O-81-26ORDINANCE NO. 0 -81 -26
AN ORDINANCE TO ADD ARTICLE 7 TITLED
"AUTHORIZATION FOR THE ISSUANCE OF INDUSTRIAL REVENUE BONDS"
OF CHAPTER 9 OF THE MUNICIPAL CODE OF DEERFIELD, ILLINOIS
Published in pamphlet form this
6th day of April , 1981
by the President and Board of
Trustees of Deerfield.
ORDINANCE NO. 0- 81 -26.
AN ORDINANCE TO ADD ARTICLE 7 TITLED
"AUTHORIZATION FOR THE ISSUANCE OF INDUSTRIAL REVENUE BONDS"
OF CHAPTER 9 OF THE MUNICIPAL CODE OF DEERFIELD, ILLINOIS
WHEREAS, the Village of Deerfield is a Home Rule Unit as the result of a
successful referendum vote held on such home rule question on the 15th day of
April, 1975; and
WHEREAS, the Village as a Home Rule Unit, may exercise any power and
perform any function pertaining to its government and affairs, including the
power to issue bonds to carry out such governmental functions; and
WHEREAS, it is in the best interests of the Village of Deerfield to issue
industrial revenue bonds to finance in whole or in part the cost of
acquisition, purchase, construction, reconstruction, improvement, equipping,
betterment or extension of any industrial or commercial development project in
order to encourage the economic development of the Village which is a public
purpose and is a function pertaining to the government and affairs of the
Village; and
WHEREAS, the Village does hereby determine that Division 74 and Division
74.2 of Article 11 of the Illinois Municipal Code shall not be applicable to
the issuance of industrial revenue bonds or commercial revenue bonds by the
Village.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, as follows:
SECTION That Chapter 9 of the Municipal Code of.Deerfield, 1975, as
ONE: amended, be and the same is hereby further amended by adding
thereto anew Article 7 entitled "Authorization for the Issuance
of Industrial Revenue Bonds" to read as follows:
Article 7- AUTHORIZATION FOR THE ISSUANCE OF INDUSTRIAL REVENUE
BONDS
1. Declaration of Purpose. The Village has enacted this
Article for the following specific purposes:
(a) To provide a financing device that will aid in
financing the cost of industrial and commercial
projects in order to relieve conditions of
unemployment and broaden the existing tax base.
(b) To encourage the increase of industrial and commercial
development in the Village leading to increased
welfare and prosperity of the residents of the Village.
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2. Definitions. Whenever used in this Article, unless a
different meaning clearly appears from the context:
(a) "Project" or "development project" includes any
industrial or commercial project which is a capital
project comprising an industrial or manufacturing
plant or a commercial facility, including one or more
buildings and other structures, whether or not on the
same site or sites; any rehabilitation, improvement,
renovation or enlargement of, or any addition to, any
buildings or structures for use as a commercial
facility or factory, mill, processing plant;; assembjy —
plant, fabricating plant, industrial distribution
center, repair, overhaul or service facility, test
facility, and other facilities, including research and
development for manufacturing, processing, assembling,
repairing, overhauling, servicing, testing or handling
of any products or commodities embraced in any
industrial or manufacturing plant; and including also
the sites thereof and other rights in land therefor,
whether improved or unimproved, machinery, equipment,
site preparation and landscaping, and all
appurtenances and facilities incidental thereto such
as warehouses, utilities, access roads, railroad
sidings, truck docking and similar facilities, parking
facilities, dockage, and other improvements necessary
or convenient for any manufacturing or industrial
plant.
(b) "Project costs" means and includes the sum total of
.all reasonable or necessary costs incidental to the
acquisition, construction, reconstruction, repair,
alteration, improvement and extension of a project,
including, without limitation, the cost of studies and
surveys; plans, specifications, architectural and
engineering services; legal, marketing or other
special services; financing, acquisition, demolition,
construction and equipment costs and site development
of new and rehabilitated buildings, rehabilitation,
reconstruction, repair or remodeling of existing
buildings and all other necessary and incidental
expenses including an initial bond and interest
reserve together with interest on bonds issued to
finance a project to a date six (6) months subsequent
to the estimated date of completion and any costs or
expenses which may be included under the provisions of
Section 103(b) of the Internal Revenue Code of 1954,
as amended.
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3.
Additional Powers. In addition to powers which it may now
have, the Village has the power under this Article:
(a) To issue its bonds to finance in whole or in part the
cost of the acquisition, purchase, construction,
reconstruction, improvement, betterment or extension
of any development project. In determining such cost,
there may be included all costs and estimated costs of
the issuance of such bonds and all engineering,
inspection, fiscal and legal expenses.
(b) To sell on installment contract or to rent or lease
such development project to industrial or commercial
concerns in such manner that the installment payments
under the contract or the rents to be charged for the
use of the development project shall be fixed and
revised from time to time so as to produce income and
revenues sufficient to provide for the prompt payment
of interest upon all bonds issued under this Article,
and to create a sinking fund to pay the principal of
such bonds when due, and to provide for the operation
and maintenance of such development project and for an
adequate depreciation account in connection therewith.
(c) To pledge to the punctual payment of bonds authorized
under this Article and interest thereon the income and
revenues to be received from such development project
(including improvements, betterments or extensions
thereto which may thereafter be constructed or
acquired) sufficient to pay such bonds and interest as
they become due and to create and maintain reasonable
reserves therefor.
(d) To mortgage such development project in favor of the
holder or holders of bonds issued therefor.
(e) To enter into a loan agreement and accept a note or
mortgage, or both, as security for payment of the
proceeds of the revenue bonds and to pledge said note
or mortgage, or both, for the benefit of the holders
of the bonds.
(f) To sell, rent or lease such development project, or to
accept a note in connection with such development
project on such terms and conditions and at such time
as the Board of Trustees of the Village may
determine. However, no sale, rental, lease or loan
shall ever be made in such manner as to impair the
rights or interests of the holder or holders of any
bonds issued for the construction, purchase,
improvement or extension of any such development
project.
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(g) To issue its bonds to refund in whole or in part,
bonds theretofore issued by the Village under
authority of this Article.
4. Exercise of Powers.
(a) By an ordinance passed by a vote of a majority of the
corporate authorities then holding office, bonds may
be authorized to be issued under this Article to
provide funds for the construction, acquisition,
reconstruction, improvement, betterment, or extension
of any development project as authorized under this
Article or for the refunding of bonds previously
issued under this Article.
(b) Bonds shall bear interest at such rate or rates, shall
be payable at such times, may be in one or more
series, may bear such date or dates, may mature at
such time or times not exceeding forty (40) years from
their respective dates; may be payable in such medium
of payment at such place or places, may carry such
registration privileges, may be subject to such terms
of redemption at such premiums, may be executed in
such manner, may contain such terms, covenants and
conditions, and may be in such form, either coupon or
registered, as such ordinance may provide or as may be
subsequently determined by the Board of Trustees
before the bonds are issued. Bonds may be sold at
public or, private sale in such manner and upon such
terms as may be deemed advisable by the Board of
Trustees. Pending the preparation of the definitive
bonds, interim receipts or certificates in such form
and with such provisions as the Board of Trustees may
determine, may be issued to the purchaser or
purchasers of bonds sold pursuant to this Article.
5. Covenants in Bonds.
(a) Any ordinance authorizing the issuance of bonds under
this Article may contain covenants as to any one or
more of the following:
(1) The use and disposition of the income and
revenues from the development project for which
the bonds are to be issued, including the
creation and maintenance of reserves;
(2) The issuance of other or additional bonds payable
from the income and revenues from such
development project;
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(3) The maintenance and handling of such project;
(4) The insurance to be maintained thereon and the
use and disposition of insurance money; and
(5) Such additional terms as the Board of Trustees
shall deem necessary and proper.
(b) Any ordinance authorizing the issuance of bonds under
this Article may provide that the principal of and
interest on any bonds issued under this Article shall
be secured by a mortgage or trust deed covering such
development project and any improvements or extensions
thereafter made. Such mortgage or trust deed may
contain such covenants and agreements to safeguard
properly the bonds as may be provided for in the
ordinance authorizing such bonds and shall be executed
in such manner as may be provided for in such
ordinance. The provisions of this Article and any
such ordinance and any such mortgage or trust deed
shall constitute a contract with the holder or holders
of the bonds which will continue in effect until the
principal of, the interest on, and the redemption
premiums, if any, on the bonds so issued have been
fully paid. The Village may in any such ordinance
agree that the duties of the Village and its corporate
authorities and officers under this Article and any
such ordinance and any such mortgage or trust deed
shall be enforceable by any bondholder by mandamus,
foreclosure of any such mortgage or trust deed or
other appropriate suit, action or proceedings in any
court of competent jurisdiction; provided, that the
ordinance or any mortgage or trust deed under which
the bonds are issued may provide that all such
remedies and rights to enforcement may be vested in a
trustee for the benefit of all the bondholders, which
trustee shall be subject to the control of a majority
of the holders or owners of any outstanding bonds.
6. Signatures of Officers on Bonds - Validity of Bonds.
Bonds shall bear the signatures of such officers of the
Village as may be designated in the ordinance authorizing
such bonds, and such signatures shall be the valid and
binding signatures of the officers of the Village
notwithstanding that before the delivery thereof and
payments therefor any or all of the persons whose
signatures appear thereon have ceased to be officers of the
Village issuing such bonds. The validity of the bonds is
not dependent upon nor affected by the validity or
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regularity of the proceedings relating to the acquisition,
purchase, construction, reconstruction, improvement,
equipping, betterment or extension of the development
project for which the bonds are issued. The ordinance
authorizing the bonds may provide that the bonds shall
contain a recital that they are issued pursuant to this
Article, which recital is conclusive evidence of their
validity and the regularity of their issuance. Failure on
the part of the Applicant or the Village to comply with the
requirements of this Article of the Municipal Code shall
not effect the validity of any industrial revenue bonds
issued.
7. Lien of Bonds. All bonds issued under this Article shall
have a lien upon the revenues and receipts derived from the
development project for which the bonds have been issued,
and the corporate authorities may provide in the ordinance
or ordinances authorizing such bonds for the issuance of
additional bonds to be equally and ratably secured by a
lien upon such income and revenues or may provide that the
lien upon such income and revenues is subordinate.
8. Liability for Bonds. No bonds issued under and
pursuant to this Article shall be general obligations
payable out of the Village funds, but rather all such bonds
shall be limited obligations payable solely out of the
income and revenues derived from the development project
with respect to which such bonds are issued., No holder of
any bonds issued under this Article shall have the right to
compel any exercise of taxing power of the Village to pay
the bonds, the interest or premium thereon, if any. The
bonds shall not constitute an indebtedness of the Village
or a loan of credit thereof within the meaning of any
constitutional or statutory provision. It shall be plainly
stated on the face of each bond that it has been issued
under the provisions of this Article and that it does not
constitute an indebtedness of the Village or a loan of
credit thereof within the meaning of any constitutional or
statutory provisions.
9. Powers Conferred as Additional and Supplemental. The
powers conferred by this Article are in addition and
supplemental to, and the limitations imposed by this
Article shall not affect the powers the Village may have by
any law or any other Article or Chapter. Development
projects may be acquired, purchased, constructed,
reconstructed, improved, bettered, equipped, extended and
financed and bonds may be issued under this Article for
such purposes, notwithstanding that any other law or
ordinance may likewise provide for the acquisition,
purchase, lease, construction, reconstruction, improvement,
equipping, betterment, extension and financing of a like
project, or the issuance of bonds for such purposes.
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10. Application Applications for industrial revenue bonds
shall be made to the Village Manager. Any person, firm, or
corporation may file an application, as hereinafter
provided, requesting consideration of the issuance of such
bonds. The person, firm, or corporation requesting the
issuance of industrial revenue bonds shall submit their
application, accompanied by a non - refundable application
fee of $5,000. The application shall contain the following
information:
(a) Name, address and telephone number of the person, firm
of corporation submitting the application. If the
project is to be owned or occupied in substantial part
by a party other than the person submitting the
application, the name, address and telephone number of
that party along with a brief description of the
relationship of such party to the one submitting the
application. Hereinafter the one submitting the
application and any other party which will own or
occupy a substantial portion of the project are
together referred to as the "Applicant ";
(b) A listing of principal shareholders, partners and
officers of Applicant;
(c) Names of bank and trade references;
(d) Street address and legal description of the property
where the proposed project will be located;
(e) Name and address of any and all current and proposed
legal and beneficial owners of the property where the
project is to be located;
(f) If the Applicant is not the owner of the property
where the project is to be located, a statement
indicating the interest, if any, of the Applicant in
the property where the project is to be located. If
the Applicant is a lessee or contract purchaser of
said property, a copy of such lease or contract shall
be filed along with the application;
(g) A description of the project for which industrial bond
financing is requested, including nature of the
business to be conducted, foreseeable benefits to t.hi_
Village, number of persons to be employed at -the
project and estimated project costs.
(h) Site plans, preliminary construction plans, floor plans ` and leases or proposed leases.
(i) A resume of the Applicant which shall include the
following:
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(1) A description of each business in which the Applicant is
engaged;
(2) A description of any and all projects in which the
Applicant and related parties have participated which were .
similar to the project for which industrial revenue bond
financing is requested;
(3) A statement indicating whether the Applicant or related
parties have ever been involved in a project financed by
industrial revenue bonds and, if so, a description of each
�- such project and a statement indicating whether there has
ever been a default in any such bonds;
(4) A statement indicating whether Applicant or any related
party has been a party in any bankruptcy proceedings at any
time in the five year period preceding the date of the
filing for the application and, if so, a description of
such proceedings, including the caption of any lawsuits and
the outcome thereof;
(5) A statement indicating whether Applicant, within three
years preceding the date of application, has been in
default or allegedly in default in the payment of any debt
instruments on which the Applicant is a signatory and, if
so, a description of such debt instrument and such default;
(6) A statement indicating the length of time Applicant has
been doing business and the length of time Applicant has
been engaged in projects of the type for which industrial
revenue bond financing is requested.
(7) If the Applicant is a corporation, copies of any and all
annual reports and prospectuses issued within five years
preceding the date of application for industrial revenue
bond financing;
(8) Certified copies of audited financial statements of the
Applicant for five years preceding the date of the filing
of the application for industrial revenue bond financing;
(9) The most current Securities and Exchange Commission 10 -K
Report of the Applicant if it is required under applicable
laws to file;
(10) A list setting forth the caption, if pending, and a brief
description of any and all pending or threatened litigation
against the Applicant which could have an impact on the
existence of the Applicant or its business or the financial
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position of Applicant. In this regard, Applicant shall
disclose any pending or threatened litigation which charges
Applicant or, if applicable, any of its officers or part-
ners with misfeasance, misrepresentation, fraud, a viola-
tion of any criminal law, or anti -trust violations; and any
cases in which judgment has been entered or requested
against Applicant in an amount in excess of $250,000,
unless the disclosure of cases in which lesser or greater
judgments have been entered or requested is'required by the
Village Manager.
(11) Any other data which discloses relevant financial informa-
tion such as the Applicant's bond rating and the like. The
Village Manager, upon the advice of staff and /or consul-
tants, may require any additional information from Appli-
cant.
(j) A statement indicating the zoning classification of the property
where the project is to be located along with a statement indi-
cating whether any amendments to the Zoning Ordinance of the
Village or special approvals such as variations or special
permits will be required for the project. This statement should
include a basic description of the use that the project will be
put to;
(k) A site plan for the property where the project is to be located
showing any existing structures and the proposed project;
(1) A rendering of the project;
(m) A statement indicating the amount of funding requested for the
project and a description of the purpose for which the funding
will be used;
(n) A description of any proposed financing arrangement for the
project;
(o) The name and address of the proposed purchaser of the industrial
revenue bonds proposed to be issued, if known;
(p) A statement of the public purpose to be served by the issuance
of industrial revenue bonds for the project.
11. Procedure The Village Manager shall review an application for indus-
trial revenue bond financing and shall notify the Applicant in wri-
ting whether said application is complete. If it is not complete,
the Village Manager shall in said written notice advise the Applicant
of any additional information which is required. The finance commit-
tee of the Board of Trustees shall determine if a financial consul-
tant should be retained in order to assist the Village in its review
of the application and other information submitted in connection with
the proposed project and industrial revenue bond financing. After
the filing of a completed application with the Village Manager, the
Village Manager shall forward said application to the Board of Trus-
tees. Before the Board of Trustees considers the issuance of indus-
trial revenue bonds, the following reports will be required:
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(a) A statement from the Village Attorney that he has reviewed all
documents pertinent to the applicat i.on, aria _bond issue and that
the project is in compliance with the Village's Comprehensive
Plan. The Village Attorney shall state the amount of any fee he
will charge for his services, which fee shall be payable by the
Applicant and may be included in the estimated cost of the
project.
(b) A statement from the Village's financial consultant, if any,
that, based on his study of the information supplied as part of
the application and from other available sources, the Applicant
is a financially sound business entity and in the event that it
should suffer financial difficulty, the Village would be
protected from any financial obligation under the bonds. The
financial consultant shall also state the amount of any fee he
will charge for his services, which fee shall be payable by the
Applicant and may be included in the estimated cost of the
project.
(c) Statements from any and all additional consultants or Village
officials that may be necessary to properly review the request
for industrial revenue bond financing. Any additional fees due
as part of these additional reviews shall be payable by the
Applicant and may be included by the Applicant.in the estimated
of cost of the project.
(d) A statement from the Village Manager that he has reviewed all
documents, that suitable arrangements have been made for the
payment of.all fees due and that he recommends that the
President and Board of Trustees authorize the issuance of the
proposed bonds.
12. Consideration by Village Board The President and Board of Trustees
shall consider each application for industrial revenue bonds which is
presented. Compliance with the procedures set forth herein shall not
be construed as obligating the President and Board of Trustees to act
upon the application favorably. The issuance of such bonds pursuant
to this ordinance is wholly at the discretion of the President and
Board of Trustees. The President and Board of Trustees reserve the
right to have the Applicant appear before them to explain the
proposed development and answer any questions.
13. Costs In addition to the non - refundable application fee to be paid
by the Applicant at the time of the filing of the application for
industrial revenue bond financing, Applicant shall pay any and all
r-- costs. relating to the application and the issuance of the bonds,
including, but not limited to, attorney's fees, fees of the Village's
financial or other consultants, and any and all other costs of the
Village in connection with the review of the application and the
issuance of the bonds. Applicants shall pay any and all such costs
within ten days of receipt of an invoice therefor from the Village.
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14. Issuance Fees If industrial revenue bonds are issued for the
project, there shall be due the Village an issuance fee equal to
one -half of one percent of the face amount of the bonds issued. The
Applicant shall receive a credit against the issuance fee, for the
amount of the non - refundable application fee previously paid. The
issuance fee shall be considered a project cost related to the
financing of the project.
SECTION That all ordinances and parts of ordinances in conflict herewith
TWO: are, to the extent of such conflict, hereby repealed.
SECTION That the Village Clerk is hereby directed to publish this
THREE: Ordinance in pamphlet form.
SECTION That should any section, provision, part or clause of this
FOUR: Ordinance and the Article added hereby be declared by a court of
competent jurisdiction to be invalid, such decision shall not
affect the validity of the Ordinance as a whole or any part thereof other than
the part so declared to be invalid.
SECTION That this Ordinance shall be in full force and effect from and
FIVE: after its passage, approval and publication as provided by law.
AYES: Heisler, Marty, Seidman, Swanson, York (5)
NAYS: None (0)
ABSENT: None (0).
PASSED this 6th day of April 1981.
APPROVED this 6th_ day of April , 1981.
ATTEST:
VILLAGE PRESIDENT
@ 1 v
WS��
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