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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:
N...
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