TITLE
ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $11,000,000 GENERAL OBLIGATION UNLIMITED TAX PARK BONDS (SPECIAL RECREATION ACTIVITY TAX ALTERNATE REVENUE SOURCE)
BODY
To: The Honorable Board of Commissioners of the Chicago Park District
I. Recommendation
It is recommended that the Board of Commissioners (the “Board”) of the Chicago Park District (the “District”) adopt an ordinance to authorize and provide for the issuance and delivery of bonds in an aggregate amount not to exceed $11,000,000 General Obligation Unlimited Tax Park Bonds, Series 2024E (the “Series 2024E SRA Bonds”) for the purpose of financing a portion of the costs of the Series 2024E SRA Bonds projects, including, without limitation, ADA-related improvements. The ordinance also authorizes the execution of a bond order prescribing the details of the Series 2024E SRA Bonds, the execution of a Bond Purchase Agreement with the underwriters identified below, the execution of a Continuing Disclosure Undertaking to effect compliance with Rule 15c2-12 of the Securities and Exchange Commission, the payment of the costs of issuance on the Series 2024E SRA Bonds, and the collection of direct annual taxes for the payment of the principal of and interest on the Series 2024E SRA Bonds. The General Superintendent and other officers of the District are authorized to do, or cause to be done, all things necessary to accomplish the issuance of the Series 2024E SRA Bonds.
II. Transaction Team
Bond Counsel: Chapman and Cutler LLP
320 South Canal Street
Chicago, Illinois 60606
Underwriters’ Counsel: Katten Muchin Rosenman LLP
525 West Monroe Street
Chicago, IL 60661
*Underwriters’ Counsel is chosen directly by the Underwriters
Issuer’s Counsel: Hardwick Law Firm, LLC
77 West Washington Street Suite 1704
Chicago, Illinois 60602
Disclosure Counsel: Charity & Associates, P.C.
20 North Clark Street
Suite 3300
Chicago, Illinois 60602
Underwriters: Jefferies LLC
155 North Wacker Drive
Suite 4200
Chicago, Illinois 60606
Cabrera Capital Markets, LLC
227 West Monroe Street
Suite 3000
Chicago, Illinois 60606
Backstrom McCarley Berry & Co., LLC
203 South LaSalle Street
Suite 2100
Chicago, Illinois 60601
Financial Advisor: Acacia Financial Group
221 North LaSalle Street
Suite 1500
Chicago, Illinois 60601
Independent Registered
Municipal Advisor (IRMA): Columbia Capital Management, LLC
150 South Wacker Drive
24th Floor
Chicago, Illinois 60606
Bond Registrar/Paying Agent/ Amalgamated Bank of Chicago
Depository: 30 North LaSalle Street
38th Floor
Chicago, Illinois 60602
Printer: ImageMaster, LLC
1182 Oak Valley Drive
Ann Arbor, MI 48108
III. Budget and Financial Information
A. Use of Proceeds
Budget Classification: Capital Funds
Fiscal Year(s): Capital Improvement Plan 2024
Source of Funds: Bond Project Proceeds
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2026-2037 (10 years)
Source of Funds: Debt Service Expense-Property Tax Levy/Special Recreation Activity
IV. Explanation
The Series 2024E Bonds will be sold through a negotiated sale with the underwriters and are expected to be issued on a tax-exempt basis. The fixed interest rate on the Series 2024E SRA Bonds shall not exceed 6.00% and the maximum maturity date shall not be later than November 15, 2037. The proposed ordinance authorizes the following:
General Obligation Unlimited Tax Park Bonds, Series 2024E (Special Recreation Activity Alternate Revenue Source): (i) issue not to exceed $11,000,000 in Series 2024E SRA Bonds to finance a portion of the costs of the special recreation projects, including, without limitation, ADA-related improvements; (ii) execute a bond order prescribing the details of the Series 2024E SRA Bonds; and (iii) provide for levy and collection of taxes to pay interest and principal on the Series 2024E SRA Bonds.
As described above, the Bonds will be sold to the underwriters pursuant to a Bond Purchase Agreement approved by the ordinance. The expected sale of the Bonds will occur in spring (subject to market conditions).
V. General Conditions
1. Conflicts: No agreement authorized herein shall be legally binding on the Chicago Park District if entered into in violation of the provisions of the Public Officer Prohibited Activities Act, 50 ILCS 105/0.01 et seq.
2. Ethics: The Chicago Park District’s Ethics Code, Chapter III of the Code of the Chicago Park District, shall be incorporated into and made part of all agreements authorized herein.