HomeMy WebLinkAboutResolution 109-1991 , ` .
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RESOLUTION H0. 109-91
A RESOLUTIOH TO AMEHD RESOLUTIOH HO. 100-91 TO CLARIFY THE
PURPOSES FOR WHICH THE PROCEEDS OF ECONOMIC DEVELOPMEHT REVEflUE BOHDS,
SERIES 1991 (LARSON MAHUFACTURING COMPAHY PROJECT>, DATED DECEMBER 1,
1991, OF THE CITY OF BROOKIHGS, SOUTH DAKOTA, IH THE PRIHCIPAL AMOUNT
OF 5800, 000 MAY BE USED, AHD GIVIHG APPROVAL TO THE FORM OF DOCUMENTS
TO BE EXECUTED IN COHHECTIOH WITH THE ISSUAHCE OF SAID BOHDS.
WHEREAS, on October 29, 1991 the Board of Commissioners of the
City of Brookings, South Dakota (the "City" ) adopted Resolution Ho.
90-91 to evidence its intent to cooperate with Larson Manufacturing
Company, a South Dakota corporation, to issue approximately 51, 000, 000
in Economic Development Revenue Bonds to provide the necessary funds
for the construction of an addition to the Company's manufacturing
plant and facilities located on Sunrise Drive approximately one block
south of the intersection of Highway 14 and Sunrise Ridge Road within
the city limits of the City of Brookings, South Dakota, and to
purchase laminating equipment, parts manufacturing equipment and
miscellaneous production equipment to be installed in the
manufacturing plant; and
WHEREAS, on November 19, 1991 the City held a hearing as directed
by Resolution Ho. 90-91, and following the hearing, the City adopted
Resolution Ho. 100-91 for the purpose of authorizing the issuance of
Economic Development Revenue Bonds, Series 1991 (Larson Manufacturing
Company Project) of the City (the "Bonds" >, and in such resolution
authorized the proceeds of the Bonds to be loaned to Larson
Manufacturing Company, a South Dakota corporation, to be used for
certain expenditures in the expansion of its manufacturing facility;
and
WHEREAS, the Board of Commissioners has determined it is
necessary and advisable to amend Resolution Ho. 100-91 to clarify the
purposes for which the proceeds of the Bonds may be used, and to give
its approval to the final form of documents required to accomplish the
issusnce of the Bonds, and to authorize the execution thereof by the
Mayor and City Finance Officer,
NOW, THEREFORE, be it resolved by the Board of City Commissioners
of the City of Brookings, South Dakota, as follows:
Section l. That Section 1. (a) of Resolution Ko. 100-91 be
amended and restated to provide as follows:
(a) In furtherance of the provisions of the Act and in order to
promote, stimulate and develop the general economic welfare and
prosperity of the City and of the State 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 to issue Economic
Development Revenue bonds, Series 1991 (Larson Manufacturing Company
Pro�ect), of the City in the principal amount of 5800, 000 (the
"Bonds" ), and to loan the proceeds thereof to Larson Manufacturing
Company, a South Dakota corporation, to pay the costs of constructing
and installing an addition to the Company's manufacturing plant and
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related facilities located on Sunrise Ridge Road approximately one
block south of the intersection of Highway 14 and Sunrise Ridge Road
within the city limits of the City of Brookings, South Dakota, and to
purchase and install fixtures, laminating equipment, parts
manufacturing equipment, miscellaneous production equipment, and
furnishings to be installed in the manufacturing plant (the
"Project" >, and to pay certain costs incurred in connection with the
issuance of the Bonds, with said Bonds to be issued under and secured
by a Loan and Security Agreement (the "Loan Agreement" ) between the
City, the Company and Horwest Bank South Dakota, Hational Association
(the "Bond Purchaser" ), and various instruments executed pursuant to
the terme of the Loan Agreement.
The following documents are hereby approved substantially in the
forms on file with the City Finance Officer on the date hereof, with
such necessary or appropriate variations, additions, omissions, or
modifications as are approved by the City Attorney of the City;
( 1 ) The Depository and Disbursement Agreement to be made as of
January 1, 1992, and made and entered into by the City and First
National Bank in Brookings, Brookings, South Dakota;
(2) The Loan and Security Agreement to be dated as of January 1,
1992, and made and entered into by the City, Company, and the
Bond Purchaser;
(3) The Promissory Hote dated as of the date of the closing to
be executed by the Company in favor of the City, and assigned to
the Bond Purchaser;
(4) The Mortgage - One Hundred Eighty Day Redemption, to be
dated as of January 1, 992, and given by the Company to the City,
to be assigned to the Bond Purchaser; and
(5) The Guaranty Agreement to be dated as of January 1, 1992,
and made and entered into by 0. Dale Larson, an individual, and
the Bond Purchaser; and
(6) The Certificate and Agreement with Respect to Arbitrage and
Tax Exemption to be dated as of January 1, 1992, and made and
entered into by the City, the Depository, the Bond Purchaser, and
the Company.
Execution of the documents by the Mayor and Finance Officer shall
be conclusive evidence of their approval.
�yOFBR d and approved this 18th day of December, 1991.
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Finance Officer