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HomeMy WebLinkAboutORDINANCES-1981-013-O-81• E 2/11/81 13-0-81 AN ORDINANCE Amending Title I, Chapter 19 of the Evanston City Code, 1979, by Providing for the Issuance of Industrial and Commercial Revenue Bonds BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK i ,COUNTY., ILLINOIS: SECTION 1: That the Evanston City Code, 1979, as amended, be and hereby is further amended by adding to Title I, Chapter 19 thereof Section 1-19-6 which shall read as follows: 1-19-6 ISSUANCE OF INDUSTRIAL AND COMMERCIAL REVENUE BONDS: 1-19-6-1 DEFINITIONS: Whenever in section 1-19-6 unless a different meaning clearly appears from the context: (A) Economic development project means any land, interest in land, building, structure, facility, system, fixture, improvement, ad- dition, appurtenance, machinery or equipment or any combination thereof, and all real and personal property deewed necessary in connection therewith, suitable for and including but not limited to uses as a manufacturing, industrial, commercial, professional, business, lodging, office, storage, transportation, warehouse, research, sales or repair facility, by any person, provided that the existence of such economic development project will create or retain employment opportunities in the municipality. (B) Lease includes a lease containing an option to purchase the project for a nominal sum upon payment in full, or provision therefor, of all bonds issued in connection with the project and all interest thereon and all other expenses in connection with the project. (C) Loan agreement means an agreement providing for the municipality to loan the proceeds derived from the issuance of bonds pursuant to Section 1-19-6 to one or more persons to be used to pay the cost of one or more projects and providing for the repayment of such loan by the other.persons, and which may provide for such loans to be secured or evidenced by one or more notes, debentures, bonds or other secured or unsecured debt obligations of the persons, delivered to the municipality or to the trustee under the ind=nture pursuant to which the bonds were issued. (D) Municipality means the City of Evanston, Illinoi3. (E) Person means any individual, partnership, copartiership, firm, compan\,, corporation (including public utilities), association, joint stock company, trust, estate, political subdivision, state agency, or any other legal entity, or its legal representative, agent or.as- signs. (F) Pollution means any form of environmental pollution including, but not limited to, water pollution, air pollution, land.pollution, solid waste pollution, thermal pollution, radiation contamination, or noise pollution as determined by the various standards prescribed by this state, the federal government or other governmental entities and including but not limited to, anything which is considered I . • ' 13-0-81. ij as pollution or environmental damage in the Environmental Pro- tection Act, compiled as Sections 1001 through 1051 of Chapter 111-1/2 Ill. Rev. Stat. 1979, and any amendme..nt thereto and sub- �I stitution therefor. 1, • (G) Pollution control facility means any land, interest in land, building, structure, facility system, fixture, improvement, ap- purtenance, addition, machinery or equipment, or any combination thereof, and all real and personal property deemed necessary in connection therewith, having to do with or the end purpose of which is, reducing, controlling or preventing pollution. I� (H) Project means any economic development project or pollution control i facility or any combination thereof. li (I) Project costs means and includes the sum total of all reasonable !� or necessary costs incidental to the acquisition, construction, reconstruction, repair, alteration, improvement and extension of a project including without limitation the cost of studies and surveys; plans, specifications, architectural and engineering services; legal, marketing or other special services; financing, acquisition, demolition, construction, equipment and site development of new and ,t rehabilitated buildings, rehabilitation, reconstruction, repair or remodeling of existing buildings and all other necessary and j incidental expenses including an initial bond'and interest reserve together with interest on bonds issued to finance a project to a date six (6) months subsequent to the estimated date of completion. I (J) Revenues of a project, or derived from a project, include payments under a lease or sale contract and repayments under a loan agreement, or under notes, debentures, bonds and other secured or unsecured ?� debt obligations of a person delivered as herein provided. • (K) Sale contract means a contract providing for the sale of one or more projects to one or more persons and includes a contract providing for payment of the purchase price in one or more installments. If the sale contract permits title to the project to pass to the other person prior to payment in full of the entire purchase price, it shall also provide for the other person to deliver to the muni- cipality or to the trustee under the indenture pursuant to which the h bonds were issued one or more notes, debentures, bonds or other secured or unsecured debt obligations of such person providing for timely payments, including, without limitation, interest thereon for the balance of the purchase price at or prior to the passage of such title. 1-19-6-2: LEGISLATIVE DECLARATION OF PURPOSE: It is hereby determined and declared to be the purpose of Section 1-19-6 to provide a financing device which will aid in financing the cost of projects in order to relieve conditions of unemployment and to encourage the increase of commerce -and. industry within the municipality, thereby reducing the evils attendant upon unemployment and to provide for the increased welfare and prosperity of the residents of the municipality; it is hereby further determined and declared to be the purpose of Section 1-19-6 to provide ` a financing device which will aid in financing the cost of pollution control facilities in order to eliminate, abate or reduce the serious dangers to the public health and welfare caused by environmental pollu- tion; and the same are hereby declared and determined to be public pur- poses and functions pertaining to the government and affairs of the muni- cipality. • i� 1-19-6-3: ADDITIONAL POWERS OF MUNICIPALITY: In addition to powers !� which it may now have, the municipality shall have the power �I under Section 1-19-6: f; (A) To finance one or more projects, whether or not now or hereafter in f; existence,_ within or without the municipality or partially within or f partially without the municipality, but in no event further than 'i i( -2- 2/11/81 3/5/81 13-0-81 ten (10) miles from the territorial boundaries of such municipality. (B) To acquire, construct, improve, extend, rehabil'tate, renovate, and equip one or more projects including any property, real or personal, • ! improved or unimproved, necessary in connection therewith. 1 I �! (C) To issue its revenue bonds.to defray in whole or in part the project costs of any project and to designate an appropriate name for such bonds. (D) To rent, lease or sell any project to any person pursuant to a lease ,! agreement or sale contract or to enter into a loan agreement with any person with respect to any project in such manner that payments to be received with respect to the project shall produce revenues iI and receipts sufficient to provide for the prompt payment at maturity of principal, interest and redemption premiums, if any, upon all bonds issued to finance the cost of such project. (E) To pledge to the punctual payment of bonds authorized under Section 1-19-6, the interest thereon, and the redemption premiums, if any, the revenues to be received from such project. !� (F) To mortgage such project in favor of the holder or holders of bonds issued therefor. (G) To sell and convey such project, including withcut limitations the sale and conveyance thereof subject to a mortgage, if any, as pro- vided in Section 1-19-6, for such price and at such time as the governing body of the municipality may determine. However, no sale I; or conveyance of such project shall ever be made'in such manner as to impair the rights or interests of the holder or holders of any �i bonds issued to finance the project costs.of such project. • ` (H) To issue its bonds to refund in whole or in part., bonds theretofore issued by such municipality under authority of Section.1-19-6. Any property which is acquired b the municipality Y q Y p y pursuant to the pro- visions of Section 1-19-6 shall be exempt from the imposition and col- lection of taxes thereon while owned by the municipality, but the use of such property is subject to taxation to be paid by the lessee or �{ occupant as provided in Section 26 of the "Revenue Act of 1939" filed May 17, 1939, as amended, or as may hereafter be further amended. ' 1-19-6-4: EXERCISE OF POWERS; BONUS GENERALLY: The exercise of all i' powers granted by Section 1-19-6 may be authorized and bonds i may be authorized -to be issued under Section 1-19-6 for the purposes set forth herein by ordinance of the governing body of the municipality which Ii shall take effect immediately upon adoption. �i The bonds shall bear interest at such rate or rates, payable at such ,) times, may be in one or more series, may bear such date or dates, may mature at such time or,times not exceeding forty (40) years from their respective dates, may be payable in such medium of payment at such place or places, may carry such registration privileges, may be subject to such terms of redemption at such premiums, may be executed in such manner, may contain such terms, covenants and conditions, and: may be in such form, including coupon and registered, as such ordinance may provide or as may be subsequently determined by the governing body before the bonds are issued. The bonds may be sold'at public or private sale in such manner and upon such terms as may be deemed advisable by the governing • body of the municipality. Pending the preparation of the definitive bonds„ interim receipts or certificates in such form and with such provisions as + the governing body of the municipality may determine, may be issued to the I. purchaser or purchasers of bonds sold pursuant to Section 1-19-6. The bonds and interim receipts or certificates shall be deemed to be securities' and negotiable instruments within the meaning and for all purposes of.the P "Uniform Commercial Code." _ -3- 13-0-81 1-19-6-5: COVENANTS IN BONDS; MORTGAGE OR INDENTURE OF TRUST: Any ordinance authorizing the issuance of bonds under Section 1-19-6 may contain covenants as to (a) the use and disposition of the revenues from the project for which the bonds are to be issued, including !; the creation and maintenance of reserves; (b) the issuance of other or additional bonds relating to the project or any rehabilitation, improve- ments, renovations, enlargements or additions thereto•; (c) the maintenance and repair of such project; (d) the insurance to be carried thereon and the use and disposition of insurance moneys; (e) the appointment of any bank or trust company within or outside the State of Illinois, having the necessary trust powers as trustee for the benefit of the bondholders, j; paying agent, and bond registrar; (f) the investment of any funds held by such trustee; and (g) the terms and conditions upon which tfre holders of the bonds or any portion thereof or any trustees therefor, are entitled to the appointment of a receiver. Any ordinance authorizing the issuance of bonds under Section 1-19-6 may provide that the principal of and interest on any bonds issued under Section 1-19-6 shall be secured by a mortgage or indenture of trust covering such project for which the bonds are issued and may include any improvements or extensions thereafter made. Such mortgage or indenture of trust may contain such covenants and agreements to properly safeguard the bonds as may be provided for in the ordinance authorizing such bonds and shall be executed in the manner as may be provided for in the ordinance. The provisions of Section 1-19-6 and any such ordinance or ordinances arid any such mortgage or in- denture of trust shall constitute a contract with the holder or holders f; of the bonds and continue in effect until the principal of, the interest on, and the redemption premiums, if any, on the bonds so issued have been fully paid, and the duties of the municipality and its corporate authorities and officers under Section 1-19-6 and any such ordinance or i' ordinances and any such mortgage or indenture of trust shall be enforce- able by any bondholder by mandamus, foreclosure of any such mortgage or indenture of trust or other appropriate suit, action or proceedings (� in any court of competent jurisdiction; provided the.ordinance or any i; mortgage or indenture of trust under which tine bonds are issued may pro- vide that all such remedies and rights to enforcement may be vested in a trustee for the benefit of all the bondholders which trustee shall be I subject to the control of a majority of the holders cr owners of any out- standing bonds. i }' 1-19'-6-6: SIGNATURES OF OFFICERS ON BONUS; VALIDITY OF BONUS: The bonds shall bear the signatures of such officers of the muni- cipality as ma be designated in tine ordinance authorizing such bonds, Y 9 9 and such signatures shall be the valid and binding signatures of the �f officers of tine municipality, notwithstanding that before the delivery i thereof and payments therefor any or all of the persons whose signatures j appear thereon have ceased to be officers of the municipality issuing such bonds. The validity of the bonds is not dependent on nor affected 'by the validity or regularity of any proceedings relating to the acqui- j sition, purchase, construction, reconstruction, improvement, equipping, betterment or extension of the project for which the bonds are issued. �I The ordinance authorizing the bonds may provide that the bonds shall contain a recital that they are issued pursuant to Section 1-19-6, which recital shall be conclusive evidence of their validity and of the regularity of their issuance. 1-19-6-7: LIEN UPON REVENUES: All bonds issued uncer Section 1-19-6 have a lien upon the revenues derived from the project for which the bonds have been issued, and the governing Eody may provide in the ordinance or ordinances authorizing such bonds for the issuance of additional bonds to be equally and ratably secures by a lien upon +� such revenues or may provide that the lien upon such revenues is sub- ordinate. 1-19-6-8: LIABILITY OF BONUS: All bonds issued uncer and pursuant to (' Section 1-19-6 shall be limited obligations of tine muni- cipality payable solely out of the revenues derived from the project with M 13-0-81 • • .7 �j respect to which such bonds are issued. No holder or any bonds issued I under Section 1-19-6 has the right to compel any exercise of taxing powers of the municipality to pay the bonds, the interest or preifl u.m, if i any, thereon, and the bonds do not constitute an indebtedness of the muni- cipality or a loan of credit thereof within the meaning of any constitu- tional or statutory provision. It shall be plainly stated on the face of each bond that it has been issued under the provisions of Section I 1-19-6 and that it does not constitute an indebtedness of the munici- pality or a loan of credit thereof within the meaning of any constitu- tional or statutory provisions. 1-19-6-9: INVESTMENT OF FUNDS: The municipality, or any trustee on j, behalf of the municipality, may invest any funds held by it �( pursuant to Section 1-19-6 in bonds, notes, certificates of indebtedness, treasury bills or other securities issued or fully guaranteed.by the ;#United States of America; in certificates of deposit or time deposits ,I constituting direct obligations of any bank as defined by the Illinois Banking Act, as heretofore and hereafter amended. Any such securities may be purchased at the offering or market price thereof at the time of such purchase. 1-19-6-10: EXEMPTION FROM CONSTRUCTION AND BIDDING REQUIREMENTS FOR PUBLIC BUILDINGS: The acquisition and construction of a project shall not be subject to any requirements relating to !' public buildings, structures, grounds, works or improvements imposed by the Illinois Revised Statutes or any other similar requirements which may be lawfully waived by this section, and any requirement of competi- tive bidding or restriction imposed on the procedure for award of ►I contracts for such purpose or the lease, sale or other disposition of property of the municipality is not applicable to any action taken under authority of Section 1-19-6. 1-19-6-11: POWERS CONFERRED DEEMED ADDITIONAL AND SUPPLEMENTAL; EFFECT i OF LIMITATIONS IMPOSED: The powers conferred by Section -1-19-6 are in addition and supplemental to, and the limi- tations imposed by Section 1-19-6 shall not affect, the powers conferred i by any law or any other ordinance. Projects may be acquired, purchased, i constructed, reconstructed, improved,,bettered, equipped, extended and financed, and bonds may be issued under Section 1-19-6 for such pur- poses, notwithstanding that any law or any other ordinance may provide for the acquisition, purchase, construction, reconstruction, improvement, equipping, betterment, extension and financing of a like project, or the issuance of bonds for like purposes, and without regard to the require- ments, restrictions, limitations or other provisions contained in any law or any other ordinance. ,I �I i� Eby law. ;Introduced Adopted ATTEST: SECTION 2: All ordinances, resolutions or parts thereof in conflict herewith are hereby. repealed. SECTION 3: This ordinance shall be in full force and effect from and after its passage and approval in the manner provided , 1981. 1981. / ayor +� City Clerk Approved as to form: '! Corporation Counsel I -5-