9-52-1
Power to construct, operate, and maintain auditorium.
9-52-1.1
Lease of auditorium or convention center--Terms--Rent.
9-52-2
Power to create auditorium board.
9-52-3
Auditorium revenue bonds authorized--Purposes for which proceeds used.
9-52-4
Authorization, issuance and sale of bonds--Vote required.
9-52-5
Municipal indebtedness not authorized by chapter.
9-52-6
Revenue bonds payable solely from auditorium revenues--Credit and taxing
powers not pledged.
9-52-7
Repealed.
9-52-8
Auditorium revenues appropriated to special fund--Operating expenses paid
from fund--Net revenue pledged to separate account for bond retirement and
reserves.
9-52-9
Covenants and agreements with bondholders for administration and security of
bonds--Bondholders' right to compel performance.
9-52-10
Repealed.
9-52-11
Findings and determinations as binding covenants.
9-52-12
Reference to authorizing resolutions for matters not covered in bonds--Negotiability.
9-52-13, 9-52-14. Repealed.
9-52-15
Bondholders' statutory mortgage on auditorium property--Enforcement of lien
and compelling performance of duties.
9-52-16
Admission charges and auditorium rentals--Adequacy for expenses, return on
municipal investment and retirement of bonds.
9-52-17
Operation for purpose of profit prohibited.
9-52-18
Municipality and board exempt from liability for negligence of officers and
employees--Employees' rights preserved.
9-52-19 to 9-52-22. Repealed.
9-52-23
General powers of auditorium board--Copies of board proceedings as evidence.
9-52-24
Custody and disbursement of auditorium funds--Petty cash fund.
9-52-25
Annual report by auditorium board to governing body--Records subject to
inspection.
9-52-26
Auditorium board governed by terms of bonds and resolutions.
9-52-27
Receivership on default in bonds or dissipation of auditorium assets--Powers
of receiver--Termination of receivership.
9-52-28
Severability of chapter and resolutions.
9-52-29
Sale and lease-back arrangements--Tax exemption.
9-52-30
Sale and lease-back arrangements--Validation of prior actions.
9-52-31
Sale and lease-back arrangements--Powers additional.
9-52-1. Power to construct, operate, and maintain auditorium.
Every municipality shall have power to construct, operate, and maintain an auditorium.
Source: SL 1917, ch 310, § 1; RC 1919, § 6169 (26); SDC 1939, § 45.0201 (15).
9-52-1.1. Lease of auditorium or convention center--Terms--Rent.
A municipality, in order to establish a municipal auditorium or convention center as defined and empowered by law, shall have the power to enter into a long-term lease, for a term not to exceed thirty years, with or without an option to renew or purchase, for the acquisition of such facilities. Such lease may be on both real and personal property, or either exclusively, and may cover the structure, site and contents, or structure and contents only, with or without furniture and equipment and may provide for erection of the structure upon a site owned by the municipality. A lease may be entered into for an existing building or for one to be erected in the future. Rent paid under the terms of the lease may be paid from the general funds of the municipality or may be paid from any fund established for maintenance of such a facility or construction of same by the municipality.
Source: SL 1972, ch 53; SL 1980, ch 72.
9-52-2. Power to create auditorium board.
Every municipality may create an appointive board for the purpose of managing municipal auditoriums and to provide by ordinance the number, the qualifications, mode of appointment, tenure of office, compensation, powers, duties of, and rules and regulations governing such board.
Source: SL 1955, ch 197; SDC Supp 1960, § 45.0201 (109); SL 1992, ch 67; SL 1995, ch 49, § 16.
9-52-3. Auditorium revenue bonds authorized--Purposes for which proceeds used.
Any municipality may issue revenue bonds to provide funds for the purpose of acquiring a municipal auditorium, or for the purpose of improving an existing auditorium, or for the purpose of refunding outstanding revenue bonds issued under the provisions of this chapter.
Source: SL 1951, ch 246, § 1; SDC Supp 1960, § 45.24B01; SL 1984, ch 43, § 96.
9-52-4. Authorization, issuance and sale of bonds--Vote required.
All bonds shall be authorized, issued, and sold as provided in chapter 6-8B, if a majority of the registered voters voting at the bond election vote to authorize the bond issue.
Source: SL 1951, ch 246, § 1; SDC Supp 1960, § 45.24B01; SL 1984, ch 43, § 97.
9-52-5. Municipal indebtedness not authorized by chapter.
Nothing contained in this chapter shall be deemed to authorize the incurring by any municipality of indebtedness within the meaning of any constitutional or statutory limitation upon municipal indebtedness.
Source: SL 1951, ch 246, § 10; SDC Supp 1960, § 45.24B10.
9-52-6. Revenue bonds payable solely from auditorium revenues--Credit and taxing powers not pledged.
Revenue bonds issued under this chapter shall be payable solely from the net revenue derived from and traceable to properties acquired by the expenditure of the proceeds of revenue bonds, or of bonds refunded thereby, as fixed and determined by the governing body in accordance with the provisions of this chapter, and the credit and taxing powers of the municipality shall not be pledged for the payment thereof, and the bondholders shall have no right to compel the appropriation of any of the municipality's other funds, money, or property for the payment of the principal thereof or interest thereon.
Source: SL 1951, ch 246, § 1; SDC Supp 1960, § 45.24B01.
9-52-8. Auditorium revenues appropriated to special fund--Operating expenses paid from fund--Net revenue pledged to separate account for bond retirement and reserves.
Prior to delivery of any such bonds the governing body shall by the resolutions adopted under § 9-52-3 create a special fund and appropriate and pledge thereto all gross receipts in respect of rentals, fees, licenses, and other charges however designated, imposed by the municipality for the use or occupancy of the auditorium premises and of any future additions and betterments thereto or for admission of individuals to the same or any part thereof, and from said fund shall be paid as incurred and allowed all normal, reasonable, and current expenses of the operation and maintenance of the premises, and the net revenues remaining in said fund from time to time after payments of such expenses shall be pledged and appropriated to a separate account to the extent necessary for payment of the principal of and interest on the bonds and maintenance of such reserve securing said payments as shall be covenanted and agreed with the purchaser and holders of said bonds.
Source: SL 1951, ch 246, § 2; SDC Supp 1960, § 45.24B02.
9-52-9. Covenants and agreements with bondholders for administration and security of bonds--Bondholders' right to compel performance.
In and by the resolutions authorizing revenue bonds the governing body shall also have the power to make and enter into on the part of the municipality covenants and agreements with the purchasers and holders thereof from time to time concerning minimum rentals and charges, continuance of ownership and proper operation and maintenance of the auditorium, administration, application, and investment of and accounting for the revenues thereof and the proceeds of the bonds, insurance on auditorium properties and bonds of employees, relative priorities of lien of outstanding and future bonds upon the net revenues, refunding of bonds, and the enforcement of bondholders' rights, and any other lawful stipulations and covenants which the governing body deems suitable for the security of the bondholders or to reduce the interest cost on the bonds, and the holder of any bond issued hereunder shall have the right to compel by appropriate court action the performance thereof, whether or not his bond is then in default.
Source: SL 1951, ch 246, § 3; SDC Supp 1960, § 45.24B03.
9-52-11. Findings and determinations as binding covenants.
The findings and determinations herein authorized shall constitute binding representations, recitals, and covenants of each municipality issuing revenue bonds hereunder to and with the purchasers and holders of all such bonds.
Source: SL 1951, ch 246, § 2; SDC Supp 1960, § 45.24B02.
9-52-12. Reference to authorizing resolutions for matters not covered in bonds--Negotiability.
Bonds issued pursuant to this chapter may refer to the authorizing resolution or resolutions for matters not expressed in the bonds, but they shall be negotiable investment securities within the meaning of chapter 57A-8, notwithstanding any conditions expressed therein or in the resolutions.
Source: SL 1951, ch 246, § 6; SDC Supp 1960, § 45.24B06; SL 1984, ch 43, § 98.
9-52-15. Bondholders' statutory mortgage on auditorium property--Enforcement of lien and compelling performance of duties.
There shall be a statutory mortgage lien upon all properties acquired by any municipality for auditorium purposes by the use of the proceeds of revenue bonds issued under the provisions of this chapter, and all additions and improvements thereto financed out of the earnings of the auditorium or by the issuance of revenue bonds, in favor of and for the benefit of the lawful holders of all revenue bonds issued pursuant hereto, but no such lien shall attach to or become a charge upon or against any other property of the municipality by whatever means or funds acquired. Said properties shall remain subject to such statutory mortgage lien until the payment in full of the principal and interest of all revenue bonds issued pursuant to this chapter. Any holder of said bonds or of any coupons thereto attached may by proper proceeding either at law or in equity protect and enforce said lien and compel performance of all duties required by this chapter.
Source: SL 1951, ch 246, § 4; SDC Supp 1960, § 45.24B04.
9-52-16. Admission charges and auditorium rentals--Adequacy for expenses, return on municipal investment and retirement of bonds.
The governing body of each municipality issuing bonds under this chapter shall have the authority, and it shall be its duty, to establish and collect reasonable charges for the admission of all persons to the auditorium premises for the purpose of use of any of the facilities of the auditorium and for attendance at or participation in any recreational, athletic, or educational activities or exhibitions conducted by the municipality or any board or department thereof, or for any other purpose except operation and maintenance of the premises and activities necessary to the functioning of the municipal government, and shall also have the authority and duty to establish and collect reasonable rentals for all use and occupancy and reservation for use or occupancy of the premises and any part thereof, for any purpose, by any person, firm, or public or private corporation other than the municipality itself, whether or not such person, firm, or corporation shall charge for admission of individuals to the premises when so rented. Such rentals and charges shall be fixed according to schedules, and shall be revised when necessary, so as to produce gross revenues at all times sufficient for current operation and maintenance of the auditorium and payment of a reasonable return to the municipality on any investment of general funds therein, and to produce net revenues sufficient for prompt payment of all outstanding revenue bonds and interest and creation and maintenance of agreed reserves.
Source: SL 1951, ch 246, § 3; SDC Supp 1960, § 45.24B03.
9-52-17. Operation for purpose of profit prohibited.
Municipalities shall not be authorized to operate revenue-producing enterprises of the nature described in this chapter for the purpose of profit or return greater than necessary to pay the cost of acquisition, improvement, operation, and maintenance thereof and interest on money borrowed or advanced from general funds for such purposes.
Source: SL 1951, ch 246, § 2; SDC Supp 1960, § 45.24B02.
9-52-18. Municipality and board exempt from liability for negligence of officers and employees--Employees' rights preserved.
No action shall lie against any municipality or its governing body or auditorium board to recover for injuries sustained by any person through the negligence of municipal officers or employees while engaged in the operation of a municipal auditorium; provided, that nothing herein contained shall prevent any employee of the municipality or auditorium from maintaining an action to recover damages for injuries received in the course of his employment.
Source: SL 1951, ch 246, § 9; SDC Supp 1960, § 45.24B09.
9-52-23. General powers of auditorium board--Copies of board proceedings as evidence.
The board shall have power to contract for supplies and services necessary to the operation and maintenance of the auditorium, and for the rental of the same or any part thereof; to fix and collect rentals and charges for admission; to schedule and determine priorities among activities proposed to be conducted in the auditorium; to allow claims for supplies and services necessary to the operation and maintenance of the auditorium; and to do all other things necessary and proper, to assure the maximum use of the auditorium for the general welfare of the municipality and its inhabitants and industries, and the sufficiency of the revenues thereof for the payment of all proper charges thereon. Copies of proceedings of the board, certified by its appointed secretary, shall be competent as evidence in any legal action or proceedings.
Source: SL 1951, ch 246, § 8; SDC Supp 1960, § 45.24B08.
9-52-24. Custody and disbursement of auditorium funds--Petty cash fund.
All funds pertaining to the auditorium shall be placed in the custody of the municipal treasurer, and shall be expended only upon warrants drawn by the municipal auditor or clerk on said treasurer, pursuant to allowance by the auditorium board of duly verified claims; provided, that a petty cash fund may be maintained in such amount and for such expenditures and in the custody of such officer or employee as the board shall determine. A verified account of expenditures from such fund shall be submitted monthly to the board, which may thereupon authorize issuance of a warrant covering such expenditures.
Source: SL 1951, ch 246, § 8; SDC Supp 1960, § 45.24B08.
9-52-25. Annual report by auditorium board to governing body--Records subject to inspection.
The auditorium board shall make an annual report to the governing body of its acts and all its expenditures, showing the condition of all affairs under its control, and its records, books, papers, and accounts shall at all reasonable times be subject to inspection by the executive officer, auditor, or clerk of the municipality, or any committee appointed by the governing body for that purpose, or any citizen.
Source: SL 1951, ch 246, § 8; SDC Supp 1960, § 45.24B08.
9-52-26. Auditorium board governed by terms of bonds and resolutions.
All actions of the board shall at all times be governed by and subject to all covenants, agreements and limitations contained in the resolutions of the governing body authorizing outstanding revenue bonds, and such resolutions may reserve to the governing body the exercise or supervision of the exercise of any of the powers granted and referred to in §§ 9-52-23 to 9-52-25, inclusive; or such resolutions may define the limitations within which such powers shall be exercised by the auditorium board.
Source: SL 1951, ch 246, § 8; SDC Supp 1960, § 45.24B08.
9-52-27. Receivership on default in bonds or dissipation of auditorium assets--Powers of receiver--Termination of receivership.
If there be any default in the payment of the principal of or interest on any bonds issued pursuant to this chapter, or a breach of any other condition thereof materially affecting the rights of any bondholder and continuing for not less than three months, or if the revenues from such auditorium be dissipated, wasted, or diverted from their proper application to the payment of said bonds and to the operation and maintenance of said auditorium, any court having jurisdiction of the action, in a proper suit commenced by either a resident taxpayer of the municipality whose rights may have been or may be affected, injured or lost thereby, or by any bondholder similarly affected, may appoint a receiver to administer said auditorium on behalf of the municipality and the bondholders, with power to impose and collect rentals and charges sufficient to provide for the payment of the operating expenses and of said bonds and interest, and to apply the income and revenues thereof in conformity with this chapter and with the resolutions authorizing said bonds. When and if such default or breach be made good through the operation of the auditorium by such receiver, then said auditorium and control thereof shall be restored to the proper municipal authorities by court order.
Source: SL 1951, ch 246, § 4; SDC Supp 1960, § 45.24B04.
9-52-28. Severability of chapter and resolutions.
If any provision of this chapter, or of any resolution or resolutions authorizing the issuance of bonds pursuant to this chapter, or the application thereof to any person or circumstances, shall be held invalid in any legal proceedings, such invalidity shall not affect other provisions or applications of this chapter or of such resolutions which can be given effect without the invalid provision or application, and shall not affect the validity of such bonds as special and limited obligations of the municipality issuing the same, and to this end all such resolutions shall be subject to all of the provisions and limitations of this chapter, and the provisions and applications of this chapter are declared to be severable.
Source: SL 1951, ch 246, § 10; SDC Supp 1960, § 45.24B10.
9-52-29. Sale and lease-back arrangements--Tax exemption.
The governing body of a municipality may by ordinance exercise all the powers conferred on the South Dakota Building Authority and the Governor pursuant to and in the manner provided by §§ 5-12-15, 5-12-19, 5-12-42 to 5-12-45, inclusive, with respect to the acquisition, lease, sale and lease-back of land, improvements and capital equipment for the municipality's auditorium or convention center and all related facilities, except that the proceeds of sale of any such facility are subject to § 6-13-8. All land, improvements and capital equipment owned or being leased or acquired by the municipality pursuant to a lease having a fixed term plus renewal options exceeding three years or a lease-purchase or installment purchase contract shall constitute a separate class of property which is exempt from all taxation.
Source: SL 1984, ch 63, § 1; SL 1985, ch 68; SL 1988, ch 64, §§ 8, 54; SL 1989, ch 30, § 25.
9-52-30. Sale and lease-back arrangements--Validation of prior actions.
All ordinances, resolutions, and other actions and proceedings adopted before June 12, 1984, and taken by the governing body of a municipality with respect to an existing auditorium or convention center and related facilities in the exercise of the powers granted by §§ 9-52-29 to 9-52-31, inclusive, and all purchase, sale, lease, and other agreements authorized thereby, are hereby validated and confirmed, and such agreements may be executed, delivered, and performed.
Source: SL 1984, ch 63, § 2.
9-52-31. Sale and lease-back arrangements--Powers additional.
The powers conferred by §§ 9-52-29 to 9-52-31, inclusive, are in addition to all other powers conferred upon the governing body of any such municipality, and their exercise shall be subject only to such restrictions as may be provided by the South Dakota Constitution and are not subject to any restrictions or procedural requirements prescribed by any other law.
Source: SL 1984, ch 63, § 3.
