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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