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HomeMy WebLinkAboutORDINANCE - 1707 - 3/26/1985 - HOUSING REVENUE BONDS, ISSUANCE OFNO._j.= _ AN ORDINANCE PROVIDING FOR THE ISSUANCE OF HOUSING REVENUE BONDS BE IT ORDAINED by the President and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, Illinois as follows: SECTION ONE: DEFINITIONS. Whenever in this Ordinance unless a differing meaning clearly appears from the context: (a) Lease includes a lease containing an option to purchase the project for a nominal sum upon payment in full, or provision therefor, of all bonds issued in connection with the project and all interest thereon and all other expenses in connection with the project. (b) Loan Agreement means an Agreement provi- ding for the municipality to loan (or otherwise make available to another person for the purpose of loaning) the proceeds derived from the issuance of bonds pursuant to this Ordinance to one or more persons to be used to pay the cost of one or more projects and providing for the repayment of such loan by the other persons, and which may provide for such loans to be secured or evi- denced by one or more notes, debentures, bonds or other.secured or unsecured debt obligations of the persons which may be delivered to (or the proceeds of which may be pledged to) the municipality or to the trustee under the indenture pursuant to which the bonds were issued. (c) Municipality means the Village of Elk Grove Village, Illinois. (d) Person means any individual, partnership, co -partnership, firm, company, corporation, associa- tion, joint stock company, trust, estate, political subdivision, state agency, or any other legal entity or its legal representative, agent or assigns. (e) Project means any land, interest in land, building, structure, facility, system, fixture, improvement, addition, appurtenance, machinery or equipment or any combination thereof and all real and personal property deemed to be necessary in connection therewith, for use as residential property, provided that the exis- tence of such project will increase the number of decent, safe and sanitary dwelling units in the municipality. (f) 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, equipment and site development of new and rehabili- tated buildings, rehabilitation, reconstruction, repair or remodeling of existing buildings and all other necessary and incidental expenses inclu- ding 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. (g) Revenues of a project, or derived from a project, include payments under a lease or sale contract and repayments or other amounts pledged under a loan agreement, or under notes, debentures, bonds and other secured or unsecured debt obligations of a person delivered as herein provided. (h) Sale contract means a contract providing for the sale of one or more projects to one or more persons and includes a contract providing for payment of the purchase price in one or more installments. If the sale contract permits title to the project to pass to the other person prior to payment in full of the entire purchase price, it shall also provide for the other person to deliver to the municipality or to the trustee under the indenture pursuant to which the bonds were issued one or more notes, debentures, bonds or other secured or unsecured debt obligations of such person providing for timely payments, including, without limitation, interest thereon for the balance of the purchase price or prior to the passage of such title. -2- SECTION TWO: LEGISLATIVE DECLARATION OF PURPOSE. It is hereby determined and declared to be the purpose of this Ordinance to provide a financing device which will aid in financing the cost of projects in order to relieve the severe shortage of decent, safe and sanitary housing in the Village, and to thereby provide for the increased welfare and prosperity of the residents of the municipality; and the same are hereby declared and determined to be public purposes and functions pertaining to the government and affairs of the municipality, pursuant to the home rule authority vested in the municipality under the Illinois Constitution of 1970. SECTION THREE: ADDITIONAL POWERS OF MUNICIPALITY. In addition to powers which it may now have, the municipality shall have the power under this Ordinance: (a) To finance one or more projects to be owned by the municipality or any person, whether or not now or hereafter in existence, within or without the municipality or partially within or partially without the municipality, but in no event further than ten (10) miles from the territorial boundaries of such municipality. (b) To acquire, construct, improve, extend, rehabilitate, renovate and equip, and to finance for any person the acquisition, construction, improvement, extension, rehabilitation, renovation and equipping by that person of, one or more projects including any property, real or personal, improved or unimproved, necessary in connection therewith. (c) To issue its revenue bonds to defray or otherwise finance in whole or in part the -3- project costs of any project and to designate an appropriate name for such bonds. (d) To rent, lease or sell any project to any person pursuant to a lease agreement or sale contract or to enter into a loan agreement with any person with respect to any project in such manner that payments and other revenues to be received with respect to the project shall produce receipts sufficient to provide for the prompt payment at maturity of principal, interest and redemption premiums, if any, upon all bonds issued to finance the cost of such project. (e) To pledge to the punctual payment of bonds authorized under this Ordinance, the interest thereon, and the redemption premiums, if any, the revenues to be received from or derived with respect to such project. (f) To mortgage, or cause to be mortgaged, such project for the benefit of the holder or holders of bonds issued therefor. (g) To sell and convey such project, including without limitation the sale and conveyance thereof subject to a mortgage, if any, as provided in this Ordinance, for such price and at such time as the governing body of the municipality may determine. However, no sale or conveyance of such project shall ever be made in such manner as to impair the rights or interests of the holder or holders of any bonds issued to finance the project costs of such project. (h) To issue its bonds to refund in whole or in part, bonds theretofore issued by such municipality under authority of this Ordinance. SECTION FOUR. EXERCISE OF POWERS: BONDS GENERALLY. The exercise of all powers granted by this Ordinance may be authorized and bonds may be authorized to be issued under this Ordinance for the purposes set forth in this Ordinance by Ordinance of the governing body of the munici- pality which may be adopted at the same meeting at which -4- it is introduced and shall take effect immediately upon adoption. The bonds shall bear interest at such rate or rates, 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-five (45) 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, including coupon and registered, as such Ordinance may provide or as may be subsequently determined by the governing body before or at the time the bonds are issued. The bonds may be sold at public or private sale in such manner and upon such terms as may be deemed advisable by the governing body of the municipality. Pending the preparation of the definitive bonds, interim receipts or certificates in such form and with such provisions as the governing body of the municipality may determine, may be issued to the purchaser or purchasers of bonds sold pursuant to this Ordinance. The bonds and interim receipts or certificates shall be deemed to be securities and negotiable instruments within the meaning and for all purposes of the "Uniform Commercial Code". -5- SECTION FIVE. COVENANTS IN BONDS; MORTGAGE OR INDENTURE OF TRUST. Any Ordinance authorizing the issuance of bonds under this Ordinance may contain covenants as to: (a) the use and disposition of the revenues from the project for which the bonds are to be issued, including the creation and maintenance of reserves; (b) the issuance of other or additional bonds relating to the project or any rehabilita- tion, improvements, renovations, enlargements or additions thereto;_ (c) the maintenance and repair of such projects; (d) the insurance to be carried thereon and the use and disposition of insurance moneys; (e) the appointment of any bank or trust company within or outside the State of Illinois, having the necessary trust powers as trustee for the benefit of the bondholders, paying agent and bond registrar; (f) the investment of any funds held by such trustee; and (g) terms and conditions upon which the holders of the bonds or any portion thereof or any trustees therefor, are entitled to the appoint- ment of a receiver. Any Ordinance authorizing the issuance of bonds under this Ordinance may provide that the principal of and interest on any bonds issued under this Ordinance shall be secured by a mortgage or indenture of trust covering such project for which the bonds are issued and may include any improve- ments or extensions thereafter made. Such mortgage or indenture of trust may contain such covenants and agreements to properly safeguard the bonds as may be provided for Q. in the Ordinance authorizing such bonds and shall be executed in the manner as may be provided for in this Ordinance. The provisions of this Ordinance and any such Ordinance or Ordinances and any such mortgage or indenture of trust shall constitute a contract with the holder or holders of the bonds and 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, and the duties of the municipality and its corporate authorities and officers under this Ordinance and any such Ordinance or indenture of trust shall be enforceable by any bondholder by mandamus, foreclosure of any such mortgage or indenture of trust or other appropriate suit, action or proceedings in any court of competent jurisdiction; provided the Ordinance of any mortgage or indenture of trust 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 the holders or owners of a majority of the then outstanding principal amount of the bonds. SECTION SIX. SIGNATURES OF OFFICERS ON BONDS; VALIDITY OF BONDS. The bonds shall bear the mutual or facsimile signatures of such officers of the municipality as may be designated in the Ordinance authorizing such bonds, and such signatures shall be the valid and binding signatures -7- of the officers of the municipality, 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 municipality issuing such bonds. The validity of the bonds is not dependent on nor affected by the validity or regularity of any proceedings relating to the acquisition, purchase, construction, recon- struction, improvement, equipping, betterment or extension of the project for which the bonds were issued. The ordi- nance authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to this Ordinance, which recital shall be conclusive evidence of their validity and of the regularity of their issuance. SECTION SEVEN. LIEN UPON REVENUES. All bonds issued under this Ordinance have a lien upon the revenues derived from the project for which the bonds have been issued, and the governing body may provide in the Ordinance or Ordinances authorizing such bonds for the issuance of addi- tional bonds to be equally and ratably secured by a lien upon such revenues or may provide that a lien upon such revenues is subordinate. SECTION EIGHT. LIABILITY OF BONDS. All bonds issued under and pursuant to this Ordinance shall be limited obliga- tions of the municipality payable solely out of the revenues derived from the project with respect to which such bonds are issued. No holder of any bonds issued under this Ordinance has the right to compel any exercise of taxing powers of the municipality to pay the bonds, the interest or premium, if any, and the bonds do not constitute an indebtedness of the municipality 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 Ordinance and that it does not constitute an indebtedness of the municipality or a loan of credit thereof within the meaning of any constitutional or statutory provisions. SECTION NINE. INVESTMENT OF FUNDS. The municipality, or any trustee on behalf of the municipality, may invest any funds held by it pursuant to this Ordinance in bonds, notes, certificates or indebtedness, treasury bills or other securities issued or fully guaranteed by the United States of America or an agency or instrumentality thereof or any repurchase agreement for any of the foregoing; in certificates of deposit or time deposits constituting direct obligations of any bank with capital and surplus of not less than Fifty Million ($50,000,000.00) Dollars; and in the notes or other obligations of any corporation the senior unsecured debt obligations of which are rated in one of the two highest classifications for such obligations by a nationally recognized rating agency. Any such securities may be purchased at the offering or market price thereof at the time of such purchase. SECTION TEN. EXEMPTION FROM CONSTRUCTION AND BIDDING REQUIREMENTS FOR PUBLIC BUILDINGS. The acquisition and construction of a project shall not be subject to any require- ments relating to public buildings, structures, grounds, works or improvements imposed by the Illinois Revised Statutes or any other similar requirements which may be lawfully waived by this section, and any requirement of competitive bidding or restriction imposed on the procedure for award of contracts for such purpose or the lease, sale or other disposition of property of the municipality is not applicable to any action taken under authority of this Ordinance. SECTION ELEVEN. POWERS CONFERRED DEEMED ADDITIONAL AND SUPPLEMENTAL; EFFECT OF LIMITATIONS IMPOSED. The powers conferred by this Ordinance are in addition and supplemental to, and the limitations imposed by this Ordinance shall not affect, the powers conferred by any law or other Ordi- nance. Projects may be acquired, purchased, constructed, reconstructed, improved, bettered, equipped, extended and financed, and bonds may be issued under this Ordinance for such purposes, notwithstanding that any law or any other Ordinance may provide for the acquisition, purchase, construction, reconstruction, improvement, equipping, better- ment, extension and financing of a like project, or the issuance of bonds for like purposes, and without regard to the requirements, restrictions, limitations or other provisions contained in any law or any other Ordinance. -10- SECTION TWELVE. POLICY AND PROCEDURE - PAYMENT OF FEES. The Policy and Procedural Guidelines and the payment of fees and costs which heretofore have been established by the Village for the Issuance of Industrial Revenue Bonds pursuant to Resolution No. 60-81 and 61-81, shall be appli- cable to the Isuance of Housing Revenue Bonds. Any amend- ments to said Resolutions shall be applicable to the issuance of Housing Revenue Bonds as well. Legal fees paid to the Village Attorney as required by the established requirements shall be as agreed upon by the Developer and the Attorney and may be equal to but not exceed the basis paid fee to the Village. SECTION THIRTEEN. FULL FORCE AND EFFECT. This Ordi- nance shall be in full force and effect from and after its passage and approval in the manner provided by law. VOTES: AYES: 5 NAYS: 0 ABSENT: 1 APPROVED: Charles J. Zettek Village President ATTEST: Patricia S. Smith Village Clerk PASSED this 26th day of March 1985. APPROVED this 26th day of March 1985. -11-