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File #: 21-1329-0908    Name: Bond 2021
Type: Action Item Status: Approved
File created: 8/28/2021 In control: Board of Commissioners
On agenda: 9/8/2021 Final action: 9/8/2021
Title: ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $12,000,000 GENERAL OBLIGATION UNLIMITED TAX REFUNDING BONDS OF 2021
Sponsors: Chief Financial Officer, Treasurer
Indexes: Bond
Attachments: 1. Ordinance - Authorizing Ordinance Publish in Pamphlet Form - 21-1329-0908#8E

Title

 

ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $12,000,000 GENERAL OBLIGATION UNLIMITED TAX REFUNDING BONDS OF 2021

 

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 of (i) $12,000,000 General Obligation Unlimited Tax Refunding Bonds, Series 2021F for the purpose of refunding certain outstanding debt obligations of the District. The ordinance also authorizes the execution of  a bond order 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 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

 

 

II. Transaction Team (continued)

 

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 33
rd 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

 

Financial Advisor:                            Acacia Financial Group

                                                            221 North LaSalle Street, Suite 1500

                                                            Chicago, IL 60601

 

 

 

II. Transaction Team (continued)

 

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

 

B.  Repayment Information

Budget Classification:                                 Operating Funds

Fiscal Year(s):                                             2022-2024 (3 years)

Source of Funds:                     Debt Service Expense-Property Tax Levy/Harbor Facilities Revenues

 

C.  Refunding Information

                                          

If market conditions allow on the day of pricing, the District will advance refund 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 2021 Bonds will be sold through a negotiated sale with the underwriters and are expected to be issued on a taxable basis.  The interest rate on the Bonds shall not exceed 5.00% and the maximum maturity date shall not be later than January 1, 2024.  The proposed ordinance authorizes the following: 

 

General Obligation Unlimited Tax Refunding Bonds, Series 2021F (the “Series 2021F Refunding Bonds”): (i) issue not to exceed $12,000,000 in the Series 2021F Refunding Bonds to refund all or a portion of certain maturities of the District’s outstanding General Obligation Unlimited Tax Refunding Bonds, Series 2013D (Harbor Facilities Revenues Alternate Revenue Source) (collectively, the “Refunded Bonds”), (ii) execute a bond order prescribing the details of the Series 2021F 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 2021F Refunding Bonds.  The 2021F Refunding Bonds will be of similar maturities of the Refunded Bonds being refunded.

 

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.