Title
ORDINANCE AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $150,000,000 PRINCIPAL AMOUNT OF GENERAL OBLIGATION LIMITED TAX REFUNDING BONDS, TAXABLE SERIES 2021A
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 $150,000,000 principal amount of General Obligation Limited Tax Refunding Bonds, Taxable Series 2021A (the “Taxable Series 2021A Bonds”): (i) the Taxable Series 2021A Bonds will advance refund all or a portion of the $43,165,000 General Obligation Limited Tax Park Bonds, Series 2013A; the $10,700,000 General Obligation Limited Tax Refunding Bonds, Series 2013B; the $40,405,000 General Obligation Limited Tax Park Bonds, Series 2014A; the $62,485,000 General Obligation Limited Tax Refunding Bonds, Series 2014B; the $39,445,000 General Obligation Limited Tax Refunding Bonds, Series 2014C; the $40,000,000 General Obligation Limited Tax Park Bonds, Series 2015A; and the $32,220,000 General Obligation Limited Tax Refunding Bonds, Series 2015B. The ordinance also authorizes the execution of a bond order prescribing the details of the Taxable Series 2021A 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 issuance, and the collection of direct annual taxes for the payment of the principal and interest on the Taxable Series 2021A 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 Taxable Series 2021A Bonds.
II. Transaction Team
Co-Bond Counsel: Katten Muchin Rosenman LLP
525 West Monroe Street
Chicago, IL 60661
BurgherGray LLP
444 West Lake Street, Suite 1700
Chicago, IL 60606
Underwriters’ Counsel: Burke, Warren, MacKay & Serritella, P.C*
330 North Wabash Avenue, Suite 2100
Chicago, IL 60611
*Underwriters’ Counsel is chosen directly by the Underwriters
Issuer’s Counsel: Hardwick Law Firm, LLC
20 South Clark Street, Suite 2120
Chicago, Illinois 60603
Disclosure Counsel: Miller, Canfield, Paddock and Stone, P.L.C.
225 West Washington Street, Suite 2600
Chicago, Illinois 60606
Underwriters: Morgan Stanley & Co., LLC
440 South LaSalle Street, 37th Floor
Chicago, IL 60605
Mesirow Financial, Inc.
353 North Clark Street
Chicago, Illinois 60654
Bancroft Capital LLC
501 Office Center Drive, Suite 130
Fort Washington, PA 19034
Blaylock Van, LLC
180 North LaSalle Street, Suite 3145
Chicago, IL 60601
Estrada Hinojosa and Company Inc.
161 North Clark Street, Suite 1600
Chicago, IL 60601
II. Transaction Team (continued)
North South Capital LLC
321 West Maple Street, Suite 201
New Lenox, IL 60451
Financial Advisor: Sycamore Advisors, LLC
111 West Jackson Blvd., Suite 1700
Chicago, IL 60604
Independent Registered
Municipal Advisor (IRMA): Columbia Capital Management, LLC
150 South Wacker Drive, 24th Floor
Chicago IL 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: Operating Funds
Fiscal Year(s): 2021
Source of Funds: Bond Proceeds
III. Budget and Financial Information (continued)
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2021-2041 (20 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.
IV. Explanation
The Taxable Series 2021A 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, 2041. The proposed ordinance authorizes the following:
General Obligation Limited Tax Refunding Bonds, Taxable Series 2021A: (i) issue not to exceed $150,000,000 principal amount of Taxable Series 2021A Bonds: (i) the Taxable Series 2021A Bonds will advance refund all or a portion of the $43,165,000 General Obligation Limited Tax Park Bonds, Series 2013A; the $10,700,000 General Obligation
Limited Tax Refunding Bonds, Series 2013B; the $40,405,000 General Obligation Limited Tax Park Bonds, Series 2014A; the $62,485,000 General Obligation Limited Tax Refunding Bonds, Series 2014B; the $39,445,000 General Obligation Limited Tax Refunding Bonds, Series 2014C; the $40,000,000 General Obligation Limited Tax Park Bonds, Series 2015A; and the $32,220,000 General Obligation Limited Tax Refunding Bonds, Series 2015B and (ii) execute a bond order prescribing the details of the Taxable Series 2021A Bonds; (iii) pay costs of issuance; and (iv) provide for levy and collection of taxes to pay interest and principal on the Taxable Series 2021A Bonds. The Taxable Series
IV. Explanation (continued)
2021A 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 and as approved by the ordinance. The expected sale of the Bonds will occur in the late summer (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.
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.