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ORDINANCE AUTHORIZING THE ISSUANCE OF BOND ANTICIPATION NOTES IN AN AMOUNT NOT TO EXCEED $40,000,000 UNDER A LINE OF CREDIT
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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 authorizing the District to issue Bond Anticipation Notes (the "BANs") in an amount not to exceed $40,000,000 under a line of credit for the purpose of paying and reimbursing a part of the cost of building, maintaining, and improving parks; and the execution of a line of credit agreement (the "Agreement") and other documents in connection with the issuance. The ordinance also authorizes the repayment of BANs by the issuance of bonds in the near future and the costs associated with entering into the Agreement. The General Superintendent and authorized officers of the District are delegated the authority to do, or cause to be done, all things necessary for the execution and establishment of a line of credit program.
A. Background
On November 19, 2014, the District issued a Request for Proposal for a Revolving Line of Credit/Direct-Pay Letter of Credit (the "RFP"), which was forwarded to 18 banks and/or financial institutions with a response due date of December 10, 2014.
The District received three responses back. Two of the banks were responsive to the RFP (Barclays and PNC Bank) and the other bank offered an alternative mode of financing (JPMorgan Chase). Some of the reasons for the low number of responses to the RFP from the banks and/or financial institutions are below:
a. The aggregated credit capacity in the Chicago market is saturated due in part to lines of credit issued to the City of Chicago and the Chicago Public Schools;
b. One of the banks would only entertain requests for $50M or above;
c. One of the banks would only entertain requests for $40M or below; and
d. Inter...
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