HomeMy WebLinkAbout10-178 Resolution No. 10-178
RESOLUTION
REALLOCATING CITY OF ELGIN'S
RECOVERY ZONE FACILITY BOND ALLOCATION
TO THE ILLINOIS FINANCE AUTHORITY
WHEREAS, Section 1401 of Title I of Division B of the American Recovery and Rein-
vestment Act of 2009, Pub. L. No. 111-5 Stat. 115 2009 ("ARRA") authorizes state and local
governments to issue Recovery Zone Facility Bonds; and
WHEREAS, Recovery Zone Facility Bonds may be use to finance certain "recovery zone
property," as such term is defined in ARRA; and
WHEREAS, the term "Recovery Zone" means: (1) any area designated by the issuer as
having significant poverty, unemployment, rate of home foreclosures or general distress; (2) any
area designated by the issuer as economically distressed by reason of the closure or realignment
of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990, and
(3) any area for which a designation as an empowerment zone or renewal community is in effect
as of the effective date of ARRA, which effective date is February 17, 2009; and
WHEREAS, Recovery Zone Facility Bonds must be issued before January 1, 2011; and
WHEREAS, the City of Elgin ("City") received the following allocation for calendar
year 2010 for Recovery Zone Facility Bonds from the federal government: $8,520,000; and
WHEREAS, the City has not used the following portion of such recovery zone facility
bond allocation ("Remaining Volume Cap"): $8,520,000 and may allocate the Remaining Vo-
lume Cap in any reasonable manner as the City shall determine in good faith at its discretion for
use for eligible costs of recovery zone property; and
WHEREAS, the City Council of the City of Elgin ("City Council") has determined that it
is in the best interest of the residents of the City and the residents of the State of Illinois to real-
locate and waive the Remaining Volume Cap to the Illinois Finance Authority, as designee of the
State of Illinois, in accordance with the provisions of 20 ILCS 3501/825-105 ("Act") to be ap-
plied toward the issuance of recovery zone facility bonds ("Bonds") by the Illinois Finance Au-
thority to finance eligible costs of recovery zone property for a project; and
WHEREAS, this matter was discussed at the September 8, 2010 City Council meeting
and recommended by the City Council for approval;
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
ELGIN that the City hereby reallocates and waives the Remaining Volume Cap to the Illinois
Finance Authority to be used for the purposes described herein, and the adoption of this Resolu-
tion shall be deemed to be an allocation of such Remaining Volume Cap to the issuance of the
Bonds;
BE IT FURTHER RESOLVED THAT, the transfer by the City of the Remaining Vo-
lume Cap is contingent upon the payment by Navistar International Corporation, its successors,
assigns or related persons, to the City of a fee equal to .125% of the amount transferred and used
for the issuance of the Bonds, payment being conditioned upon and due concurrently with, the
issuance of the Bonds;
BE IT FURTHER RESOLVED THAT, the City hereby represents that it has taken no
action or issued bonds which would abrogate, diminish or impair its ability to fulfill the written
agreement, covenants and undertakings on its part under this Resolution;
BE IT FURTHER RESOLVED THAT, the Mayor is authorized, empowered and di-
rected to do all such acts and things and to execute all such documents and certificates as may be
necessary to further the purposes and intent of this Resolution, which may include a representa-
tion on behalf of the City that the Remaining Volume Cap reallocated hereby has not been used
and is available for reallocation under ARRA and the Act; and
BE IT FURTHER RESOLVED THAT this Resolution shall be in full force and effect
upon its passage and publication in the manner provided by law.
s/ Ed Schock
Ed Schock, Mayor
Presented: September 8, 2010
Adopted: September 8, 2010
Vote: Yeas: 7 Nays: 0
I
Attest:
s/Diane Robertson
Diane Robertson, City Clerk