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Home My WebLink AboutS3-97 (2) ORDINANCE NO. s 3-9 7 AN ORDINANCE RELATING TO THE CONVERSION OF THE $3,500,000 TAXABLE INDUSTRIAL DEVELOPMENT REVENUE BONDS (BAILEY DEVELOPMENT, L.L.C. PROJECT), SERIES 1996B OF THE CITY OF ELGIN, KANE COUNTY, ILLINOIS WHEREAS, the City of Elgin, Kane County, Illinois, a home rule unit and municipal corporation existing under the Constitution and the laws of the State of Illinois (the "Issuer") adopted Resolution No. 96-56 on February 28, 1996 in which the Issuer authorized the issuance of the aggregate amount of$5,000,000 of tax-exempt bonds by the Issuer for Bailey Development, L.L.C. ("Bailey") and in which the Issuer agreed to apply $3,850,000 of its 1997 volume cap to said bonds; and WHEREAS, the Issuer adopted Ordinance No S8-96 on September 11, 1996 which authorized the issuance of the $1,500,000 Industrial Development Revenue Bonds (Bailey Development, L.L.C. Project), Series 1996A(the "Tax-Exempt Bonds") and the $3,500,000 Taxable Industrial Development Revenue Bonds (Bailey Development, L.L.C. Project), Series 1996B (the "Taxable Bonds") (the Tax-Exempt Bonds and the Taxable Bonds are collectively referred to as the "Bonds"); and WHEREAS, the Issuer also held a public hearing on September 11, 1996 in regard to the issuance of an aggregate amount of$5,000,000 of tax-exempt bonds; and WHEREAS, the Issuer possesses a 1997 volume cap of$4,266,950 based on the estimated 1994 population of 85,339; and WHEREAS, the Issuer desires to allocate the amount of$3,500,000 of its 1997 volume cap to the Bonds; and WHEREAS, on March 6, 1997, Bailey filed a notice with the Issuer requesting that the Taxable Bonds be converted to tax-exempt bonds on April 24, 1997; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, KANE COUNTY, ILLINOIS, AS FOLLOWS: Section 1. That the Issuer hereby allocated $3,500,000 of its 1997 volume cap to the Taxable Bonds for the conversion to occur on April 24, 1997. Section 2. That the conversion on April 24, 1997 in regard to the Taxable Bonds is hereby approved and the proper officials, agents and employees of the Issuer are hereby 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 said Taxable Bonds and to further the purposes and intent of this Ordinance, including the preambles hereto. Section 3. That all acts and doings of the officials of the Issuer which are in conformity with the purposes and intent of this Ordinance and in furtherance of the conversion of the Taxable Bonds in the principal amount of$3,500,000 and the financing of the Project to that amount be, and the same hereby are, in all respects, approved and confirmed. Section 4. That approval is hereby granted for the conversion of the Taxable Bonds pursuant to Section 147(f) of the Code. Section 5 That the Issuer hereby elects to have the provisions of Section 144(a)(4)(A) of the Internal Revenue Code of 1986, as amended, apply to the Taxable Bonds and hereby affirmatively notes said election on this Ordinance. - 2 - Section 6. That the provisions of this Ordinance are hereby declared to be separable, 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 or provisions. Section 7. That all ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby superseded. Section 8. This Ordinance shall be in full force and effect from and after its passage and approval, in accordance with law. PASSED this 9th day of April, 1997. APPROVED this 9th day of April, 1997. s/ Kevin Kelly _ Mayor ATTEST: s/ Dolonna Mecum City Clerk AYES: Councilmembers Gavin, Gilliam, Schock, Walters , Yearman and Mayor Kelly NAYS: None ABSENT: Councilman McKevitt 29().1 1,1 97 l t1:32 44 OF fi.0 �` 'ti 'n 0) Agenda Item No. _ 6:) o t i, City of Elgin 9n %,,ems °*4 TED to.- April 3 , 1997 TO: Mayor and Members of the City Council FROM: Robert 0. Malm, Interim City Manager SUBJECT: Taxable Industrial Development Revenue Bonds (Bailey Development, L.L.C. Project) PURPOSE The purpose of this memorandum is to transmit for considera- tion and passage an ordinance authorizing the conversion of $3, 500 , 000 Taxablee Industrial o Revenue Bonds (Bailey Develop- ment, L.L.C. Pro ) BACKGROUND On February 28 , 1996 , the City Council adopted an indumnt resolution in regard to the issuance of an aggregate $5 , 000 , 000 of tax-exempt bonds on behalf of Bailey Develop- ment, L.L.C . Furthermore, the resolution committed the City to use $3 , 850 , 000 of its 1997 volume cap. Subsequently in September 1996 , the City obtained $1 , 500 , 000 of 1996 volume cap from the State of Illinois and on September 18, 1996 , the City issued $1,500,000 of tax-exempt bonds and that$3, 5s . The bons ncluded a 0 the00 of taxablexable bonds bcoudld be convert edl provision to tax-exempt bonds in 1997 . Recently, Bailey Development, L.L.C. has filed a notice requesting that such conversion occur on April 24 , 1997 . The attached ordinance authorizes the conversion and applies $3 , 500 , 000 of the City' s aggregate 1997 volume cap of $4 , 266 , 950 to such bonds . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None . FINANCIAL IMPACT This $3 ,500, 000action reduces leaving ng City' s industrial for subsequent trojects . the p author- ity by Mayor and Members of the City Council April 3, 1997 Page 2 These bonds do not affect the debt policy or debt ratios previously adopted by the City Council and the City incurs no liability from their issuance. LEGAL IMPACT WjNone. ALTERNATIVES None . RECOMMENDATION Passage of the ordinance . Respectfully submitted, �l C .. f'_ /,. Erwin W. ,'Jentsch Corporation Counsel 6 -2 /IV i/- 4 , c.,..,,,,./ Raymond H. Moller Director of Business Services /nand Properties 4. / , /10„0,4,kt 6cLA:) Ja es R. Nowicki Director 1 ' a4"--__ Rob rt . alm In rim City Manager EWJ/nr Attachment • Elm . El n Ct,.;. FEE , .'Z ti Memorandum .� V b fEe'i August 21 , 1996 TO: Richard B. Helwig, City Manager FROM: Raymond H. Moller, Director of Business Services and Properties SUBJECT: Bailey Development Bond Sale Attached please find correspondence from Charles R. Hug, attorney representing Bailey Development, L.L.C. The City of Elgin has allocated 1996 and 1997 IRB capacity to the Bailey Development project (Concrete Specialties plant to be located at Spaulding Road and Gasket Drive) . Mr. Hug is requesting that the City Council hold a public hearing with regard to the bonds on September 11, 1996 and 'le consider the adoption of an ordinance at the same meeting. You may wish to share the correspondence from Mr. Hug with the Mayor and City Council members as background for the public hearing and bond ordinance that would be presented to the Council at the September 11, 1996 meeting. M Ray o " H. Mo ler7 RHM/skg Attachment cc : Erwin Jentsch AUG-21-1996 10:47 FROM CARLSON AND HUG TO 18479315610 P.02 • Law Offices of • • CARLSON AND HUG 135 SOUTH LASALLE STREET SUITE 1400 • CHICAGO, ILLINOIS 60603 (312) 726-1567 Fax; (312) 641-6263 CHARL 5 P. CARLSON Of Counul • • August 20, 1996 • Mr. Raymond H. Moller • • Director of Business Services and properties • City of Elgin 150 Dexter Court ' Elgin, Illinois 60120 Dear Ray: • As bond counsel in regard to the proposed City of Elgin-Bailey Development, L.L.C. ,industrial development bonds, I am ,enclosing herewith a copy of the fully executed Memorandum of Agreement for your file. Also, I hereby request that the City Council hold a public hearing in regard to the Bonds on September 11, 1996 and consider adoption of the Bond Ordinance at the same meeting. Bailey Development is obtaining its financing for the Bonds from First American Bank. First American is obtaining a letter of credit for the Bondholders from' LaSalle National Bank which will also act as underwriter. Furthermore, the City has received an allocation from the Governor's office to issue not to exceed $1,508, 067 .13 of tax- exempt bonds on or before September 19, 1996. Also, the City has committed to use its 1997 volume cap for the Bailey • project . Therefore, . the proposal is to issue $1,500, 000 of tax-exempt bonds and $3,500, 000 of taxable bonds on or before September 19, 1996 . Then, .in January of 1997 when the' City has its 1997 volume cap the $3, 500, 000 of taxable bonds will be converted by the terms of the documents adopted on September 11, 1996 to $3, 500, 000 of tax-exempt bonds without requesting further action by the City Council at that time. • • • • • • • • AUG-21-1996 10:48 FROM CARLSON AND HUG TO 18479315610 P.03 Thank You VeZ`Y much for your cooperation in this matter and please do not hesitate to contact me with any questions relating thereto. Sincerely, (:4L'ext /47 Charles R. Hug CRH:jo cc: Mr. Erwin W. Jentsch • -2- TOTAL P.03