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HomeMy WebLinkAboutNovember 25, 1985 CC r VOLUME L November 25, 1985 864 COUNCIL OF THE CITY OF ELGIN, ILLINOIS COUNCIL-MANAGER FORM OF GOVERNMENT REGULAR MEETING A regular meeting of the Council of the City of Elgin, Illinois was held on November 25, 1985 at 8:00 p.m. , in the Council Chambers of City Hall. The meeting was called to order by Mayor Verbic. The Invocation was given by Reverend Sam Flora of the Church of the Brethern, and the Pledge of Allegiance was led by Councilwoman Shales. ROLL CALL Roll call was answered by Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Absent : None. MINUTES OF THE NOVEMBER 11, 1985 COUNCIL MEETING APPROVED AS PUBLISHED Councilman Waters made a motion, seconded by Councilwoman Shales to approve the November 11, 1985 Council Minutes as published. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. COMMUNICATIONS Howard Miller, Chairman of the Greater Downtown Elgin Commission submitted the following letter to the Mayor and Council: "As you are well aware, the implementation of the Downtown Plan has been delegated by the Elgin City Council to our Commission. Over the past year we have reviewed and discussed many components of this plan as well as other ideas, such as the proposed road through the mall, which are not a part of the Downtown Plan. For quite some time, it has been the position of the Greater Downtown Elgin Commission that a successfult implementation of this plan hinges on a priority effort directed towards the South Grove redevelopment area. Working on this assumption, the Commission undertook architectural, "conceptual" drawings for a residential development of the area directly between the Gromer' s site and the downtown mall. After a review of these drawings and conversations with several experts in the real estate field, we are convinced that the residential option is not only feasible, but is the most viable option. 865 VOLUME L Now that the TIF District is essentially in place, it is imperative that the Council proceed with some form of acquisitionas soon as possible. Whether this acquisition takes the place of an immediate total effort, or a long term step-by-step process over a period of years, is, of course, up to the discretion of the Council. We would like to point out , however, that acquisition must be considered to some degree in relation to the 1986 Budget . As one commissioner stated "If the Council had set aside $150, 000 per year for every year we have been contemplating a South Grove project , we would own almost all of the property already. " We would be happy to meet with the Council and discuss the pros and cons of the acquisition and the best method of proceeding with the implementation of this part of the Downtown Plan. However, any attempt by our Commission to proced with marketing and/or promoting this area without any communication from the Council regarding the short and long term imvolvement by the City would be premature. Please inform us of your decision so that we may proceed. Very truly yours, Greater Downtown Elgin Commission s/Howard Miller Chairman" Mayor Verbic acknowledged the above letter and requested that each Council member be furnished with a copy of same for their further consideration. BID AWARDED FOR COMPUTER PAPER Councilman Van De Voorde made a motion, seconded by Councilwoman Moylan to award the bid to the low bidder, J & J Data Supplies, for a total amount of $3, 190.20. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. BID AWARDED FOR WATER BILLING FORMS Councilwoman Moylan made a motion, seconded by Councilman Van De Voorde to award this bid to the low bidder, Duplex Products, Inc. , for a total amount of $2 , 890 .00. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. VOLUME L 866 BID AWARDED FOR COMPUTER EQUIPMENT FOR TRANSPORTATION DEPARTMENT Councilwoman Shales made a motion, seconded by Councilwoman Moylan to award this bid to the low bidder, Computerland of West Dundee, for a total system price of $5, 960.40 for the compaq desk pro and related equipment . Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. ORDINANCE PASSED AUTHORIZING THE ISSUANCE OF $4 , 300,000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES, 1985 OF THE CITY OF ELGIN, ILLINOIS Councilman Andersen made a motion, seconded by Councilman Gilliam to pass the aforementioned ordinance. Yeas: Councilmen Andersen, Gilliam, Moylan, Van De Voorde, Waters and Mayor Verbic. Nays: None. Abstained: Councilwoman Shales. 867 VOLUME L ORDINANCE NO. S6-85 ORDINANCE AUTHORIZING THE ISSUANCE OF $4,300, 000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1985, OF THE CITY OF ELGIN, ILLINOIS WHEREAS, the City of Elgin, Illinois (the "City" ) desires to implement tax increment financing pursuant to the Real Property Tax Increment Allocation Redevelopment Act, as amended, constituting Division 74.4 of Article 11 of the Illinois Munici- pal Code (hereinafter referred to as the "Act" ) ; and WHEREAS, the City Council of the City has approved and adopted a Redevelopment Plan (the "Redevelopment Plan" ) and a Redevelopment Project (the "Redevelopment Project" ) pursuant to an ordinance adopted by the City Council of the City on September 9, 1985 and entitled: "An Ordinance Approving a Tax Increment Redevelopment Plan and Redevelopment Project in the City of Elgin, Illinois"; and WHEREAS, the City Council of the City has designated a I Redevelopment Project Area (the "Redevelopment Project Area" ) and has also adopted tax increment financing with respect to such Redevelopment Project Area pursuant to an ordinance adopted by said City Council on September 9, 1985 and entitled: "An Ordi- nance Designating A Redevelopment Project Area and Adopting Tax Increment Financing in the City of Elgin, Illinois"; and WHEREAS, it is now necessary to provide for the financ- ing of certain Redevelopment Project Costs specified as being included in the Redevelopment Plan: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, AS FOLLOWS: I VOLUME L 868 Section 1. Authorization of Redevelopment Project Costs. This ordinance is adopted pursuant to Section 6 of Article VII of the Illinois Constitution of 1970 and the Act for the purpose of financing certain Redevelopment Project Costs as defined in the Act and as described in the Redevelopment Plan. Section 2. Authorization and Terms of Bonds. To pro- vide for the payment of such Redevelopment Project Costs, there is hereby appropriated the sum of $4,300, 000, said sum being inclusive of cost of issuance of the bonds herein authorized. For the purpose of financing said appropriation, general obligation bonds of the City shall be issued and sold in an ag- gregate principal amount of $4, 300, 000 and shall be designated "General Obligation Corporate Purpose Bonds, Series 1985 . " Bonds shall be issuable in the denomination of $5, 000 or any integral multiple thereof. Bonds shall be numbered consecutively from 1 upwards in order of their issuance and may bear such identifying numbers or letters as shall be useful to facilitate the registra- tion, transfer and exchange of bonds. Each bond shall be dated as of the interest payment date next preceding the date of issu- + ance thereof, except that (a) if such date of issuance shall be prior to the first interest payment date, said bond shall be dated as of December 1, 1985, (b) if such date of issuance shall be an interest payment date, said bond shall be dated as of such interest payment date, or (c) if interest due on said bond shall not have been paid in full, then notwithstanding any of the foregoing provisions, said bond shall be dated as of the date to which interest has been paid in full on said bond. The bonds -2- 869 VOLUME L shall mature on January 1 in each year shown in the following table in the respective principal amount set forth opposite each such year and the bonds maturing in each such year shall bear interest at the respective rate per annum set forth opposite each such year: Year Principal Amount Rate of Interest 1992 $50, 000 9.50% 1993 50,000 9.50 1994 75, 000 9.50 1995 100, 000 9.50 1996 125, 000 7.50 1997 150, 000 7.60 1998 200, 000 7.70 1999 275, 000 7.80 2000 350, 000 7.90 2001 450, 000 8.00 2002 525, 000 8.10 2003 600, 000 8.20 2004 650, 000 8.25 2005 700, 000 8.30 Each bond shall bear interest from its date payable in lawful money of the United States of America on January 1, 1987 and semiannually thereafter on each January 1 and July 1 at the rates per annum herein determined. The principal of and premium, if any, on the bonds shall be payable in lawful money of the United States of America upon presentation and surrender thereof at the principal corporate trust office of The First Commercial Bank in the City of Chicago, Illinois, which is hereby appointed as bond registrar and paying agent for the bonds. Interest on the bonds shall be payable on each interest payment date to the registered owners of record thereof appearing on the registration books maintained by the City for such purpose at the principal corporate trust office of the bond registrar, as of the close of business on the 15th day of the calendar month next preceding the -3- VOLUME L 870 applicable interest payment date. Interest on the bonds shall be paid by check or draft mailed to such registered owners at their addresses appearing on the registration books. The bonds maturing on or after January 1, 1996 shall be subject to redemption prior to maturity as a whole or in part at the option of the City and upon notice as herein provided, and if maturity selected b the City and b lot in part in any order of y y y y within a single maturity, on January 1, 1995 or on any interest payment date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. In the event of the redemption of less than all the bonds of like maturity the aggregate principal amount thereof to be redeemed shall be $5, 000 or an integral multiple thereof and the bond- registrar shall assign to each bond of such maturity a distinctive number for each $5, 000 principal amount of such bond and shall select by lot from the numbers so assigned as many numbers as, at $5, 000 for each number, shall equal the principal amount of such bonds to be redeemed. The bonds to be redeemed shall be the bonds to which were assigned numbers so selected; provided that only so much of the principal amount of each bond shall be redeemed as shall equal $5, 000 for each number assigned to it and so selected. Notice of the redemption of bonds shall be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on said registration books. The bonds or portions thereof specified in said notice -4- 871 VOLUME L shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemp- tion date, moneys for payment. of the redemption price of all the bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. If there shall be drawn for redemption less than all of a bond, the City shall execute and the bond registrar shall authenticate and deliver, upon the surrender of such bond, without charge to the owner thereof, for the unredeemed balance of the bond so surrendered, bonds of like maturity and of the denomination of $5, 000 or any integral multiple thereof. The bond registrar shall not be required to transfer or exchange any bond after notice of the redemption of all or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any bond during a period of 15 days next preceding the mailing of a notice of redemption which could designate for redemption all or a portion of such bond. Section 3 . Execution and Authentication of Bonds . The bonds shall be executed in the name of the City by the manual or facsimile signature of its Mayor and the corporate seal of the City, or a facsimile thereof, shall be thereunto affixed or otherwise reproduced thereon and attested by the manual or fac- simile signature of its City Clerk. -5- VOLUME L 872 In case any officer whose signature, or a facsimile of whose signature, shall appear on any bond shall cease to hold such office before the issuance of the bond, such bond shall i nevertheless be valid and sufficient for all purposes, the same as if the person whose signature, or a facsimile thereof, appears on such bond had not ceased to hold such office. Any bond may be signed, sealed or attested on behalf of the City by any person who, on the date of such act, shall hold the proper office, I notwithstanding that at the date of such bond such person may not have held such office. No recourse shall be had for the payment of any bonds against any officer who executes the bonds . The bonds shall bear thereon a certification of authen- tication executed manually by the bond registrar. No bond shall be entitled to any right or benefit under this ordinance or shall i be valid or obligatory of any purpose until such certificate of authentication shall have been duly executed by the bond registrar. Section 4. Allocation Fund. There shall be deposited to the credit of the South Grove Special Tax Allocation Fund (the "Allocation Fund" ) established by virtue of the Tax Increment ordinance (a) the incremental taxes collected pursuant to the Act and (b) revenue received by the City from the sale or other disposition of any real property acquired with the proceeds of the bonds. The funds from time to time on deposit to the credit i of the Allocation Fund may be withdrawn by the City at any time for the purpose of paying Redevelopment Project Costs, including debt service on the bonds or any additional bonds hereafter issued by the City to finance Redevelopment Project Costs, or to -6- 873 VOLUME L reimburse the City in connection with advances made to pay Redevel- opment Project Costs, debt service on the bonds or such additional bonds. The City Council of the City shall determine annually by resolution on or about January 2 of each year whether the amount on deposit in the Allocation Fund exceeds the sum of (i) the total principal and interest on the bonds and such additional bonds which will become due and payable on or prior to the first day of January next ensuing, (ii) the estimated amount of Redevel- opment Project Costs to be paid from the Allocation Fund on or prior to the first day of January next ensuing, and (iii) the total amount required to reimburse the City for advances made from other funds of the City to pay Redevelopment Project Costs, debt service on the bonds and such additional bonds. Any such excess may be deemed to be "surplus" funds in said resolution of the City Council as referred to in Section 11-74.4-7 of the Act and such "surplus funds" shall be paid to the appropriate county collector or collectors for distribution to taxing districts in accordance with the provisions of the Act. Moneys held in the Allocation Fund and the taxes- and other moneys to be deposited therein pursuant to the Act are hereby pledged for the payment of Redevelopment Project Costs and as security for the payment of the bonds but nothing herein con- tained shall restrict the power of the City to pledge such moneys and taxes for the benefit and security of the holders of additional bonds issued pursuant to the Act; to reimburse the City for advances made to pay debt service on the bonds or any additional I -7- VOLUME L 874 bonds; to subordinate existing pledges of such moneys or to alter the use and distribution of moneys in the Allocation Fund to the extent such alteration shall be made in furtherance of the purposes of the Act and the Redevelopment Plan. Section 5. Application of Bond Sale Proceeds. The proceeds of sale of the bonds shall be allocated and applied by the City in accordance with the provisions of this Section. All of the proceeds of sale of the bonds shall be deposited by the City in a construction account in the South Grove Special Tax Allocation Fund. Amounts held in said construction account may be withdrawn from time to time by the City for the payment of Redevelopment Project Costs including costs of issuance of the bonds herein authorized. Section 6. General Obligations. The bonds shall be the general obligations of the City for which its full faith, credit and resources shall be irrevocably pledged and shall be payable from taxes levied on all taxable property in the City, without limitation as to rate or amount. Section 7. Form of Bonds. The bonds shall be issued as fully registered bonds and shall be in substantially the following form, the blanks to be appropriately completed when the bonds are printed: i i -8- 875 VOLUME L (Form of Bond) United States of America State of Illinois Counties of Cook and Kane CITY OF ELGIN GENERAL OBLIGATION CORPORATE PURPOSE BOND, SERIES 1985 INTEREST RATE MATURITY DATE The CITY OF ELGIN, a municipal corporation and a home rule unit of the State of Illinois situate in the Counties of Cook and Kane, acknowledges itself indebted and for value received hereby promises to pay to or registered assigns, the principal sum of Dollars on the maturity date specified above, and to pay interest on such principal sum from the date hereof at the interest rate per annum specified above, payable in lawful money of the United States of America on January 1, 1987 and semiannually thereafter on the first days of January and July in each year until the principal sum shall have been paid, by check or draft mailed to the regis- tered owner of record hereof as of the 15th day of the calendar month next preceding such interest payment date, at the address of such owner appearing on the registration books maintained by the City for such purpose at the principal corporate trust office of The First Commercial Bank, in the City of Chicago, Illinois, as bond registrar or its successor (the "Bond Registrar" ) . This bond, as to principal and premium, if any, when due, will be payable in lawful money of the United States of America upon -9- VOLUME L 876 presentation and surrender of this bond at the principal corporate trust office of the Bond Registrar. This bond is one of a series of bonds issued in the aggregate principal amount of $4,300,000, which are all of like tenor except as to date, maturity, option of redemption and rate of interest and which are authorized and issued under and pursuant to Section 6 of Article VII of the Illinois Constitution of 1970 and the Real Property Tax Increment Allocation Redevelopment Act, as amended, constituting Division 74.4 of Article II of the Illinois Municipal Code (the "Act" ) and under and in accordance with an ordinance adopted by the City Council of the City on 1985 and entitled: "Ordinance Authorizing the Issu- ance of $4,300, 000 General Obligation Corporate Purpose Bonds, Series 1985, of the City of Elgin, Illinois" (the "Bond Ordinance" ) . The bonds are general obligations of the City for which the full faith, credit and resources of the City are irrevocably pledged. The City has levied a direct annual tax upon all taxable property sufficient to pay the principal of and interest on the Bonds as the same become due, which levy, however, may be abated in the manner provided in the Act and to the extent that moneys from other sources (including the South Grove Special Tax Alloca- tion Fund established and maintained by the City pursuant to the Act) are available for the payment of the principal of and inter- est on the Bonds. The bonds of such series maturing on or after January 1, 1996 are subject to redemption prior to maturity as a whole or in part at the option of the City and upon notice as herein -10- 877 VOLUME L provided, and if in part in any order of maturity selected by the City and by lot within a single maturity, on January 1, 1995 and on any interest payment date thereafter, at a redemption price equal to the principal amount thereof to be redeemed. Notice of the redemption of bonds will be mailed not less than 30 days nor more than 60 days prior to the date fixed for such redemption to the registered owners of bonds to be redeemed at their last addresses appearing on such registration books. The bonds or portions thereof specified in said notice shall become due and payable at the applicable redemption price on the redemption date therein designated, and if, on the redemp- tion date, moneys for payment of the redemption price of all the i bonds or portions thereof to be redeemed, together with interest to the redemption date, shall be available for such payment on said date, and if notice of redemption shall have been mailed as aforesaid (and notwithstanding any defect therein or the lack of actual receipt thereof by any registered owner) then from and after the redemption date interest on such bonds or portions thereof shall cease to accrue and become payable. The bond registrar shall not be required to transfer or exchange any bond after notice of the redemption of all or a portion thereof has been mailed. The bond registrar shall not be required to transfer or exchange any bond during a period of 15 days next preceding the mailing of a notice of redemption which could designate for redemption all or a portion of such bond. This bond is transferable only upon such registration books by the registered owner hereof in person, or by his attorney -I1- VOLUME L 878 duly authorized in writing, upon surrender hereof at the principal corporate trust office of the Bond Registrar together with a written instrument of transfer satisfactory to the Bond Registrar duly executed by the registered owner or by his duly authorized attorney, and thereupon a new registered bond or bonds, in the authorized denominations of $5, 000 or any integral multiple thereof and of the same aggregate principal amount, maturity and interest rate as this bond shall be issued to the transferee in exchange therefor. In like manner, this bond may be exchanged for an equal aggregate principal amount of bonds of the same _ maturity and interest rate and of any of such authorized denomi- nations. The City or the Bond Registrar may make a charge suffi- cient to reimburse it for any tax, fee or other governmental charge required to be paid with respect to the transfer or ex- change of this bond. No other charge shall be made for the i privilege of making such transfer or exchange. The City and the Bond Registrar may treat and consider the person in whose name j this bond is registered as the absolute owner hereof for the purpose of receiving payment of, or on account of, the principal, premium, if any, and interest due hereon and for all other pur- poses whatsoever. This bond shall not be valid or become obligatory for j any purpose until the certificate of authentication hereon shall have been duly executed by the Bond Registrar. i It is hereby certified, recited and declared that all acts, conditions and things required to be done, exist and be i performed precedent to and in the issuance of this bond in order -12- 879 VOLUME L to make it a legal, valid and binding obligation of the City have been done, exist and have been performed in regular and due time, form and manner as required by law, and that the series of bonds of which this bond is one, together with all other indebtedness of the City, is within every debt or other limit prescribed by law. I IN WITNESS WHEREOF, the City of Elgin has caused this bond to be executed in its name and on its behalf by the manual 4 or facsimile signature of its Mayor, and its corporate seal, or a facsimile thereof, to be hereunto affixed or otherwise reproduced hereon and attested by the manual or facsimile signature of its City Clerk. Dated: CITY OF ELGIN s/ Richard L. Verbic Mayor Attest: s/ Marie Yearman � CERTIFICATE OF AUTHENTICATION City Clerk • i This bond is one of the General Obligation Corporate Purpose Bonds, Series 1985, described in the within mentioned Ordinance. THE FIRST COMMERCIAL BANK, as Bond Registrar By Authorized Officer -13- VOLUME L 880 ASSIGNMENT For value received the undersigned sells, assigns and transfers unto the within bond and hereby irrevocably constitutes and appoints attorney to transfer the said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated . Signature Guarantee: Section 8. Sale and Delivery. The sale of the bonds to The First National Bank of Chicago, as purchaser (the "Pur- chaser" ) , at a price of $4,300, 010 .75 and accrued interest from their date to the date of delivery and payment therefor, is hereby ratified and confirmed. The form of purchase contract with respect to the bonds presented at this meeting is hereby approved. The Official Statement respecting the bonds presented at this meeting and on file in the office of the City Clerk is hereby approved and authorized as the Official Statement of the City, prepared for the information of purchasers of the bonds, and copies of said Official Statement are hereby authorized to be executed by the Mayor and Finance Director and delivered to the i Purchaser and the Purchaser is hereby authorized to use the -14- 881 VOLUME L City' s Official Statement in connection with the offering and resale of the bonds. The Mayor, City Clerk and other officials of the City are hereby authorized and directed to do and perform, or cause to be done or performed for or on behalf of the City each and every thing necessary for the issuance of the bonds, including the proper execution and delivery of the bonds upon payment of the full purchase price of the bonds. Section 9. Levy of Taxes. For the purpose of provid- ing the money required to pay the interest on the bonds when and as the same falls due and to pay and discharge the principal thereof as the same shall mature, there is hereby levied upon all the taxable property in the City, in each year while any of the bonds shall be outstanding; a direct annual tax sufficient for that purpose in addition to all other taxes, as follows: Tax Levy Year A Tax Sufficient to Produce 1985 $380, 087.50 1986 350,850.00 1987 350,850.00 1988 350,850.00 1989 350,850 .00 1990 400,850 .00 1991 396, 100.00 1992 416,350.00 1993 434,225 .00 1994 449, 725.00 1995 465, 350.00 1996 503, 950.00 1997 563, 550.00 1998 617, 100 .00 1999 689,450.00 2000 728,450 .00 2001 760, 925.00 2002 761, 725.00 2003 758, 100.00 Interest -or principal coming due at any time when there shall be insufficient funds on hand to pay the same shall be paid -15- VOLUME L 882 promptly when due from current funds on hand in advance of the collection of the taxes herein levied; and when said taxes shall have been collected, reimbursement shall be made to the said funds in the amounts thus advanced. The annual levies herein provided for may be abated to the extent that moneys from other sources (including the Allocation Fund) are available for the payment of the principal of and interest on the bonds upon certifications by a duly authorized official of the City to the County Clerk of Cook County and to I the County Clerk of Kane County of the amount of such available moneys. Section 10. Extension of Taxes. As soon as this ordi- nance becomes effective, a copy thereof certified by the City Clerk, which certificate shall recite that this ordinance has been passed by this City Council, shall be filed with the County Clerk of Cook County and with the County Clerk of Kane County who are hereby directed pursuant to provisions of the Illinois Munici- pal Code to ascertain the rate per cent required to produce the aggregate tax hereinbefore provided to be levied in the years 1985 to 2003, inclusive, and to extend the same for collection on the tax books in connection with other taxes levied in said years, in and by the City for general corporate purposes of the City, and in said years such annual tax shall be levied and collected in like manner as taxes for general corporate purposes for said years are levied and collected and, when collected, such taxes shall be used solely for the purpose of paying the principal of and interest on the bonds herein authorized as the same become due and payable. Moneys derived from taxes herein levied are -16- 883 VOLUME L appropriated and set aside for the sole purpose of paying principal of and interest on the bonds when and as the same come due. Section 11. Pledqe of Funds. A pledge of all taxes levied pursuant to this ordinance and all moneys, securities and funds, held or set aside or to be held or set aside pursuant to this ordinance in the Allocation Fund is hereby made, and the pledge hereby made shall be valid and binding from and after the time of delivery of the first bond authenticated and delivered under this ordinance. Such taxes, moneys, securities and funds so pledged and then or thereafter received by the City shall immediately be subject to the lien of such pledge without any physical delivery or further act, and the lien of such pledge and the obligation to perform the contractual provisions hereby made shall have priority over any or all other obligations and liabil- ities of the City with respect thereto. The pledge made pursuant to this Section shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the City. Section 12. Defeasance and Payment of Bonds. If the City shall pay or cause to be paid to the registered owners of the bonds, the principal, redemption premium, if applicable, and interest due or to become due thereon, at the times and in the manner stipulated therein and in this ordinance, then, at the option of the City, the pledge of taxes, moneys, securities and funds hereby pledged and the covenants, agreements and other obligations of the City hereunder to the registered owners of the Bonds shall be discharged and satisfied. In such event, the bond -17- VOLUME L 884 registrar shall pay over or deliver to the City all moneys, securities and assets held by it pursuant to this ordinance which are not required for the payment or redemption of bonds not theretofore surrendered for such payment or redemption. Any bonds, whether at or prior to the maturity or the redemption date of such bonds, shall be deemed to have been paid within the meaning of this Section if (1) in case any such bonds are to be redeemed prior to the maturity thereof, there shall have been taken all action necessary to call such bonds for redemption and notice of such redemption shall have been duly given or provision shall have been made for the giving of such notice, and (2 ) there shall have been deposited for such purpose with a bank, trust company or national banking association having its principal office in the State of Illinois either (i) moneys in an amount which shall be sufficient, or (ii) direct obligations of the United States of America not subject to redemption prior to maturity, the principal of and interest on which when due will provide moneys which, together with the moneys on deposit with such bank, trust company or national banking association at the same time and for such purpose, which shall be sufficient, to pay when due the principal and redemption premium, if applicable, and interest due and to become due on said bonds on and prior to the redemption date or maturity date thereof. The moneys and obliga- tions deposited pursuant to this Section shall be held in trust for the payment of the principal or redemption price of and interest on said bonds. Section 13 . Transfer, Exchange and Registry. The bonds shall be negotiable, subject to the provisions for registra- -18- 885 VOLUME L tion of transfer contained herein. Each bond shall be transferable only upon the registration books maintained by the City for that purpose at the principal corporate trust office of the bond registrar, by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof together with a written instrument of transfer satisfactory to the bond registrar and duly executed by the registered owner or his duly authorized attorney. Upon the surrender for transfer of any such bond, the City shall execute and the bond registrar shall authenticate and deliver a new bond or bonds registered in the name of the transferee, of the same aggregate principal amount, maturity and interest rate as the surrendered bond. Bonds, upon surrender thereof at the principal corporate trust office of the bond registrar, with a written instrument satisfac- tory to the bond registrar, duly executed by the registered owner or his attorney duly authorized in writing, may be exchanged for an equal aggregate principal amount of bonds of the same maturity and interest rate and of the denominations of $5, 000 or any integral multiple thereof. For every such exchange or registration of transfer of I bonds, the City or the bond registrar may make a charge sufficient i to reimburse it for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer, which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. No other charge shall be made for the privilege of making such transfer or exchange. -19- VOLUME L 886 The City and the bond registrar may deem and treat the person in whose name any bond shall be registered upon the regis- tration books as the absolute owner of such bond, whether such bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of, premium, if any, or interest thereon and for all other purposes whatsoever, and all such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such bond to the extent of the sum or sums so paid, and neither the City nor the bond registrar shall be affected by any notice to the contrary. Section 14. Bond Registrar. The City covenants that it shall at all times retain a bond registrar with respect to the bonds, that it will maintain at the designated office of such bond registrar a place where bonds may be presented for payment and registration of transfer or exchange and that it shall require that the bond registrar maintain proper registration books and perform the other duties and obligations imposed upon it by this ordinance in a manner consistent with the standards, customs and practices of the municipal securities business. The bond registrar shall signify its acceptance of the duties and obligations imposed upon it by this ordinance by executing the certificate of authentication on any bond, and by such execution the bond registrar shall be deemed to have certi- fied to the City that it has all requisite power to accept, and has accepted such duties and obligations not only with respect to the bond so authenticated but with respect to all the bonds. The -20- 887 VOLUME L bond registrar is the agent of the City and shall not be liable in connection with the performance of its duties except for its own negligence or default. The bond registrar shall, however, be responsible for any representation in its certificate of authenti- cation on the bonds. The City may remove the bond registrar at any time. In case at any time the bond registrar shall resign or shall be removed or shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or if a receiver, liquidator or conservator of the bond registrar, or of its property, shall be appointed, or if any public officer shall take charge or control of the bond registrar or of its property or affairs, the City covenants and i agrees that it will thereupon appoint a successor bond registrar. The City shall mail notice of any such appointment made by it to �I each registered owner of bonds within twenty days after such appointment. Any bond registrar appointed under the provisions I of this Section shall be a bank, trust company or national banking I association maintaining its principal corporate trust office in I the State of Illinois, or the Borough of Manhattan, City and State of New York. Section 15 . Tax Covenants. The City covenants that it i shall not at any time permit any of the proceeds of any bonds or other moneys to be used directly or indirectly to acquire any securities or obligations the acquisition of which would cause any bond to be an "arbitrage bond" as defined in Section 103(c) (2 ) of the Internal Revenue Code of 1954, as amended (the "Code" ) . The City will not take any action or omit to take any action which is lawful and within its power to take, and which, -21- VOLUME L 888 if taken or omitted, would cause interest on the bonds to be includible in gross income of the owners of the bonds for Federal income tax purposes. Section 16. Ordinance to Constitute a Contract. The provisions of this ordinance shall constitute a contract between the City and the registered owners of the bonds. Any pledge made in this ordinance and the provisions, covenants and agreements herein set forth to be performed by or on behalf of the City shall be for the equal benefit, protection and security of the owners of any and all of the bonds. All of the bonds, regardless of the time or times of their issuance, shall be of equal rank without preference, priority or distinction of any of the bonds over any other thereof except as expressly provided in or pursuant to this ordinance. This ordinance shall constitute full authority for the issuance of the bonds and to the extent that the provisions of this ordinance conflict with the provisions of any other ordinance or resolution of the City, the provisions of this ordinance shall control. If any section, paragraph or provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this ordinance. Section 17 . Publication and Notice. The City Clerk is hereby authorized and directed to publish this ordinance in pamphlet form and to file copies thereof for public inspection in his office. The City Clerk is hereby authorized and directed to cause notice of adoption of this ordinance to be published in the -22- gag VOLUME L "Daily Courier-News, " a newspaper of general circulation in the City. Said notice shall be in substantially the following form: "Public Notice Notice is hereby given that on November 25 1985, the City Council of the City of Elgin, Illinois adopted an ordinance entitled: "Ordinance Authorizing the Issuance of $4,300, 000 General Obligation Corporate Purpose Bonds, Series 1985, of the City of Elgin, Illinois, " and that copies of said ordinance are on file and available for public inspection at the office of the City Clerk of the City of Elgin. By /s/ Marie Yearman City Clerk" Section 18. Effective Date. This ordinance shall become effective in the manner provided by law. Adopted this 25th day of November 1985 by roll call vote as follows: Ayes: Councilmen Andersen, Gilliam, Moylan, Van De Voorde, Waters and Mayor Verbic. Nays: None Abstained: Approved: Councilwoman Shales s4 Richard T.- V rh i s Mayor (SEAL) Attest: s/ Marie Yea an City Clerk -23- VOLUME L 890 CERTIFICATE I , Marie Yearman, City Clerk of the City of Elgin, Illinois, hereby certify that the foregoing ordinance entitled: i "Ordinance Authorizing the Issuance of $4,300, 000 General Obligation Corporate Purpose Bonds, Series 1985, of the City of Elgin, Illinois, " is a true copy of an original ordinance which was duly adopted by the recorded affirmative votes of a majority of the members of the City Council of the City at a meeting thereof which was duly called and held at 8: 00 p.m. on NovPmbpr 25 1985 in the Council Chambers at the City Hall, and at which a quorum was present and acting throughout, and that said copy has been compared by me with the original ordinance signed by the Mayor, published in pamphlet form and recorded in the Ordinance Book of the City and that it is a correct transcript thereof and of the whole of said ordinance, and that said ordinance has not been altered, amended, repealed or revoked, but is in full force and effect. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City this 26thday of November 1985. �o City- Clerk . (SEAL) A13815-A 11/25/85 CT:be -24- 891 VOLUME L PETITION 52-85 REQUESTING AN AMENDMENT TO SPECIAL USE ORDINANCE NO. G21-84 FOR AN OPEN SALES LOT, PROPERTY LOCATED AT 1358 DUNDEE AVENUE BY MR. JAMES HEALY - TABLED Councilman Andersen made a motion, seconded by Councilwoman Moylan to table Petition 52-85 . Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. ORDINANCE PASSED AUTHORIZING THE ISSUANCE OF A $900, 000 PRINCIPAL AMOUNT INDUSTRIAL DEVELOPMENT REVENUE BOND (COMPONENT PLASTICS, INC. PROJECT) , SERIES 1985, OF THE CITY OF ELGIN, COOK AND KANE COUNTIES, ILLINOIS; Councilman Gilliam made a motion, seconded by Councilman Andersen to pass the aforementioned ordinance. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. VOLUME L 892 Ordinance No. S7-85 AN ORDINANCE authorizing the issuance of a $900,000 principal amount Industrial Development Revenue Bond (Component Plastics, Inc. Project) , Series 1985, of, the City of Elgin, Cook and Kane Counties, Illinois; authorizing the issuance of said bond under Ordinance No. S2-80, as amended and supplemented, for the purpose of making a loan to American National Bank and Trust Company of Chicago, as Trustee under a Trust Agreement dated October 18, 1978, and known as Trust No. 45052; authorizing the execution and delivery of a Bond Agreement securing said bond; authorizing the execution and delivery of a Loan Agreement with said Trustee and Component Management Group; confirming the sale of said bond to the purchaser thereof pursuant to a Bond Purchase Agreement; approving related documents; authorizing the execution and delivery of related documents; and prescribing other matters related thereto. WHEREAS, the City of Elgin, Cook and Kane Counties, Illinois, (the "Issuer" ) , is an Illinois home rule municipality authorized under the provisions of Article VII, Section 6, of the Illinois Constitution of 1970, and Ordinance No. S2-80 adopted by the City Council of the Issuer on February 13, 1980, as supplemented and amended (the "Enabling Ordinance" ) , to finance in whole or in part the cost of the acquisition, purchase, construction, reconstruction, improvement, equipping, betterment or extension of economic development projects in order to encourage economic development within or near the Issuer; to lease, sell or finance the same to or for any person; and to provide for the issuance of revenue bonds in conjunction therewith; and WHEREAS, pursuant to the terms of a Resolution of the Issuer adopted August 26, 1985, the Issuer entered into a Memorandum of Agreement by which it agreed to issue its revenue bond in an amount not exceeding $900,000 for the benefit of Component Management Group, an Illinois general partnership (the "Owner" ) , or a trust established for its benefit, for the purpose of financing all or a portion of the costs of acquiring, constructing, developing and improving an addition to the manufacturing, warehousing and office facility located at 700 Tollgate Road, Elgin, Illinois (the "Project" ) , which Project shall be leased to Component Plastics, Inc. , an Illinois corporation (the "Company") , for use in its business as a custom molder of thermoplastics and for subleasing to other industrial and business entities; and WHEREAS, the Owner has since that date determined to have title to the Project acquired by La Salle National Bank, a national banking association, as trustee under a trust I 893 VOLUME L agreement dated October 18, 1978, and known as Trust No. 45052 (the "Mortgagor" ) ; and WHEREAS, the Project constitutes a "Project" as defined in the Enabling Ordinance; and WHEREAS, it is now proposed that the Issuer issue its Industrial Development Revenue Bond (Component Plastics, Inc. Project) , Series 1985, under the provisions of the Enabling Ordinance in the principal amount of $900,000 (the "Bond") to provide moneys to make a loan to the Mortgagor for the benefit of the Owner pursuant to the Enabling Ordinance for the purpose of financing a portion of the costs of the acquisition, construction and equipping of the Project; and WHEREAS, the Issuer is empowered under the Enabling Ordinance to finance the acquisition, construction and equipping of the Project through the issuance of the Bond; and WHEREAS, a public hearing has been held by this City Council after reasonable public notice as required by Section 103(k) of the Internal Revenue Code of 1954, as amended (the "Code" ) ; and WHEREAS, the Bond will be issued under and pursuant to a Bond Issuance and Security Agreement dated as of October 1, 1985 (the "Bond Agreement" ) , by and between the Issuer and American National Bank and Trust Company of Chicago, a national banking association, as the registered owner of the Bond (the "Bondholder" ) and as Fiscal Agent (the "Fiscal Agent") ; and WHEREAS, it is proposed that the Issuer will make a loan of the proceeds of the Bond to the Mortgagor for the benefit of the Owner as provided in the Enabling Ordinance pursuant to a Loan Agreement dated as of October 1, 1985 (the "Loan Agreement" ) , by and between the Issuer, the Mortgagor and the Owner; and WHEREAS, there have been prepared and presented to this meeting the following documents: 1. The form of the Bond Agreement, including the form of the Bond; 2. The form of the Loan Agreement, including the form of the promissory note of the Mortgagor (the "Promissory Note" ) and the form of the Issuer 's endorsement of the Promissory Note (the "Endorsement of the Promissory Note") , which are attached to the Loan Agreement as exhibits; s VOLUME L 894 3. The form of the Guaranty Agreement dated as of October 1, 1985 (the "Guaranty") , from the Owner, Frank Killough, Joseph Valente, Austin Hester and the Company (the "Guarantors") , to the Bondholder pursuant to which the Guarantors, jointly and severally, will unconditionally guarantee, among other things, the full and prompt payment of the principal installments of and premium, if any, and interest on the Promissory Note; and 4. The form of the Mortgage and Security Agreement dated as of October 1, 1985 (the "Mortgage" ) , from the Mortgagor, the Owner and American National Bank and Trust Company of Chicago, as trustee under a Trust Agreement dated March 21, 1973, and known as Trust No. 77712 (the "Additional Mortgagor" ) , to the Bondholder granting a mortgage upon certain real estate owned by the Mortgagor and upon certain real estate owned by the Additional Mortgagor and a security interest in certain fixtures owned by the Mortgagor, the Additional Mortgagor and the Owner, all as security for the payment of the principal of and premium, if any, and interest on the Promissory Note and and as security for certain other obligations of the Mortgagor, the Additional Mortgagor and the Guarantors; 5. The form of the Assignment of Rents and Leases dated as of October 1, 1985 (the "Assignment" ) , from the Mortgagor and the Owner to the Bondholder to be delivered as additional security for the payment of the principal of and premium, if any, and interest on the Promissory Note and and as security for certain other obligations of the Mortgagor and the Owner; and 6. The form of the Collateral Assignment of Beneficial Interest dated as of October 1, 1985, from the Owner to the Bondholder (the "Collateral Assignment" ) to be delivered as additional security for the payment of the principal of and premium, if any, and interest on the Promissory Note and and as security for certain other obligations of the Mortgagor, the Additional Mortgagor and the Guarantors; and 7. The form of the Bond Purchase Agreement dated as of October 1, 1985 (the "Bond Purchase Agreement" ) , to be entered into by and among the Issuer, the Owner and American National Bank and Trust Company of Chicago, an national banking association, (the "Purchaser") , pursuant to which the Issuer agrees to sell the Bond to the Purchaser and the Purchaser agrees to purchase the same from the Issuer; and S. The form of the Arbitrage Regulation Agreement dated as of October 1, 1985 (the "Arbitrage Agreement" ) , to be 895 VOLUME L entered into by and between the Issuer and the Owner providing for the deposit of certain sums and the performance of certain acts with respect to arbitrage earnings on the proceeds of the Bond; and 9. The form of a Deposit Agreement dated as of October 1, 1985 (the "Deposit Agreement") , to be entered into by and between the Company and the Purchaser; NOW, THEREFORE, BE AND IT IS HEREBY RESOLVED by the City Council of the City of Elgin, Cook and Kane Counties, Illinois, as follows: Section 1. Findinqs. It is hereby found, determined and declared by the City Council of the Issuer that: (a) the Project will provide increased job opportunities, and will retain existing jobs, within the City of Elgin, Cook and Kane Counties, Illinois; (b) the Project, the financing of the Project, and the issuance of the Bond, are determined to be in accordance with the purposes of the Enabling Ordinance and are approved; (c) the Project constitutes a "Project" within the meaning of and authorized by the Enabling Ordinance; (d) the Project, the issuance and sale of the Bond to finance the same, the execution and delivery of the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note, the Bond Purchase Agreement and the Arbitrage Agreement, and the performance of all covenants and agreements of the Issuer contained therein and of all other acts and things required under the Constitution and laws of the State of Illinois to make the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note, the Bond Purchase Agreement, the Arbitrage Agreement and the Bond valid and binding obligations of the Issuer in accordance with their terms, are authorized by the Enabling Ordinance; (e) it is desirable that the Bond in the principal amount of $900,000, initially dated the date of the original issuance thereof, be issued by the Issuer upon the terms set forth in the Bond Agreement, under the provisions of which the Issuer 's interest in the Loan Agreement, the Promissory Note and the payments due the Issuer thereunder will be pledged and assigned to the Bondholder as security for the payment of principal of, premium, if any, and interest on the Bond; � I i VOLUME L 896 (f) the principal amount of the Bond does not exceed the estimated cost of the acquisition, construction and equipping of the Project, financing charges, interest which it is estimated will accrue on the Bond during the construction period and costs of the issuance of the Bond; (g) the payments required to be made by the Mortgagor under the Promissory Note and by the Owner under the Loan Agreement are in such amounts as will be sufficient to provide for prompt payment of all of the principal of and premium, if any, and interest on the Bond when due; (h) under the provisions of the Enabling Ordinance, and as provided in the Bond Agreement, the Bond, together with interest thereon and premium, if any with respect thereto, shall not be or become an indebtedness or obligation of the Issuer, the State of Illinois or any political subdivision thereof within the purview of any constitutional limitation or provision; the Bond and the interest and premium, if any, payable thereon shall be special, limited obligations of the Issuer , payable solely and only from Revenues (as defined in the Bond Agreement) , including revenues and receipts derived from and pursuant to the Loan Agreement and the Mortgage; and it shall be stated on the face of the Bond that it does not constitute such an indebtedness or obligation of the Issuer but is payable solely from such Revenues; and (i) the principal amount of the Bond, its maturity dates and annual interest rate are as set forth in Section 2 hereof . ( j ) No member of the City Council of the Issuer or officer, agent or employee of the Issuer has any interest, financial, employment or other, in the Mortgagor, the Owner, the Additional Mortgagor or the Company or in the transactions contemplated hereby or by the Bond Agreement, the Loan Agreement or the Bond Purchase Agreement or the issuance and sale of the Bond. Section 2. Terms of the Bond. For the purpose of financing the acquisition, construction and equipping of the Project, there is hereby authorized to be issued the Bond in the principal amount of $900,000, which bond shall be designated "City of Elgin, Illinois Industrial Development Revenue Bond (Component Plastics, Inc. Project) , Series 1985" ; shall bear interest from its date; shall be issuable only as a registered bond without coupons in the denomination of $900,000; shall be initially dated the date of delivery thereof when originally issued; and shall mature as to principal in r 897 VOLUME L sixty (60) consecutive principal installments payable quarterly on February 1, 1986, and on the first day of each February, May, August and November thereafter to and including November 1, 2000, each such installment to be in the amount of Fifteen Thousand Dollars ($15,000.00) . Subject to the provisions of the following three paragraphs, the Bond shall bear interest from the date thereof at a variable rate, which rate shall be equal to seventy-five percent (75%) (the "Applicable Percentage") of the Prime Rate in effect from time to time (the rate so determined being the "Applicable Rate" ) ; provided, however, that unless the provisions of any of the following three paragraphs shall apply, the Applicable Rate as determined under the foregoing provisions shall not be less than five percent (5%) per annum or greater than thirteen percent (13%) per annum. Interest thereon shall be computed as if a calendar year consisted of three hundred sixty (360) days and charged on a daily basis, and shall be payable on the first day of February, 1986, and on the first day of each February, May, August and November thereafter until the principal sum of the Bond is paid. Any overdue principal and premium and ( to the extent that such interest shall be legally enforceable) any overdue installment of interest on this Bond shall bear interest prior to a Determination of Taxability (as defined in the Bond Agreement) at a rate which is two percent (2%) in excess of the Prime Rate and from and after a Determination of Taxability at a rate which is three percent (3%) in excess of the Prime Rate. While American National Bank and Trust Company of Chicago, Chicago, Illinois, is the Bondholder, in the event that at any time or times, by reason of a change in applicable law, the maximum marginal tax rate at which said bank could be taxed for federal income tax purposes pursuant to applicable provisions of the Internal Revenue Code of 1954, as amended (the "Code") , or any future United States internal revenue or similar law applicable to said bank (hereinafter referred to as the "Tax Rate" ) is other than forty-six percent (46%) , the Applicable Percentage utilized to determine the Applicable Rate during such time or times, unless the provisions of the following paragraph shall govern the rate of interest, shall be the percentage arrived at by multiplying the difference between one hundred percent (100%) and the then applicable Tax Rate, by one hundred thirty-nine percent (139%) . If while a financial institution to which Section 291(a) (3) of the Code, or any successor provision thereto ("Section 291(a) (3)" ) , applies is the Bondholder, there is a change ( "Change" ) in the TEFRA Disallowance Deduction (as hereafter defined) , the Applicable VOLUME L 898 Rate (as determined by the Applicable Percentage giving effect to any changes required by the preceeding sentence) shall automatically be adjusted as of and on the effective date of any such Change by adding thereto a percentage equal to ninety (90) times (the TEFRA Disallowance Deduction in effect after such Change minus the TEFRA Disallowance Deduction in effect immediately prior to such Change) times the Tax Rate times the Prime Rate, with the TEFRA Disallowance Deduction and the Tax Rate being expressed as decimals and the Tax Rate being that which is in effect on the effective date of such Change. "TEFRA Disallowance Deduction" as used herein shall mean the percentage of reduction set forth in Section 291(a) (3) with respect to any financial institution preference item. The Bond shall bear interest from and after the date of a Determination of Taxability at a variable rate, which rate shall be equal to the Prime Rate in effect from time to time plus two percent (2%) . The Bond shall be subject to redemption prior to maturity as provided in Article III of the Bond Agreement. The Bond shall be a special, limited obligation of the Issuer as more fully provided in Section 1(h) of this Ordinance. As required by the Enabling Ordinance and as provided in Section 1(h) of this Ordinance, it shall be plainly stated on the face of the Bond that it is a special, limited obligation of the Issuer as more fully provided in said Section 1(h) hereof. Section 3. Execution of the Bond. The Bond shall be executed on behalf of the Issuer by the manual or facsimile signature of its Mayor and attested by the manual or facsimile signature of its City Clerk, provided that one of such signatures shall be manual; shall have the seal of the Issuer _ affixed thereto; and shall be authenticated by the certificate of the Fiscal Agent. Section 4. Form of the Bond. The Bond and the Fiscal Agent 's certificate of authentication to appear on the Bond shall be in substantially the forms set forth in the Bond Agreement, with necessary or appropriate variations, omissions and insertions, as permitted or required by the Bond Agreement. Section 5. Compliance with the Enablinq Ordinance. The Bond shall be issued in compliance with and under authority of the provisions of the Enabling Ordinance, this Ordinance and the Bond Agreement. 899 VOLUME L Section 6. Approval of Bond Agreement, Loan Agreement, Promissory Note and Arbitrage Agreement. The form, terms and provisions of the proposed Bond Agreement, Loan Agreement, Promissory Note and Arbitrage Agreement are in all respects approved, and the Mayor and the City Clerk of the Issuer are hereby authorized, empowered and directed to execute, acknowledge and deliver the the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note and the Arbitrage Agreement in the name and on behalf of the Issuer, and thereupon to cause the Bond Agreement to be executed, acknowledged and delivered by the Bondholder, and the Bond Agreement shall constitute an assignment by the Issuer of the Security for the Bond, as defined therein. The Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note and the Arbitrage Agreement as executed and delivered, shall be in substantially the form now before this meeting and hereby approved, or with such changes therein as shall be approved by the officers of the Issuer executing the same, their execution thereof to constitute conclusive evidence of the Issuer 's approval of any and all changes or revisions therein from the form of such documents now before this meeting. From and after the execution and delivery of the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note and the Arbitrage Agreement, the officers, agents and employees of the Issuer are authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of such documents as executed. Section 7. Approval of the Mortgage, the Assignment, the Guaranty, the Collateral Assignment and Deposit Agreement. The form, terms and provisions of the proposed Mortgage, the Assignment, the Guaranty, the Collateral Assignment and the Deposit Agreement are in all respects hereby approved, with such changes therein as shall be approved by the parties executing such documents. Section 8. Approval of Bond Purchase Agreement. The sale of the Bond to the Purchaser pursuant to the Bond Purchase Agreement is hereby approved and confirmed, and the Mayor and City Clerk of the Issuer are hereby authorized, empowered and directed to execute, acknowledge and deliver the Bond Purchase Agreement in the name and on behalf of the Issuer. The Bond Purchase Agreement, as executed and delivered, shall be in substantially the form now before this meeting and hereby approved, or with such changes therein as shall be approved by the officers of the Issuer executing the same, their execution thereof to constitute conclusive evidence of the Issuer 's approval of any and all changes or revisions therein from the form of Bond Purchase Agreement now before this meeting. From VOLUME L 900 and after the execution and delivery of the Bond Purchase Agreement, the officers, agents and employees of the Issuer are authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Bond Purchase Agreement as executed. Section 9. Delegation. The Mayor and City Clerk of the Issuer, for and on behalf of the Issuer, are hereby authorized, empowered and directed to do any and all things necessary to effect the execution and delivery of the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note, the Arbitrage Agreement and the Bond Purchase Agreement, the performance of all obligations of the Issuer under and pursuant to the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note, the Arbitrage Agreement and the Bond Purchase Agreement, the execution and delivery of the Bond, and the performance of all other acts of whatever nature necessary to effect and carry out the authority conferred by this Ordinance and by the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note, the Arbitrage Agreement and the Bond Purchase Agreement. The Mayor and the City Clerk of the Issuer are further authorized, empowered and directed, for and on behalf of the Issuer, to execute all papers, documents, certificates and other instruments that may be required in order to carry out the authority conferred by this Ordinance and by the Bond Agreement, the Loan Agreement, the Endorsement of the Promissory Note, the Arbitrage Agreement and the Bond Purchase Agreement, or to evidence the said authority and its exercise. Section 10. Proceedings of the Issuer. The Mayor, City Clerk and other officers of the Issuer are hereby authorized, empowered and directed to prepare and furnish to the Purchaser certified copies of all proceedings and records of the Issuer relating to the Bond, and such other affidavits and certificates as may be required to show the facts relating to the legality of the Bond as such facts appear from the the books and records in the officers' custody and control or as otherwise known to them. Section 11. Arbitrage Certificate. The Mayor, City Clerk and any other officer of the Issuer having responsibility with respect to issuance of the Bond are hereby authorized, empowered and directed to give an appropriate certificate for inclusion in the transcript of proceedings with respect to the Bond, upon receipt of appropriate assurances in writing from the Owner, setting forth the facts, estimates and reasonable expectations pertinent under Section 103(c) of the Code and the regulations promulgated thereunder. 901 VOLUME L Section 12. Section 103(b) (6) (D) Election. The Issuer hereby elects to have the provisions as to the $10,000,000 limit in Section 103(b) (6) (D) of the Code applied to the Bond, and the Mayor and City Clerk of the Issuer are hereby authorized, empowered and directed to take any and all further action which may be required to implement and effectuate such election, including, without limitation, the preparation and filing of such statement or statements or other document or documents as may be deemed by them to be necessary or advisable in order to comply with the procedure set forth in Section 1.103-10(b) (2) (vi) of the Income Tax Regulations (26 CFR Part 1) under Section 103 of the Internal Revenue Code of 1954, as amended; and all acts heretofore taken by them in this connection are hereby ratified and confirmed. Section 13. Filing Form 8038. The Mayor and City Clerk of the Issuer are hereby authorized, empowered and directed to take any and all action which may be required to comply with the information reporting requirements of Section 103(1) of the Code including, without limitation, the execution and filing of IRS Form 8038. Section 14. Bond Registrar. The Issuer shall cause books for the registration ana transfer of the Bond as provided in the Bond Agreement to be kept by the Fiscal Agent which is hereby constituted and appointed the Bond Registrar of the Issuer. The duties of the Fiscal Agent as such Bond Registrar shall be as set forth in the Bond Agreement. Section 15. Expiration. This Ordinance and each of the provisions hereof and the approvals made and the powers and authorities granted hereunder shall expire and become null and void in the event that the Bond is not originally issued on or prior to December 31, 1985. Section 16. Severability. The provisions of this Ordinance are hereby declared to be severable and if any section, phrase or provision shall for any reason be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases and provisions hereof. Section 17. Repealer. All ordinances and resolutions and parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. i Section 18. Allocation. The adoption of this Ordinance by the City Council of the Issuer shall be deemed to constitute an allocation to the Bond of $900,000 of the Issuer 's share of the private activity bond limit of the State of Illinois under Section 103(n) of the Code, and the Mayor of VOLUME L 902 the Issuer is authorized to execute a certificate under penalty of perjury, as required by Section 103(n) (12) of the Code, that such allocation was not made in consideration of any bribe, gift, gratuity, or direct or indirect contribution to any political campaign. Section 19. Effective Date. This Ordinance shall become effective 'r— become upon its adoption. i Richard L. Verbic Richard L. Verbic, Mayor Presented: November 25, 1985 Passed: November 25 , 1985 Vote: Yeas 7 Nays 0 Recorded: Published: Attest: sf Marie Yea an Marie Yearman, City Clerk PETITION 55-85 REQUESTING A B-3 SERVICE BUSINESS DISTRICT SPECIAL USE FOR A DAY CARE CENTER, PROPERTY LOCATED AT THE SOUTHWEST ORNER OF NORTH McLEAN BOULEVARD AND TODD FARM DRIVE EXTENDED BY LEO LENAGHAN ---------APPROVED I Councilwoman Moylan made a motion, seconded by Councilman Andersen to approve Petition 55-85. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. 903 VOLUME L PETITION 56-85 REQUESTING A REZONING FROM M-1 LIMITED MANUFACTURING DISTRICT TO B-4 GENERAL BUSINESS DISTRICT, PROPERTY LOCATED AT 1020 NORTH McLEAN BOULEVARD BY CARL SWANSON----APPROVED Councilwoman Shales made a motion, seconded by Councilman Waters to approve Petition 56-85. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. PETITION 60-85 REQUESTING AN "O" LIMITED OFFICE DISTRICT SPECIAL USE FOR A DAY CARE CENTER, PROPERTY LOCATED AT 1560 WEATHERSTONE LANE BY LITTLE FOLKS NURSERY SCHOOL, INCORPORATED-----APPROVED Councilman Waters made a motion, seconded by Councilman Van De Voorde to approve Petition 60-85. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. KANE COUNTY ZONING PEITION NO. 2498 REQUESTING RENEWAL OF F-FARMING DISTRICT INTERIM SPECIAL USE FOR A VETERINARY CLINIC, PROPERTY LOCATED AT THE NORTHWEST CORNER OF BOWES ROAD AND RANDALL ROAD BY EDWIN L. MINARD AND JOLYNNE MINARD---APPROVED i Councilwoman Moylan made a motion, seconded by Councilwoman Shales to approve Kane County Petition 2498, subject to the conditions of the Land Use Committee. Yeas : Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. ORDINANCE PASSED ACCEPTING PTI G THE ALLOCATION OF APPROXI- MATELY $885,000IN INDUSTRIAL REVENUE BOND AUTHORITY FROM THE VILLAGE OF STICKNEY, ILL. Councilman Andersen made a motion, seconded by Councilwoman Shales to pass the aforementioned ordinance. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. VOLUME L 904 ORDINANCE NO. S8-85 AN ORDINANCE ACCEPTING THE ALLOCATION OF APPROXIMATELY $885,000 IN INDUSTRIAL REVENUE BOND AUTHORITY FROM THE VILLAGE OF STICHNEY, ILLINOIS WHEREAS, the City of Elgin, as a home rule municipality is authorized by law to issue Industrial Revenue Bonds; and WHEREAS, the amount of Industrial Revenue Bonds to be issued is regulated by law in a manner which restricts said issuance in an amount equal to One Hundred Fifty and no/100ths Dollars ($150.00) per capita per year; and WHEREAS, the City of Elgin may, by action of its corporate authorities, accept a reallocation of the authority of another home rule municipality to issue said revenue bonds; and WHEREAS, the Village of Stickney has approximately $885,000 in unutilized bond authority; and WHEREAS, the City of Elgin desires to acquire from the Village of Stickney all of i its unutilized bond authority for the purpose of loaning the proceeds of said funds to finance construction of a project authorized and eligible for financing of Industrial Revenue Bonds; and WHEREAS, the Village of Stickney will not utilize its entire authority to issue said revenue bonds in the total amount permitted by law; and 905 VOLUME L WHEREAS, the Village of Stickney by its Ordinance No. entitled "An Ordinance Allocating Approximately $8859000 In Industrial Revenue Bond Authority to the City of Elgin, Illinois," adopted on November 19, 1985, made such reallocation to the City of Elgin, Illinois; NOW, THEREFORE, be it ordained by the Mayor and City Council of the City of Elgin, Illinois as follows: SECTION 1. The facts stated in the Preamble to this Ordinance are found to be i true and correct. SECTION 2. The City of Elgin hereby accepts the Village of Stickney's allocation I to the City of Elgin of its authority to issue $885,000 in Industrial Revenue Bonds; said acceptance of said allocation being authorized and subject to the applicable statutes in said cases made and provided. SECTION 3. This Ordinance shall be in full force and effect from and after its passage and approval in the manner provided by law. PASSED this }, day of November, 1985. APPROVED this -)5th day of November, 1985 qr_Rirharrl r. rVarhir Richard L. Verbic, Mayor `ATTTEST: � M is Ya n 1Giarie Barman, City Clerk AYES: Councilmen Andersen, Gilliam, Moylan, Shales, Van De i Voorde, Waters and Mayor Verbic. NAYS: None ABSENT: None - 2 - VOLUME L 906 ORDINANCE PASSED AMENDING CERTAIN PARKING RESTRICTIONS WITHIN THE CITY OF ELGIN Jim Cook, City Manager, requested that the following memorandum addressed to him be made a part of the official minutes: I "We sent letters to all the residents on Weston Avenue between South and Meyer Streets advising them that 10:00 p.m. to 4 :00 a.m. parking restriction was under consideration by the City Council and that it would be on the Council agenda tonight . There have been three responses to that letter. They are as follows: 1. Mrs. John Milnamow called on November 14th. She wants the parking to remain just the way it is, allowed on both sides at all times. 2 . Fay Childers wrote to say that she does not like the noise from the Boulevard Tap and the parking on Weston by the Boulevard patrons. She made no reference to the proposed parking restriction. Address: 253 So. Weston. 3 . Donald Everson of 264 So. Weston mentioned in his letter that he wants to see parking by permits by residents only. He also wants "dismissal" of all parking tickets received by residents. We are sending you this information in case the three people mentioned above do not come to the City Council meeting tonight s/Syed Ally Civil Engineer II" Councilman Andersen made a motion, seconded by Councilwoman Moylan to pass the aforementioned ordinance. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. 907 VOLUME L Ordinance No. G95-85 AN ORDINANCE AMENDING CERTAIN PARKING RESTRICTIONS WITHIN THE CITY OF ELGIN BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section I. That Title 11, Chapter 11.36 of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended by adding to the list of streets where parking is prohibited under Section 11.36.050M the following: South Weston Avenue, both sides, from Meyer Street to South Street between the hours of 10:00 p.m. and 4:00 a.m. Section 2. That all ordinances or parts of ordinances in conflict with the provi- sions of this ordinance be and are hereby repealed. Section 3. That this ordinance shall be in full force and effect ten days after its passage and publication in pamphlet form in the manner provided by law. s/ Richard L. Verbic Richard L. Verbic, Mayor Presented: November 25, 1985 Passed: November 25, 1985 Vote: Yeas 7 Nays 0 Recorded: Published: Attest: Marie Yearn Marie Yearman, City Clerk RESOLUTION ADOPTED AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT (UNIVERSAL CHEMICAL AND COATINGS, INC. PROJECT) Councilman Andersen made a motion, seconded by Councilman Waters to adopt the aforementioned resolution. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. i VOLUME L 908 CTH-10001:111885 RESOLUTION AUTHORIZING THE EXECUTION OF A MEMORANDUM OF AGREEMENT (UNIVERSAL CHEMICAL AND COATINGS,INC. PROJECT) WHEREAS, Universal Chemicals and Coatings, Inc., a Delaware corporation (the "Borrower") wishes to finance the construction of an industrial facility and wishes to have the City of Elgin, Illinois (the "Issuer") issue its revenue bonds to finance such construction; and WHEREAS, a Memorandum of Agreement has been presented to the Issuer under the terms of which the Issuer agrees, subject to the provisions of such Agreement, to issue its revenue bonds to finance such construction. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That the Mayor of the Issuer is hereby authorized to execute, and the Clerk of the Issuer is hereby authorized to attest a Memorandum of Agreement with the Borrower in substantially the form of such Agreement appended to this Resolution as Exhibit A. Section 2. That the officers and employees of the Issuer are hereby authorized to take such further action as is necessary to carry out the intent and purposes of the Memorandum of Agreement as executed and to issue not to exceed $1,500,000 of its revenue bonds upon the terms and conditions stated in such Memorandum of Agreement for the purpose of defraying the cost of constructing the Project (as defined in the Memorandum of Agreement) and that the same is declared to be for a public purpose and to be a matter pertaining to the government and affairs of the Issuer. Section 3. That this resolution shall be in full force and effect upon its passage and approval. g / R 1 Ch&rrl T. V#=rh i r. Richard L. Verbic, Mayor Presented: November 25, 1985 Adopted: November 25, 1985 Vote: Yes 7 Nays: 0 Recorded: .A,totest: CL/ Maria Ya an Marie Yearman, City Clerk ORDINANCE PASSED PROVIDING FOR THE PAYMENT OF SALARIES AND BILLS LESS THAN $1,500.00 WITHOUT APPROVAL BY THE CITY COUNCIL Councilman Gilliam made a motion, seconded by Councilwoman Moylan to pass the aforementioned ordinance. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters, and Mayor Verbic. Nays: None. 909 VOLUME L Ordinance No. G94-85 AN ORDINANCE PROVIDING FOR THE PAYMENT OF SALARIES AND BILLS LESS THAN $1,500.00 WITHOUT APPROVAL BY THE CITY COUNCIL WHERAS, the approval of bills payable by the City is a power or function per- taining to the government and affairs of the City of Elgin as a home rule unit within the meaning of the Illinois Constitution of 1970; and WHEREAS, it is necessary and desirable to provide for the payment of certain bills and salaries without submission to the City Council; and WHEREAS, the City Manager is by ordinance designated as purchasing agent of the City and it is necessary and appropriate to authorize the approval of payment of salaries and certain bills by the City Manager. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS: Section 1. That Section 2.08.010 of Chapter 2.08 of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended to read as follows: "2.08.010 Powers and duties. The powers of the city council shall be purely legislative except as otherwise provided by statute or ordinance. The council shall approve for payment all expenses and liabilities of the municipality except as may otherwise be provided by ordinance." Section 2. That Section 2.12.060 of Chapter 2.12 of the Elgin Municipal Code, 1976, as amended, be and is hereby further amended to read as follows: "2.12.060 Purchasing agent duties. All bills payable by the city other than for the payment of amounts less than $1,500.00 and salaries established by the city council shall be submitted to the city council for approval before payment. The city manager, or his duly authorized representative, may approve for payment any bill in an amount less than $1,500.00 and salaries established by the city council. All payments which have not been approved by the city council shall be reported monthly to the city council." Section 3. That this ordinance shall be in full force and effect after its passage. R Richard L. Verbic Richard L. Verbic, Mayor VOLUME L 910 Presented: November 25, 1985 Passed: November 25, 1985 Vote: Yeas 7 Nays 0 Recorded: Published: Attest: La s/ Marie Yea man Marie Yearman, City Clerk RESOLUTION ADOPTED AUTHORIZING EXECUTION OF A CONTRACT TO ACQUIRE CERTAIN REAL PROPERTY ( 414 McBRIDE STREET) Councilman Van De Voorde made a motion, seconded by Councilman Andersen to adopt the aforementioned resolution. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. 911 VOLUME L ' RESOLUTION AUTHORIZING EXECUTION OF A CONTRACT TO ACQUIRE CERTAIN REAL PROPERTY (414 McBride Street) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby determines that it is necessary and desirable to acquire certain real property located at 414 McBride Street, Elgin, Kane County, Illinois. BE IT FURTHER RESOLVED that the City Manager and City Clerk be and are hereby authorized, empowered and directed to execute a contract of sale with Liberty Trucking Co., a copy of which is attached hereto and made a part hereof by reference, on behalf of the City of Elgin. s/ Richa..d le. Verbic Richard L. erbic, Mayor Presented: November 25, 1985 Adopted: November 25, 1985 Vote: Yeas 7 Nays 0 Recorded: Attest: s/ Marie Yearm n Marie Yearman, City Clerk AUTHORIZATION OF PAYMENT TO VARIOUS VENDORS Woodland Landfill $24 , 905 .60 October, 1985 refuse U.S. Post Office 2,284 .16 Community Newsletter Ill. Bell Telephone 2, 395.00 Equipment for PIMS Welch Bros. , Inc. 2 , 383 . 83 Public Works purchase of concrete. Rohlwing Brothers 2 , 556 .40 Purchase of tires Beauregard Howard Residential Rebate 462 Hickory Place 1, 850.00 Program Ann Maruna 1, 736 .08 Residential Rebate 914 Highland Program Robyn Fidler 1,675 .00 Residential Rebate 1015 Oakley Program Councilwoman Moylan made a motion, seconded by Councilman Van De Voorde to approve the above payments. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. f VOLUME L 912 REPORTS RECEIVED AND ORDERED PLACED ON FILE Sales tax report for the month of August, 1985. Water Department report for October, 1985 Cemetery report for October, 1985 Hemmens Auditorium report for July through September, 1985. Committee of the Whole Minutes for November 11, 1985 Human Relations Commission Minutes for October 1, 1985. Public Property & Recreation Board Minutes for October 22 , 1985. Heritage Commission Minutes for September 12 and October 10, 1985. Budget Summary dated November 11, 1985. I Councilman Gilliam made a motion, seconded by Councilman Waters to place the above reports on file. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. I ANNOUNCMENTS Mayor Verbic made announcements relative to forthcoming meetings. ADJOURNMENT Councilman Gilliam made a motion, seconded by Councilwoman Shales to adjourn the Council Meeting. Yeas: Councilmen Andersen, Gilliam, Moylan, Shales, Van De Voorde, Waters and Mayor Verbic. Nays: None. The meeting was adjourned at 8:25 p.m. Marie Yearmari City Clerk i