2004-22RESOLUTION NO. 2004- 22
A RESOLUTION CEDING THE 2004 PRIVATE ACTIVITY BOND VOLUME CAP OF THE
VILLAGE OF BUFFALO GROVE (INCLUDING VOLUME CAP TRANSFERRED FROM OTHER
LAKE COUNTY HOME RULE UNITS) TO LAKE COUNTY.
WHEREAS, the Village of Buffalo Grove, Cook and Lake Counties, Illinois (the "Village ") is
a municipality and a home rule unit of government duly organized and validly existing under
Section 6(a) of Article VII of the 1970 Constitution and laws of the State of Illinois; and
WHEREAS, in order.to facilitate and economic development both in the Village of Buffalo
Grove and in Lake County, Illinois, the Village has received Volume Cap from the Lake County
Home Rule Municipalities in the amounts identified in Schedule A to consolidate management
under control of a single Home Rule entity in cooperation with Lake County Partners Private
Activity Bond Clearinghouse (the "PABC "); and
WHEREAS, tax exempt private activity bonds, provide for opportunities to increase
business and commerce, and relieve conditions of unemployment; and
WHEREAS, since 2001, Lake County has carried over $4,539,376 in unused Volume Cap
for future multi - family projects and 12/31/2004 is the last year whereby these funds may be
utilized; and
WHEREAS, it is in the best interest of the Village, Lake County Home Rule Municipalities,
and Lake County Partners to collect the anticipated 1.0% Volume Cap fee as soon as possible,
and in no case later than 12/31/04; and
WHEREAS, Banner Properties, has requested $4,260,624 in 2004 PABC volume cap to
combine with Lake County's 2001 Unused Volume Cap of $4,539,376 to finance the acquisition
and renovation of the Rosewood Apartments ($8,800,000 total project cost), a 168 unit affordable
housing multi - family housing development in Round Lake, Illinois;
WHEREAS, Banner Properties has indicated its intent to pay a fee equal to 1.0% of the
$4,260,624 (i.e., $42,606.24) for the 2004 Volume Cap currently available under the Lake County
Private Activity Bond Clearinghouse no later than Tuesday December 31, 2004 at 12:00 Noon; and
WHEREAS, Section 146 of the Internal Revenue Code of 1986 (the "Code "), as amended,
and Section 1301 of the Tax Reform Act of 1986, places a ceiling (the "State Ceiling ") on the
aggregate principal amount of private activity bonds (as defined in the Code) that can be issued in
the State of Illinois from January 1, 2004, to and including December 31, 2004; and
WHEREAS, the PABC aggregated approximately $18,640,080 of Volume Cap from Lake
County Home Rule Units in 2004 (the "2004 PABC Available Allocation); and
WHEREAS, the PABC has recommended that it is in the best interest of the Village of
Buffalo Grove to transfer and reallocate a portion of PABC's available Volume Cap of $4,260,624
to the Lake County, Illinois and thereby permit Lake County to issue tax - exempt private activity
bonds to finance industrial, manufacturing, and commercial projects for industrial, housing, or
commercial development purposes, including the proposed Rosewood Apartments project in
Round Lake, Illinois; and
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WHEREAS, the Village will report this transfer of approximately $4,260,624 of Volume Cap
to Lake County, Illinois to the Bureau of the Budget as soon as reasonably possible.
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE BOARD OF THE VILLAGE
OF BUFFALO GROVE:
Section 1. That the Village of Buffalo Grove hereby transfers and reallocates a portion
of PABC's available Volume Cap not to exceed $4,260,624 to Lake County,
Illinois.
Section 2. An amount equal to 1.0% of the $4,260,624 (i.e., $42,606.24) shall be paid
to Lake County Partners prior to the issuance of the bonds.
Section 3. The PABC and the Village shall both retain a copy of this Resolution in their
records for a minimum of 30 years. Notice of this Resolution together with a
copy of this Resolution shall be given in writing by the Village after passage
and approval hereof.
Section 4. That the officials of the Village are hereby authorized, empowered, and
directed to take all necessary or advisable actions concerning the execution
and implementation of this Resolution.
Section 5. That this Resolution shall be in full force and effect from and after its
passage and approval according to law.
Passed and approved this 4th day of October, 2004.
AYES: 6 - Braiman, Glover, Berman, Johnson, Kahn, Trilling
NAYES: 0 - None::
ABSENT: 0 - None
ADOPTED: October 4 ,2004.
APPROVED: October 4 ,2004.
Village President
ATTEST:
Village CI
Schedule A
PRIVATE ACTIVITY BOND CLEARINGHOUSE
2004 AVAILABLE VOLUME CAP
Community Principal Amount
Waukegan $7,305,840.00
Buffalo Grove $3,464,560.00
North Chicago $2,887,760.00
Gurnee
$2,409,200.00
Round Lake Beach
$1,118,640.00
Park City
$545,440.00
Lincolnshire
$508,800.00
Lake Barrington
$399,840.00
Total
$18,640,080.00