for and on behalf of the City. Section 5 . The Guaranty Agreement dated as of April l, 1980, pursuant to which John M. Prest, Sarah N. Prest and Prest Equipment Company, a Minnesota corporation, unconditionally guarantee to the Trustee, for the benefit of the holders of the -2- , . . , , .. . ., , � Bonds, the payment of the principal of and interest and redemp- tion premium, if any, on the Bonds, is hereby approved in the form attached to this Ordinance and marked Exhibit "C" , which Guaranty Agreement the Trustee is authorized to accept. Section 6 . The sale of the Bonds to First National Bank in Brookings, the purchaser thereof, for $1, 000, 000 plus accrued interest to date of delivery, is hereby authorized, approved, ratified and confirmed. The execution by the City officials of the Bond Purchase Agreement covering the sale of said Bonds, substantially in the form attached hereto and marked Exhibit D, is hereby ratified and confirmed, and the City offi- cials are hereby authorized and directed to deliver the Bonds to said purchaser upon receipt of the purchase price to be deposited as provided in the Mortgage and Lease. Section 7. The Bonds, together with interest thereon, shall be limited obligations of the City payable solely out of the moneys, fees, rents, revenues and other contractual payments received from the Project, excluding certain payments which may be made by John M. Prest and Sarah N. Prest in lieu of taxes in accordance with the provisions set forth in Section 4.2 of the Lease authorized by this Ordinance, which moneys, fees, rents, revenues and other contractual payments are hereby specifically mortgaged, pledged and hypothecated 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 Mortgage or in the Lease. The Bonds and the interest thereon shall not constitute an indebtedness of the City within the meaning of any constitu- tional provisions or statutory limitations and shall not consti- tute or give rise to a pecuniary liability of the City or a charge against its general credit or taxing powers. Section 8 . If any section, paragraph, clause or pro- vision 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, C and D herein referred to and made a part of this Ordinance are on file in the office of the City Finance Officer, Brookings, South Dakota, and are available for inspection by any interested party. Section 9 . The Mayor, City Finance Officer, City Attorney and other City officials be and they are hereby autho- rized to execute and deliver for and on behalf of the City any and all other certificates, documents or other papers and to perform all other acts as they may deem necessary or appropriate in order to implement and carry out the matters herein authorized. -3- • , .� , � _ ' ' • Section 10. This Ordinance shall take effect and be in full force on the twentieth day after its publication unless suspended by a referendum. First Reading: March 4, 1980 Second Reading : March 11 , 1980 Passed and Approved: March 11, 1980 ATTEST: l /1 !/ � •, M o r �� t, Fina ce O fic r -4-