Title
ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $60,000,000 GENERAL OBLIGATION LIMITED TAX PARK BONDS, SERIES 2023A
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 $60,000,000 General Obligation Limited Tax Park Bonds, Series 2023A (the “2023A Bonds”) for the following purposes:
(i) to pay-off the Bond Anticipation Notes Line of Credit (BANs/LOC) with PNC Bank, National Association (the “PNC Bank”) for the construction of Park 596 on or by June 1, 2023; and
(ii) to finance the cost of payment of land condemned or purchased for parks, and for building, maintaining, and improving parks (fund the remainder of the 2021 CIP and a portion of the 2022 CIP).
The ordinance also authorizes the execution of a bond order prescribing the details of the 2023A 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 capitalized interest and costs of issuance on the 2023A Bonds, and the collection of direct annual taxes for the payment of the principal and interest on the 2023A 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 2023A Bonds.
II. Transaction Team
Bond Counsel: Katten Muchin Roseman LLP
525 West Monroe Street
Chicago, IL 60661
Underwriters’ Counsel: Charity & Associates, P.C.*
20 North Clark Street, Suite 3300
Chicago, Illinois 60602
*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: Foley & Lardner LLP
321 North Clark Street, Suite 3000
Chicago, Illinois 60654
Underwriters: Janney Montgomery Scott
20 North Wacker Drive, Suite 2035
Chicago, IL 60606
Melvin Securities LLC
20 North Clark Street, Suite 3300
Chicago, Illinois 60602
North South Capital LLC
321 West Maple, Suite 100
New Lenox, Illinois 60451
Financial Advisor: Meristem Advisors LLC
2400 North Lakeview, Suite 1201
Chicago, Illinois 60614
Independent Registered
Municipal Advisor (IRMA): Columbia Capital Management, LLC
150 South Wacker Drive, 24th Floor
Chicago, IL 60606
Bond Registrar/Paying Agent
and Depository: The Bank of New York Mellon Trust Company, N.A.
2 North LaSalle Street, Suite 700
Chicago, IL 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): 2021 and 2022 Capital Improvement Plans
(To fund the remainder of the 2021 CIP of approximately $4 million and fund a portion of the 2022 CIP in the approximate amount of $23 million).
Source of Funds: Bond Proceeds
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2023-2046 (24 years)
Source of Funds: Debt Service Expense-Property Tax Levy
C. Refunding Information
To also pay-off approximately $33 million of BANs/LOC with PNC Bank for the construction of Park 596.
IV. Explanation
The 2023A Bonds will be sold through a negotiated sale with the underwriters and are expected to be issued on a tax-exempt basis. The interest rate on the Bonds shall not exceed 6.00% and the maximum maturity date shall not be later than January 1, 2045. The proposed ordinance authorizes the following:
General Obligation Limited Tax Park Bonds, Series 2023A: (i) issue not to exceed $60,000,000 in the Series 2023A Bonds to finance a portion of the cost of payment of land condemned or purchased for parks, and for the building, maintaining, improving and protecting of park facilities; (ii) execute a bond order prescribing the details of the Capital Project Bonds; and (iii) pay capitalized interest and the cost of issuance.
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.