HomeMy WebLinkAboutRes 05-99 01/19/1999 RESOLUTION NO. 5L.~99
A RESOLUTION AUTHORIZING TItE REALLOCATION OF TItE
VILLAGE'S 1999 PRIVATE ACTIVITY BOND VOLUME CAP TO THE
CITY OF ROCKFORD, ILLINOIS
WHEREAS, Section 146 of the Internal Revenue Code of 1986 as amended (the "Code"),
grants Illinois home rule municipalities volume cap in the amount of $50.00 per capita per year to
issue private activity bonds; and
WltEREAS, the most recent Bureau of the Census estimate of the population of the Village
of Mount Prospect, Illinois (the "Village") is 54,040, giving the Village a private activity bond
volume cap of $2,702,000.00 for the year 1999; and
WHEREAS, the Village has not used, and does not intend to use, its 1999 private activity
bond volume cap; and
WHEREAS, the City of Rockford, Illinois ("Rockford") passed a Resolution, entering into
a Memorandum of Agreement with Ariel Management Company, on behalf of Virginia Village
Limited Partnership ("Virginia Village") to finance the acquisition and construction of an
approximately 120 unit qualified residential rental project located at 4321-27 West State Street in
Rockford (the "Project"); and
WHEREAS, Rockford has requested that the Village reallocate $2,702,000.00 of its 1999
private activity bond volume cap to Rockford to be used to issue private activity bonds for the
financing of the Project for Virginia Village because sufficient volume cap is otherwise unavailable
to Rockford; and
WHEREAS, pursuant to Section 6 of the Illinois Private Activity Bond Allocation Act (30
ILCS 345/1 et seq.) (the "Act"), including, but not limited to, the written Guidelines and Procedures
dated as of January 1, 1999, of the Governor's Office of the State of Illinois issued under the Act (the
"Guidelines and Procedures"), the Village may reallocate all or any portion of its unused private
activity bond volume cap for calendar year 1999;
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLiNOIS, as
follows:
SECTION 1: That in accordance with and pursuant to the power and authority granted by
and under Section 6 of Article VII of the Constitution of Illinois, Section 146 of the Code and
Section 6 of the Act, including the Guidelines and Procedures, the Village hereby reserves to and
for Rockford and hereby irrevocably agrees to and does hereby reallocate $2,702,000.00 of its 1999
private activity bond volume cap to Rockford to be used to issue private activity bonds for the
Project for Virginia Village.
SECTION 2: That this Resolution shall constitute the agreement of the Village to a different
allocation under Section 146(e)(3) of the Code and the "writing" required under Section 6 of the Act.
As required by the Act, Rockford shall maintain in its records for the term of the bonds a record of
reallocation as described in Section 1 of this Resolution. The Village shall file or cause to be filed,
in the Office of the Governor of the State of Illinois, on or before May 10, 1999, written evidence
of such reallocation of the volume cap to Rockford as provided in the Guidelines and Procedures
(unless notified in writing that Virginia Village will not utilize the reallocated volume cap to finance
the project). Within ten (10) calendar days of the date the bonds are issued, Rockford shall file or
cause to be filed, in the Office of the Governor of the State of Illinois, a confirmation of bond
issuance letter as provided in the Guidelines and Procedures.
SECTION 3: That a financing fee of $54,040.00 shall be paid to the Village; $5,404.00 of
said amount to be deposited with the Village within seven (7) days of the adoption of this Resolution
with the balance due fxom the proceeds of the bond closing; and all of such total financing fee
amount to be considered a project cost payable out of the bond proceeds.
SECTION 4: That the Village hereby covenants and warrants that it has taken no action or
issued bonds which would abrogate, diminish or impair its ability to fulfill the written agreement,
covenants and undertakings on its part under this Resolution.
SECTION 5: That this Resolution and the reallocation of the 1999 volume cap is contingent
upon the responsibility and obligation of Virginia Village to defend and hold harmless the Village
and its officers and employees from any claim, demand or judgment by any party, including
Rockford, which seeks money as a result of the passage of this Resolution or the action authorized
herein.
SECTION 6: That this Resolution shall be in full force and effect from and after its adoption
and approval as required by law.
ADOPTED this 19 tltlay of January ,1999, pursuant to a roll call vote as follows:
AYES: Clowes, Corcoran, Hoefert, Lohrstorfer, Nocchi, Wilks
NAYS: None
ABSENT: None
APPROVED by me this __ day of 1999.
VILLJkOE PRESI~DEN/~//
(SEAL)
ATTEST:
/ V~LLAGE CLEI~K
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