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TO: Mayor Richard C Irvin
FROM: Christopher A Minick, Chief Financial Officer/City Treasurer
DATE: January 18, 2024
SUBJECT:
An Ordinance providing for the issuance of not to exceed $58,000,000 Taxable General Obligation Bonds, Series 2024, of the City of Aurora, Kane, DuPage, Kendall and Will Counties, Illinois, for the purpose of financing certain casino redevelopment costs, providing for the levy of a direct annual tax sufficient to pay the principal of and interest on said bonds, providing for the pledge of certain incremental property taxes to the payment of said principal and interest, and authorizing the proposed sale of said bonds to the purchaser thereof.
PURPOSE:
To obtain the approval of the City Council of a proposed ordinance providing for the issuance of the Series 2024 A Taxable General Obligation Bonds for improvements related to the casino.
BACKGROUND:
In October of 2022, the City, GLP Capital, LP (Owner), and HC Aurora, LLC (Developer), entered into a Redevelopment Agreement (RDA) to develop new site for the Hollywood Casino (Casino) and to relocate the Casino to the new site. The agreement specifies that the City will advance $50 million in funding to be repaid by the receipt of future TIF revenues to assist in the funding of the $360 million project. The City has chosen to issue bonds to finance the $50 million advance of TIF Funding. The ordinance authorizing the issuance of those bonds is attached.
Additionally, the RDA calls for the demolition, debris removal, and restoration of the existing casino site at the Developer's and/or Owner's expense. After these tasks have been completed, ownership of the existing casino site will be transferred to the City. Repayment of the bonds is supported from TIF revenues generated by the new casino development. The Developer has agreed to provide a minimum of $5,250,000 to accommodate the debt service payment on the bonds. Should the TIF increment generation total less than $5,250,000 ann...
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