R-1091 - 03/08/2011 - FINANCE - ResolutionsITEM 10.n.2)
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AGENDAITEM
Regular Board of Trustees Meeting
of
March 22, 2011
SUBJECT: Reimbursement Resolution Related to the Irgens Development
FROM: David Niemeyer, Village Manager
BUDGET SOURCE/BUDGET IMPACT: N/A
RECOMMENDED MOTION: The Village Board Approve Resolution 2011- FIN- BND -SSA-
R -1091 A Resolution Of The Village Of Oak Brook, Declaring Its Official Intent To Reimburse
Certain Capital Expenditures From The Proceeds Of A Borrowing For The York Road
Redevelopment Project
Background/History:
Attached is a reimbursement resolution related to the Irgens office development project and the
SSA bonds being issued. It makes the project eligible for tax exempt financing even after the project
is completed. This is a safety valve in case the tax exempt market has interest rates that are too high
or the commercial lending market freezes up again. This way the project will not be stopped waiting
for the SSA bonds.
Recommendation:
That the Village Board approve Resolution R -1091 a resolution Declaring Its Official Intent To
Reimburse Certain Capital Expenditures From The Proceeds Of A Borrowing For The York
Road Redevelopment Project.
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RESOLUTION 2011- FIN -BND- SSA -R -1091
RESOLUTION OF THE VILLAGE OF OAK BROOK, ILLINOIS DECLARING
ITS OFFICIAL INTENT TO REIMBURSE CERTAIN CAPITAL EXPENDITURES FROM THE
PROCEEDS OF A BORROWING FOR THE YORK ROAD REDEVELOPMENT PROJECT
WHEREAS, the Village of Oak Brook (the "Village ") has approved a Development Agreement (the
"Development Agreement") with York Road Development Partners, LLC (the "Developer") for a
commercial project located on York Road (the "Redevelopment Project "); and
WHEREAS, the Village and the Developer have proposed the establishment of a special service
area (the "SSA ") which would pay for certain Intersection Improvements and Sanitary Improvements (the
"SSA Project") which are required to be constructed in conjunction with the Redevelopment Project; and
WHEREAS, the Developer and the Village may advance their own funds to pay expenditures of a
type properly chargeable to capital account under general federal income tax principles (the
"Expenditures ") related to the SSA Project; and
WHEREAS, the Developer has proposed that the Village provide financial incentives in the
Development Agreement, including the issuance of special service area notes and bonds (collectively the
"Village Obligations "); and
WHEREAS, the proceeds of the Village Obligations may be used to reimburse the Developer and
the Village for the Expenditures.
NOW, THEREFORE, BE IT RESOLVED by the Village President and Board of Trustees of
the Village of Oak Brook, Cook and DuPage Counties, Illinois, as follows:
Section 1: The foregoing preambles are restated and incorporated herein by reference as though
fully set forth herein.
Section 2: The purpose of this resolution is to satisfy the "Official Intent Requirement" of
Treasury Regulations Section 1.150 -2.
Section 3: The Village reasonably expects to be reimbursed for or reasonably expects to
reimburse the Developer for the Expenditures in an amount not to exceed $800,000 made on or after the
date that is no more than 60 days prior to the date of this resolution. The Village reasonably expects on
the date hereof that it will reimburse the Expenditures with the proceeds of the Village Obligations. The
Village intends to make a reimbursement allocation, which is a written allocation that evidences the
Village's use of proceeds of the Village Obligations to reimburse an Expenditure, no later than 18 months
after the later of the date on which the Expenditure is paid or the Redevelopment Project is placed in
service or abandoned, but in no event more than 36 months after the date on which the Expenditure is
paid.
Section 4: This declaration of official intent is consistent with the budgetary and financial
circumstances of the Village.
Section 5: If any section, paragraph, clause or provision of this resolution shall be held invalid,
the invalidity thereof shall not affect any of the other provisions of this resolution.
Section 6: All resolutions in conflict herewith are hereby repealed to the extent of such conflict.
Section 7: This resolution shall be in full force and effect from and after its passage, approval and
publication as provided by law.
APPROVED THIS 22nd day of March, 2011.
PASSED THIS 22nd day of March, 2011.
John W. Craig
Village President
ATTEST:
Charlotte K. Pruss
Village Clerk
Resolution 2011 - FIN -BND -SSA -R -1091
Reimburse Cap. Exp. — York Rd. Redevl. Proj.
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