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Home My WebLink AboutOrd 5451 08/17/2004 ORDINANCE NO. 5451 AN ORDINANCE AUTHORIZING AN AGREEMENT WITH NORTHERN TRUST BANK TO EXECUTE A TAXABLE NOTE IN THE AMOUNT OF $705,000 FOR FINANCING THE ACQUISITION OF PROPERTY LOCATED IN THE DOWNTOWN REDEVELOPMENT AREA TIF DISTRICT NO.1 Passed and approved by the President and Board of Trustees the 1 ih day of August, 2004 Published in pamphlet form by authority of the corporate authorities of the Village of Mount Prospect, Illinois, the 18th day of August, 2004 ORDINANCE NO. 5451 ORDINANCE AUTHORIZING AN AGREKMENT WITH NORTHERN TRUST BANK TO EXECUTE A TAXABLE NOTE IN THE AMOUNT OF $705,000 FOR FINANCING THE ACQUISITION OF PROPERTY LOCATED IN THE DOWNTOWN REDEVELOPMENT AREA TfF DISTRICT NO.1 WHEREAS, the Village of Mount Prospect (Village), located in Cook County, Illinois, is a home rule unit of government under the provisions of Article 7 of the 1970 Constitution of the State of Illinois, can exercise any power and perform any function pertaining to its government affairs, including but not limited to the power to tax and incur debt; and \VHEREAS, the Village adopted Ordinance No. 5421 authorizing the acquisition of property located at 7 South Emerson Street, Mount Prospect, Illinois; and WHEREAS, funds for the purchase of the property will be obtained through installment note financing; and WHEREAS, the Village solicited "Requests for Proposal (RFP)" from five (5) financial institutions requesting quotations on a five (5) year installment arrangement for SEVEN HUNDRED AND FIVE THOUSAND dollars ($705,000) on either fIXed or variable rates of interest; and WHEREAS, interest on such installment note will not be exempt from federal or state income taxes; and WHEREAS, the table attached to this Ordinance as Attachment "A" summarizes the proposals received; and WHEREAS, the proposal submitted by Northern Trust Bank of Chicago, Illinois with an initial variable rate of 3.07% for five (5) years is the most economically feasible proposal; and WHEREAS, the Village President and Board of Trustees of the Village have determined it is necessary and in the public interest to finance the purchase of the above referenced real property totaling SEVEN HUNDRED AND FIVE THOUSAND dollars ($705,000) through an installment note financing agreement with the Bank. NOW, THEREFORE BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS AS FOLLOWS: SECTION 1: The Corporate Authorities do hereby incorporate the foregoing WHEREAS clauses into this Ordinance as though fully set forth therein thereby making the findings as hereinabove set forth. SECTION 2: It is hereby determined that it is advisable, necessary and in the interests of the public health, safety and welfare that the Village purchase the above real property described in the foregoing WHEREAS clauses and for the purpose of paying the purchase price thereof, to enter into an agreement for installment note financing in the amount of SEVEN HUNDRED AND FIVE THOUSAND dollars ($705,000) with the Northern Trust Bank of Chicago, Illinois at a variable interest rate of 3.07% amortized over a five (5) year term payable annually as specified in their written proposal. Said proposal is attached as Attachment "B" hereto and made a part of this Ordinance. SECTION 3: Pursuant to Section 265 (b)(3) of the Internal Revenue Code, the debt will be considered a "private activity bond" as defined in Section 141 of the code and the loan is not considered a "qualified tax exempt obligation" ofthe Village. SECTION 4: For the purpose of providing the funds required to pay the installments, when and as the same fall due and until the balance due has been paid in full, the Village of Mount Prospect shall use incremental tax revenues of the Downtown Redevelopment Area TIF District No. 1 for such payments, or such other funds as they may deem necessary to procure and/or which are available. The indebtedness described herein is a general obligation backed by the full "faith and credit" of the Village. SECTION 5: The President, Vil1age Treasurer and ViHage Clerk are hereby authorized to execute all documents necessary to effectuate said financing and any other appropriate documents. SECTION 6: That this Ordinance shall be in full force and effect from and after its passage, approval and publication in pamphlet form as provided by law. AYES: Corcoran, Lohrstorfer, Skowron, Wilks, Zadel NAYS: None ABSENT: ABSTAIN: None Hoefert PASSED and APPROVED this 17th day of August, 2004. , ,/ / Gerald L. Farley, Village Presiden~/ ATTEST: /' ~,j ~- Velma W. Lowe, Village Clerk Amount to be Financed Financing:¡ Period Ontio.n One Option Tw.Q Attachment "A" Village of Mount Prospect, Illinois Summary of Financing Proposals Purchase of Property at 7 South Emerson Street $705,000 Five Years Fixed Rate - Term of Loan Variable Rate - Adjusted Annually at Payment Date Institution -----........----.-----.----......----.----..---...........-.--..--......-....-..-.-----.---.--......--..----.....-.....-----.---.-....--..---.---.......---.....-.,..--.---..----....-.....-------.. Option One Option Two Additional Provisions: Oak Brook Bank Northern Trust Bank Mount Prospect National Bank Fifth Third Bank MB Financial Bank $ Variance Between Fixed and Variable Rate Oak Brook Bank Northern Trust Bank Mount Prospect National Bank Fifth Third Bank MB Financial Bank 5.00% 5.09% 5.50% 5.95% 6.25% 4.25% 3.0"1% 3.25% no bid 4.25% Variable is 100% of Prime Variable rate based on USOR Rate Variable rate Prime less 1 % No bid for Option Two Variable is 100% of Prime Fixed Rate Interest Variable Rate Interest Variance $35,250.00 $29,962.50 $5,287.50 $35,884.50 $21,643.50 $14,241.00 $38,775.00 $22,912.50 $15,862.50 $41,947.50 nfa nfa $44,062.50 $29,962.50 $14,100.00 Attachment "8" To: Village of Mount Prospect,lllinois Proposal to Provide Taxable Installineøt Note Financing far the Purf:haseaf Real Property at 7 South Emenon Street, Mount Prospect, IUinois Terms: Amount to be Financed: Period to be Financed: Repayment Terms: $705,000 5 Years Years 1 through 3: Interest Only Year 4: $350,000 Principal, plus Interest Year 5: $355,000 Principal, plus Interest Fixed Rate: Variable Rate: 5.09 N/A % % Based on % oiPrima Rate. Interest rate to change: at annual principal payment data. % Based. on LffiOR Rate. Interest :rate to change at annual principal payment date. LIBOR Rate: 3.07 Note: Installment Bote CD be prepaid in fuU at any time without penalty. Please include the proposed amortization schedule that corresponds to the quoted rate(s). Additional Provisions/Comments: Final co~tmeJ)t Í§.Ælbject to ~hem' s nogpaJ .approv,,! procedures which w.ill..be pro~ seven ~e award...i1!9 acc~ce ofthe bid ~ern Trost Com,panv Finaneia.11:nstitutlon Deborah KnQ~~ Officer Authorized Official, Personnel ~~ SignatuTc of Authorized Official 8/10/04 Date $705.000 Village of Mount Prospect Cook County, Illinois Taxable Installment Note Financing, Series 204 Debt Service Schedule Date 09/IJ'II2004 0910112005 0310112006 0910112006 0310112007 0910112007 0310 1/20oe 0910112008 Total Principal Coucon Interest Total P+I FISCal Total 35,884.50 35,884.50 35.884.50 11,942.25 11.942.25 11.942.25 17.942.25 35,884.50 17,842.25 17,942.25 11,942.25 381.942.25 385,884.50 9.034.75 ~.O34.75 9.034.15 364,034.75 313,069.50 $125,123.00 $830,723.00 :iSO,OOC.OO 5.090% 355.000.00 $706,000.00 5.000% Ytold Statistics Bond Year Dollars..........................................................................................................................................,........................... 52,470.00 Average Ufe............................................................................................................................................................................... 3.504 Yøars Average Coupon...................................................................................,......,..............,............................................................... 5.0900000% Net Interest Cost (NICI.........................,...............................................................................,........................,..,...................."'" 5.0900000% True IntGtest Cost (TIC)...........................,............................................................................",............ .................'.....,............... 5.0706285% Bond YIeld for Arbinge Purposes.........................................................................,""""""""""""""'..........................n..o,....... 5.0106285% AlllnQuslve Cce! (AIC)......,.....................................................................................................................,.................................. 5.0706285% IRS Form 8038 Net Interest CoGt..............,.........................................................."""""""....................n...............................................,.......n... 5.0900000% Weighted Average Maturity.................................................,.............................................."....................................................... 3.504 Yeats $orIln:.!004 I SINGI.EPlJRI"OSl! i Bll~ I IO.1JSAM The Northern Trust Company Public Finance Page 1 ',w,,"m,',',',',',',',',~,~,',~,.~,',',',',',',',',',','.wm-o,',',',',',',',' ,','" ",', ,'m"".',',',.,w,.,~.,.,',',',',',',~.wm,' ',',W,'NN,= - $705,000 Village of Mount Prospect Cook County. Illinois Taxable Installment Note Financing, Serles 204 Debt Service Schedule Dale Principal CaUDan Inwrest Total P.¡.I Fiscal To~ 21.643.~ 21,643.50 21.643.50 10,821.75 10.821.75 10,821.15 10.821.75 21 ,643.50 10,821.75 10,821.75 10.821.75 350,821.75 371,643.50 5,449.25 5.449.25 5,449.25 360.449.25 365,898.50 $75,829.00 $780.829.00 0910112004 0910112005 0310112006 0910112006 0310112001 0910112007 0310112008 0910112008 Total 350,000.00 3.010% 355,000.00 $705,000.00 3.070% YIeld Statistics Bond Vear [)Olairs'H"""""""oo""""""""""".""""""""""""",.................................................................................................. $2,470.00 Average Ur...................,......................................................00""""""""","""""""""""""""""""""""".""00'"""""""""""'" 3.504 Yesl'$ Average Coupon.......................................................................""""""""""""""""""""""""""""."""""""""'""""""""""" 3.0700000% Net Intereat Cost (NIC).........................................................oo.................................................................................................,.. 3.0700000% True InwAlst Cost (I1CJ............................................................................................................,................................................. 3.0630785% Bond Yield for Arbitrage Purposes........................................................................................................................................,..... 3.0630785% All Inclusive Coat (AlC).............................................................................................,................................................................. 3.0630755% IRS form 8038 Net Interest Cost................................................................................."""""""""""""""""""""""""""""""""'"""""""""", 3.0700000% Weigh led Average Malurlty....................,.................................................................................................................................... 3.504 Years SIltlirs;lUlU Vatf8Þle R.õre I SINGUE PURPOsE I &<'1Qr2C1()f I 10:11 AM The Northern Trust Company Public Finance Page 1 . 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