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Home My WebLink AboutOrdinances - ORD-19-1928 - 02/18/2019 - McHenry Savings Bank purchase agreementCity 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 Certain Property from McHenry Savings Bank/ ADOPTED BY THE CITY COUNCIL OF THE CITY OF MCHENRY MCHENRY COUNTY STATE OF ILLINOIS 2019 Published in pamphlet form by authority of the City Council of the City of McHenry, McHenry County, Illinois this L L4day of to b . , 2019 ORDINANCE NO. 0 (� Q- I T- f An Ordinance Authorizing the City of McHenry to Borrow $305,500 from McHenry Savings Bank to Finance the Purchase of Certain Propertyfrom McHenry Savings Bank WHEREAS, the City of McHenry, McHenry County, Illinois (the "City"), is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the 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; WHEREAS, the City entered into a sales agreement (the "Agreement") with McHenry Savings Bank (the "Bank") to purchase the four parcels (the "Subject Property"), as described therein, for $611,000; WHEREAS, the City Council of the 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 Property through a loan from the Bank 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 (the "Loan"); The Loan shall be designated as a "qualified tax exempt obligation" in accordance with an attorney opinion; 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 3.50% 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 fund with cash the balance of the purchase price not financed 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 a mortgage on the Subject Property to further secure the Loan. NOW, THEREFORE, BE IT ORDAINED by the CITY COUNCIL of the CITY OF McHENRY, McHenry 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 further authorizes the Mayor, Administrator, Clerk and City Attorney to execute such documentation necessary and appropriate to 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 shall remain and continue in full force and effect. SECTION 4: All ordinances or parts of ordinances in conflict herewith are hereby repealed to the extent of such conflict. SECTION 5: This Ordinance shall be in full force and effect upon its passage, approval and publication in pamphlet form (which publication is hereby authorized) as provided by law. Voting Aye: R'loleCMe G kb/ i4W- r^ we w cc n Voting Nay: 5 i l con C46 11 Absent: Abstain: (� APPROVED: Mayor a e Jett (SEAL) ,/��%J�CJ f ATTEST: Deputy Clerk Debra Meadows Passed: :�:2.�L1�1'--)?0 / Ct Approved: _ ,o / i �r . I Z: M\McHenryCity—oflSrdmTancesVvlSBLoan.doc CERTIFICATION I, DEBRA 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 of the Mayor and Aldermen of said City of McHenry. I do hereby f irthergertify that at a regular meeting of the Mayor and Aldermen of the City of McHenry, held on the day of � T u G r A , 2019, the foregoing Ordinance entitled An Ordinance Authorizing the City of McHenry to Borrow $305,500 from McHenry Savings Bank to Finance the Purchase of Certain Property from McHenry Savings Bank, was duly passed by the City Council of the City of McHenry. The pamphlet form of Ordinance No. — � including the Ordinance and a cover sheet thereof, was prepared, and a copy of such Ordinance was posted in the City Hall, commencing on the k_ day of 1 h, 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 that I am the lawful custodian and keeper of the same. GIVEN under my hand and seal this �_ day of ('a f 2019. Debra Meadows, Deputy Clerk City of McHenry, McHenry County, Illinois (SEAL)