1999-13� r
RESOLUTION NO. 99- 13
A RESOLUTION CEDING THE AGGREGATE REMAINING UNUSED ALLOCATION OF 1999
PRIVATE ACTIVITY BOND VOLUME CAP OF THE VILLAGE OF BUFFALO GROVE TO THE
ILLINOIS DEVELOPMENT FINANCE AUTHORITY FOR USE BY PROJECTS IN THE
VILLAGE OF BUFFALO GROVE
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, the availability of job opportunities to relieve conditions of
unemployment and underemployment and the increase of business and commerce to
reduce the evils associated with unemployment and underemployment are essential
to the health, safety and welfare of the Village; 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,
1999, to and including December 31, 1999; and
WHEREAS, the Village's portion of the State's Ceiling is $50 per capita
(the "Available Ceiling ") thereby resulting in approximately $2,100,000 in 1999
Available Ceiling; and
WHEREAS, it is in the best interest of the Village to transfer and
reallocate the Village's remaining, unused Available Ceiling to the Illinois
Development Finance Authority ( "IDFA") and thereby permit the Authority to issue
tax - exempt private activity bonds to finance industrial, manufacturing and
commercial projects for economic development purposes and, in particular, the
proposed R.G. Ray Corporation expansion project to be located at 900 Busch
Parkway in the Village of Buffalo Grove; and
WHEREAS, the Village has issued private activity bonds requiring Volume Cap
to which portions of the Available Ceiling have been allocated in the aggregate
principal amount of $0 from January 1, 1999, through the date of adoption of this
Resolution; and
WHEREAS, the Village has a remaining, unused balance of allocated Available
Ceiling in the amount of approximately $2,100,000 for the remainder of calendar
year 1999; and
WHEREAS, under the Illinois Private Activity Bond Allocation Act (P.A. 84-
952 and P.A. 89 -460), that portion of Available Ceiling remaining unused by a
Home Rule Unit, other than a municipality with over 2,000,000 inhabitants, as of
May 1 of each calendar year, shall be, on June 1 of each calendar year reserved
to the Governor's Office for reallocation; and
WHEREAS, under the Illinois Private Activity Allocation Act, the Village
may reallocate to IDFA any remaining unused portion of its Available Ceiling; and
WHEREAS, the Village, R.G. Ray Corporation, and IDFA have met and pursuant
to those meetings R.G. Ray Corporation submitted a Volume Cap Request to the IDFA
on February 23, 1999 for approximately $6,300,000 in IDFA Volume Cap, to be
combined with $2,100,000 of the Village's Volume Cap to be transferred by the
Village to IDFA, in support of an $8,400,000 bond issue by IDFA on behalf of R.G.
Ray Corporation to close during calendar 1999; and
WHEREAS, IDFA's ability to issue $8,400,000 in Bonds for the R.G. Ray
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Corporation project is conditional upon the Village's transfer of approximately
$2,100,000 in Volume Cap to IDFA; and
WHEREAS, the Village will report this transfer of approximately $2,100,000
in Volume Cap to IDFA for the R.G. Ray Corporation project to the Governor's
Office by no later that the first business day after May 10, 1999, as dictated
by the Governor's Office allocation guidelines; and
WHEREAS, it is in the best interests of the Village to transfer and
allocate its approximately $2,100,000 in unused Available Ceiling to IDFA in
order to (1) further leverage the Village's Home Rule Ceiling to enable the
financing of more local projects, and (2) increase the probability of receiving
IDFA Volume Cap to finance other projects in the Village of Buffalo Grove,
including the proposed Long Grove Confectionery Company project bond issue, and
WHEREAS, IDFA would allow the Village to designate other priorities for
financing all potential projects to be financed using the available transferred
Available Ceiling during 1999, as appropriate.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS that:
Section 1. The Village of Buffalo Grove hereby transfers and reallocates
its remaining, unused Available Ceiling of approximately $2,100,000 to
IDFA for the purpose of enabling IDFA to complete the financing of the
R.G. Ray Corporation project in the Village of Buffalo Grove. In the
event that the R.G. Ray Corporation project does not close by October 15,
1999, the Village will have the right to designate priorities to IDFA for
applying any unused 1999 Buffalo Grove Volume Cap, including but not
limited to, other IDFA projects located in the Village.
Section 2. IDFA 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 3. The Village President and Village Clerk are hereby authorized,
empowered and directed to take all necessary and advisable actions in
connection with the execution and implementation of this Resolution.
Section 4. This Resolution shall be in full force and effect from and
after its passage and approval.
AYES: 6 - Marienthal, Reid, Rubin,Braiman, Hendricks, Glover
NAYES: 0 - None
ABSENT: 0 - None
ADOPTED: March 15 ,1999. APPROVE D• arch 15 ,1999.
Villa resident
ATTEST:
Village Clerk