O-06-21VILLAGE OF DEERFIELD
LAKE AND COOK COUNTIES, ILLINOIS
Ordinance No. 06 -21
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE
VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS,
TO PROVIDE FOR THE ISSUANCE OF REVENUE BONDS TO
FINANCE AND REFINANCE PROJECTS OWNED BY TAX - EXEMPT
501(C)(3) ORGANIZATIONS AND -AMENDING CHAPTER 9 OF THE
MUNICIPAL CODE OF THE VILLAGE OF DEERFIELD, LAKE AND
COOK COUNTIES, ILLINOIS
PASSED AND APPROVED BY THE
PRESIDENT AND BOARD OF TRUSTEES
OF THE VILLAGE OF DEERFIELD, LAKE
AND COOK COUNTIES, ILLINOIS, this
1st day of May , 2006.
Published in pamphlet form
by authority of the President
and Board of Trustees of the
Village of Deerfield, Lake and
Cook Counties, Illinois, this
1st day of MaY - , 2006.
136463v4
VILLAGE OF DEERFIELD,
LAKE AND COOK COUNTIES, ILLINOIS
Ordinance No. 06 -21
AN ORDINANCE AMENDING THE MUNICIPAL CODE OF THE
VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS,
TO PROVIDE FOR THE ISSUANCE OF REVENUE BONDS TO
FINANCE AND REFINANCE - -PROJECTS OWNED BY TAX - EXEMPT
501(C)(3) ORGANIZATIONS AND AMENDING CHAPTER 9 OF THE
MUNICIPAL CODE OF THE VILLAGE OF DEERFIELD, LAKE AND
COOK COUNTIES, ILLINOIS
WHEREAS, the Village of Deerfield, Lake and Cook Counties, Illinois (the
"Village ") is a municipal corporation and is a home rule unit of government as the result of a
successful referendum vote held on April 15, 1975; and
0
WHEREAS, the Village is a home rule unit of government pursuant to the
provisions of the 1970 Constitution of the State of Illinois and particularly Article VII,
Section 6(a) thereof, and as such may exercise any power or perform any function pertaining to
its government and affairs, including, but not limited to, the power to tax and to incur debt; and
WHEREAS, the Village has determined it is in its best interest to adopt a
program whereby it will issue revenue bonds to finance and refinance in whole or in part the cost
of acquisition, purchase, construction, reconstruction, improvement, equipping, betterment,
operation or extension of facilities and other assets owned and operated by not - for - profit
organizations which are recognized by the Internal Revenue. Service as Federally tax- exempt
organizations described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended
(the "Code ") in order to improve the welfare of the Village and better provide services for
citizens of the Village;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD
OF TRUSTEES OF THE VILLAGE OF DEERFIELD, LAKE AND COOK COUNTIES,
ILLINOIS, in the exercise of its home rule powers as follows:
Section 1. Public Benefits. The Village hereby finds and determines that it.is in
its best interest to adopt a program whereby it will issue revenue bonds to finance or refinance in
whole or in part the cost of acquisition, purchase, construction, reconstruction, improvement,
equipping, betterment, operation or extension of facilities and other assets owned and operated
by not - for - profit organizations which are recognized by the Internal Revenue Service as
Federally tax- exempt organizations described in Section 501(c)(3) of the Code in order to
improve the welfare of the Village and better provide services for citizens of the Village.
Section 2. New Article 9 of Chapter 9. That Chapter 9 entitled "Finance and
Taxation" of the Municipal Code of Deerfield, as amended, is hereby further amended by adding
thereto the following as Article 9 thereof entitled "Authorization for the Issuance of Qualified
501(c)(3) Project Revenue Bonds ":
Sec. 9 -53. Declaration of Purpose. The Village has enacted this Article for the
specific purpose of providing for a financing and refinancing device that will aid in
financing and refinancing the costs of acquisition, purchase, construction, reconstruction,
improvement, equipping, betterment, operation or extension of facilities owned and
operated by not - for - profit organizations which are recognized by the Internal Revenue
Service as Federally tax - exempt organizations- described in Section 501(c)(3) of the Code
in order to improve the welfare of the Village and better provide services for citizens of
the Village.
Sec. 9 -54. Definitions. Whenever used in this Article, unless a different meaning
clearly appears from the context, the following words and phrases shall have the
following meanings:
(a) "Applicant" means a not - for- profit organization which is recognized by the
Internal Revenue Service as a .Federally tax - exempt organization described in
Section 501(c)(3) of the Code and which owns or will own a Qualified Project.
(b) "Project" or "Qualified Project" includes any physical facility, equipment, or
in certain cases, intangible property or working capital, which is a capital project
including one or more buildings and other structures, whether or not on the same site or
sites; and any rehabilitation, improvement, renovation or enlargement of the same or any
additional buildings or structures used by a not - for - profit organization which is qualified
under Section 501(c)(3) of the Code in its ordinary course of business and which the
Village determines will improve the welfare of the Village and better provide services for
its citizens.
(c) "Project Costs" means any costs associated with a Qualified Project that
comply with the qualified use requirements of the Code (to the extent applicable).
Sec. 9 -55. Additional Powers. In addition to the powers which it may now have,
the Village has the power under this Article to:
(a) Issue its bonds to finance and refinance in whole or in part of the cost of
acquisition, purchase, construction, reconstruction, improvements, betterment, operation
or extension of any Qualified 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 expense.
(b) Pledge to the punctual payment of the bonds authorized under this Article and
interest thereon, the income and revenue to be received from such Qualified Project and
its owner and any guarantor (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 create and maintain reasonable reserves therefor.
(c) Enter into a loan agreement or other financing agreement and accept a note, a
mortgage or deed of trust, or other instrument or instruments, as security for the payment
of the proceeds of the revenue bonds and to pledge such note or mortgage or deed of trust
or other instrument or instruments for the benefit of the holders of the bonds.
(d) Issue its bonds to refund in whole or in part bonds therefore issued by the
Village under the authority of this.Article.
Sec. 9 -56. Exercise of Powers.
(a) An ordinance passed by a vote of a majority of the corporate authorities then
holding office may authorize the bonds to be issued under this Article to provide funds
for the financing or refinancing of the construction, acquisition, reconstruction,
improvement, betterment, operation or extension of any Qualified 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 at such
place or places, may carry 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 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.
Sec. 9-57. Covenants.
(a) Any ordinance authorizing the issue of bonds under this Article may contain
covenants as to any one or more the following:
(i) The owner of the Qualified Project and obligor under the loan or financing
agreement shall be and maintain its recognition by the Internal Revenue Service
as a Federally tax- exempt organization described in Section 501(c)(3) of the Code
so long as the Bonds are outstanding;
(ii) The use and disposition of the income and revenue from the Qualified Project
for which the bonds are to be issued, including the creation and maintenance of
reserves;
(iii) The issue of other or additional bonds payable from the income and revenue
of such Qualified Project;
(iv) The maintenance of the Qualified Project;
(v) The insurance to be maintained with respect to the Qualified Project and the
use and disposition of any insurance proceeds;
(vi) The agreement of the owner of the Qualified Project to indemnify and hold
harmless the Village, its officers, employees and agents from any action arising
out of Village's review, processing and action on the Bond application; and
(vii) Such additional terms as the Board, of Trustees shall deem necessary,
appropriate and proper.
(b) Any ordinance authorizing the issuance of the bonds under this Article may
provide that the principal of and interest on any bonds issued under the Article shall be
secured by a mortgage or deed of trust or other instrument covering such Qualified
Project and any improvements thereafter made. Such mortgage or deed of trust or other
instrument may contain such covenants and agreements as may be provided for in the
ordinance authorizing such bonds. The mortgage or deed of trust or other instrument
shall remain in effect until the principal of, interest on and redemption premiums, if any,
on the bonds have been fully paid. The Village may in such mortgage or deed of trust or
other instrument, or in the ordinance authorizing the bonds, agree that enforcement of
such mortgage or deed of trust or other instrument and/or the duties of the Village may be
enforceable by any bondholder by foreclosure or other appropriate suit, action or
proceeding in any court of competent jurisdiction; provided however that the ordinance,
mortgage or deed of trust or other instrument. under which the bonds are issued or secured
may provide that all such remedies may be vested in a trustee for the benefit of all the
bondholders, which trustee shall be subject to the direction and control of a majority (or
other controlling portion) of the holders or owners of any outstanding bonds.
Sec. 9 -58. Signatures of Officers on Bonds; Validity of Bonds. Bonds shall bear
the manual or facsimile signature of such officers of the Village as may be determined in
the ordinance authorizing such bonds, and such signatures shall be the valid and binding
signatures of the officers of the Village. In case any such officer-whose signature shall
appear on any Bond shall cease to be such officer before the delivery of such Bond, such .
signature shall nevertheless be valid and sufficient for all purposes, the same as if such
officer had remained in office until delivery. The validity of the bonds is not dependent
on nor affected by the validity or regularity of the proceedings relating to the acquisition,
purchase, construction, reconstruction, improvement, equipping, betterment, operation or
extension of any Qualified 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 shall not affect the validity of any bonds.
issued.
Sec. 9 -59. Lien of Bonds. All bonds issued under this Article shall have a lien
upon the revenues and receipts derived from the Qualified Project for which the bonds
have been issued, and the ordinance authorizing the bonds may provide for 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 shall be
subordinate.
Sec. 9 -60. No Liability of Village. No bonds issued under this Article shall be
general obligations payable out. of Village funds; all such bonds shall be the special,
limited obligations payable solely out of the income and revenues derived from the
Qualified Project and its owner and any guarantor 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 the taxing power of the Village to pay the bonds or 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 within the meaning of any constitutional or statutory provisions.
Sec. 9 -61. Powers Conferred. as Additional or Supplemental. The powers
conferred by this Article are in addition and supplemental to the powers otherwise vested
in the Village under the constitution and laws of the State of Illinois or the provisions of
the Municipal Code of the Village, and the limitations imposed by this Article shall not
affect such other powers the Village may have under the constitution and laws of the
State of Illinois or any other Chapter or Article of the Municipal Code of the Village.
Sec. 9 -62. Application. Applications for revenue bonds to be issued under this
Article shall be made to the Village Manager. Any person, firm or corporation may file
an application on behalf of an Applicant requesting consideration of the issuance of such
bonds. All applications shall be submitted with a non - refundable fee of $5,000. Each
application submitted under this Article shall contain the same information as outlined in
Section 9 -37 of Chapter 9 of the Municipal Code; provided, however, that:
(i) all such information shall pertain to the proposed Qualified Project and the
proposed revenue bonds;
(ii) the application shall include a copy of the letter from the Internal Revenue
Service granting the Applicant its 501(c)(3) designation;
(iii) the application shall include a statement of the public purpose served, the
benefit to the welfare of the Village and/or the service the Applicant provides to
the Village and/or its citizens; and
(iv) shall not contain any information irrelevant for not - for - profit entities.
Sec. 9 -63. Procedure. The review of each application submitted pursuant to this
Article shall follow the procedure outlined in Section 9 -38 of Chapter 9 of the Municipal
Code.
Sec. 9 -64. Consideration by Village Board. The President and the Board of
Trustees shall consider each application for revenue bonds presented to them.
Compliance with the procedure herein shall not be construed as obligating the President
and the Board of Trustees to favorably act upon any application. The issuance of any
bonds pursuant to this Article is wholly at the discretion of the President and the Board of
Trustees, such discretion being limited only as otherwise required by law. The President
and the Board of Trustees reserve the right to have the Applicant appear before them to
explain the proposal and answer any questions.
Sec. 9 -65. Costs. In addition to the non - refundable application fee paid at the
time the application is submitted, Applicant shall pay any and all 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 application and the issuance of any bonds. Applicants
shall pay all such costs within ten (10) days of receipt of an invoice from the Village.
Sec. 9 -66. Issuance Fees. If any revenue bonds are issued for a Qualified Project,
there shall be due to 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 Qualified
Project.
Section 3. Effect on Prior Ordinances. All ordinances and parts of ordinances in conflict
herewith are, to the extent of such conflict, hereby repealed.
Section 4. Home Rule Effect. This ordinance, and each of its terms, shall be the effective
legislative act of a home rule municipality without regard to whether such ordinance should: (a)
contain terms contrary to the provisions of current or subsequent non - preemptive state law; or,
(b) legislate in a manner or regarding a matter not delegated to municipalities by state law. It is
the intent of the corporate authorities of the Village that to the extent that the terms of this
ordinance should be inconsistent with any non - preemptive state law, this ordinance shall
supersede state law in that regard within its jurisdiction.
Section 5. Effective Dates. This ordinance shall be in full force and effect from and after its
passage, approval and publication in pamphlet form as provided by law.
PASSED this 1st day of .May '2006.
AYES: Benton, Feldman, Rosenthal, Seiden, Struthers, Wylie (6)
NAYS: None (0)
ABSENT: None (0)
ABSTAIN: None (0)
APPROVED this 1st
ATTEST:
Vill ge Clerk