Title
ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $120,000,000 GENERAL OBLIGATION LIMITED TAX PARK BONDS OF 2025 IN ONE OR MORE SERIES
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 $120,000,000 General Obligation Limited Tax Park Bonds in one or more series collectively, the “Series 2025 Limited Tax Bonds”). The Series 2025 Limited Tax Bonds consist of the following series: (i) $55,000,000 of General Obligation Limited Tax Park Bonds, Series 2025A (the “Series 2025A 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) $65,000,000 of General Obligation Limited Tax Refunding Bonds, Series 2025B (the “Series 2025B Refunding Bonds”) for the purpose of refunding the District’s outstanding General Obligation Limited Tax Refunding Bonds, Series 2016A and 2016B. The ordinance also authorizes the execution of one or more bond orders prescribing the details of the Series 2025 Limited Tax Bonds, including the designation of the series of the Series 2025 Limited Tax Bonds, the execution of one or more bond purchase agreements 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 2025 Limited Tax Bonds, and the collection of direct annual taxes for the payment of the principal of, premium, if any, and interest on the Series 2025 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 2025 Limited Tax Bonds.
II. Transaction Team: The proposed transaction team is listed below. The transaction team exceeds the District’s MBE/WBE requirements and is currently at 62.5% MBE and 10.1% WBE.
Bond Counsel: Chapman and Cutler LLP
320 South Canal Street
Chicago, Illinois 60606
Underwriters’ Counsel: Katten Muchin Rosenman LLP
525 West Monroe Street
Chicago, Illinois 60661
Issuer’s Counsel: Hardwick Law Firm, LLC (MBE)
77 West Washington Street Suite 1704
Chicago, Illinois 60602
Disclosure Counsel: Charity & Associates, P.C. (MBE)
20 North Clark Street
Suite 3300
Chicago, Illinois 60602
Underwriters: Loop Capital Markets (Senior Manager - MBE)
425 South Financial Place, Suite 2700
Chicago, Illinois 60605
Academy Securities (Co-Senior Manager - MBE)
205 West Wacker Drive, Suite 800
Chicago, Illinois 60606
Hilltop Securities (Co-Manager)
1 South Wacker Drive, Suite 2290
Chicago, Illinois 60606
Stern Brothers (Co-Manager - WBE)
5535 N. Kenmore Avenue, #3F
Chicago, Illinois 60618
Municipal Advisor: RSI Group LLC (MBE and WBE)
205 North Michigan Avenue, Suite 810
Chicago, Illinois 60611
Independent Registered
Municipal Advisor (IRMA): Columbia Capital Management, LLC
150 South Wacker Drive
24th Floor
Chicago, Illinois 60606
III. Budget and Financial Information
A. Use of Proceeds
Budget Classification: Capital Funds
Fiscal Year(s): 2024 and 2025 Capital Improvement Plans
(To fund the remainder of the 2024 CIP of approximately $19.9 million and fund the 2025 CIP in the amount of approximately $35.0 million).
Source of Funds: Bond Project Proceeds
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2026-2049 (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 maximum annual debt service savings.
IV. Explanation
The Series 2025 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 2025 Limited Tax Bonds shall not exceed 6.00% and the maximum maturity date shall not be later than January 1, 2049, for the Series 2025A Capital Project Bonds and the maximum maturity date for the Series 2025B Refunding Bonds shall be no later than January 1, 2040. The proposed ordinance authorizes the following:
General Obligation Limited Tax Park Bonds, Series 2025A: (i) issue not to exceed $55,000,000 of the Series 2025A 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 2025A Capital Project Bonds; (iii) pay capitalized interest and costs of issuance; and (iv) provide for levy and collection of taxes to pay interest on premium if any, and principal of the Series 2025A Capital Project Bonds.
General Obligation Limited Tax Refunding Bonds, Series 2025B: (i) issue not to exceed $65,000,000 of the Series 2025B Refunding Bonds to refund the District’s outstanding General Obligation Limited Tax Bonds, Series 2016A and 2016B; (ii) execute a bond order prescribing the details of the Series 2025B Refunding Bonds, (iii) pay costs of issuance; and (iv) provide for levy and collection of taxes to pay interest on premium if any, and principal of the Series 2025B Refunding Bonds.
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 bond purchase agreement(s) shall contain a provision requiring compliance with Chapter III of the Code of the Chicago Park District (“Governmental Ethics”).