HomeMy WebLinkAboutORDINANCE - 1626 - 3/13/1984 - INDUSTRIAL DEV. REVENUE BONDORDINANCE NO. 1626
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF
A $1,700,000 INDUSTRIAL DEVELOPMENT REVENUE BOND
(FPM ASSOCIATES PROJECT) OF THE VILLAGE OF ELK
GROVE VILLAGE, ILLINOIS TO FINANCE THE ACQUISI-
TION OF CERTAIN LAND AND THE CONSTRUCTION THEREON
OF A CERTAIN INDUSTRIAL FACILITY FOR FPM ASSOCI-
ATES, AN ILLINOIS GENERAL PARTNERSHIP; THE EXECU-
TION AND DELIVERY OF AN AGREEMENT AMONG FPM ASSO-
CIATES, CITIZENS BANK & TRUST COMPANY AND SAID
VILLAGE PROVIDING FOR THE REPAYMENT OF THE LOAN
OF THE PROCEEDS OF SAID BOND; THE EXECUTION AND
DELIVERY OF AN ASSIGNMENT AND SECURITY AGREEMENT
TO SECURE SAID BOND; AND RELATED MATTERS.
WHEREAS, Section 6(a) of Article VII of the 1970 Con-
stitution of the State of Illinois provides that a municipality
which has a population of more than 25,000 is a home rule unit
and may thereby exercise any power and perform any function per-
taining to its government and affairs including, but not limited
to, the power to regulate for the protection of the public
health, safety, morals and welfare; to tax; and to incur debt;
and
WHEREAS, the Village of Elk Grove Village, Illinois
(the "Village") is a municipality which has a population of more
than 25,000 and is therefore a home rule unit; and
WHEREAS, the Village is authorized, pursuant to its
home rule powers and its Ordinance No. 1486, adopted by its Pres-
ident and Board of Trustees on October 13, 1981, as supplemented
and amended (the "Enabling Ordinance"), to acquire, construct,
reconstruct, improve, better or extend one or more "economic
development projects" (as defined in the Enabling Ordinance)
located within the Village and to issue its revenue bonds for the
purpose of financing the costs thereof; and
WHEREAS, so as to accomplish the purposes of relieving
conditions of unemployment and the evils attendant upon unemploy-
ment and to increase employment opportunities within the Village,
the Village has determined that it is necessary and advisable to
finance a portion of the costs of acquiring approximately 3.75
acres of vacant land and constructing thereon a 50,000-55,000
square foot manufacturing facility located at the southeast cor-
ner of Greenleaf Avenue and Lively Boulevard in the Village
(hereinafter referred to as the "Project") to be owned by
Citizens Bank & Trust Company, not personally, but as trustee
under a land trust of which FPM Associates, an Illinois general
partnership (the "Borrower") will be the sole beneficiary, and to
be leased to and used by FPM Heat Treating Inc., a corporation
organized and existing under the laws of the State of Illinois
(the "Company") for the heat treating of metal parts and compo-
nents; and
WHEREAS, it is proposed to finance a portion of the
cost of the Project through the issuance of an Industrial Devel-
opment Revenue Bond (FPM Associates Project) of the Village in
the principal amount of $1,700,000 (the "Bond") and the loan of
the proceeds thereof to the Borrower; and
WHEREAS, an Agreement, to be dated as of March 1, 1984
(the "Agreement") with respect to the Project and the Bond will
-2-
be executed by and among the Borrower, Citizens Bank & Trust
Company (the "Purchaser") and the Village, whereby the Borrower
will covenant and agree to make installment payments, evidenced
by its promissory note (the "Note"), sufficient to provide for
the payment of the principal of and interest on the Bond, as and
when the same become due and payable and to make such other pay-
ments and satisfy such other obligations as may be required by
the provisions thereof, and the Purchaser will agree to purchase
the Bond; and
WHEREAS, the Bond is to be secured by an Assignment and
Security Agreement, to be dated as of March 1, 1984 (the "Assign-
ment") by and between the Village and the Purchaser, whereby the
Village will pledge and assign to the Purchaser the Note and
certain of its interests in and to the Agreement; and
WHEREAS, pursuant to the provisions of the Tax Equity
and Fiscal Responsibility Act of 1982, a public hearing on the
proposed plan of financing of the Project has been held by the
President and Board of Trustees of this Village pursuant to pub-
lic notice and the President and Board of Trustees of this
Village desire to make a record by this Ordinance that the pro-
posed plan of financing is approved;
NOW, THEREFORE, Be It Ordained by the President and
Board of Trustees of the Village of Elk Grove Village, Illinois
as follows:
-3-
Section 1. That the President and Board of Trustees of
this Village do hereby approve the plan of financing of the Proj-
ect as hereinabove described, and the issuance of industrial
development revenue bonds pursuant to such plan in an aggregate
principal amount not to exceed $2,100,000, and do hereby declare
that this Ordinance constitutes the public approval of said plan
of financing required by Section 103(k) of the Internal Revenue
Code of 1954, as amended.
Section 2. That the action of the Village Clerk in
publishing a notice of the public hearing as required by the Tax
Equity and Fiscal Responsibility Act of 1982 is hereby in all
respects ratified and confirmed.
Section 3. That, in order to finance a portion of the
cost of the Project, the Bond be and the same is hereby auth-
orized and ordered to be issued and sold to the Purchaser pur-
suant to the Agreement in substantially the form presented to and
filed with the minutes of this meeting and containing substan-
tially the terms and provisions set forth therein, and the forms,
terms and provisions of the Bond and the Agreement are hereby
approved, and the President and the Village Clerk (or in the
absence of the Village Clerk, the Acting Village Clerk) are
hereby authorized and directed to execute, seal and deliver the
Agreement, and said officials are hereby authorized and directed
to execute, attest, seal and deliver the Bond as provided in the
Agreement; and that the Village make the proceeds of the Bond
-4-
available to the Borrower to defray a portion of the cost of the
Project, pursuant to the Agreement.
Section 4. That the Village will pledge and assign to
the Purchaser the Note and certain of its interests in and to the
Agreement, pursuant to the Assignment, in substantially the form
presented to and filed with the minutes of this meeting as an
exhibit to the Agreement and containing substantially the terms
and provisions set forth therein, and the form, terms and provi-
sions of the Assignment are hereby approved, and the President
and the Village Clerk (or in the absence of the Village Clerk,
the Acting Village Clerk) are hereby authorized and directed to
execute, seal and deliver the Assignment.
Section 5. That the President and/or the Village Clerk
(or in the absence of the Village Clerk, the Acting Village
Clerk) are hereby authorized and directed to execute, attest,
seal and deliver any and all documents, file all notices, obtain
all appropriate waivers and do any and all things deemed
necessary to effect the issuance and sale of the Bond and the
execution and delivery of the Agreement and the Assignment, and
to carry out the intent and purposes of this Ordinance, including
the preamble hereto.
Section 6. 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 and provisions.
-5-
Section 7. That the Village hereby elects to have the
provisions of Section 103(b)(6)(D) of the Internal Revenue Code
of 1954, as amended, apply to the Bond authorized by this Ordi-
nance, and the President or the Village Clerk (or in the absence
of the Village Clerk, the Acting Village Clerk) is hereby
directed to file or cause to be filed an appropriate statement
relating to such election with the Internal Revenue Service.
Section 8. That all ordinances or resolutions and
parts thereof in conflict herewith are hereby repealed to the
extent of such conflict.
Section 9. That this Ordinance shall take immediate
effect upon its adoption.
Adopted March 13, 1984.
President
Attest:
Vi lage C1eY
Trustee Petri moved and Trustee
ua,iaor seconded the motion that said ordinance
as presented and read by the Village Clerk be adopted.
After a full discussion thereof, the President directed
that the roll be called for a vote upon the motion to adopt the
ordinance as read.
Upon the roll being called, the following Trustees
voted AYE: Tnatn. IThlarik, Bosslet, Chernick, Hauser, Petri
The following Trustees voted NAY: none
Whereupon the President declared the motion carried and
the ordinance adopted, and henceforth did approve and sign the
same in open meeting and did direct the Clerk to record the same
in full in the records of the President and Board of Trustees of
the Village of Elk Grove Village, Illinois.
Other business not pertinent to the adoption of said
ordinance was duly transacted at said meeting.
Upon motion duly made and seconded, the meeting was
adjourned.
I, Patricia S. Smith , do hereby certify that I am
the duly quali�ncl- acting Clerk of the Village of Elk Grove
Village, Illinois, and as such officer I am the keeper of the
records and files of the President and Board of Trustees of said
Village.
I do further certify that the foregoing constitutes a
full, true and complete transcript of the minutes of the legally
convened meeting of the President and Board of Trustees of said
Village held on the 13th day of March, 1984, insofar as same
relates to the adoption of an ordinance entitled:
AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF A
$1,700,000 INDUSTRIAL DEVELOPMENT REVENUE BOND (FPM
ASSOCIATES PROJECT) OF THE VILLAGE OF ELK GROVE
VILLAGE, ILLINOIS TO FINANCE THE ACQUISITION OF
CERTAIN LAND AND THE CONSTRUCTION THEREON OF A
CERTAIN INDUSTRIAL FACILITY FOR FPM ASSOCIATES, AN
ILLINOIS GENERAL PARTNERSHIP; THE EXECUTION AND
DELIVERY OF AN AGREEMENT AMONG FPM ASSOCIATES,
CITIZENS BANK & TRUST COMPANY AND SAID VILLAGE PRO-
VIDING FOR THE REPAYMENT OF THE LOAN OF THE PRO-
CEEDS OF SAID BOND; THE EXECUTION AND DELIVERY OF
AN ASSIGNMENT AND SECURITY AGREEMENT TO SECURE SAID
BOND; AND RELATED MATTERS.
a true, correct and complete copy of which as adopted at said
meeting appears in the foregoing transcript of the minutes of
said meeting.
I do further certify that the deliberations of the
President and Board of Trustees on the adoption of said ordinance
were taken openly; that the vote on the adoption of said ordi-
nance was taken openly; that said meeting was held at a specified
time and place convenient to the public; that notice of said
meeting was duly given to all newspapers; radio or television
stations and other news media requesting such notice; and that
said meeting was duly called and held in strict accordance with
the provisions of "AN ENABLING ORDINANCE in relation to meet-
ings," approved July 11, 1957, as amended, and that said Presi-
dent and Board of Trustees have complied with all of the applica-
ble provisions of said Enabling Ordinance and its procedural
rules in the adoption of said ordinance.
IN WITNESS WHEREOF, I have hereunto affixed my official
signature and the seal of said Village, this 14th day of March,
1984.
��tl�.i,. Jam'• i%�
Village Clerk, illage o�-
Elk Grove Village, Illinois
MINUTES of a regular public meeting of
the President and Board of Trustees of
the Village of Elk Grove Village,
Illinois, held in the Municipal Building
in said Village at 8:10 P.M., on the 13th
day of March, 1984.
e * �
The President called the meeting to order and directed
the Village Clerk to call the roll.
Upon roll call, the following answered present:
Charles J. Zettek , President, and Trustees: Joseph T.
Bosslet, Ronald L. Chernick, Edward R. Hauser, James P. Petri, Michael A. Tonto,
and Stephen M. Uhlarik
The following were absent: none
Trustee Petri presented, and the
Village Clerk read in full the following ordinance: