HomeMy WebLinkAboutResolution 22-1993 RESOLUTION H0. 22-93
RESOLUTIOH RELATING TO A PROJECT UHDER SOUTH DAKOTA CODIFIED LAWS,
CHAPTERS 9-54 AND 6-8B, GIVIHG THE PROJECT PRELIMINARY APPROVAL SUBJECT
TO A PUBLIC HEARING
BE IT RESOLVED by the City Commissioner of the City of Brookings,
Brookings County, South Dakota, as folloMs:
Section 1. Policv and Puroose.
1. 01. For the purpose of and assisting providing revenue-producing
enterprises, the City is suthorized by Chapters 9-54 and 6-8B, South
Dakota Codified LaMa, as amended (the "Act" ), to enter into revenue
agreements Mith persons, firms or corporations providing for the City to
losn or provide the proceeds derived from the issuance of revenue bonds
to the person, firm or corporation to be uaed to pay the coste of a
pro�ect as defined in Sections 0-54-1 and 9-54-2 and providing for the
repayment of the obligation evidenced by the revenue agreement by the
corporation. The City is further suthorized to issue its revenue bonds
to refund, in phole or in part, bonds previously issued by the City
under the Act.
1. 02. Lomar Development Company, a Minnesota partnership and Twin
City Fan & BloNer Co. , a Minnesota corporation treferred to herein as
the "Borrorer" ), have requested that the City iasue ite revenue bonds
(the "Bonds" ) in an aggregate principal amount not to exceed 52, 050, 000
under the provision of the Act to accomplish the folloping purposes, the
proceeds of the bonds, in an amount not to exceed 52, 050, 000 Nould be
loaned to the borrower and used to refund the City of Brookinge
Industrisl Development Revenue Bonds (Lomar Development Company Pro�ect)
(Trrin City Fan & B1oWer Co. , Lessee), dated December 1, 1983 and
outstanding in the principal amount of 51, 000, 000 (The "Series 1983
Bonds" ), and to pay costs of acquiring land and machinery and equipment
to be used in the manufacturing process. The foregoing purposes,
including the refinancing of the Series 1983 Bonds, are referred to
herein se the "Pro�ect". The manufacturing facilities and equipment to
be financed and refinanaed by the Bonda are located at 101 Sunrise Ridge
Rosd South in the City.
1. 03. The Pro�ect would increase the level of economic activity in
the City and benefit the residents of the City and surrounding area.
1. 04. The City is advised by representatives of the Borrower that
with the aid of municipal financing, and the resulting loMer borroMing ,
cost, the Pro�ect would be significantly more fessible. The City ie
further advised by the Borror►er that approval of municipal financing
would be a significant inducement to the undertaking of the Pro�ect by
the BorroWer.
Section 2. Findincrs.
2. 01. Sub�ect to the holding of a public hearing according to law,
it eppears the issuance of the bonds will be in the public interest.
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Section 3. Aoaroval and Authorization.
3. 01. Sub,ject to the holding of a public hearing according to lar
and sub�ect to the mutual agreement of the City, the Borrorer and the
initial purchaser of the Bonde as to the details of an indenture, loan
agreement and/or other documents necessary to evidence and effect the
financing of the Pro�ect and the issuance of the Bonde, the iesuance of
revenue bonds of the City, in one or more series, in an amount not to
exceed 82, 050, 000 is hereby preliminarily approved and suthorized to
finance the Pro�ect.
3. 02. Neither this preliminary commitment nor any actions,
agreements, or legal mattere related hereto or executed in pursuant
hereof, shall in any manner or form create an indebtedness of liability
of the City.
3. 03. The passage of this resolution does not finally commit the
City to issue the Bonds nor, if applicable, establish priority for
purpoaes of staying r►ithin the limitatione eatabliehed by federal laM
for the amount of private activity bonds that may be issued by the City
of Brookinga or the State of South Dakota.
Section 4. Public Hearin�r.
4. 01. Since a public hearing, after notice according to law, ie
required for final approval of the issuance of the Bonds, a public
hearing on the iseuance of the Bonds shall be held at the City
Commission Room, City Hall, City of Brookings, South Dakots, on the 13th
day of April, 1993 at 2:00 p. m. and the City Finance Director is hereby
instructed to give notice of such public hearing according to lav.
4. 02. The form of public notice attached to this Resolution is
hereby approved.
sed and approved this 23rd day of March, 1993.
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Finance Officer
NOTICE OR PUBLIC HEARIHG
NOTICE OF PUBLIC HEARIHG ON A PROPOSED PROJECT AND THE ISSUANCE
OF INDUSTRIAL DEVELOPMEHT REFUNDING AHD IMPROVEMENT REVENUE BONDS
UHDER SOUTH DAKOTA CODIFIED LAWS, CHAPTER 9-54, AS AMENDED
CITY OF BROOKIHGS, SOUTH DAKOTA
Notice ie hereby given that the governing body of the City of
Brookings, South Dakota (the "City" ), Mill meet on the 13th day of
April, 1993, at 2:00 p. m. at the City Hall, 310 Third Avenue, in the
City for purpose of holding a public hearing on a propoeal that the
City issue revenue bonds under the South Dakota Codified Lars, Chapter
9-54, as amended, in order to finance the cost of a pro�ect. The
proposed pro�ect Mill consist of (i) the refinancing of the City of
Brookings Industrial Development Revenue Bonds, Series 1983 (Lomar
Development Company Pro�ect) tTMin City Fan � B1oMer Co. , Lessee),
dated December 1, 1983 (The "Series 1983 Bonds" ), outetanding in the
principal amount of 81, 000, 000 and (ii) the acquisition, conetruction
and renovation of land, building and equipment to be used in the
industrial fan and blorer manufacturing plant. The facilities
refinanced and the additional land, building and related manufacturing
machinery and equipment financed by the proposed iseue of bonds are
located at 101 Sunrise Ridge Road in the City and are oMned by Lomar
Development Company, a Minnesota partnerehip (the "BorroMer" ), and
Mill be leased to and operated by Trin City Fan & BloMer Co. , a
Minnesota corporation (the "Leseee" ). It is proposed that the bonds
be issued in an aggregate principal amount not to exceed 52, 050, 000 to
refinance the outstanding Series 1983 Bonds and to finance the land,
building and equipment identified above.
The revenue bond or other evidence of lndebtedness issued by the
City to finance the pro�ect shall be limited obligatione 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 pro�ect. No
holder of any such evidence of indebtedness ehall ever have the right
to compel any exercise of the taxing poMer 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 pro�ect secured
thereby.
The Lessee is engaged in the business of manufacturing industrial
fane and all interested pereons are hereby notified of the fact
purauant to Chapters 9-54 an 6-8B, SDCL, as amended. All peraons
interested Mill have the opportunity to be heard at the time and place
set forth above or may file Mritten commenta prior to the hearing pith
the underaigned, Mhich commenta Mill be considered at the hearing.
Date this 23rd day of March. 1993. �
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Theo. C. Kryg r, ce Officer