March 9, 2016 - Board Meeting
Title
ORDINANCE AUTHORIZING THE ISSUANCE OF BOND ANTICIPATION NOTES IN AN AMOUNT NOT TO EXCEED $40,000,000 UNDER A LINE OF CREDIT
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 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 as part of the District's capital programs and the payment of capitalized interest and the costs of issuing the notes.
The ordinance authorizes the District to exercise the option of renewing a line of credit with PNC Bank National Association for one additional year. The ordinance authorizes the execution of a line of credit agreement and other documents in connection with the issuance of BANs as well as the repayment of the BANs by the issuance of general obligation bonds in the near future. 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 Information
On November 19, 2014, the District issued a Request for Proposal for a Revolving Line of Credit/Direct-Pay Letter of Credit (the "RFP") for terms covering a period of two years, 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:
I. Recommendation (c...
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