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HomeMy WebLinkAboutORDINANCE - 1390 - 8/12/1980 - ALEXIAN BROS MED CTRORDINANCE NO. 1390 AN ORDINANCE RELATING TO ACQUISITION, CONSTRUCTION AND FINANCING OF HOSPITAL FACILITIES WHEREAS, Section 6(a) of Article VII of the 1970 Constitution of Illinois provides that "any municipality which has a population of more than 25,000 (is) a Home Rule Unit", and Elk Grove Village, Cook and DuPage Counties, Illinois (the"Village"),hasa population in excess of 25,000 and is therefore a Home Rule Unit and may, under the powers granted by Section 6 (a) of Arttcle VII "exercise any power and perform any function pertaining to its govern- ment and affairs..."; and WHEREAS, the President and Board of Trustees has heretofore found and does hereby find that it is necessary and in the interests of the public health and the welfare of the residents of the Village to use the powers granted to the Village by said Section of the 1970 Constitution to authorize the issuance of bonds by the Village so that the Village may assist not-for- profit hospitals open to the public in building, maintaining and improving hospital and health care facilities for the benefit of the residents of the Village; and WHEREAS, the issuance of hospital facility revenue bonds to finance, in whole or in part, the cost of acquisition, purchase, construction, reconstruction, improvement, equipping, betterment or extension of any hospital and health care facility in order to provide improved health care for the residents of the Village is for a public purpose and is a function pertaining to the government and affairs of the Village; and WHEREAS, the establishment of basic procedures for the issuance of hospital facility 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 Elk Grove Village, Counties of Cook and DuPage, Illinois: Section 1. Short Title This Ordinance may be referred to as the Elk Grove Village Hospital Facility Revenue Bond Enabling Ordinance. Section 2. Definitions Whenever used in this ordinance, unless a different meaning clearly appears from the context: (1) "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 and procedures set forth in this ordinance. (2) "Hospital" means any corporation organized under, or duly authorized to conduct business as a foreign corporation pursuant to the provisions of, the Illinois General Not For Profit Corporation Act for the purpose of rendering hospital and other general health care services. (3) "Hospital Facility" means any property of any kind having to do with providing hospital and general health care services located in the Village and which serves residents of the Village. (4) "Project" means the acquisition, construction, reconstruction, repair, alteration, improvement or extension of a Hospital Facility. (5) "Project Costs" means and includes the sum total of all reasonable or necessary costs incidental to a Project whether incurred before or after the effective date of this ordinance, including without limitation the cost of studies and surveys, plans, specifications, architectural and engineering services; the provision of funds for the purpose of redeeming, retiring or otherwise paying any outstanding indebt- ness of any Hospital; legal, marketing or other special services, financing, acquisition, demolition, construction, equipment and site development of new and rehabilitated buildings, rehabilitation, reconstruction, repair or remodel- ing of existing buildings and all other necessary and incidental expenses including a reasonable 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. (6) "Village" means Elk Grove Village, Cook and DuPage Counties, Illinois. Section 3. Legislative Declaration of Purpose. It is hereby determined and declared that the purpose of this ordinance is to provide a financing device which will aid in financing the cost of Hospital Facilities; and the same is hereby declared and determined to be a public purpose and function pertaining to the government and affairs of the Village. - 2 - Section 4. Additional Powers In addition to powers which it may now have, the Village shall have the power under this ordinance: (1) 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 existence, and if desirable, to acquire by gift, purchase or lease lands or rights in land in connection with any Project. (2) To issue its revenue bonds to defray, in whole or in part, the Project Costs of any Project, which bonds shall be issued pursuant to a Bond Ordinance authorizing the same. (3) To enter into security agreements with any Hospital in order to secure the Village's revenue bonds, provided, however, that any such security agreement must provide that such Hospital 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 a loan of its credit within the meaning of any constitutional or statutory provision. (4) To pledge to the punctual payment of such bonds, the interest thereon, and the redemption premiums, if any, the revenue and receipts to be received pursuant to such security agreements. (5) To mortgage the Hospital Facility in favor of the holder or holders of bonds issued therefor. (6) To issue its bonds to refund, in whole or in part, bonds theretofore issued by the Village under the authority of this ordinance. Section 5: Exercise of Powers -- Bonds. Such bonds shall be authorized by the 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, be payable at such time, 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, - 3 - covenants 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. The bonds 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 Hospital Facility. It shall not be necessary for the Village to own or acquire any Hospital Facility or part thereof financed hereunder. Section 7. Covenants in Bonds. Any Bond Ordinance may contain covenants as to (a) the use and disposition of the revenues and receipts from the security agreement or the Hospital Facilitu 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 Hospital Facility or any rehabilitation, improvements, ren- ovations, enlargements or additions thereto; (c) the maintenance and repair of such Hospital Facility; (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, and the appoint- ment of paying agents and bond registrars; (f) the investment of any funds held by such trustee; and (g) the terms and conditions upon which the holders of the bonds or any portion thereof, or any trustees therefor, are entitled to the appointment of a receiver. The Bond Ordinance may provide that the principal of and interest on the bonds shallbe secured by a mortgage or inden- ture of trust covering such Hospital Facility for which the bonds are issued and may include any improvements or extensions thereafter made. Such mortgage or indenture of trust may contain such covenants and agreements properly to safeguard the bonds as may be provided for in the Bond Ordinance and shall be executed in the manner provided for in the Bond Ordinance. The provisions of the Bond Ordinance and any such mortgage or indenture or trust shall constitute a contract with the holder or holders of the bonds and continue - 4 - 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 any Bond Ordinance and any such mortgage or indenture of trust shall be enforceable by mandamus, foreclosure of any 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 8. Signatures of Officers on Bonds -- Validity of Bonds The bonds shall bear the signature of such officers of the Village as may be designated in the Bond Ordinance and such signatures shall be the valid and binding signatures of such officers, notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon have ceased to be officers of the Village. The vaildity of the bonds is not dependent on nor affected by the validity or regularity of any proceedings relating to the acquisition, purchase, con- struction, reconstruction, improvement, equipping, betterment, or extension of the Hospital Facility 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 g. Lien of Bonds. All bonds issued under this ordinance have a lien upon the revenues and receipts derived from the security agreement between the Village and the Hospital; and the President and Board of Trustees may provide in the Bond Ordinance for the issuance of additional bonds to be equally and ratably 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 security agreement. No holder of any bond issued under - 5 - this ordinance has the right to compel any exercise of the taxing power of the Village to pay the bonds, the interest or premium, if any, thereon, and the bonds shall not constitute an indebtness of the Village or a loan of credit thereof within the meaning of any constitutional or statutory provisions. Section 11. Exemption from Construction and Biddies Requirements for Public Buildings. The acquisition and construction of a Project shall not be subject to any requirements 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 for 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 Village is not applicable to any action taken under authority of this ordinance. Section 12. Powers Conferred as Additional and Supplemental -- Limitations 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. Hospital Facilities may be acquired, purchased, constructed, reconstructed, improved, bettered, equipped, extended and financed, and bonds may be issued under this ordinance for such purposes, not withstanding that any law or any other ordinance may provide for the acquisition, purchase, construction, reconstruction, improvement, equipping, betterment, 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. Section 13. Severability Clause. The provisions of this ordinance are severable and if any of its provisions or any sentance, 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. - 6 - Section 14, Repeal of Inconcistent Proceedinns. 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 15. Effective Date. This ordinance shall be in full force and effect from and after its passage and approval as provided by law. PASSED this 12th day of Auqust 1980. APPROVED this 12th day of August 1980, VOTE: AYES: 6 NAYS: 0 ABSENT: 0 -1--' j y C.'J Village Rresident ATTEST: V r) Village Clerk EXAMINED AND APPROVED: Corporation Counsel - 7 -