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TO: Mayor Richard C. Irvin
FROM: Martin S. Lyons, Chief Financial Officer/City Treasurer
DATE: July 13, 2020
SUBJECT:
An Ordinance amending the documents relating to the Special Facility Revenue Bond, Series 2010 (Marmion Project) (The "Bond") of the City of Aurora, Kane, DuPage, Will, and Kendall Counties, Illinois; Authorizing the execution and Delivery of an Amended Bond, a First Amendment to Loan Agreement and related documents in connection therewith; and related matters.
PURPOSE:
Marmion Academy originally issued private activity debt through the City of Aurora in 2010. This ordinance will amend the terms of this debt. The City of Aurora has no liability in facilitating this transaction and has hired Chapman and Cutler as Bond Counsel (at Marmions' cost) to review and prepare the necessary documents for this amendment.
BACKGROUND:
In August 2010 Marmion Academy, with the assistance of the City of Aurora issued $10.0 million in bonds $4.0 million of which was used to refinance current debt and $6.0 million was issued to finance capital construction at Marmion Academy.
Marmion is requesting the City's approval to amend this original bond issue as attached. Representatives of the Academy will be available to answer questions at the Committee of the Whole meeting.
No liability is created to the City of Aurora as a result of this amending ordinance.
DISCUSSION:
The City of Aurora may act as a conduit financing agency for private activity bonds for area private schools or universities. The Marmion Academy is requesting an amendment to their current financing of $10.0 million in bonds issued in 2010. This amend deals with changes in the rate of the bonds. This change does not change the fact that the City has no liability for this indebtedness and is only acting as a conduit issuer.
A revised Bond Ordinance and Loan Agreement are attached. Per these documents, the outstanding bonded indebtedness is approximately $6.25 million.
IMPACT...
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