HomeMy WebLinkAboutResolution 51-1994 . t • f
• RESOLUTION NO. 51-94
RESOLUTIOH RELATING TO A PROJECT UHDER SOUTH DAKOTA CODIF'IED
L.AWS, CHAPTERS 9-54 AND 6-8B, GIVING THE PROJECT PRELIMINARY APPROVAL
SUBJECT TO A PUBLIC HEARING
BE IT RESOLVED by the City Commissioners of the City of
Brookings, Brookings County, South Dakota, as follows:
Section l. Police and Purnose.
1. 01 For the purpose of and assisting providing revenue
producing enterprises, the City is suthorized by Chapters 9-54 and
6-SB, South Dakota Codified LaWs, as amended (the "Act" ), to enter
into revenue agreements with pereons, firms or corporations providing
for the City to loan or provide the proceeds derived from the issuance
of revenue bonds to the peraon, firm or corporation to be used to pay
the costs of a pro�ect as defined in Sections 9-54-1 and 9-54-2 and
providing for the repayment of the obligation evidenced by the revenue
agreement by the person, firm or corporation.
1. 02. Lomar Development Company, a Minnesota partnership and
Twin City Fan & Blower Co. , a Minnesota corporation (referred to
herein as the "Borrower" ), have requested that the City issue its
revenue bonds (the "Bonds" ) in an aggregate principal amount not to
exceed 53, 500, 000 under the provisions of the Act to accompliah the
following purposes, the proceeds of the bonds, in an amount not to
exceed 83, 500, 000, would be loaned to the Borrover and used to pay
costs of acquiring land and machinery and equipment to be used in the
manufacturing process. The foregoing purposes are referred to herein
as the "Project". The manufacturing facilities and equipment to be
financed by the Bonds will be located at 101 Sunrise Ridge Road South
in the City.
1. 03 The Project would increase the level of economic activity
in the City and benefit the residents of the City and eurrounding
area.
1. 04. The City is advised by representatives of the BorroNer
that �ith the aid of municipal financing, and the resulting lower
borrowing cost, the Pro�ect would be significantly more feasible. The
City is further advised by the Borrower that approval of municipal
financing would be a significant inducement to the undertaking of the
Project by the Borrower.
Section 2. Findinas.
2. 01. Subject to the holding of a public hearing according to
law, it appears the iasuance of the Bonda will be in the public
interest.
Section 3. Anoroval and Authorization
3. 01. Subject to the holding of a public hearing to lar and
sub�ect to the mutual agreement of the City, the Borrower and the
initial purchaser of the Bonds as to the details of an indenture, loan
agreement and/or other documents necessary to evidence and effect the
financing of the Project and the issuance of the Honds, the issuance
of revenue bonds of the City, in one or more series, in an amount not
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to exceed 53, 500, 000 is hereby preliminary approved and suthorized to
finance the Pro�ect.
3. 02. Neither this preliminary commitment nor any actione,
agreements, or legal matters related hereto or executed in pursuant
hereof, shall in any manner or form create an indebtednese of
liability of the City.
3. 03. The pasasge of this resolution does not finally commit the
City to issue the Bonds nor, if applicable, establish priority for
purposes of staying Nithin the limitations established by federal larr
for the amount of private activity bonds that may be iseued by the
City of Brookings or the State of South Dskota.
Section 4. Public Hearina.
4. 01. Since a public hearing, after notice according to laM, is
required for final approval of the iesuance of the Bonds, a public
hearing on the issusnce of the Bonde shall be held at the City
Commission Room, City Hall, City of Brookinge, South Dakota, on the
24th day of May, 1994 at 7:30 p. m. and the City Finance Officer is
hereby instructed to give notice of euch public hearing according to
18M.
4. 02. The form of public notice attached to this Resolution is
hereby approved.
Paased and approved this 3rd day of May, 1994.
OF � �4i �/Y
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v �'W Mayor
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F ' Offi
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NOTICE '
NOTICE OF PUBLIC HEARING ON A PROPOSED PROJECT AND
THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REFUNDING
AND IMPROVEMENT REVENUE BONDS UNDER SOUTH DAKOTA
CODIFIED LAWS, CHAPTER 9-54, AS AMENDED
CITY OF BROOKINGS, SOUTH DAKOTA
Notice is hereby given that the goveming body of the City of Brookings, South Dakota
(the"City"), will meet on the 24th day of May, 1994, at 7:30 p.m. at the City Hall, 310 Third Avenue,
in the City for the purpose of holding a public hearing on a proposal that the Ciry issue revenue
bonds under the South Dakota Codified Laws, Chapter 9-54, as amended, in order to finance the cost
of a project. The proposed project will consist of the acquisition, construction and renovation of
land, building and equipment to be used in the industrial fan and blower manufacturing plant. The
land, building and related manufacturing machinery and equipment financed by the proposed issue
of bonds will be located at 101 Sunrise Ridge Road in the City and will be owned by I.omar
Development Company, a Minnesota partnership (the "Borrower"), and will be leased to and
operated by Twin Ciry Fan & Blower Co., a Minnesota corporation (the "Lessee"). It is proposed
that the bonds be issued in an aggregate principal amount not to exceed $3,500,000 to finance the
land, building and equipment identified above.
The revenue bonds or other evidence of indebtedness issued by the City to finance the
project shall be limited obligations of the City payable solely from the revenue pledged to the
payment thereof, and may be secured by a mortgage or other encumbrance on the project. No
holder of any such evidence of indebtedness shall ever have the right to compel any exercise of the
taxing power of the City to pay such evidence of indebtedness,or the interest thereon, nor to enforce
payment against any property of the City except the project secured thereby.
The Lessee is engaged in the business of manufacturing industrial fans and all interested
persons are hereby notified of the fact pursuant to Chapters 9-54 and 6-8B, SDCL, as amended. All
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persons interested will have the opportunity to be heard at the time and place set forth above or may
file written comments prior to the hearing with the undersigned,which comments will be considered
at the hearing.
Dated this day of May, 1994.
BY ORDER OF THE CITY COMMISSION
City Finance Officer
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