HomeMy WebLinkAboutOrdinances - ORD-19-1928 - 02/04/2019 - Authorizing the City to borrow $305,500 for purchasing the Mchenry Savings Bank propertyCity of McHenry
McHenry County
State of Illinois
ORDINANCE NUMBER ORD-19-1928
An Ordinance authorizing the City of McHenry to borrow $305,500 from McHenry
Savings Bank to Finance the Purchase of Property from McHenry Savings Bank
ADOPTED BY THE
CITY COUNCIL
OF THE
CITY OF MCHENRY
MCHENRY COUNTY
STATE OF ILLINOIS
7
Published in pamphlet form by authority of the City Council of the City of
McHenry, McHenry County, Illinois this day of C t� t� . , 2019
ORDINANCE NO, LE01g - l q Q 49
Ordinance lluthortzing rite City of McHemy to
Borrow $305,500fi•om McHeiuy Saphigs Bank io
Finance the Purchase of.Prolmilly ft•oin McHemy Savings Bank
WHETtEAS, the City of McHetuy, McHemy County, Illinois (tlte "Cityj, is a home rule
municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois,
and file passage of this Ordinance constitutes an exercise of the City's home rule powers and
functions as granted in the Constitution of the State of Illinois;
WHEILEAS, the City entered into a sales agreement ("Agreement")with McHemy Savings
Batik (`Bank") to purchase the four parcels (the "Subject Property"), as described therein, for
$611,000;
WHEREAS, the City Council ofthe City (the "Council")has determined that it is advisable,
necessary and in the best interest of the City to finance the purchase of the Subject Properly through
a loan from the Batik in accordance with the following terms and conditions:
i) The Bank would provide a loan in the principal amount of $305,500, representing
approximately 50% of the purchase price of the Subject Property ("Loan");
ii) The Loan shall be designated as a "tquattfled tax-exeinpt obligation" in accordance
with an attorney opinion;
iii) The City shall pledge its full faith and credit toward repayment of such Loan as well
as interest thereon;
iv) The Loan shall be for a term of five years, fully amortized, with an annual interest
rate of 3.15% with payments to be scheduled semi-annually or annually as
determined by the City;
v) Such Loan may be prepaid by the City without penalty or other fee;
vi) At closing on the Subject Property, the City shall fluid with cash the Valance of the
purchase price not fittanced by and all amounts due under the Agreement and
additional customary amounts due for obtaining the Loan, The City shall pay the
usual and customary charges imposed by lending institutions, including, but not
limited to survey, credit report, appraisal, title, escrow, and recording fees, and the
Bank shall be permitted to place amortgage on the Subject Property to furthersecure
the Loan.
NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF
McHENRY, McHe»ty County, Illinois, as follows:
SECTION 1: The Council hereby finds that all of the recitals contained in the preambles to
this Ordinance are full, true and correct and does incorporate them into this Ordinance by this
reference.
SECTION 2: The Council hereby authorizes the City to obtain such Loan, in accordance
with the criteria and within the parameters set forth above, and fifrther authorizes the Mayor,
Administrator, Clerk and City Attorney to execute such documentation necessary and appropriateto
obtain such Loan on the terms and conditions set forth in this Ordinance.
SECTION 3: If any section, paragraph, subdivision, clause, sentence or provision of this
Ordinance shall be adjudged by any Court of competent jurisdiction to be invalid, such judgment
shall not affect, impair, invalidate or nullify the remainder thereof, which remainder shallremain and
continue in full force and effect.
SECTION 4: A1L ordinances orparts of ordinances in conflietherewitln arehereby repealed to
the extent of such conflict,
SECTION S: This Ordinance shall be in fifll force and effect upon itspassage, approval and
publication in pamphlet form (which publication is hereby authorized) as provided by law.
Voting Aye; r'\e(N�v(Rry .��d�f �xltriet`zCi,�1�Ut'h�ft tt��C0 d61WN
Voting Nay: V
Absent: S
Abstain, 'f
APPROVED:
D MayoT
Je
(SEAL) li
ATTEST:
Deputy City Clerk Debra Meadows
Passed:
Approved:
Z:U11MCHenp4if}rofl0rdinnncesU9�oan�
CZnAAli ICATION
I, DEBItA MEADOWS, do hereby certify that I am the duly appointed, acting and qualified
Deputy Clerk of the City of McHenry, McHenry County, Illinois, and that as such Deputy Clerk, I
am the keeper of the records and minutes and proceedings ofthe Mayor and Aldermen of said City of
McHeruy.
I do hereby fin•ther certify that at a regrtlarmeeting of theMayor and Aldermen ofthe City of
McHenry, hold on the c_� dayof > e , 2019, the foregoing
Ordinance entitled An Ordinance Anthoi•izittg the City, of McHeruy to Borrow $305,500 froth
McHenry Savings Bunk to Finance the Purchase of Certrdn Properly) front McHeruy Savbtgs
Bank, was duty passed by the City Council of the City of McHeruy.
The pamphlet form of Ordinance ot., ri uding the Ordinance and a cover
sheet thereof, was prepared, and a copy of such Ordinance was posted in the City Hall, commencing
on the i i day of j e\>u a r;. i` t 2019, and will continue for at least 10 days thereafter.
Copies of such Ordinance are also available for public inspection upon request in the office of the
City Clerk.
I do further certify that the original, of which the attached is a true and correct copy, is
entrusted to me as the Deputy Clerk of said City for safekeeping, and thatI am the lawful custodian
and keeper of the same:
tt^
GIVEN under my hand and seal this � _ day of _��tic v a Y � 2019.
1, LI" !/vl
e ra Meadows, Deputy Clerk
City of McHenry,
McHemy County, Illinois
(SEAL)