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HomeMy WebLinkAboutORDINANCE - 1486 - 10/13/1981 - INDUSTRIAL REVENUE BONDSORDINANCE NO. O AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL REVENUE BONDS WITHIN THE VILLAGE OF ELK GROVE VILLAGE TO ASSIST COMMERCE AND INDUSTRY IN FINANCING ECONOMIC DEVELOP- MENT PROJECTS OR POLLUTION CONTROL FACILITIES WHEREAS, Illinois municipalities are authorized to issue Industrial Revenue Bonds in accordance with Chapter 24, Sec. 11-74-2 of the Illinois Revised Statutes; WHEREAS, it is necessary for the best interests of the Village to relieve conditions of unemployment, maintain existing levels of employment, increase the tax base of the Village, and to encourage the economic development of the Village, thereby reducing the evils attendant upon unemployment and to provide for the increased welfare and prosperity of the residents of the Village; and WHEREAS, the issuance of industrial revenue bonds to finance in whole or in part the cost of acquisition, purchase, construction, recon- struction, improvement, equipping, betterment or extension of any economic development project and/or pollution control facility in order to encourage economic development and/or protect and promote the health and welfare of the citizens of the Village is for a public purpose and is a function per- taining to the government and affairs of the Village; and WHEREAS, the establishment of basic procedures for the issuance of industrial revenue bonds is necessary and desirable to provide clarity in law and direction for subsequent actions; NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES, as follows: Section 1. Short Title. This Ordinance may be referred to as the Village of Elk Grove village Industrial Revenue Bond Enabling Ordinance. Section 2. Definitions. Whenever used in this Ordinance, unless a different meaning clearly appears from the context: (a) "bond ordinance" means an ordinance authorizing a specific issue of bonds adopted by the President and Board of Trustees of the Village in accordance with the policies set forth in this- Ordinance. (b) "economic development 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 necessary in connection therewith for use by any person, provided that the existence of such economic development project will create or retain employment opportunities in the Village and be an industrial or commercial project of good standing which will benefit the Village of Elk Grove Village. (c) "person" means any individual, partnership, copartnership, firm, company, corporation (including public utilities), association, joint stock company, trust, estate, political subdivision, state agency or any other legal entity, or its legal representative, agents or assigns. (d) "project" means any economic development project or pollution control facility or any combination thereof located within the village. (e) "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 rehabilitated buildings, rehabil- itation, reconstruction, repair or remodeling of existing building and all other necessary or incidental expenses whether directly or indirectly related to the project, including 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, and any costs or expenses which may be included under the provisions of Section 103(b) of the Internal Revenue Code of 1954 as amended. (f) "pollution" means any form of environmental pollution includ- ing, but not limited to, water pollution, air pollution, land pollution, solid waste pollution, thermal pollution, radiation contamination, or noise pollution as determined by the various standards prescribed by this state, the federal government or other governmental entities and including but not limited to, anything which is considered as pollution or environmental damage in the Environmental Protection Act, compiled as Sections 1001 through 1051 of Chapter 111-1/2 Ill. Rev. Stats. 1971, and any amendment thereto and substitution therefor. (g) "pollution control facility" means any land, interest in land, building, structure, facility system, fixture, improvement, appurtenance, addition, machinery or equipment, or any combination thereof, and all real and personal property deemed necessary in connection therewith, having to do with or the end purpose of which is, reducing, controlling or preventing pollution. (h) "lease" means 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. (i) "loan agreement" means an agreement providing for municipality to loan the proceeds derived from the issuance of bonds pursuant to this article 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 evidenced by one or more notes, debentures, bonds or other secured or unsecured debt obligations of the persons, delivered to the municipality or to the trustee under the indenture pursuant to which the bonds were issued. (j) "revenues" of a project, or derived from a project, means payments under a lease or sale contract and repayments under a loan agreement, or under notes, debentures, bonds and other secured or unsecured debt obligations of a person delivered as herein provided. (k) "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 -2- 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 at or prior to the passage of such title. (1) "industrial project" means any project used or to be used for the conduct of commerce, business, industry or the professions, or any combina- tion of the foregoing. (m) "Village" means the village of Elk Grove Village, Cook and DuPage Counties, Illinois. section 3. Legislative Declaration of Purpose. It is hereby deter- mined and declared that the purpose of this Ordinance is to provide a finan- cing device which will aid in financing the cost of projects in order to relieve conditions of unemployment, maintain existing levels of employment, increase the tax base of the Village and/or to encourage the increase of quality industry and commerce within the Village, thereby reducing the evils attendant upon unemployment and to provide for the increased welfare and prosperity of the residents of the Village. It is hereby further determined and declared to be the purpose of this article to provide a financing device which will aid in financing the cost of pollution control facilities in order to eliminate, abate or reduce the serious dangers to the public health and welfare caused by environmental pollution. These are hereby declared and determined to be public purposes and functions pertaining to the government and affairs of the Village. Section 4. Additional Powers. In addition to powers which it may now have, the Village shall have the power under this ordinance: (a) To construct, acquire by gift, purchase or lease, to reconstruct, improve, better or extend and to finance one or more projects, whether or not now or hereafter in ekistence, within the Village and, if desirable, to acquire by gift, purchase or lease, lands or rights in land in connection with any project. (b) To issue its revenue bonds to defray in whole or in part the project costs of any project and to designate an appropriate name for such bonds, which bonds shall be issued pursuant to a Bond Ordinance authorizing the same. (c) -To enter into leases or other agreements, including without limitation, loan agreements with any person in order to secure the Village's revenue bonds, provided, however, that any such lease or other agreement must provide that such person shall pay to, for or on behalf of the Village an amount sufficient to pay principal, interest, redemption premiums and all other costs in connection with the Village's revenue bonds so that such bonds will never constitute an indebtedness of the Village or the loan of its credit within the meaning of any constitutional or statutory provision. (d) To pledge to the punctual payment of bonds authorized under this Ordinance, the interest thereon, and the redemption premiums, if any, the revenue and receipts to be received pursuant to such leases or other agree- ments. (e) To mortgage such project in favor of the holder or holders of bonds issued therefor. (f) 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 (whether prior or sub- sequent to the payment in full of bonds authorized under this Ordinance) as the President and Board of Trustees of the Village 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 bond issued hereunder. -3- (g) To issue its bonds to refund, in whole or in part, bonds theretofore issued by the Village under authority of this Ordinance. Section 5. Exercise of Powers - Bonds. The exercise of all powers granted by this Ordinance may be authorized, and such bonds shall be authorized by Bond Ordinance, which may be adopted at the same meeting at which 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 40 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, convenants and conditions, and may be in such form, either coupon or registered, as the Bond Ordinance may provide or as may be subsequently determined by the President and Board of Trustees before 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 President and Board of Trustees of the Village. 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. Section 6. Title to the Project. It shall not be necessary for the Village to own or acquire any project or part thereof financed hereunder. Section 7. Convenants in Bonds. Any Bond Ordinance may contain such convenants as the Village may desire, including but not limited to convenants as to (a) the use and disposition of the revenues and receipts from the lease or other agreements or 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 rehabilitation improvements, renovations, enlargements or additions thereto; (c) the maintenance and repair of such project; (d) the insurance to be carried thereon and the use and disposition of insurance monies; (e) the appointment of any bond or trust company within or outside the State of Illinois, having the necessary trust powers as trustee for the benefit of the bond -holders, paying agent and bond registrar; (f) the investment of any funds held on behalf of the Village; and (g) the terms and conditions upon which the holders of the bonds or any portion thereof or any trustees therefore are entitled to the appointment of a receiver. The Bond Ordinance may provide that the principal of and interest on the bonds shall be secured by a mortgage or indenture of trust upon such project for which the bonds are issued and may include any improvements or extensions thereafter made. Such mortgage or indenture of trust may contain any covenants and agreements to properly safeguard the bonds not inconsistent with this Ordinance or the Bond Ordinance and shall be executed in the manner as may be provided for in the Bond Ordinance. The provisions of this Ordinance and the Bond Ordinance and any such mortgage or indenture of trust shall con- stitute 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, or until provision for payment shall have been made as provided in the Bond Ordinance, and the duties of the Village and its corporate authorities and officers under this Ordinance and any Bond Ordinance any such mortgage or indenture of trust shall be enforceable by and bond -holder by mandamus, foreclosure of any such mortgage or indenture of trust or other appropriate suit, action or proceedings in any court of competent jurisdiction, in the manner and subject to the terms of such Bond Ordinance, mortgage or indenture of trust. Section B. Signatures of Officers on Bonds - Validity of Bonds. The bonds shall bear the manual or facsimile signature of such officers of the Village as may be designated in the Bond Ordinance and such manual or facsimile signatures shall be the valid and binding signatures of the officers of the Village, notwithstanding that before the delivery thereof and payments therefor S� any or all of the persons whose signatures appear thereon have ceased to be officers of the Village. The validity of the bonds is not dependent on or affected by the validity or regularity of any proceedings relating to acquisition, purchase, construction, reconstruction, improvement, equipping, betterment or extension of the project for which the bonds are issued. The Bond Ordinance 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 9. Lien of Bonds. All bonds issued under this Ordinance shall have a lien upon the revenues and receipts derived from such lease or other agreement, and the President and Board of Trustees may provide in the Bond Ordinance for the issuance of additional bonds to be equally and rateably secured by a lien upon such revenues and receipts or may provide that the lien upon such revenues and receipts is subordinate. Section 10. Liability for Bonds. All bonds issued under and pursuant to this Ordinance shall be limited obligations of the Village payable solely out of the revenues and receipts derived from such lease or other agreement. No holder of any bonds issued under this Ordinance shall have the right to compel any exercise of taxing power of the Village to pay the bonds, the in- terest or premium, if any, thereon, and 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 Ordinance and that it does not constitute an indebtedness of the Village or a loan of credit thereof within the meaning of any constitutional or statutory provisions. Section 11. Investment of funds. The municipality, or any trustee on behalf of the municipality, may invest any funds held by it pursuant to this article in bonds, notes, certificates of indebtedness, treasury bills or other securities issued or fully guaranteed by the United States of America; in certificates of deposit or time deposits constituting direct obligations of any bank as defined by the Illinois Banking Act, as heretofore and hereafter amended. Any such securities may be purchased at the offering or market price thereof at the time of such purchase. Section 12. Exemption from Construction and Bidding Requirements for Public Buildings. The acquisition and construction of a project shall not be subject to any requirements relating to public buildings, structures, grounds, work 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 of the lease, sale or other disposition of property of the Village is not applicable to any action taken under authority of this Ordinance. Section 13. Powers Conferred as Additional and Supplemental Limita- tions Imposed - Effect. 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 any other Ordinance. Projects may be financed, acquired, purchased, constructed, reconstructed, improved, bettered, equipped and extended, and bonds may be issued under this Ordinance for such purposes, notwithstanding that any law or any other Ordinance may provide for the financing, acquisition, purchase, construction, reconstruction,' improvement, equipping,betterment and extension 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. Section 14. Severability Clause. The provisions of this Ordinance are severable and if any of its provisions or any sentence, clause or paragraph shall be held unconstitutional by any court of competent jurisdiction, the decision of such court shall not affect or impair any of the remaining provisions. -5- Section 15. Repeal of Inconsistent Proceedings. All Ordinances, Resolutions and other proceedings of the President and Board of Trustees of the Village in conflict herewith are, to the extent of such conflict, hereby repealed. Section 16. 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 13th day of October 1981. APPROVED this 13th day of October , 1981. VOTES: AYES: 6 NAYS: 0 ABSENT: _ 0 ATTEST: Fay M. Bishop Village Clerk Charles J. Zettek Village President PUBLISHED this 21st day of October , 1981, in the Elk Grove Daily Herald in pamphlet form. Ordinance No. 1486 Industrial Revenue Bonds An Ordinance Authorizing The Issuance Of Within The Village Of Elk Grove Village To Assist Commerce And Industry In Financing Economic Development Projects Or Pollution control Facilities, was duly adopted by the President and Board of Trustees on October 13, 1981• Said Ordinance has been published in Pamphlet Form pursuant to the authority of the President and Board of Trustees, Village of Elk Grove village,Cook and DuPage Counties, Illinois. Copies are available at the Village Clerk's Office, Municipal Building, 90l Wellington AvenueElk Grove Village, , Illinois. Fay M. Bishop Village Clerk