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HomeMy WebLinkAbout96-153 (2) Resolution No. 96-153 RESOLUTION AUTHORIZING REQUEST TO GOVERNOR OF THE STATE OF ILLINOIS FOR ALLOCATION FOR PRIVATE ACTIVITY BOND (Bailey Development L.L.C. ) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Raymond H. Moller, Director of Business Services and Property, be and is hereby authorized and directed to submit a request to the Governor of the State of Illinois for allocation of $5 . 0 million for Bailey Development, L.L.C. ) Series 1996 . s/ Kevin Kelly Kevin Kelly, Mayor Presented: May 22 , 1996 Adopted: May 22 , 1996 Vote: Yeas 7 Nays 0 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk El Agenda Item No . 3 CO -.3) ff U�ff li i\t , May 9 , 1996 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Request to the Governor of the State of Illinois for Allocation for Private Activity Bonds PURPOSE The purpose of this memorandum is to seek City Council author- ization to submit a request to the Governor of the State of Illinois for allocation for Private Activity Bond Series 1996 for Bailey Development, L.L.C. ( $5 . 0 million) . BACKGROUND Under the Tax Reform Act of 1986 , each home rule city is allocated an amount equal to $50 multiplied by its population and each home rule county is allocated an amount equal to $50 multiplied by the population of its unincorporated area. The total amount for all home rule units has been determined to be $329 , 360, 900 . The population of a home rule unit in a particular year is determined on the basis of the most recent Bureau of the Census estimate published before the beginning of that calen- dar year. In the period from January 1, 1996 through June 1 , 1996 home rule units are not required to apply to the State for an allocation under the law. Rather, home rule units must deter- mine and monitor their own private activity bond limits as provided in the Tax Reform Act of 1986 . Within ten calendar days after May 1, 1996, all Home Rule units with less than 2 , 000, 000 inhabitants must report to the Governor' s Office in writing on volume cap allocated and issued. Of the total amount available to each home rule unit of gov- ernment with less than 2 ,000, 000 inhabitants, the amount that • Bailey Development, L.L.C . May 15, 1996 Page 2 has not been granted or reallocated for specific projects or purposes as of May 1 , 1996 shall be reserved to the Governor ' s Office on June 1 , 1996 . From the period of June 1 through July 14 , 1996 , one-half of this reserved amount will be avail- able to all home rule units with less than 2 , 000, 000 inhabi- tants . (The remaining half is available for reallocation to the State or State agencies . ) If the Office of the Governor makes a determination that there is sufficient amount of allocation remaining in the reserved allocation, an allocation approval letter will be sent to the applicant. There is no specific dollar limit set by the state for any single home rule unit ' s request on or after June 1 , 1996 or on or after July 15 , 1996 . Requests will be accepted only on or after 8 : 30 a.m. June 3 , 1996 or on or after the first State business day after July 15, 1996 (July 17 , 1996 ) . Allocation requests are processed in the order that they are received up to the maximum limit available. If more than one request is received in a day, completed requests will be logged in by time received, and processed on a first-come, first-granted basis . If more than one request is presented at 8 : 30 a .m. on the first day requests are received, all those requests will be deemed equally first in line . To receive an allocation, a home rule unit must submit an allocation request letter together with the inducement resolu- tion or other similar official action to the Governor' s of- fice. The allocation approval letter to home rule units of govern- ment is valid for a period of 60 calendar days from the date of the letter or through December 27 , 1996 , whichever date comes first . The City of Elgin has dedicated its $3 . 8 million Suburban Industrial Revenue Bond ( IRB) allocation for 1996 to tic Company. An additional request for IRB funding was received by the City from Bailey Development for $5 . 0 million. The City allocated $3 . 8 million in 1997 capacity to Bailey Devel- opment. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED None. FINANCIAL IMPACT None. Bailey Development, L.L.C. May 15 , 1996 Page 3 LEGAL IMPACT None. ALTERNATIVES Not to request an additional IRB allocation from the State. RECOMMENDATION It is recommended that Staff be authorized to submit the Bailey Development request to the Office of the Governor for additional 1996 IRB capacity. Respectfully submitted, Raymond H. Moller Director of Business Services and Properties Richard B. Helwig City Manager RHM/skg TELEPHONE 708/931-6100 FAX 708/931-5610 FOR HEARING IMPAIRED • TDD 708/931.5616 Sol CITY OF ELGIN 150 DEXTER COURT ELGIN, ILLINOIS 60120.5555 ALLOCATION REQUEST LETTER June 3, 1996 Office of the Governor 2 1/2 Statehouse Springfield, IL 62706 ATTENTION: Tonya Dring RE : Issuer: City of Elgin Type : Home Rule Maximum Principal Amount : $5 . 0 million Bond Description: Economic Development Revenue Bond (Bailey Development, L.L.C . ) , Series 1996 Purpose: Proceeds will be used to purchase land to construct a new 46 , 000 square foot building, purchase equipment and pay legal and financing costs . Dear Ms . Dring: In accordance with the Tax Reform Act of 1986 as passed by the 99th Congress 2nd Session ( 1986 ) as amended and 30 ILCS 345 , the City of Elgin respectfully requests an allocation for the above-captioned private activity bonds . In preparation for this bond issue to date, all applicable federal and state requirements have been complied with. A copy of the induce- ment resolution for this issue has been attached herewith . I hereby certify under penalty of perjury that to the best of my knowledge the issuance of the Private Activity Bond will not be made in consideration of any bribe, gift, gratuity or direct or indirect contribution to any political campaign. Please forward the allocation approval letter to the under- signed. Sincerely, City of Elgin Raymond H. Moller Director of Business Services and Properties RHM/sg Pnnted on recycled paper