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TO: Mayor John Laesch
FROM: Christopher Minick, Chief Financial Officer, City Treasurer
DATE: July 10, 2025
SUBJECT:
An Ordinance authorizing the issuance and sale of adjustable rate demand economic development revenue bonds, Aurora University, in one or more series, of the City of Aurora, Kane, DuPage, Will and Kendall Counties, Illinois, in an aggregate principal amount not to exceed $16,000,000, and confirming the sale thereof; authorizing the execution and delivery of a loan agreement, trust indenture, bond purchase agreement and related documents; authorizing the distribution of an official statement; approving the delivery of a letter of credit, a reimbursement agreement a remarketing agreement; and authorizing certain related matters.
PURPOSE:
As a home rule municipality, the City of Aurora may issue Private Activity Bonds for qualified not-for-profit entities. Aurora University and the City have partnered in similar issuances in the past, most recently in 2019 and 2020. The University would like to issue new bonds for major capital improvements on the Aurora campus. A public hearing will be held giving notice for this issuance.
BACKGROUND:
The City of Aurora and Aurora University have worked together to help build a premier campus in Aurora. Part of this relationship has involved the City's assistance through the issuance of conduit financing in the form of Private Activity Bonds. Private Activity Bonds do not involve the City financial statements in any manner other than the recording of the transaction in the notes to the City's financial statements in the Annual Comprehensive Financial Report. Aurora University pays the City's out of pocket costs associated with this issuance. The City has confirmed that it has no liability for these bonds, actual or moral, through consultation with our bond counsel Chapman and Cutler, LLP, and through our auditor Sikich, LLC. This confirmation is also clearly stated in the attached documents that will ...
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