HomeMy WebLinkAboutRes 47-85 09/17/1985
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RESOLUTION NO.
47-85
A RESOLUTION AUTHORIZING THE EXECUTION OF AN
AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND
R. V. NORENE & ASSOCIATES, INC.
WHEREAS, the Village of Mount Prospect has determined that it is in
the best interest of the Village to engage the services of a financial
advisor for the Tax Increment Financing District; and
WHEREAS, a request for proposal was sent to three different financial
advisory firms; all of which responded with a proposal; and
WHEREAS, the Village staff has selected a financial advisor who is
professionally qualified and who has previously provided financial
advisory services to the Village of Mount Prospect.
NOW THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE
VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS:
SECTION ONE: That the Village President of the Village of Mount Prospect
and the Village Clerk are hereby authorized to execute an agreement
between the Village of Mount Prospect and R. V. Norene & Associates, Inc.,
said agreement is attached to this Resolution.
SECTION TWO: That this Resolution shall be in full force and effect from
and after its passage and approval in the manner provided by law.
AYES:
NAYS:
Arthur, Farley, Floras, Murauskis, Van Geem
None
ABSENT:
Wattenberg
PASSED AND APPROVED this 17th day of September, 1985.
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Mayor
ATTEST:
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Village Clerk
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R.V.NÖRENE& AssoCiates, Inc.
APPENDIX D
May 15, 1985
President and Board of
Trustees
Village of Mount Prospect
Village Hall
100 South Emerson Street
Mount Prospect, Illinois
Ladies and Gentlemen:
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We understand that you propose to fund the cost of various
improvements in a tax increment district but that the amount and type
of bonds and bond anticipation notes and timing of the sales have not
yet been established. We are pleased to offer our financial advisory
services to establish a financing program and successfully market and
deliver the necessary bonds/notes. An outline of the steps we feel
will be necessary in connection with each sale follows but, in any
event, our services will be complete and will be designed to reduce the
financing costs of the project and to enhance the Village's standing in
the financial community.
1.
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We will immediately familiarize ourselves with the project
through meetings with your staff and your attorneys and based
thereon establish a tentative financing timetable so that
close coordination will be ensured in the legal and financial
aspects of the financing.
2.
We will submit estimates to you of the annual debt service
cost and wi 11 make recommendat ions regarding the financial
plan including traditional financing vehicles and, where
applicable, the use of bond anticipation financing, variable
rate bonds, etc. These recommendations will be based upon our
review of the projected tax increment available for debt
service, your existing indebtedness and their authorizing
ordinances, your future bonding needs and the municipal bond
market.
3.
We will submit recommended debt retirement schedules for your
approval. Based upon the agreed upon financing plan, we will
meet with civic groups as you request to explain the financing
impac t.
Lake & Waukegan Office Center, Suite 215 . 1701 Lake Avenue. Glenview, IL 60025.312-998-9848
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R. V. NORENE & Associates,lnc.
4.
We will review the existing reports of your other consultants
and, where applicable, make recommendations regarding changes
therein to ensure financial feasibility.
5.
We will specify financial provisions including prior
redemption rights, the flow-of-funds, and the issuance of
additional debt, to be included in the legal proceedings for a
most attractive and successful financing. These provisions
will be designed to assure the Village of its ability to
complete the financing of all of its future needs.
6.
We will research the financial information and economic data
bearing upon you as an issuer and the successful marketing of
the bonds and will assemble same, t~gether with the details of
the bonds, into an attractive Official Statement which will
allow you to satisfy the market I s current requirements for
full disclosure. The Official Statement will be submitted to
you for approval prior to its distribution.
7.
We will advise you of the marketing procedures and
specifically recommend the time, place and method of
conducting the bid opening and sa~e of the bonds.
8.
When a bond bid opening date has been established we will:
a. arrange for the publication of the notice(s) of
sale in the national financial press.
b. make a recommendation relative to the advisability of
obtaining an investment rating and, if you elect to
request one, we shall make application on your behalf
including preparation of the necessary information.
c. recommend whether you should make appl ication for
municipal bond insurance and, if it is decided to
make such application, we shall submit the necessary
information.
d. distribute the Official Statement to a broad list of
prospect i ve bidders, investment advisors and
investing institutions.
e. solicit additional bidders by contacting prospective
bidders in advance of the sale to ensure that there
are no unanswered questions regarding the issue.
9.
We wi 11 at tend the bid opening where we wi 11 conduct
sa Ie, check the bids for accuracy and advise you of
acceptability of the best bid received.
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10.
We will assist in and coordinate all details leading up to the
delivery of the bonds, including the printing of the bonds and
calculating the amount due at delivery.
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R. V. NORENE & Associates, Inc.
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Upon completion of the delivery of your bonds, we shall
compute a record of payments of principal and interest and
provide you with a convenient reference summary of the
financing.
We shaH have no interest in the purchase or resaLe of your
obLigations nor shaLL ~e engage in any other activity ~hich may
constitute a confLict of interest ~ith performance of our services for
you. We ùJiH not obligate you for any expenses except ùJith your
appro va Z.
You will be responsible for the fees of your attorneys, bond
cpunsel, engineers/architects/planners and are to pay all of your
ordinary expenses including advertising, printing and distribution of
Official Statements, the purchase (if applicable) of a rating for the
bonds, the purchase (if applicable) of municipal bond insurance, bond
registrar/paying agent fees and printing and delivery of the bonds. We
will assist you by arranging for the advertisement of the sale in the
national financial press and, where applicable, will obtain competitive
bids on the necessary printing.' ,
For our services we are to be paid a fee which shall include our
own ordinary expenses, our necessary travel expenses between Mount
Prospect/Glenview!Chicago and our services in full which, in addition
to those outlined in this Agreement, shall include all necessary and
usual functions to complete each financing. In the event it is deemed
necessary to travel to New York City in connection with the Village's
application for an investment rating, we are to be reimbursed for our
out-of-pocket expenses and travel costs.
Our fee is to be based upon the par amount of bonds delivered and
calculated as follows:
For General Obligation Bonds: A minimum fee for each bond sale of
$4,500 plus $2.75 per $1,000 par amount for all bonds delivered in
excess of $1,000,000. It is understood that for purposes of
determining our fee, any bond payabLe from property taxes, ~hether
it be termed a variabLe rate issue, demand rate issue or other
credit/Liquidity support obligation, is to be considered a generaL
obligation bond.
For General Obligation Bond Anticipation Notes: A minimum fee for
each sale of $10,000 plus $1.00 per $1,000 par amount for all
notes delivered in excess of $1,000,000.
Our fee is to be due at the time of the award of the low bond/note
bid and payable upon receipt of the proceeds of the issue. If for any
reason no bond/note award is made, no fee is due. While this agreement
is intended to expire upon the completion of the last financing for the
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R. V. NORENE& Associates, Inc.
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presently contemplated tax increment project, the Village is given the
option of extending the terms hereof to any general obligation
financing that occurs within 18 months of the last sale contemplated
herein.
Respectfully submitted,
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President
R. V. Norene & Associates, Inc.
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The above proposal accepted this
You are instructed to proceed.
day of
1985.
Attest:
VILLAGE OF MOUNT PROSPECT, ILLINOIS
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. ViLLage CLerk
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ViHage President
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