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HomeMy WebLinkAboutORDINANCES-1983-066-O-83ORDINANCE NO. 66-0-83 AN ORDINANCE AUTHORIZING THE ISSUANCE AND SALE OF $480,000 CITY OF EVANSTON, ILLINOIS ECONOMIC DEVELOP- MENT LIMITED OBLIGATION REVENUE BONDS (STARKMAN PROJECT), SERIES 1983 FOR THE PURPOSE OF MAKING A LOAN OF THE PROCEEDS THEREOF TO ASSIST LAWRENCE J. STARKMAN IN THE FINANCING OF A PROJECT; AND AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT, AN INDENTURE AND A BOND PURCHASE AGREEMENT PERTAINING THERETO; ACKNOWLEDGING A MORTGAGE; AND THE AUTHORIZING OF CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH. WHEREAS, the City of Evanston, Illinois (the "Issuer") is a duly organized and validly existing municipality within the meaning of Section 1 of Article VII of the 1970 Consti- tution of the State of Illinois as a home rule unit of government under Section 6(a) of Article VII of said constitution; and WHEREAS, the Issuer pursuant to Title 1, Chapter 19, Section 1-19-6 of the Evanston City Code of 1979, as supplemented and amended, as the same is in effect on the . date hereof (the "Enabling Ordinance"), is authorized and empowered to issue its economic development limited obli- gation revenue bonds for the purpose of making a loan of the proceeds thereof to finance the sum total of all reasonable or necessary costs incidental to the acquisition, construc- tion, repair, improvement or extension of economic develop- ment projects (as defined in the Enabling Ordinance) located within the municipal boundaries of the Issuer, without con- veyance of said project to the Issuer to the end that the Issuer may create and preserve employment opportunities, encourage the development of business, industry and commerce, and promote the retention and expansion of existing commercial and industrial enterprises within the boundaries of the"Issuer; and WHEREAS, the Issuer in order to implement the public purposes enumerated in the Enabling Ordinance and in furtherance thereof adopted that certain resolution No. 28- R-63 on May 9, 1983 to induce Lawrence J. Starkman (the 'jguarantor"), to acquire and rehabilitate an existing commercial building (hereinafter collectively referred to as the "Project"), located within the municipal boundaries of the Issuer, which.Project will be of the character and will accomplish the public purposes enumerated in the Enabling Ordinance and the Issuer is willing to issue its economic 0 • development limited obligation revenue bonds to finance the Project upon terms which will be sufficient to pay all or a portion of the cost of acquisition and rehabilitation of the Project,' and related expenses, all as set forth in the provisions of the Agreement, hereinafter defined; and WHEREAS, the Guarantor has assigned the inducement to American National Bank and Trust Company of Chicago, under trust dated June 1, 1983 known as trust No. 58110, as land trustee (the "Obligor"), for a certain land trust which now or shall prior to the issuance, sale and delivery of any bonds hereunder be the legal titleholder of the Project and pursuant to which Lawrence J. Starkman or his wife Nancy Starkman shall be the beneficiary; and WHEREAS, the Guarantor has agreed to personally guarantee the payment and performance of all the obligations of the land trust in connection with the Project; and -WHEREAS, it is estimated that the cost of acquisition and rehabilitation of the Project and related expenses including the cost relating to the preparation and issuance of the City of Evanston, Illinois Economic Development Limited Obligation Revenue Bonds (Starkman Project), Series 1983 (the "Series 1983 Bonds"), will not be less than $480,000; and WHEREAS, the Project will create and preserve employment opportunities and promote the retention of existing commercial office space within the municipal boundaries of the Issuer; and WHEREAS, the Issuer proposes to sell the Series 1983 Bonds upon a private negotiated basis to First National Bank and Trust Company of Evanston; and WHEREAS, payment of the principal of, premium, if any, and interest on the Series 1983 Bonds will be secured by a pledge and assignment of the Loan Repayments, as defined in the Agreement, and further secured by a Mortgage (as hereinafter defined); and WHEREAS, the Issuer has been informed by its counsel that the Series 1983 Bonds shall be limited obligations of the Issuer and shall never be payable from the tax revenues, general funds, properties or other assets of the Issuer but shall be payable solely and only from the Security, as hereinafter defined, and that no holder of the Series 1983 Bonds shall have the right to compel any exercise of the taxing powers of the Issuer to pay the Series 1983 Bonds, the interest or premium, if any, thereon and that the Series 0 -2- 1983 BondsAshall not constitute a debt of the Is.suer or loan or pledge of the credit of the Issuer within the meaning of any constitutional, statutory or charter provision; and WHEREAS, the negotiations between the purchaser of the Series 1983 Bonds and the Obligor have been concluded and documentation prepared in substantially final form such that it is now deemed advisable to authorize the issuance, sale and delivery of the Series 1983 Bonds and the other matters pertaining thereto; NOW THEREFORE, be it ordained by the City Council of the City of Evanston, Cook County, Illinois: Section 1. Declaration of Public Purpose. It is hereby determined that the issuance, sale and delivery of the Series 1983 Bonds and the loaning of the proceeds .thereof to the Obligor to finance the acquisition and rehabilitation of the Project is an essential public purpose of the Issuer and will relieve conditions of unemployment and encourage the increase of.commerce and industry within the Issuer, and thereby reduce the evils attendant with unemployment and provide for the increased welfare and prosperity of the residents of the Issuer and that the Project is an "economic development project" as defined in • the Enabling Ordinance. Section 2. Issuance of the Series 1983 Bonds. It is hereby determined to be necessary to, and the Issuer shall, issue, sell and deliver, as.provided and authorized herein and in that certain Indenture by and between the Issuer and First National Bank and Trust Company of Evanston (the "Secured Party"), dated as of June 1, 1983 (the "Indenture"), the terms of which are hereby incorporated by reference, and pursuant to the authority and provisions of the Enabling Ordinance, the Series 1983 Bonds for the purpose of making a loan of the proceeds thereof to the Obligor in order to assist the Obligor in financing the cost of the acquisition and rehabilitation of the Project. The Series 1983 Bonds shall be issued in the amount.of $480,000 and shall, be designated, mature, bear interest, be subject to redemption and prepayment all as provided under the terms of the Indenture. Section 3. Execution of Documentation. The Mayor and City Clerk of the Issuer are hereby authorized and directed to execute the Series 1983 Bonds, the Indenture, that cer- tain Loan Agreement by and between the Issuer and Obligor, dated as of June 1, 1983 (the "Agreement"), the terms of which are hereby incorporated by reference, and that certain • Bond Purchase Agreement by and between the Issuer and First National Bank and Trust Company of Evanston, as Purchaser, dated a5 of June 1, 1983. Section 4. Acknowledgment of Collateral Documents.. It is hereby acknowledged and approved, as to form, that certain Mortgage, Assignment of Rents, Security Agreement and Financing Statement, dated as of June 1, 1983 from the Obligor to the Issuer and that certain Guarantee, dated as of June 1, 1983 from the Guarantor to the Issuer. Section S. Limited Obligation. The Series 1983 Bonds shall be a limited obligation of the Issuer payable solely and only from the Security as defined and pledged and assigned in the Indenture. The Series 1983 Bonds shall not constitute a debt or a general obligation of the Issuer within the meaning of any, statutory, constitutional or charter/\provision or limitation and shall never be payable from the tax revenues, general funds, properties or other assets of the Issuer but shall be payable solely and only from the Security. Section 6. Lien on Loan Repayments. The Issuer hereby confirms its pledge and assignment of all of its right, title and interest in and to the Security as provided in the • Indenture. The Issuer hereby creates and confirms the creation under the Indenture of a lien on the Loan Repay- ments all pursuant to the provisions of the Enabling Ordinance. Section 7. Execution and Delivery of Other Documentation, Changes. In order to provide for the issuance, sale and delivery of the Series 1983 Bonds and the consummation,of the transactions contemplated thereby and hereby the Mayor and the City Clerk are hereby authorized and directed to execute and deliver, in the name and on behalf of the Issuer the Bonds, the Bond Purchase Agreement, the Agreement and the Indenture in substantially the forms thereof.submitted to the City Council, which instruments are hereby approved, with such changes therein not inconsistent with this Ordinance and not substantially adverse to the Issuer as may be permitted by the Enabling Ordinance and approved by the officials executing the same on behalf of the Issuer. The approval of such changes by such officials and the deter- mination that such are not substantially adverse to the Issuer, shall be conclusively evidenced by the execution of such revised instruments. The Mayor, the City Clerk, and the City Attorney, as may be appropriate, are further authorized and directed to execute and deliver such certificates, financing statements, assignments and 0 -4- instruments as.are, in the opinion of bond counsel, necessary or appropriate to perfect the pledge and • assignment set forth in the Ind•anture and to consummate the transactions contemplated by this Ordinance, the Bond Purchase Agreement, the Agreement and the Indenture. Section 8. Acknowledgment of Assigment of Inducement. The Issuer hereby acknowledges and approves the assignment of the Issuer's inducement, adopted May 9, 1983, by the Guarantor to the land trust. Section�9. Severabilitv. I£ any section, paragraph, clause or provision of this Ordinance shall be ruled by any court of competent jurisdiction to be invalid, the inval- idity of such section; paragraph, clause or provision shall not affect any of the remaining provisions hereof. Section,_10. Captions. The captions or headings of this Ordinance are for convenience of reference only and in no way define, limit or describe the scope or intent of any provision of this Ordinance. Sectional. Provisions in Conflict Repealed. All -ordinances, resolutions, and orders or parts thereof in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed./ Section 12. Effective Date. This Ordinance shall be in full force and effect from and after its passage and approval in the manner provided by law. Introduced 13 , 1983. Adopted (/� % , 1983. G� Attest: City Clerk Approved as to form: g4rpor�iCo • j� May -5-