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HomeMy WebLinkAboutORDINANCE - 1676 - 10/18/1984 - INDUSTRIAL REVENUE BONDSORDINANCE NO. 1676 AN ORDINANCE PROVIDING FOR THE FINANCING BY THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES, ILLINOIS OF LAND, BUILDINGS, MACHINERY, EQUIPMENT AND RELATED PROPERTY CONSTITUTING AN "ECONOMIC DEVELOPMENT PROJECT" WITHIN THE MEANING OF ORDINANCE NO. 1486, AS AMENDED, AUTHORIZING THE ISSUANCE OF $4,800,000 FLOATING RATE MONTHLY DEMAND INDUSTRIAL DEVELOP- MENT REVENUE BONDS (LA QUINTA MOTOR INNS, INC. PROJECT) SERIES 1984 IN CONNECTION THEREWITH; AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT BETWEEN THE VILLAGE OF ELK GROVE VILLAGE, ILLINOIS AND LA QUINTA MOTOR INNS, INC.; AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE OF TRUST, A MORTGAGE AND A BOND PUR- CHASE AGREEMENT; AND AUTHORIZING THE EXECUTION OR APPROVAL OF A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT RELATING TO THE SALE OF SAID BONDS TO THE PURCHASERS THEREOF, AND RELATED MATTERS. WHEREAS, the Village of Elk Grove Village, Cook and DuPage Counties, Illinois (the "Issuer") is a duly constituted and existing municipality within the meaning of Section 1 of Article VII of the 1970 Constitution of the State of Illinois, and is a home rule unit of government under Section 6(a) of Article VII of said Constitution; and WHEREAS, pursuant to Ordinance No. 1486 duly adopted by the President and Board of Trustees of the Village of Elk Grove Village, Illinois on October 13, 1981, as supplemented and amended (the "Enabling Ordinance"), the Issuer is authorized to issue its revenue bonds to aid in the financing of the costs of any "economic development project", as defined in the Enabling Ordinance for the purposes set forth therein; and WHEREAS, as a result of negotiations between the Issuer and La Quinta Motor Inns, Inc., a Texas corporation (the "Company"), and 0 in reliance upon a Memorandum of Agreement between the Issuer and the Company, the Company has entered into contracts for the acqui- sition, construction and installation of certain land, buildings, machinery and equipment (the "Project"), which constitute an "economic development project" within the meaning of the Enabling Ordinance and which will be of the character and accomplish the purposes provided by the Enabling Ordinance, and the Issuer is willing to issue its revenue bonds to finance in part the cost of the Project and to enter into a loan agreement with the Company upon terms which will produce revenues and receipts sufficient to provide for the prompt payment at maturity of the principal, in- terest and redemption premiums, if any, on such revenue bonds, all as set forth in the details and provisions of the Loan Agreement hereinafter identified; and WHEREAS, it is necessary and proper for the interests and convenience of the Issuer and its inhabitants to authorize the financing of the Project, and the same is a matter pertaining to the government and affairs of the Issuer; and WHEREAS, it is necessary to authorize the execution of a Loan Agreement (the "Agreement") between the Issuer and the Company, under the terms of which the Company will pay to the Issuer amounts sufficient to pay at maturity the principal, interest and redemption premiums, if any, on the revenue bonds hereinafter authorized; and WHEREAS, it is necessary for the Issuer to execute and deliver the Indenture of Trust (hereinafter sometimes referred to -2- 0 as the "Indenture") to The United States Trust Company of New York, as Trustee (the "Trustee"), for the bondholders; and WHEREAS, the revenue bonds hereinafter authorized will be sold pursuant to a Bond Purchase Agreement dated October 18, 1984 (the "Bond Purchase Agreement") between the Issuer and the Under- writers named therein; and WHEREAS, it is necessary to authorize the sale of said bonds and to approve the form of the Preliminary Official Statement Dated October 22, 1984 (the "Preliminary Official Statement") which will be used by the Underwriter in conection with the sale of the Bonds; and WHEREAS, the Issuer has caused to be prepared and presented to this meeting the following documents, which the Issuer proposes to enter into or approve: 1. The form of Agreement, dated as of October 1, 1984, between the Issuer and the Company: 2. The form of Indenture, dated as of October 1, 1984, between the Issuer and the Trustee, setting forth terms, conditions and security requirements for the proposed bond issue to finance the project; 3. The form of the proposed Floating Rate Monthly Demand Industrial Development Revenue Bonds (La Quints. Motor Inns, Inc. Project) Series 1984 (the "Bonds"); 4. The form of the Mortgage and Security Agreement, dated as of October 1, 1984 (the "Mortgage") among the Issuer, the Company, the Trustee and RepublicBank Dallas, National Association (as Issuer of a letter of credit securing payment and remarketing of the Bonds); and 5. The form of a Bond Purchase Agreement; and 6. The form of Preliminary Official Statement. =10 NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES, ILLINOIS, AS FOLLOWS: Section 1. That the form, terms and provisions of the proposed Agreement, Indenture, Mortgage and Bond Purchase Agree- ment be, and they hereby are, in all respects approved, and that the President and the Clerk of the Issuer be, and they are hereby, authorized, empowered and directed to execute, acknowledge and deliver such instruments in the name and on behalf of the Issuer; that the Agreement, the Indenture, the Mortgage and the Bond Pur- chase Agreement are to be in substantially the forms submitted to this meeting and hereby approved, with such changes therein as shall be approved by the President and Clerk of the Issuer, their execution thereof to constitute conclusive evidence of their approval of any and all changes or revisions therein from the forms of Agreement, Indenture, Mortgage and Bond Purchase Agreement hereby approved; and that from and after the execution and delivery of such instruments, the President and Clerk, agents and employees of the Issuer are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of such instruments as executed. Section 2. That the form, terms and provisions of the Preliminary Official Statement be, and they hereby are, in all respects approved, and that the President of the Issuer be, and he hereby is, authorized, empowered and directed to execute and -4- 0 deliver the Official Statement in the name and on behalf of the Issuer, in substantially the form of the Preliminary Official Statement submitted to this meeting and hereby approved, with such changes therein as shall be approved by the President of the Issuer, his execution thereof to constitute conclusive evidence of his ap- proval of any and all changes or revisions therein from the form of such instruments hereby approved; and that from and after the execution and delivery of the Official Statement, the officials, agents and employees of the Issuer are hereby authorized, empowered and directed to do all such acts and things necessary to carry out and comply with the provisions of such instrument as executed; the Issuer hereby consents to the use of the Official Statement in con- nection with the offering of the Bonds; and the actions of the officials of the Issuer in assisting in the preparation of the Preliminary Official Statement and the preparation, execution and delivery of the Official Statement and their use in connection with the offering of the Bonds are hereby in all respects approved. Section 3. That the President or the Clerk of the Issuer be and is hereby authorized, empowered and directed to cause to be prepared an issue of $4,800,000 aggregate principal amount of the Bonds of the Issuer, bearing interest at a variable rate per annum and maturing In such form and having the other terms and provisions specified in said Indenture (as executed and delivered); that said Bonds shall be executed in the name of the Issuer by the manual or fascimile signature of the President and attested by the manual or fascimile signature of the Clerk; and the seal of the Issuer shall -5- be affixed thereto; and that the President or Clerk of the Issuer shall cause the Bonds, as so executed and attested, to be delivered to the Trustee for authentication. That the form of the Bonds sub- mitted to this meeting as the same appears in the Indenture, subject to appropriate insertion and revision in order to comply with the provisions of said Indenture be, and the same hereby are, approved, and when the same shall be executed on behalf of the Issuer in the manner contemplated by the Indenture and this Ordinance in the aggregate principal amount of $4,800,000, they shall represent the approved forms of the Bonds of the Issuer. Section 4. The Bonds authorized hereunder and the in- terest thereon shall never be or be considered a general obligation of the Issuer or an indebtedness of the Issuer within the meaning of any State Constitutional provision or statutory limitation and shall not constitute or give rise to pecuniary liability of the Issuer or a charge against its general credit or taxing powers. Said Bonds shall be limited obligations of the Issuer payable solely from the revenues derived from the Project and as authorized by the Indenture of Trust and the Enabling Ordinance. Section 5. That the President or Clerk of the Issuer be and is hereby authorized, empowered and directed to issue and sell $4,800,000 principal amount of the Bonds on the terms and in the manner provided in the Bond Purchase Agreement. Section 6. That from and after the execution and delivery of said documents, the proper officials, agents and employees of -6- the Issuer are hereby authorized, empowered and directed to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of said docu- ments as executed and to further the purposes and intent of this Ordinance, including the preamble hereto. Section 7. That all acts and doings of the officials of the Issuer which are in conformity with the purposes and intent of this Ordinance and in furtherance of the issuance and sale of the Bonds in the aggregate principal amount of $4,800,000 and the fin- ancing of the Project to that amount be, and the same hereby are, in all respects, approved and confirmed. Section 8. The Company shall pay all fees and expenses of the Issuer in connection with the issuance of the Bonds including fees of counsel of the Issuer and an administrative fee of the Issuer in the amount of 1% of the aggregate principal amount of the Bonds issued. Section 9. That the provisions of this Ordinance are hereby declared to be separable, and if any section, phrase or provision shall, for any reason, be declared to be invalid, such declaration shall not affect the validity of the remainder of the sections, phrases or provisions. Section 10. That all ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. aC Section 11. That this Ordinance shall be in full force and effect upon its passage and approval in the manner provided by law. AYES: 5 NAYS: 0 PASSED AND APPROVED this 18th day of October , 1984. ATTEST: viiiage Clerk Ma ,Pipes dent