HomeMy WebLinkAboutResolution 62-1994 RESOLUTION N0. 62-94
RESOLUTIOH GIVING PRELIMINARY APPROVAL TO A PROJECT WITH LARSON
MANUFACTURING COMPANY, GIVIHG PRELIMINARY APPROVAL FOR THE
ISSUANCE OF ECOHOMIC DEVELOPMENT REVENUE BONDS TO FINANCE THE
PROJECT AHD AUTHORIZING THE PREPARATION OF NECESSARY DOCUMENTS.
WHEREAS, the purpose of Chapter 9-54 of the South Dakota Codified
Laae (the "Act" ) as found and determined by the legislature is to
stimulate and develop the general economic Melfare of the State of
South Dakota (the "State" ) through the promotion and advancement of
business and economic development opportunities, including the
expansion of manufacturing facilities; and
WHEREAS, the City Commission (the "Commiseion" ) of the City of
Brookinge, South Dakota (the "City" ) has received from Lareon
Manufacturing Company, a South Dakota corporation (the "Company" ), a
proposal that the City undertake to finance euch a Pro3ect (as
hereinafter described) through the iseuance of rev�nue bonds (the
°Bonde" ) pureuant to the Act for use by the Company; and
WHEREAS, the City desires to facilitate the selective development
of the community, the increase in employment opportunitiea and the
local tax base, and other enhancements to the overall economic Melfare
and proeperity of the City, and the Pro�ect shall assist the City in
achieving those ob�ectives; and
WHEREAS, the pro�ect to be financed by the Bonds coneists of (i)
constructing an addition to the north eide of the Company'e
manufacturing plant end facilities located at 222 Sunrise Ridge Road
Mithin the city limits of the City of Brookings, South Dakota� and
eite rork related to such construction, <ii) installing fixtures
therein, (iii) purchasing production equipment for inatallation in ne�
aesembly lines to be establiehed at the Company's menufacturing plant,
and (iv) other miecellaneou� costs related to the expansion and the
financing thereof (the "Pro�ect" ) ; and
WHEREAS, prior to the issuance of bonds, Section 147 (f) of the
Internal R�venue Code of 1986 (the "Code" ) requires that the City
conduct a public hearing on the Pro�ect and the propoaed financing
Mith at leaet 14 deye' advance notice of euch hesring to be published �
in a locally circulated neMspaper.
HOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF
THE CITY OF BROOKINGS, SOUTH DAKOTA AS FOLLOWS:
1. Preliminarv Avoroval. The Commiseion hereby gives
preliminary approval to (i) the proposal of the Company that the City
undertake the Pro�ect pursuant to the Act, pursuant to the Company'e
specifications suitable for the operatione described above, �ii) the
issuance of Bonds in the estimated maximum eggregate principal amount
of �2, 500, 000 pursuant to the Act, (iii) the loan of the proceeds of
the Bonds to the Company to finance the coete of the Pro�ect pursusnt
to a losn agreement betpeen the City and the Company� upon such terme
and conditiona as Mill produce income and revenues sufficient to pey,
Mhen due, the principal of and interest on the proposed Bonds, and the
agreement may also provide for the entire interest of the Company
therein to be mortgaged to the purchaser of the Bonds, and the City
hereby undertakes preliminarily to issue its Bonds in accordance Mith
such terms and conditions. The approval herein is sub�ect to final
approval by this Commiesion, the Company and the purchaaer or
purchasers of the Bonds as to the ultimate details of the financing of
the Pro�ect. The Commission, further acknorledges that the Company
shall be solely responeible for repayment of any loan of the proceeds
of the Bonds preliminarily suthorized herein.
2. Comoliance With Act. On the basis of information available
to this Commiseion, it appears and the Commission hereby finds that
the Pro�ect constitutes properties, real and personal, Mithin the
meaning of Section 9-54-1 of the South Dakota Codified LaMe; that the
availability of the financing under the Act and Millingness of the
City to furnish such financing shall be a subetantial inducement to
the Company to undertake the Pro�ect, and that the effect of the
Pro�ect, if undertaken, shall promote the general Melfare of the City
and the State.
3. Public Hearin�. A public hearing shall be conducted by the
City on the proposal to undertake and finance the Pro�ect on June 21,
1994 and notice shall be given for such public hearing in
substantially the form set forth in Exhibit A hereto, at rhich hearing
parities Mho appear shall be given an opportunity to exprese their
vieMs rith respect to said proposal. Such notice ahall be published
at least once not lese than fourteen (14) days prior to the date fixed
for the hearing in the official nerspaper and a nepepaper of general
circulation in the City of Brookings, South Dakota and all action
heretofore taken in connection Mith providing euch notice or in
holding such hearing is hereby ratified, approved and confirmed in all
respects.
4. PreDaration of Documents. Representativee of the City and
Boyce, Murphy, �cDoMell & Greenfield, as Bond counsel, are hereby
authorized, in cooperation Mith the Company and the Company's counsel,
to initiate the preparation of a proposed loan agreement, mortgage,
and such other documents as may be necessary or appropriate to the
Pro�ect so that, Mhen and if thia Commiseion gives its final; approval
to the Pro�ect, the Pro�ect may be carried forMard expeditiously. The
Company has agreed and it is hereby determined that any and all costs
incurred by the City in connection rith th� financing of the Pro�ect,
whether or not the Bonds or operative instruments are executed and
whether or not approved, shall be paid by the Company.
5. Ho Firm Commitment. The adoption of this resolution does not
constitute a guarantee or a firm commitment that the City Nill issue
the Bonds as requested by the Company. The City reteine the right in
its sole discretion to Mithdrar from participation, and accordingly
not issue the Bonds should the City at any time prior to the issusnce
thereof determine that it is in the beet interest of the City not to
issue the Bonde or ehould the parties to the transaction be unable to
reach agreement as to the terms and conditions of any of the documente
required for the transaction.
6. Ho Exoenditure of City Funds. Hothing in this reaolution or in
the documente prepared pursuant hereto shall suthorize the expenditure
of any municipal funde on the Pro�ect other than the revenues derived
from the Pro�ect or otherMise granted to the City for thie purpose.
The Bonds shall not constitute a charge, lien or encumbrance, legal or
equitable, upon any property or funds of the City except the revenue
and proceeds pledged to the payment thereof, nor shall the City be
sub�ect to any lisbility thereon. The holder or holders from time to
time of the Bonds shall never have the right to compel any exercise of
the taxing poMer of the City to pay the outstanding principal on the
Bonde or the interest thereon or to enforce payment thereof against
any property of the City. The Bonds shall recite in substance that
the Bonde, including interest thereon, are payable eolely fro� the
revenue and proceeds pledged to the payment thereof. The Bonds shall
not constitute a debt of the City vithin the meaning of any
constitutional or statutory limitatione.
7. Reimbursement of Exvenditures. In anticipation of the final
approval of the Pro�ect and the issuance of the Bonds to finence all
or a portion of the Pro�ect and in order that completion of the
Pro�ect shall not be unduly delayed rhen approved, the Company may
make euch expenditures and advances torard payment of that portion of
the coste of the Pro�ect to be financed from the proceeds of the Bonds
as the Company considere necessary, including the use of interim,
short-term financing, to be reimbursed from the proceeds of the Bonds
if and rhen delivered, but the City shall in no event be liable for
payment of, or in any respect Mith regard to, any such expenditures
phether or not the Bonde are issued or Mhether or not the City gives
final approval to the iseuance of Bonds, except such costs paid
from Bond proceeds if and vhen the Bonde are i�sued. ypf0
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Paesed and approved this 31st d of tiay, 1994. '
av �
Mayor •y�, O
ATTEST: ��'U.S0�
__ ___._
C�___ _.
Finance Officer
EXHIBIT A
NOTICE OF PUBLIC HEARING
The Board of Commieeioners of the City of Brookings, South
Dakota, rill conduct a public hearing at 2 s 00 p. m. , on Tuesday, the
21et day of June 1994, in the Commission Chambers of City Hall, 311
Third Avenue, in Brookings, South Dakota, to coneider the
suthorization of a resolution for the issuance by the City of
Brookinge of an estimated 52, 500, 000 aggregate principal amount of
Economic Development Revenue Bonds. The proceeds from the Bonds are
to be utilized by the oMner of the pro�ect, Larson Manufacturing
Company, a South Dakota corporation, to (i) conatruct an addition to
the north side of the Company's manufacturing plant and facilities
located at 222 Sunrise Ridge Road Mithin the city limits of the City
of Brookings, South Dakota, and perform necessary eite rork related to
such conetruction, (ii) install fixtures therein, and tiii) purchase
production equipment for installation in neM assembly lines to be
establiehed at the Company's manufacturing plant, and (iv) pay other
miscellaneous coets related to the expansion and the financing thereof
tthe "Pro�ect* ).
Such hearing shall be public and citizens and pereons of interest
shall then be heard.
Dated this 31st day of May, 1994. .�.�----_.__._._._..
_----,'
Finance Officer
City of Brookings, a