1985-032` • • MAY 311985
4
. ORDINANCE NO. 85 - 32
AN ORDINANCE AMENDING AND RESTATING CHAPTER 3.24 OF
THE VILLAGE OF BUFFALO GROVE MUNICIPAL CODE, ENTITLED
"AUTHORIZATION FOR THE ISSUANCE OF INDUSTRIAL AND
COMMERCIAL PROJECT REVENUE BONDS."
WHEREAS, pursuant to a referendum duly called and held on
March 1, 1980, the Village of Buffalo Grove, Cook and Lake
Counties, Illinois (the "Village ") is a "home rule unit" under
Section 6(a) of Article VII of the 1970 Constitution of the
State of Illinois and may (except as limited by said Section
6(a)) exercise any power and perform any function pertaining to
its government and affairs including, but not limited to, the
power to regulate for the public health, safety, morals, and
welfare, to license, to tax, and to incur debt; and
WHEREAS, pursuant to the Village's powers as a home rule
unit, on April 7, 1980 the President and Board of Trustees of
the Village (the "Corporate Authorities ") duly adopted
Ordinance No. 80 -19, entitled "An Ordinance Authorizing the
Issuance of Industrial and Commercial Project Revenue Bonds ",
which added to the Village of Buffalo Grove Municipal Code (the
"Municipal Code ") a new chapter 3.24, entitled "Authorization
for the' Issuance of Industrial and Commercial Project Revenue
Bonds" to govern the issuance by the Village of such bonds; and
WHEREAS, said Chapter 3.24 was based upon the provisions of
Chapter 24, Article 11, Division 74, Illinois Revised Statutes
(1979), otherwise known as The Industrial Project Revenue Bond
Act (the "Project Act "); and
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WHEREAS, since 1980, the Illinois Legislature has adopted
amendments to the Project Act, and the Corporate Authorities
desire to make changes in certain of the provisions of said
Chapter 3.24 in light of such amendments; and
WHEREAS, the Corporate Authorities desire to amend said
Chapter 3.24 to clarify the authority of the Village to issue
its revenue bonds for the purpose of financing all or a portion
of the cost of any pollution control facilities (as defined in
said Chapter 3.24); and
WHEREAS, there exists within the Village a shortage of
decent, safe and sanitary housing, including housing which
persons of low and moderate income can afford, and the lack of
such housing is harmful to the public health, safety, and
general welfare of the Village and its inhabitants; and
WHEREAS, the Corporate Authorities desire to amend said
Chapter 3.24 to govern the issuance by the Village of its
revenue bonds for the purpose of financing all or a portion of
the costs of any multi - family housing project (as defined
below) in order to alleviate the shortage of housing described
above;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD
OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE
COUNTIES, ILLINOIS, AS FOLLOWS:
SECTION 1. Chapter 3.24 of the Village of Buffalo Grove
Municipal Code is hereby amended and restated in its entirety
to read as follows:
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Chapter 3:24 Authorization for the Issuance of
Project Revenue Bonds
3.24.010 Declaration of Purpose The Village has enacted
this Chapter for the following specific purposes:
A. To provide a financing device that will aid in
financing the cost of industrial projects in order to
relieve conditions of unemployment and broaden the
existing tax base within the Village.
B. To encourage the increase of industrial and commercial
development in the Village leading to increased
welfare and prosperity of the residents of the Village.
C. To provide a financing device that 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 of the
Village and its inhabitants caused by environmental
pollution.
D. To provide a financing device that will aid in
financing the cost of multi - family housing projects in
order to alleviate the shortage within the Village of
decent, safe and sanitary housing, including housing
which persons of low and moderate income can afford
and thereby improve the public health, safety, and
general welfare of the Village and its inhabitants.
3.24.020 Definitions Unless a different meaning clearly
appears from the context:
A. "Village" means the Village of Buffalo Grove, Cook and
Lake Counties, Illinois.
B. "Industrial project" includes any capital project,
including one or more buildings and other structures,
improvements, machinery and equipment whether or not
on the same site or sites now existing, or hereafter
acquired, suitable for use by any manufacturing,
industrial, research, or commercial enterprise,
including but not limited to use as a factory, mill,
processing plant, assembly plant, packaging plant,
fabrication plant, office building, industrial
distribution center, warehouse, repair, overhaul or
service facility, freight terminal, research facility,
test facility, commercial facility, and including also
the sites thereof and other rights in land therefor
whether improved or unimproved, site preparation and
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landscaping and all appurtenances and facilities
incidental thereto such as utilities, access roads,
railroad sidings, truck docking and similar
facilities, parking facilities, dockage, wharfage, and
other improvements necessary and convenient thereto,
and also including any land, buildings, machinery and
equipment comprising an addition to, or renovation,
rehabilitation or improvement of any existing capital
project.
C. "Person" means an individual, partnership,
copartnership, firm, company, 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 assigns.
D. "Pollution" means any form of environmental pollution
including, but n ,)t 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 the State of Illinois, the federal
government or other governmental entities and
including, but not limited to, anything which is
considered as pollution or environmental damage in the
Environmental Protection Act, compiled as
Paragraphs 1001 through 1051, Chapter 111 -1/2, Ill.
Rev. Stats. 1983, and any amendment thereto and
substitution therefor.
E. "Pollution control facility" means any land, interest
in land, building, structure, facility, system,
fixture, improvement, appurtenance, addition,
machinery or equipment, or any combination thereof,
and all real and personal property deemed necessary
therewith, having to do with or the end purpose of
which is, reducing, controlling or preventing
pollution.
F. "Project" means any industrial project, multi - family
housing project or pollution control facility, or any
combination thereof.
G. "Project costs" means and
all reasonable or necessary
acquisition, construction,
alteration, improvement and
including without limitatii
studies, market surveys, and
includes the sum
costs incidental
reconstruction,
extension of a
Dn the cost of fe
other studies and
total of
to the
repair,
project,
asibility
surveys; costs of required contributions to units of
government; real estate taxes through the estimated
date of completion of the project; preparation of
plans and specifications and other architectural and
engineering services; legal, financial consulting,
marketing, and other special services; underwriting
and financing costs; acquisition, demolition,
construction, equipment and site development of new
and rehabilitated buildings; rehabilitation,
reconstruction, repair or remodeling of existing
buildings; and all other necessary and incidental
expenses, including an initial debt service reserve
together with estimated interest on bonds issued to
finance a project to a date six (6) months subsequent
to the estimated date of completion of the project,
and any costs or expenses which may be financed under
the provisions of Section 103(b) of the Internal
Revenue Code of 1954 as amended.
H. "Corporate Authorities" means the President and Board
of Trustees of the Village.
"Multi- family housing project" means a capital project
consisting of one or more buildings or structures
undertaken to provide residential rental housing,
including residential rental housing for persons and
families of low or moderate income, and facilities
that are functionally related and subordinate to such
residential rental housing facilities.
J. "Chapter" means this Chapter 3.24 of the Village
Municipal Code.
K. "Holder" or "Bondholder" means, with respect to any
bond issued under the authority of this Chapter,
(a) the bearer of any coupon Bond or coupon or (b) the
registered owner of any fully registered bond.
3.24.030 Additional Powers In addition to powers which it
may now have, the Village has the power under this Chapter:
A. To construct, acquire by gift, lease or purchase,
reconstruct, improve, better, or extend, or to finance
the construction, acquisition, reconstruction,
improvement, betterment, or extension, of any project
within or without the Village or partially within and
partially without the Village, but in no event further
than 10 miles from the territorial boundaries of the
Village, and to acquire by gift, lease or purchase
lands or rights in land in connection therewith.
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B. To issue its revenue bonds to finance in whole or in
part the cost of the acquisition, purchase,
construction, reconstruction, improvement, betterment
or extension of any project. In determining such
cost, the Village may include all estimated project
costs. The Village need not acquire or hold title to
any project.
C. To rent, lease, or otherwise dispose of any project in
such manner that rents or other charges for the use of
the project shall be fixed and revised from time to
time so as to produce income and revenues in amounts
sufficient, or to loan the proceeds of its bonds upon
repayment terms sufficient, to provide for the prompt
payment of interest upon all bonds issued under this
Chapter and to create a sinking fund to pay the
principal of such bonds when due, and to provide for
the operation and maintenance of such project and for
an adequate depreciation account in connection
therewith if such account is deemed necessary by the
Corporate Authorities.
D. To pledge to the punctual payment of bonds author.Lzed
under this Chapter and redemption premium, if any, and
interest thereon the income and revenues to be
received from such project (including improvements,
betterments or extensions thereto thereafter
constructed or acquired) sufficient to pay such bonds
and interest as they become due and to create and
maintain reasonable reserves therefor.
E. To mortgage or grant a security interest in any
project in favor of the holder or holders of bonds
issued therefor or a trustee for such holders.
F. To enter into a loan agreement and accept a note or
mortgage, or both, as security for payment of the
proceeds of the bonds and to pledge said note or
mortgage, or both, for the benefit of the holder or
holders of the bonds.
G. To sell and convey such project, including without
limitation the sale and conveyance thereof subject to
a mortgage or security interest as provided in this
Chapter, for such price and at such time as the
Corporate Authorities may determine. However, no sale
or conveyance of any project shall ever be made in
such manner as to impair the rights or interests of
the holder or holders of bonds issued for the
•
•
construction, purchase, improvement or extension of
such project.
H. To issue its bonds to refund in whole or in part,
bonds theretofore issued by the Village under
authority of this Chapter.
3.24.040 Exercise of Powers - Bonds
A. The financing, construction, acquisition,
reconstruction, improvement, betterment, or extension
of any project may be authorized under this Chapter,
and bonds may be authorized to be issued under this
Chapter to provide funds for such purpose or purposes
or for the refunding of bonds theretofore issued under
this Chapter, by an ordinance or resolution passed by
a vote of a majority of the Corporate Authorities then
holding office, which ordinance or resolution shall
take effect immediately upon adoption.
B. Bonds issued under this Chapter 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 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, may be executed in such manner,
may contain such terms, covenants and conditions, and
may be in such form, as such ordinance or resolution
may provide or as may be subsequently determined by
the Corporate Authorities before the bonds are
issued. Bonds may be sold at public or private sale
in such manner and upon such terms as may be deemed
advisable by the Corporate Authorities. Pending the
preparation of definitive bonds, interim receipts or
certificates in such form and with such provisions as
the Corporate Authorities may determine may be issued
to the purchaser or purchasers of bonds sold pursuant
to this Chapter.
3.24.050 Covenants in Bonds
A. Any ordinance or resolution authorizing the issuance
of bonds under this Chapter may contain covenants as
to any one or more of the following:
1. The use and disposition of the income and
revenues from the project for which the bonds are
to be issued, including the creation and
maintenance of reserves;
OrC
• •
2. The issuance of other or additional bonds payable
from the income and revenues from such project;
3. The maintenance and repair of such project;
4. The insurance to be maintained on such project
and the use and disposition of insurance moneys;
5. 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, paying agent, and
bond registrar;
6. The investment of any funds held by such trustee;
7. The terms and conditions upon which the holders
of the bonds or any portion thereof or any
trustees therefor, are entitled to the
appointment of a receiver; and
8. Such additional terms as the Corporate
Authorities shall deem necessary and proper.
B. Any ordinance or resolution authorizing the issuance
of bonds under this Chapter may provide that the
principal of, redemption premium, if any, and interest
on any bonds issued under this Chapter shall be
secured by a mortgage or deed of trust covering the
project for which the bonds are issued the lien of
which may extend to any improvements or extensions
thereafter made. Such mortgage or deed of trust may
contain such covenants and agreements to safeguard
properly the bonds as may be provided for in the
ordinance or resolution authorizing such bonds and
shall be executed in such manner as may be provided
for in such ordinance or resolution. The provisions
of this Chapter and any such ordinance or resolution
and any such mortgage or deed of trust shall
constitute a contract with the holder or holders of
the bonds and shall continue in effect until the
principal of, interest on, and the redemption
premiums, if any, on the bonds so issued have been
fully paid, and the Village may in any such ordinance
or resolution agree that the duties of the Village and
its Corporate Authorities and officers under this
Chapter and any such ordinance or resolution and any
such mortgage or deed of trust shall be enforceable by
any bondholder by mandamus, foreclosure of any such
mortgage or deed of trust or other appropriate suit,
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action or proceedings in any court of competent
jurisdiction; provided, that the ordinance or
resolution or any mortgage or deed of trust under
which the bonds are issued may provide 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 subject to the control of a majority
of the holders or owners of any outstanding bonds.
3.24.060 Signatures of Officers on Bonds - Validity of
Bonds.
Bonds shall bear the signatures of such officers of
the Village as may be designated in the ordinance or
resolution authorizing such bonds, and such signatures
shall be the valid and binding signatures of the
respective officers of the Village notwithstanding
that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear
thereon have ceased to be officers of the Village.
The validity of any bonds shall not be dependent upon
nor affected by the validity of the proceedings
relating to the acquisition, purchase, construction,
reconstruction, improvement, equipping, betterment or
extension of the project for which the bonds are
issued. The ordinance or resolution authorizing any
bonds may provide that the bonds shall contain a
recital that they are issued pursuant to this Chapter,
and that no officer or agent of the Village shall
question or contest any such recital.
3.24.070 Lien of Bonds.
All bonds issued under this Chapter shall have a lien
upon the revenues and receipts derived from the
project for which the bonds have been issued, and the
Corporate Authorities may provide in the ordinance or
resolution authorizing such bonds for the issuance of
additional bonds to be equally and ratably secured by
such lien upon such income and revenues or may provide
that the lien upon such income and revenues of such
additional bonds is subordinate.
3.24.080 Liability For Bonds.
Bonds issued under and pursuant to this Chapter shall
not be general obligations of the Village, the State
of Illinois or any political subdivision thereof but
shall be limited obligations payable solely out of the
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income and revenues derived from the project with
respect to which such bonds are issued. No holder of
any bonds issued under this Chapter shall have the
right to compel any exercise of taxing power of the
Village, the State of Illinois or any political
subdivision thereof to pay.the bonds or the interest
or premium, if any, thereon, and the bonds shall not
constitute an indebtedness of the Village, the State
of Illinois or any political subdivision thereof or a
loan of credit thereof within the meaning of any
constitutional or statutory provision. It shall be
plainly stated - h the face of each bond that it has
been issued under the provisions of this Chapter and
that it does not constitute an indebtedness of the
Village, the State of Illinois or any political
subdivision thereof or a loan of credit thereof within
the meaning of any constitutional or statutory
provisions.
3.24.090 Investment of Funds.
A. Funds held by the Village pursuant to this Chapter
may, to the extent not inconsistent with the laws of
the State of Illinois, be invested in
1. bonds, notes, certificates or indebtedness,
treasury bills or other securities constituting
direct obligations of or obligations guaranteed
by the United States of America;
2. certificates of deposit or time deposits
constituting direct obligations of any "bank" as
defined by the Illinois Banking Act, as
heretofore and hereafter amended; provided,
however, that investments under this clause (2)
may be made only in those certificates of deposit
or time deposits issued by banks which are
insured by the Federal Deposit Insurance
Corporation, if then in existence;
3. short term discount obligations of the Federal
National Mortgage Association; and
4. any other debt obligation or obligations issued
by any corporation or corporations organized
under the laws of the United States or any state
of the United States, provided that each of the
investments under this clause (4) shall be
expressly authorized by the Corporate Authorities
stating with particularity the amount of such
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•
investment and the issuer of such debt
obligation, and expressly finding in each case
that such investment will not involve any undue
risk or loss of funds derived from the general
revenues of the Village. Any such securities may
be purchased at the offering or market price
thereof at the time of such purchase.
B. The investment of funds authorized in subsection A may
be made on behalf of the Village by the Village's
Director of Finance, without further authorization, or
such other person, firm or corporation as may be
authorized in a lease, indenture, purchase contract or
other contract authorized by the Corporate
Authorities; provided such other person, firm or
corporation agrees in writing to bear the risk of any
loss that may occur as a result of such investment of
funds; and further provided that the Corporate
Authorities expressly find that such authorization
will not involve any undue risk or loss of funds
derived from the general revenue of the Village.
3.24.100 Rentals from Projects.
The Corporate Authorities shall prescribe and collect
rentals and charges for each project and shall revise
such rentals and charges from time to time whenever
necessary so that the income and revenues to be
derived from such rentals and charges are always
sufficient to pay when due all bonds and interest
thereon for the payment of which such revenues are
pledged, including reserves therefor, and to provide
for all expenses of operation, including maintenance
charges and depreciation charges, if any, of such
project.
3.24.110 Exemption from Construction and Buildi
Requirements for Public Buildings.
The acquisition and construction of projects 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 Chapter, and any requirement of competitive
bidding or restriction imposed on the procedure for
award of contracts for such purpose or the lease, sale
or other disposition of property of the Village is not
applicable to any action taken under authority of this
Chapter.
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•
3.24.120 Powers Conferred as Additional and Supplemental -
Limitations Imposed - Effect.
The powers conferred by this Chapter are in addition
and supplemental to, and the limitations imposed by
this Chapter shall not limit any powers the Village
may have by, any law or any other part of the Village
of Buffalo Grove Municipal Code or any other ordinance
of the Village. Projects may be acquired, purchased,
constructed, reconstructed, improved, bettered,
equipped, extended and financed, and bonds may be
issued under this Chapter for such purposes,
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 requirements, restrictions,
limitations or other provisions contained iii any law
or any other ordinance.
3.24.130 Severability Clause.
The provisions of this Chapter are severable and if
any of its provisions or any sentence, clause or
paragraph shall be held unconstitutional by any court
of competent jurisdiction, the decision of such court
shall not affect or impair any of the remaining
provisions.
ISyAM
SECTION TWO: This ordinance shall be in full force
and effect from and after its passage and approval in the
manner provided by law.
AYES: 4 - Glover, Reid, Shields, Kowalski
NAYES: 1 - O'Reilly
ABSENT: 1 - Marienthal
PASSED: June 3, 1985.
APPROVED: June 3, 1985.
ATTEST:
Village Clerk Pro Tem
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lage President
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MAY 311985
ORDINANCE NO. 85 -'32
AN ORDINANCE AMENDING AND RESTATING CHAPTER 3.24 OF
THE VILLAGE OF BUFFALO GROVE MUNICIPAL CODE, ENTITLED
"AUTHORIZATION FOR THE ISSUANCE OF INDUSTRIAL AND
COMMERCIAL PROJECT REVENUE BONDS."
WHEREAS, pursuant to a referendum duly called and held on
March 1, 1980, the Village of Buffalo Grove, Cook and Lake
Counties, Illinois (the "Village ") is a "home rule unit" under
Section 6(a) of Article VII of the 1970 Constitution of the
State of Illinois and may (except as limited by said Section
6(a)) exercise any power and perform any function pertaining to
its government and affairs including, but not limited to, the
power to regulate for the public health, safety, morals, and
welfare, to license, to tax, and to incur debt; and
WHEREAS, pursuant to the Village's powers as a home rule
unit, on April 7, 1980 the President and Board of Trustees of
the Village (the "Corporate Authorities ") duly adopted
Ordinance No. 80 -19, entitled "An Ordinance Authorizing the
Issuance of Industrial and Commercial Project Revenue Bonds ",
which added to the Village of Buffalo Grove Municipal Code (the
"Municipal Code ") a new chapter 3.24, entitled "Authorization
for the' Issuance of Industrial and Commercial Project Revenue
Bonds" to govern the issuance by the Village of such bonds; and
WHEREAS, said Chapter 3.24 was based upon the provisions of
Chapter 24, Article 11, Division 74, Illinois Revised Statutes
(1979), otherwise known as The Industrial Project Revenue Bond
Act (the "Project Act "); and
WHEREAS, since 1980, the Illinois Legislature has adopted
amendments to the Project Act, and the Corporate Authorities
desire to make changes in certain of the provisions of said
Chapter 3.24 in light of such amendments; and
WHEREAS, the Corporate Authorities desire to amend said
Chapter 3.24 to clarify the authority of the Village to issue
its revenue bonds for the purpose of financing all or a portion
of the cost of any pollution control facilities (as defined in
said Chapter 3.24); and
WHEREAS, there exists within the Village a shortage of
decent, safe and sanitary housing, including housing which
persons of low and moderate income can afford, and the lack of
such housing is harmful to the public health, safety, and
general welfare of the Village and its inhabitants; and
WHEREAS, the Corporate Authorities desire to amend said
Chapter 3.24 to govern the issuance by the Village of its
revenue bonds for the purpose of financing all or a portion of
the costs of any multi - family housing project (as defined
below) in order to alleviate the shortage of housing described
above;
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD
OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE
COUNTIES, ILLINOIS, AS FOLLOWS:
SECTION 1. Chapter 3.24 of the Village of Buffalo Grove
Municipal Code is hereby amended and restated in its entirety
to read as follows:
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Chapter 3:24 Authorization for the Issuance of
Project Revenue Bonds
3.24.010 Declaration of Purpose The Village has enacted
this Chapter for the following specific purposes:
A. To provide a financing device that will aid in
financing the cost of industrial projects in order to
relieve conditions of unemployment and broaden the
existing tax base within the Village.
B. To encourage the increase of industrial and commercial
development in the Village leading to increased
welfare and prosperity of the residents of the Village.
C. To provide a financing device that 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 of the
Village and its inhabitants caused by environmental
pollution.
D. To provide a financing device that will aid in
financing the cost of multi - family housing projects in
order to alleviate the shortage within the Village of
decent, safe and sanitary housing, including housing
which persons of low and moderate income can afford
and thereby improve the public health, safety, and
general welfare of the Village and its inhabitants.
3.24.020 Definitions Unless a different meaning clearly
appears from the context:
A. "Village" means the Village of Buffalo Grove, Cook and
Lake Counties, Illinois.
B. "Industrial project" includes any capital project,
including one or more buildings and other structures,
improvements, machinery and equipment whether or not
on the same site or sites now existing, or hereafter
acquired, suitable for use by any manufacturing,
industrial, research, or commercial enterprise,
including but not limited to use as a factory, mill,
processing plant, assembly plant, packaging plant,
fabrication plant, office building, industrial
distribution center, warehouse, repair, overhaul or
service facility, freight terminal, research facility,
test facility, commercial facility, and including also
the sites thereof and other rights in land therefor
whether improved or unimproved, site preparation and
-3-
landscaping and all appurtenances and facilities
incidental thereto such as utilities, access roads,
railroad sidings, truck docking and similar
facilities, parking facilities, dockage, wharfage, and
other improvements necessary and convenient thereto,
and also including any land, buildings, machinery and
equipment comprising an addition to, or renovation,
rehabilitation or improvement of any existing capital
project.
C. "Person" means an individual, partnership,
copartnership, firm, company, 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 assigns.
D. "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 the State of Illinois, the federal
government or other governmental entities and
including, but not "" limited to, anything which is
considered as pollution or environmental damage in the
Environmental Protection Act, compiled as
Paragraphs 1001 through 1051, Chapter 111 -1/2, Ill.
Rev. Stats. 1983, and any amendment thereto and
substitution therefor.
E. "Pollution control facility" means any land, interest
in land, building, structure, facility, system,
fixture, improvement, appurtenance, addition,
machinery or equipment, or any combination thereof,
and all real and personal property deemed necessary
therewith, having to do with or the end purpose of
which is, reducing, controlling or preventing
pollution.
F. "Project" means any industrial project, multi- family
housing project or pollution control facility, or any
combination thereof.
G. "Project costs" means and
all reasonable or necessary
acquisition, construction,
alteration, improvement and
including without limitatil
studies, market surveys, and
includes the sum
costs incidental
reconstruction,
extension of a
Dn the cost of fe
other studies and
total of
to the
repair,
project,
ssibility
surveys; costs of required contributions to units of
government; real estate taxes through the estimated
date of completion of the project; preparation of
plans and specifications and other architectural and
engineering services; legal, financial consulting,
marketing, and other special services; underwriting
and financing costs; acquisition, demolition,
construction, equipment and site development of new
and rehabilitated buildings; rehabilitation,
reconstruction, repair or remodeling of existing
buildings; and all other necessary and incidental
expenses, including an initial debt service reserve
together with estimated interest on bonds issued to
finance a project to a date six (6) months subsequent
to the estimated date of completion of the project,
and any costs or expenses which may be financed under
the provisions of Section 103(b) of the Internal
Revenue Code of 1954 as amended.
H. "Corporate Authorities" means the President and Board
of Trustees of the Village.
I. "Multi- family housing project" means a capital project
consisting of one or more buildings or structures
undertaken to provide residential rental housing,
including residential rental housing for persons and
families of low or moderate income, and facilities
that are functionally related and subordinate to such
residential rental housing facilities.
J. "Chapter" means this Chapter 3.24 of the Village
Municipal Code.
K. "Holder" or "Bondholder" means, with respect to any
bond issued under the authority of this Chapter,
(a) the bearer of any coupon Bond or coupon or (b) the
registered owner of any fully registered bond.
3.24.030 Additional Powers In addition to powers which it
may now have, the Village has the power under this Chapter:
A. To construct, acquire by gift, lease or purchase,
reconstruct, improve, better, or extend, or to finance
the construction, acquisition, reconstruction,
improvement, betterment, or extension, of any project
within or without the Village or partially within and
partially without the Village, but in no event further
than 10 miles from the territorial boundaries of the
Village, and to acquire by gift, lease or purchase
lands or rights in land in connection therewith.
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B. To issue its revenue bonds to finance in whole or in
part the cost of the acquisition, purchase,
construction, reconstruction, improvement, betterment
or extension of any project. In determining such
cost, the Village may include all estimated project
costs. The Village need not acquire or hold title-to
any project.
C. To rent, lease, or otherwise dispose of any project in
such manner that rents or other charges for the use of
the project shall be fixed and revised from time to
time so as to produce income and revenues in amounts
sufficient, or to loan the proceeds of its bonds upon
repayment terms sufficient, to provide for the prompt
payment of interest upon all bonds issued under this
Chapter and to create a sinking fund to pay the
principal of such bonds when due, and to provide for
the operation and maintenance of such project and for
an adequate depreciation account in connection
therewith if such account is deemed necessary by the
Corporate Authorities.
D. To pledge to the punctual payment of bonds authorized
under this Chapter and redemption premium, if any, and
interest thereon the income and revenues to be
received from such project (including improvements,
betterments or extensions thereto thereafter
constructed or acquired) sufficient to pay such bonds
and interest as they become due and to create and
maintain reasonable reserves therefor.
E. To mortgage or grant a security interest in any
project in favor of the holder or holders of bonds
issued therefor or a trustee for such holders.
F. To enter into a loan agreement and accept a note or
mortgage, or both, as security for payment of the
proceeds of the bonds and to pledge said note or
mortgage, or both, for the benefit of the holder or
holders of the bonds.
G. To sell and convey such project, including without
limitation the sale and conveyance thereof subject to
a mortgage or security interest as provided in this
Chapter, for such price and at such time as the
Corporate Authorities may determine. However, no sale
or conveyance of any project shall ever be made in
such manner as to impair the rights or interests of
the holder or holders of bonds issued for the
construction, purchase, improvement or extension of
such project.
H. To issue its bonds to refund in whole or in part,
bonds theretofore issued by the Village under
authority of this Chapter.
3.24.040 Exercise of Powers - Bonds
A. The financing, construction, acquisition,
reconstruction, improvement, betterment, or extension
of any project may be authorized under this Chapter,
and bonds may be authorized to be issued under this
Chapter to provide funds for such purpose or purposes
or for the refunding of bonds theretofore issued under
this Chapter, by an ordinance or resolution passed by
a vote of a majority of the Corporate Authorities then
holding office, which ordinance or resolution shall
take effect immediately upon adoption.
B. Bonds issued under this Chapter 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 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, may be executed in such manner,
may contain such terms, covenants and conditions, and
may be in such form, as such ordinance or resolution
may provide or as may be subsequently determined by
the Corporate Authorities before the bonds are
issued. Bonds may be sold at public or private sale
in such manner and upon such terms as may be deemed
advisable by the Corporate Authorities. Pending the
preparation of definitive bonds, interim receipts or
certificates in such form and with such provisions as
the Corporate Authorities may determine may be issued
to the purchaser or purchasers of bonds sold pursuant
to this Chapter.
3.24.050 Covenants in Bonds
A. Any ordinance or resolution authorizing the issuance
of bonds under this Chapter may contain covenants as
to any one or more of the following:
1. The use and disposition of the income and
revenues from the project for which the bonds are
to be issued, including the creation and
maintenance of reserves;
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2. The issuance of other or additional bonds payable
from the income and revenues from such project;
3. The maintenance and repair of such project;
4. The insurance to be maintained on such project
and the use and disposition of insurance moneys;
5. 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, paying agent, and
bond registrar;
6. The investment of any funds held by such trustee;
7. The terms and conditions upon which the holders
of the bonds or any portion thereof or any
trustees therefor, are entitled to the
appointment of a receiver; and
8. Such additional terms as the Corporate
Authorities shall deem necessary and proper.
B. Any ordinance or resolution authorizing the issuance
of bonds under this Chapter may provide that the
principal of, redemption premium, if any, and interest
on any bonds issued under this Chapter shall be
secured by a mortgage or deed of trust covering the
project for which the bonds are issued the lien of
which may extend to any improvements or extensions
thereafter made. Such mortgage or deed of trust may
contain such covenants and agreements to safeguard
properly the bonds as may be provided for in the
ordinance or resolution authorizing such bonds and
shall be executed in such manner as may be provided
for in such ordinance or resolution. The provisions
of this Chapter and any such ordinance or resolution
and any such mortgage or deed of trust shall
constitute a contract with the holder or holders of
the bonds and shall continue in effect until the
principal of, interest on, and the redemption
premiums, if any, on the bonds so issued have been
fully paid, and the Village may in any such ordinance
or resolution agree that the duties of the Village and
its Corporate Authorities and, officers under this
Chapter and any such ordinance or resolution and any
such mortgage or deed of trust shall be enforceable by
any bondholder by mandamus, foreclosure of any such
mortgage or deed of trust or other appropriate suit,
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action or proceedings in any court of competent
jurisdiction; provided, that the ordinance or
resolution or any mortgage or deed of trust under
which the bonds are issued may provide 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 subject to the control of a majority
of the holders or owners of any outstanding bonds.
3.24.060 Signatures of Officers on Bonds - Validity of
Bonds.
Bonds shall bear the signatures of such officers of
the Village as may be designated in the ordinance or
resolution authorizing such bonds, and such signatures
shall be the valid and binding signatures of the
respective officers of the Village notwithstanding
that before the delivery thereof and payment therefor
any or all of the persons whose signatures appear
thereon have ceased to be officers of the Village.
The validity of any bonds shall not be dependent upon
nor affected by the validity of the proceedings
relating to the acquisition, purchase, construction,
reconstruction, improvement, equipping, betterment or
extension of the project for which the bonds are
issued. The ordinance or resolution authorizing any
bonds may provide that the bonds shall contain a
recital that they are issued pursuant to this Chapter,
and that no officer or agent of the Village shall
question or contest any such recital.
3.24.070 Lien of Bonds.
All bonds issued under this Chapter shall have a lien
upon the revenues and receipts derived from the
project for which the bonds have been issued, and the
Corporate Authorities may provide in the ordinance or
resolution authorizing such bonds for the issuance of
additional bonds to be equally and ratably secured by
such lien upon such income and revenues or may provide
that the lien upon such income and revenues of such
additional bonds is subordinate.
3.24.080 Liability For Bonds.
Bonds issued under and pursuant to this Chapter shall
not be general obligations of the Village, the State
of Illinois or any political subdivision thereof but
shall be limited obligations payable solely out of the
income and revenues derived from the project with
respect to which such bonds are issued. No holder of
any bonds issued under this Chapter shall have the
right to compel any exercise of taxing power of the
Village, the State of Illinois or any political
subdivision thereof to pay the bonds or the interest
or premium, if any, thereon, and the bonds shall not
constitute an indebtedness of the Village, the State
of Illinois or any political subdivision thereof or a
loan of credit thereof within the meaning of any
constitutional or statutory provision. It shall be
plainly stated dh the face of each bond that it has
been issued under the provisions of this Chapter and
that it does not constitute an indebtedness of the
Village, the State of Illinois or any political
subdivision thereof or a loan of credit thereof within
the meaning of any constitutional or statutory
provisions.
3.24.090 Investment of Funds.
A. Funds held by the Village pursuant to this Chapter
may, to the extent not inconsistent with the laws of
the State of Illinois, be invested in
1. bonds, notes, certificates or indebtedness,
treasury bills or other securities constituting
direct obligations of or obligations guaranteed
by the United States of America;
2. certificates of deposit or time deposits
constituting direct obligations of any "bank" as
defined by the Illinois Banking Act, as
heretofore and hereafter amended; provided,
however, that investments under this clause (2)
may be made only in those certificates of deposit
or time deposits issued by banks which are
insured by the Federal Deposit Insurance
Corporation, if then in existence;
3. short term discount obligations of the Federal
National Mortgage Association; and
4. any other debt obligation or obligations issued
by any corporation or corporations organized
under the laws of the United States or any state
of the United States, provided that each of the
investments under this clause (4) shall be
expressly authorized by the Corporate Authorities
stating with particularity the amount of such
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investment and the issuer of such debt
obligation, and expressly finding in each case
that such investment will not involve any undue
risk or loss of funds derived from the general
revenues of the Village. Any such securities may
be purchased at the offering or market price
thereof at the time of such purchase
B. The investment of funds authorized in subsection A may
be made on behalf of the Village by the Village's
Director of Finance, without further authorization, or
such other person, firm or corporation as may be
authorized in a lease, indenture, purchase contract or
other contract authorized by the Corporate
Authorities; provided such other person, firm or
corporation agrees in writing to bear the risk of any
loss that may occur as a result of such investment of
funds; and further provided that the Corporate
Authorities expressly find that such authorization
will not involve any undue risk or loss of funds
derived from the general revenue of the Village.
3.24.100 Rentals from Proiects.
The Corporate Authorities shall prescribe and collect
rentals and charges for each project and shall revise
such rentals and charges from time to time whenever
necessary so that the income and revenues to be
derived from such rentals and charges are always
sufficient to pay when due all bonds and interest
thereon for the payment of which such revenues are
pledged, including reserves therefor, and to provide
for all expenses of operation, including maintenance
charges and depreciation charges, if any, of such
project.
3.24.110 Exemption from Construction and Building
Requirements for Public Buildings.
The acquisition and construction of projects 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 Chapter, and any requirement of competitive
bidding or restriction imposed on the procedure for
award of contracts for such purpose or the lease, sale
or other disposition of property of the Village is not
applicable to any action taken under authority of this
Chapter.
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3.24.120 Powers Conferred as Additional and Supplemental -
Limitations Imposed - Effect.
The powers conferred by this Chapter are in addition
and supplemental to, and the limitations imposed by
this Chapter shall not limit any powers the Village
may have by, any law or any other part of the Village
of Buffalo Grove Municipal Code or any other ordinance
of the Village. Projects may be acquired, purchased,
constructed, reconstructed, improved, bettered,
equipped, extended and financed, and bonds may be
issued under this Chapter for such purposes,
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 requirements, restrictions,
limitations or other provisions contained i.z any law
or any other ordinance.
3.24.130 Severabilitv Clause.
The provisions of this Chapter are severable and if
any of its provisions or any sentence, clause or
paragraph shall be held unconstitutional by any court
of competent jurisdiction, the decision of such court
shall not affect or impair any of the remaining
provisions.
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vp
SECTION TWO: This ordinance shall be in full force
and effect from and after its passage and approval in the
manner provided by law.
AYES: 4 - Glover, Reid, Shields, Kowalski
NAYES: 1 - O'Reilly
ABSENT: 1 - Marienthal
PASSED: June 3, 1985.
APPROVED: June 3, 1985.
lage President
Ale a
ATTEST: , �
Village Clerk Fro Tem
MIMI