HomeMy WebLinkAboutOrdinances - ORD-16-1789 - 05/02/2016 - ADD'L VOLUME CAP IN CONNECTION . . . (FABRIK)CITY COUNCIL OF THE
CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS
ORDINANCE NO. 16-1789
AN ORDINANCE TO REQUEST ADDITIONAL VOLUME
CAP IN CONNECTION WITH PRIVATE ACTIVITY BOND
ISSUE FOR FABRIK INDUSTRIES, INC. PROJECT
WHEREAS, the City of McHenry, McHenry County, Illinois (the "Municipality") is a
corporation and a home rule unit of local government under provisions of Section 6 of Article VII
of the Illinois Constitution of 1970; and
WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended (the "Code"),
and the State of Illinois Guidelines and Procedures for the Allocation of Private Activity Bonding
Authority in Accordance with the Tax Reform Act of 1986 and 30 ILCS 345 of the Office of the
Governor effective January 1, 2016, provide that the Municipality has volume cap equal to $100.00
per resident of the Municipality in calendar year 2016, which volume cap may be reserved and
allocated to certain tax-exempt private activity bonds; and
WHEREAS, the City Council of the Municipality (the "Corporate Authorities") adopted
Resolution R-16-001 on January 4, 2016 expressing its intent to issue industrial development
revenue bonds to finance a project to benefit K&L Equity, LLC, an Illinois limited liability
company, and Fabrik Industries, Inc., an Illinois corporation (collectively, the "Borrower") in an
amount not to exceed $10,000,000 (the "Project"); and
WHEREAS, the Corporate Authorities adopted Ordinance No. 16-1773 on February 15,
2016 to reserve the entire volume cap of the Municipality for calendar year 2016 to be allocated for
the Project, which amount is $2,663,000, and bond counsel for the Project filed a Report of
Allocation Granted in the amount of $2,663,000 with the Office of the Governor on March 4,
2016; and
WHEREAS, in order to finance the Project on behalf of the Borrower, the Municipality
now proposes to issue its City of McHenry, McHenry County, Illinois Industrial Development
Revenue Bonds, Series 2016A, 2016B and 2016C (Fabrik Industries, Inc. Project) in an aggregate
amount not to exceed $10,000,000 (the "Bonds"); and
WHEREAS, additional volume cap in an amount not to exceed $7,337,000 is needed for
the Project.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of McHenry,
McHenry County, Illinois, a home rule municipality in the exercise of its home rule powers, as
follows:
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SECTION l: Pursuant to Section 146 of the Code and the Illinois Private Activity Bond
Allocation Act, 30 ILCS, 345/1 et seq., as supplemented and amended, the entire volume cap of
the Municipality for calendar year 2016, which amount is $2,663,000, has been reserved for the
Project. The Municipality shall request additional volume cap from the Office of the Governor in
the amount of $7,337,000 (or in such amount sufficient for the issuance of the Bonds) from the
available home rule pool on or about June 1, 2016.
SECTION 2: The Mayor, the City Clerk and all other proper officers, officials, agents
and employees of the Municipality are hereby authorized, empowered and directed to do all such
acts and things and to execute all such documents and certificates as may be necessary to further
the purposes and intent of this Ordinance.
SECTION 3: The provisions of this Ordinance are hereby declared to be separable, and if
any section, phrase or provision of this Ordinance shall for any reason be declared to be invalid,
such declaration shall not affect the remainder of the sections, phrases and provisions of this
Ordinance.
SECTION 4: All ordinances and resolutions, or parts thereof, in conflict with the
provisions of this Ordinance are, to the extent of such conflict, expressly repealed.
SECTION 5: This Ordinance shall be in full force and effect upon its passage and
approval.
Passed and Approved this 2nd day of May, 2016.
VOTING AYE: CONDON, PETERSON, WIMMER, CURRY, SCHAEFER, GLAB, SANTI
VOTING NAY: NONE
ABSENT:
NOT VOTING:
ABSTAINED:
. san E. Low, Mayor
ATTEST:
111� Janice J es, Ci Cl -k
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STATE OF ILLINOIS )
)SS
MCHENRY COUNTY )
CERTIFICATION OF ORDINANCE AND MINUTES
I, the undersigned, do hereby certify that I am the duly elected, qualified and acting City
Clerk of the City of McHenry, McHenry County, Illinois (the "Municipality"), and as such
official I am the keeper of the records and files of the Municipality and of its City Council (the
"Corporate Authorities").
I do further certify that the foregoing constitutes a full, true and complete excerpt from the
proceedings of the meeting of the Corporate Authorities held on May 2, 2016, insofar as same
relates to the adoption of Ordinance No. 16-1789, entitled:
AN ORDINANCE TO REQUEST ADDITIONAL VOLUME CAP
IN CONNECTION WITH PRIVATE ACTIVITY BOND ISSUE FOR
FABRIK INDUSTRIES, INC. PROJECT
a true, correct and complete copy of which ordinance (the "Ordinance") as adopted at such
meeting appears in the proceedings of the minutes of such meeting and is hereto attached. The
Ordinance was adopted and approved by the vote and on the date therein set forth.
I do further certify that the deliberations of the Corporate Authorities on the adoption of
such Ordinance were taken openly, that the vote on the adoption of such Ordinance was taken
openly and was preceded by a public recital of the nature of the matter being considered and such
other information as would inform the public of the business being conducted, that such meeting
was held at a specified time and place convenient to the public, that notice of such meeting was
duly given to all of the news media requesting such notice, that the agenda for such meeting was
duly posted at the location where such meeting was held and at the principal office of the
Corporate Authorities at least 72 hours before such meeting, that said agenda contained a separate
specific item concerning the proposed adoption of such Ordinance, that at least one copy of said
agenda was continuously available for public review during the entire 72-hour period preceding
such meeting, that such meeting was called and held in strict compliance with the provisions of
the Open Meeting Act of the State of Illinois, as amended, and the Illinois Municipal Code, as
amended, and that the Corporate Authorities have complied with all of the applicable provisions
of such Act and such Code and their procedural rules in the adoption of such Ordinance.
IN WITNESS WHEREOF, I hereunto affix my official signature and the seal of the City
of McHenry, McHenry County, Illinois, this 2nd day of May, 2016.
(SEAL)
WHD/12578545.2