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ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $170,000,000 GENERAL OBLIGATION LIMITED TAX PARK BONDS OF 2023 IN ONE OR MORE SERIES
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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 $170,000,000 General Obligation Limited Tax Park Bonds in one or more series collectively, the “Series 2023 Limited Tax Bonds”). The Series 2023 Limited Tax Bonds consist of the following series: (i) $40,000,000 of General Obligation Limited Tax Park Bonds, Series 2023B (the “Series 2023B Capital Project Bonds”) to finance the cost of payment of land condemned or purchased for parks, and for building, maintaining and improving parks and (ii) $130,000,000 of General Obligation Limited Tax Refunding Bonds, Series 2023C (the “Series 2023C Refunding Bonds”) for the purpose of refunding certain outstanding debt obligations of the District. The ordinance also authorizes the execution of one or more bond orders prescribing the details of the Series 2023 Limited Tax Bonds, including the designation of the series of the Series 2023 Limited Tax 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 Series 2023 Limited Tax Bonds, and the collection of direct annual taxes for the payment of the principal of and interest on the Series 2023 Limited Tax 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 2023 Limited Tax Bonds.
II. Transaction Team
Bond Counsel: Chapman and Cutler LLP
320 South Canal Street
Chicago, Illinois 60606
Underwriters’ Counsel: Burke Burns & Pinelli, Ltd.*
70 West Madison Street
Suite 4300
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: BurgherGray LLP
River Point, 444 West Lake Street
Suite 1700
Chicago, Illinois 60606
Underwriters: Mesirow Financial, Inc.
353 North Clark Street
Chicago, Illinois 60654
Ramirez & Co., Inc.
25 South Financial Place
Suite 3900
Chicago, Illinois 60605
Siebert Williams & Shank & Co., LLC
625 North Michigan Avenue
Suite 1740
Chicago, Illinois 60611
FHN Financial Group
500 West Madison Street
Suite 1705
Chicago, Illinois 60661
Mischler Financial Group, Inc.
111 West Jackson Boulevard
Suite 1700
Chicago, Illinois 60602
Estrada Hinojosa & Company, Inc.
161 North Clark Street
Suite 1600
Chicago, Illinois 60601
Financial Advisor: Sycamore Advisors, LLC
111 West Jackson Boulevard
Suite 1700
Chicago, Illinois 60604
Independent Registered
Municipal Advisor (IRMA): Columbia Capital Management, LLC
150 South Wacker Drive, 24th Floor
Chicago, Illinois 60606
Bond Registrar/Paying Agent/
Escrow Agent and Depository: Zions Bancorporation, National Association
111 West Washington Street
Suite 1860
Chicago, IL 60602
Verification Agent: Robert Thomas CPA, LLC
8221 Ensley Lane
Shawnee Mission, KS 66206
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): 2022 and 2023 Capital Improvement Plans (to fund the remainder of the 2022 CIP of approximately $7.99 million and fund a portion of the 2023 CIP in the approximate amount of $31.5 million).
Source of Funds: Bond Proceeds
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2024-2046 (23 years)
Source of Funds: Debt Service Expense-Property Tax Levy
C. Refunding Information
If market conditions allow on the day of pricing, the District will currently refund callable bonds to achieve annual debt service savings. As described below, the bonds to be refunded will be selected at the time of pricing to achieve annual debt service savings.
IV. Explanation
The Series 2023 Limited Tax 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 2023 Limited Tax Bonds shall not exceed 6.00% and the maximum maturity date shall not be later than January 1, 2046, for the Series 2023B Capital Project Bonds and the maximum maturity date for the Series 2023C Refunding Bonds shall be no later than January 1, 2040. The proposed ordinance authorizes the following:
General Obligation Limited Tax Park Bonds, Series 2023B: (i) issue not to exceed $40,000,000 of the Series 2023B Capital Project Bonds to finance a portion of the cost of payment of land condemned or purchased for parks, and for building, maintaining and improving parks: (ii) execute a bond order prescribing the details of the Series 2023B Capital Project Bonds; (iii) pay capitalized interest and costs of issuance; and (iv) provide for levy and collection of taxes to pay interest on and principal of the Series 2023B Capital Project Bonds.
General Obligation Limited Tax Refunding Bonds, Series 2023C: (i) issue not to exceed $130,000,000 of the Series 2023C Refunding Bonds to refund all or a portion of certain maturities of the District’s currently callable General Obligation Limited Park Bonds, Series 2014A, General Obligation Limited Tax Refunding Bonds, Series 2014B, General Obligation Limited Tax Refunding Bonds, Series 2014C, General Obligation Limited Tax Park Bonds, Series 2015A and General Obligation Tax Refunding Bonds, Series 2015B (collectively, the “Refunded Bonds”); (ii) execute a bond order prescribing the details of the Series 2023C Refunding Bonds, (iii) pay costs of issuance; and (iv) provide for levy and collection of taxes to pay interest on and principal of the Series 2023C Refunding Bonds. The Series 2023C Refunding Bonds will be of similar maturities to the Refunded Bonds being refunded and result in debt service savings.
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.