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TO: Mayor Thomas J. Weisner
FROM: Brian W. Caputo, Chief Financial Officer/City Treasurer
DATE: April 7, 2015
SUBJECT:
An Ordinance Amending Ordinance No. O09-85 Authorizing the Issuance of Revenue Notes, Series 2009 (River Street Plaza Project) of the City of Aurora, Kane, DuPage, Will and Kendall Counties, in the Aggregate Principal Amount of $3,700,000; Authorizing the Execution and Delivery of Related Documents in Connection Therewith; and Related Matters.
PURPOSE:
To obtain the City Council's approval of an ordinance that will serve to amend the original ordinance pertaining to the issuance of the 2009 TIF #3 Revenue Notes to clarify how prepayments may be applied to remaining principal installments to provide flexibility in satisfying debt service requirements.
BACKGROUND:
On October 27, 2009, the city issued it Series 2009 Revenue Notes pursuant to Ordinance No. O09-85 in connection with the River Street Plaza project in the southwest area of the city's downtown. Pursuant to the ordinance, the city issued notes in the total principal amount of $3.7 million. The notes provided a reimbursement to the developer for qualified redevelopment project costs. The notes are being repaid with incremental property taxes generated in the River Street Plaza project area of Aurora Tax Increment Financing District #3. Presently, there are $2.8 million of notes outstanding.
DISCUSSION:
Presently, the note ordinance is silent on how principal prepayments are applied to the principal installments of the notes. The proposed amendment to the ordinance conveys authority to the city to decide how prepayments will applied. Application will be made so as to remain current on debt service payments considering the incremental property taxes that are reasonably expected to be available in the future to service the debt.
The note trustee has obtained the consent of all current note holders with regard to proposed amendment.
IMPACT STATEMENT:
Not Applicable.
RECOMMENDATIONS:
That the City Council approve the attached ordinance that will serve to amend the original ordinance pertaining to the issuance of the 2009 TIF #3 Revenue Notes to clarify how prepayments may be applied to remaining principal installments to provide flexibility in satisfying debt service requirements.
cc: Alderman O'Connor, Chairman
Alderman Mervine
Alderman Bohman
Alderman Peters, Alternate
CITY OF AURORA, ILLINOIS
ORDINANCE NO. _________
DATE OF PASSAGE ________________
title
An Ordinance Amending Ordinance No. O09-85 Authorizing The Issuance Of Revenue Notes, Series 2009 (River Street Plaza Project) Of The City Of Aurora, Kane, DuPage, Will, And Kendall Counties, Illinois, In The Aggregate Principal Amount of $3,700,000; Authorizing The Execution and Delivery Of Related Documents In Connection Therewith; And Related Matter.
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WHEREAS, the City of Aurora has a population of more than 25,000 persons and is, therefore, a home rule unit under subsection (a) of Section 6 of Article VII of the Illinois Constitution of 1970; and
WHEREAS, subject to said Section, a home rule unit may exercise any power and perform any function pertaining to its government and affairs for the protection of the public health, safety, morals, and welfare; and
WHEREAS, pursuant to the Constitution and the laws of the State of Illinois, and particularly the Tax Increment Allocation Redevelopment Act of the State of Illinois, as supplemented and amended (the "Act"), the City Council of the Issuer has adopted Ordinance No. O09-85 on October 27, 2009 (the "Note Ordinance"); and
Whereas, pursuant to the Constitution and the laws of the State of Illinois, and particularly the Act and the Note Ordinance, the Issuer has previously issued its Revenue Notes, Series 2009 (River Street Plaza Project) in the principal amount of $3,700,000, which is currently outstanding in the principal amount of $2,825,000 (the "Notes"); and
Whereas, it is now necessary, desirable and in the best interests of the Issuer to amend the Note Ordinance in order to provide for the manner in which mandatory sinking fund credits are applied, a term which was inadvertently omitted from the Note Ordinance; and
Whereas, the Note Ordinance provides that its terms may be amended without the consent of the owners of the Notes under certain circumstances and with the consent of the requisite number of the owners of the Notes under other circumstances;
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Aurora, Illinois, as follows:
Section 1. That the second paragraph of Section 4 of the Note Ordinance is hereby amended by adding the following language to the end of the paragraph after the table:
If the Notes shall have been called for redemption in part from a source other than from a mandatory sinking fund redemption, then the amount of the remaining annual sinking fund installments (including the final maturity amount) shall be reduced in such order as shall be specified by the Issuer.
Section 2. That the Mayor, the City Clerk and the Chief Financial Officer/City Treasurer of the Issuer be, and each of them hereby is, authorized to execute and deliver such documents, certificates, and undertakings of the Issuer and to take such other actions as may be required in connection with the execution, delivery and performance of the Note Ordinance, authorized by this Ordinance.
Section 3. That all acts of the officers, employees and agents of the Issuer which are in conformity with the purposes and intent of this Ordinance be, and the same hereby are, in all respects, ratified, approved and confirmed.
Section 4. That the provisions of this Ordinance are hereby declared to be separable and if any section, phrase or provision hereof 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 of this Ordinance.
Section 5. That all resolutions and orders, or parts thereof, in conflict herewith are hereby superseded to the extent of such conflict.
Section 6. That a full, true and complete copy of this Ordinance shall be printed or published promptly after passage in pamphlet form by authority of the City Council of the Issuer.
Section 7. That this Ordinance shall be in full force and effect immediately upon its passage, approval and publication in pamphlet form as aforesaid.
Ayes:
Nays:
Absent or Not Voting:
Adopted: April 28, 2015.
Approved: April 28, 2015.
_______________________________
Mayor, City of Aurora,
Kane, DuPage, Will and Kendall
Counties, Illinois
[Seal]
Attest:
_________________________________________
City Clerk, City of Aurora,
Kane, DuPage, Will and Kendall Counties, Illinois
Recorded in the records of the City on April 28, 2015.
Published in pamphlet form by authority of the City Council on April 28, 2015.