Title
ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $120,000,000 GENERAL OBLIGATION LIMITED TAX PARK BONDS
OF 2021 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 and allocated among the series of bonds as follows (collectively, the “2021 Bonds”): (i) $50,000,000 General Obligation Limited Tax Park Bonds, Series 2021B for the purpose of financing the cost of payment of land condemned or purchased for parks, and for building, maintaining and improving parks and (ii) $70,000,000 General Obligation Limited Tax Refunding Bonds, Series 2021C and General Obligation Limited Tax Refunding Bonds, Series 2021D, 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 2021 Bonds, including the designation of series of the 2021 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 capitalized interest on certain series of the 2021 Bonds, payment of costs of issuance, and the collection of direct annual taxes for the payment of the principal and interest on the 2021 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 2021 Bonds.
II. Transaction Team
Bond Counsel: Chapman and Cutler LLP
111 West Monroe Street
Chicago, IL 60661
Underwriters’ Counsel: Burke Burns & Pinelli, Ltd. *
70 West Madison Street, Suite 4300
Chicago, Illinois 60602
*Underwriters’ Counsel is chosen directly by the Underwriters
Issuer’s Counsel: Hardwick Law Firm, LLC
77 West Washington Street, Suite 1704
Chicago, Illinois 60602
Disclosure Counsel: Charity & Associates, P.C.
20 North Clark Street, Suite 3300
Chicago, Illinois 60602
Underwriters: Cabrera Capital Markets, LLC
10 South LaSalle Street, Suite 1050
Chicago, IL 60603
Piper Sandler
444 West Lake Street, 33rd Floor
Chicago, Illinois 60606
Backstrom McCarley Berry & Co., LLC
203 North LaSalle Street, Suite 2100
Chicago, IL 60601
Drexel Hamilton, LLC
3201 South 33rd Street, Suite G
Lincoln, NE 68506
Fifth Third Securities
222 South Riverside Plaza
Chicago, IL 60606
Huntington Capital Markets
222 West Adams Street, Suite 1700
Chicago, IL 60606
II. Transaction Team (continued)
Financial Advisor: Acacia Financial Group
221 North LaSalle Street, Suite 1500
Chicago, IL 60601
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: Amalgamated Bank of Chicago
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): 2019, 2020 and 2021 Capital Improvement Plans
Source of Funds: Bond Proceeds
III. Budget and Financial Information (continued)
B. Repayment Information
Budget Classification: Operating Funds
Fiscal Year(s): 2022-2045 (24 years)
Source of Funds: Debt Service Expense-Property Tax Levy
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 savings.
IV. Explanation
The 2021 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, 2045. The proposed ordinance authorizes the following:
General Obligation Limited Tax Park Bonds, Series 2021B (the “Capital Project Bonds”): (i) issue not to exceed $50,000,000 in the Capital Project Bonds to finance a portion of the cost of payment of land condemned or purchased for parks, and for the building, maintaining, improving and protecting of park facilities; (ii) execute a bond orders prescribing the details of the 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 Capital Project Bonds.
General Obligation Limited Tax Refunding Bonds, Series 2021C and Series 2021D (the “Series 2021C and 2021D Refunding Bonds”): (i) issue not to exceed $70,000,000 in the Series 2021C and 2021D Refunding Bonds to refund all or a portion of certain maturities of the District’s currently callable General Obligation Limited Park Bonds, Series 2011A and General Obligation Unlimited Tax Refunding Bonds, Series 2011C (Personal Property Replacement Tax Alternate Revenue Source) (collectively, the “Refunded Bonds”), (ii) execute one or more bond orders prescribing the details of the Series 2021C and 2021D Refunding 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 Series 2021C and 2021D Refunding Bonds. The Series 2021C and 2021D Refunding Bonds will be of similar maturities of the Refunded Bonds being refunded and result in debt service savings.
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.