Title
ORDINANCE AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION UNLIMITED TAX BONDS (HARBOR FACILITIES REVENUES ALTERNATE REVENUE SOURCE)
IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $130,000,000 OF SERIES 2020F 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 $130,000,000 and allocated among the series of bonds as follows (collectively, the “2020 Harbor ARS Bonds”): (i) $4,000,000 General Obligation Unlimited Tax Bonds, Series 2020F-1 (Harbor Facilities Revenues Alternate Revenue Source) for the purpose of improving the District’s existing harbor facilities including but not limited to the foregoing harbor and marina improvements: breakwaters, seawalls, piers, docks, boat launching, mooring, docking, storing and repairing facilities, and all other costs related to the harbor and marina improvements; and $126,000,000 General Obligation Unlimited Tax Refunding Bonds, Series 2020F-2, 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 2020 Harbor ARS Bonds, including the designation of series of the 2020 Harbor ARS 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, payment of costs of the issuance, and the collection of harbor facilities revenues for the payment of the principal and interest on the 2020 Harbor ARS 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 2020 Harbor ARS Bonds.
II. Transaction Team
Co-Bond Counsel: Chapman and Cutler LLP
111 West Monroe Street
Chicago, IL 60603
Miller Canfield <http://www.millercanfield.com/>
225 West Washington, Suite 2600
Chicago, IL 60606
Underwriters’ Counsel: IceMiller LLP*
200 West Madison Street, Suite 3500
Chicago, IL 60606
*Underwriters’ Counsel is chosen directly by the Underwriters
Issuer’s Counsel: Hardwick Law Firm, LLC
20 South Clark Street, Suite 2120
Chicago, IL 60603
Disclosure Counsel: Shaw Legal Services, Ltd.
540 North Briar Place, Suite B
Chicago, IL 60657
Underwriters: Bank of America Securities
540 West Madison Street, 28th Floor
Chicago, IL 60661
Siebert Williams Shank & Co., LLC
625 North Michigan Avenue, Suite 1740
Chicago, Illinois 60611
Academy Securities, Inc.
550 West Van Buren Street, Suite 1410
Chicago, IL 60607
Podesta & Co.
1448 North Lake Shore Drive
Chicago, IL 60610
Samuel A Ramirez & Co., Inc.
200 North LaSalle Street, Suite 1900
Chicago, IL 60601
II. Transaction Team (continued)
Stifel, Nicolaus & Company, Incorporated
10 South Wacker Drive, 15th Floor
Chicago, IL 60606
Financial Advisor: Acacia Financial Group
221 North LaSalle Street, Suite 1500
Chicago, IL 60601
Independent Registered
Municipal Advisor (IRMA): Columbia Capital Management, LLC
150 North Michigan Avenue, Suite 2800
Chicago, IL 60601
Bond Registrar/Paying Agent/
Escrow Agent and Depository: Amalgamated Bank of Chicago | Corporate Trust
30 North LaSalle Street
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): 2020 Capital Improvement Plan
Source of Funds: Bond Proceeds
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2020-2040 (20 years)
Source of Funds: Harbor Facilities Revenues and in the event revenues are insufficient, a property tax levy will be extended.
III. Budget and Financial Information (continued)
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.
IV. Explanation
The 2020 Harbor ARS 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, 2040. The proposed ordinance authorizes the following:
IV. Explanation (continued)
General Obligation Unlimited Tax Bonds, Series 2020F-1 (Harbor Facilities Revenues Alternate Revenue Source) (the “Harbor Capital Project Bonds”) (i) issue not to exceed $4,000,000 in the Harbor Capital Project Bonds to finance improvements to the District’s existing harbor facilities including but not limited to the foregoing harbor and marina improvements: breakwaters, seawalls, piers, docks, boat launching, mooring, docking, storing and repairing facilities, and all other costs related to the harbor and marina improvements; (ii) execute a bond order prescribing the details of the Harbor Capital Project Bonds; (iii) pay capitalized interest and costs of issuance; and (iv) provide for levy and collection of taxes to pay interest and principal on the Harbor Capital Project Bonds.
General Obligation Unlimited Tax Refunding Bonds, Series 2020F-2 (the “Harbor Refunding Bonds”): (i) issue not to exceed $126,000,000 of the Series 2020F-2 Harbor Refunding Bonds to refund all or a portion of certain maturities of the District’s currently callable General Obligation Unlimited Tax Bonds (Harbor Facilities Revenues Alternate Revenue Source), Series 2010C) (collectively, the “Refunded Bonds”), (ii) execute a bond orders prescribing the details of the Harbor Refunding Bonds, (iii) p costs of issuance, and (iv) provide for levy and collection of taxes to pay interest and principal on the Harbor Refunding Bonds. The Harbor Refunding Bonds will be of similar maturities of the Refunded Bonds being refunded and result in debt service savings.
As described above, the Bonds will be sold to the underwriters pursuant to a Bond Purchase Agreement approved by the ordinance. The expected sale of the Bonds will occur in late spring (subject to market conditions).
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.
V. General Conditions (continued)
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.