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HomeMy WebLinkAboutORDINANCE - 3684 - 10/27/2020 - TIF, Oakton/Higgins CorridorORDINANCE NO.3684 AN ORDINANCE OF THE VILLAGE OF ELK GROVE VILLAGE, ILLINOIS AUTHORIZING CERTAIN ADVANCES FROM THE VILLAGE REVENUE FUNDS TO THE OAKTON/HIGGINS CORRIDOR TIF ALLOCATION FUND TO PAY FOR ELIGIBLE TAX INCREMENT COSTS WHEREAS, the Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the "Village') is a home rule municipality as described in Section§ 6(a) Article VII of the 1970 Constitution of the State of Illinois and as such may exercise any power and function pertaining to its government and affairs; and WHEREAS, pursuant to the Tax Increment Allocation Redevelopment Act, 65 ILCS § 5/11-74.4-1, et seq. ("Act'), the Village adopted Ordinance No. 3580 designating the Village of Elk Grove Village Oakton/Higgins Corridor TIF Redevelopment Project Area "Area") and Ordinance No. 3259 approving the Village of Elk Grove Village Oakton/Higgins Corridor Tax Increment Financing Redevelopment Plan and Project. The Plan and Project will be valid for not more than a period of twenty-three years ("Term') as permitted by the Act; and WHEREAS, Section 11-74.4-8 of the Act provides for the creation of a Special Tax Allocation Fund ("Allocation Fund') for each TIF Area and for the County Treasurer to deposit all increment, as that term is defined in the Act, into said Allocation Fund; the Village has the authority to pledge the Allocation Fund to repay obligations issued pursuant to the Act; and WHEREAS, the Village adopted Ordinance No 3532 approving a redevelopment agreement ("Agreement') by and between the Village and Big Acquisitions, LLC ("Developer') in which the Village agreed to issue notes ("Developer Notes') to reimburse the Developer for certain eligible costs as set permitted by the Act and to create a sub -account ("Subaccount ") within the Allocation Fund. Funds in the Subaccount shall be pledged to repay the Developer Notes; and WHEREAS, the Village has previously agreed to authorize the advance funds ("Advances") from its General Fund ("General Fund'), Business Leaders Forum ("BLF') Fund, Capital Projects Funds ("Capital Projects Fund) and/or Water & Sewer fund ("Water & Sewer Fund') to the Allocation Fund to finance the obligations incurred in the Agreement and other necessary TIF eligible improvements as permitted by the Act and to use funds from the Allocation Fund to repay said Advances as increment becomes available. The Village is now making Advances to the Subaccount to redeem certain Developer Notes; and WHEREAS, the Village desires to adopt this ordinance in order to authorize the Mayor and Village staff to make such Advances as may be deemed necessary by the Mayor or his designee. NOW, THEREFORE, BE IT ORDAINED by the Mayor and the Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, Illinois, in the exercise of its home rule powers, as follows: Section 1: The above recitals are incorporated herein and made a part hereof. Section 2: In the event the Village determines that improvements approved in the Plan need to be made in the Area prior to there being monies on account in the Allocation Fund, the Village is hereby authorized to make Advances from time to time from the Village's General, BLF, Capital Projects Fund and Water & Sewer Funds to the Allocation Fund. In addition, the Village hereby authorized the Advance of Five Million Dollars ($5,000,000) to the Subaccount to redeem Five Million Dollars of Developer Notes. Section : The Director of Finance or her designee shall note the date and amount of each Advance, the due date, and create a reasonable schedule for repayment and term with payment due on May 1 and November 1 of each calendar year. No Advance shall have a repayment date greater than the expiration of the Term. Section 4: In the event revenues on account in the Allocation Fund are insufficient to make scheduled payments on the Advances or are otherwise pledged, interest shall accrue on the balance of any outstanding Advance at an annual rate of six (6%) percent. Outstanding Advances to the Allocation Fund shall become obligations as that term is defined in Section 1I- 74.4-7 of the Act and the total of outstanding Advances shall be reported as obligations to the State Comptroller when the Village submits the required Annual Reports. Section : The Village hereby pledges the revenue on account in the Subaccount to repay the Developer Notes and the Advances. In the event the funds in the Subaccount are insufficient to repay the Advances, the Village shall have the right to repay the Advances with any unpledged funds in the Allocation Fund. The Village reserves the right to issue other obligations ("Additional Obligations') secured by unpledged monies in the Allocation Fund. At the sole discretion of the Village Manager, the repayment of any Additional Obligations may be subordinate to or have priority over the repayment of the Advances. Section : In the event the funds in the subaccount and Allocation Fund are insufficient to repay the Advances, the Village hereby authorizes the Village Manager and Finance Director to transfer funds from the Elmhurst/Busse Redevelopment Project Area Tax Allocation Fund to the Allocation Fund as permitted by the Act. Section 7: If any provision of this ordinance shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such provision shall not affect any of the other provisions of this ordinance. Section 8: All ordinances, resolutions, motions or orders in conflict with this ordinance are hereby repealed to the extent of such conflict. Section : This ordinance shall be in full force and effect immediately upon its passage by the Corporate Authorities and approval as provided by law. VOTE: AYES:5 NAYS: 0 ABSENT: 1 PASSED this 27th day of October 2020. APPROVED this 27th day of October 2020. APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy, Village Clerk