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This record contains private information, which has been redacted from public viewing.
Record #: O2016-9137   
Type: Ordinance Status: Passed
Intro date: 12/14/2016 Current Controlling Legislative Body: Committee on Finance
Final action: 1/25/2017
Title: Bond inducement language for Housing Revenue Bonds for MC Blue, LP
Sponsors: Emanuel, Rahm
Attachments: 1. O2016-9137 (V1).pdf, 2. O2016-9137.pdf

ORDINANCE

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WHEREAS, the City of Chicago (the "City"), a home rule unit of government under Section 6(a), Article VII of the 1970 Constitution of the State of Illinois, has heretofore found and does hereby find that there exists within the City a serious shortage of decent, safe and sanitary rental housing available for persons of low and moderate income; and

WHEREAS, the City has determined that the continuance of a shortage of affordable rental housing is harmful to the health, prosperity, economic stability and general welfare of the City; and

 

WHEREAS, MC Blue, LP., an Illinois limited partnership (the "Developer"), has proposed a certain low-income housing development project consisting of the rehabilitation of one residential building and of approximately 97 residential dwelling units therein, located generally at 4444 West Lawrence Avenue in Chicago and currently known as Mayfair Commons (the rehabilitation and equipping of the real estate and the building and other improvements thereon, including the residential dwelling units and associated areas in the building shall be known as the "Project"); and

 

WHEREAS, the Developer has requested that the City issue multi-family housing revenue bonds, notes or other indebtedness in an amount not to exceed $6,500,000 (the "Bonds") for the purpose of financing all or a portion of the Project costs; and

WHEREAS, it is intended that the interest on the Bonds will be excluded from gross income for federal income tax purposes; and

 

WHEREAS, it is intended that this ordinance shall constitute a declaration of official intent to reimburse certain eligible expenditures for the Project made prior to the issuance of the Bonds ("Eligible Project Costs") from the proceeds of the Bonds (if and when issued) within the meaning of Section 1.150-2 of the Treasury Regulations promulgated under the Internal Revenue Code of 1986, as amended (the "Treasury Regulations"); now, therefore,

 

BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CHICAGO:

 

SECTION 1 The above recitals are expressly incorporated in and made a part of this ordinance as though fully set forth herein.

SECTION 2. The City intends to issue the Bonds and lend all or a portion of the proceeds thereof ("Bond Proceeds") to the Developer, or an entity affiliated with or related to the Developer (in either case, the "Borrower"), for the purpose of financing all or a portion of the Project costs. The maximum principal amount of Bonds which the City intends to issue for the Project will not exceed $6,500,000.

 

SECTION 3. Certain Eligible Project Costs will be incurred by the Borrower in connection with the Project prior to the issuance of the Bonds. The City reasonably expects to reimburse such Eligible Project Costs with Bond Proceeds.

 

I

S VSI lAREDM-'inanciAMaylair Commons HondsMiuIucemeni Ordinance 3 cloc

 

 

SECTION 4. The Eligible Project Costs to be reimbursed with Bond Proceeds will be paid initially from funds of the Borrower.

SECTION 5. This ordinance is consistent with the budgetary and financial circumstances of the City. No funds from sources other than Bond Proceeds are, or are reasonably expected to be, reserved, allocated on a long-term basis or otherwise set aside by the City for the Project for costs to be paid from Bond Proceeds.

SECTION 6. This ordinance constitutes a declaration of official intent under Section 1.150-2 ofthe Treasury Regulations.

 

SECTION 7. To the extent that any ordinance, resolution, rule, order or provision of the Municipal Code of Chicago, or part thereof, is in conflict with the provisions of this ordinance, the provisions of this ordinance shall control: If any section, paragraph, clause or provision of this ordinance shall be held invalid, the invalidity of such section, paragraph, clause or provision shall not affect any of the other provisions of this ordinance.

SECTION 8. This ordinance shall be effective as of the date of its passage and approval.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

S \SHARl.:D\Finance\Mayfair Commons BondsMnducumcnl Ordinance 3 doc

 

 

OFFICE  OF THE MAYOR

CITY OF CHICAGO

RAHM EMANUEL

MAYOR

December 14, 2016

 

 

 

 

 

 

 

 

 

TO THE HONORABLE, THE CITY COUNCIL OF THE CITY OF CHICAGO

 

 

Ladies and Gentlemen:

 

At the request of the Commissioner of Planning and Development, I transmit herewith an ordinance authorizing bond inducement language for Housing Revenue Bonds for MC Blue, LP.

 

Your favorable consideration of this ordinance will be appreciated.

Mayor

 

Very truly yours,

 

CHICAGO January 25. 2017 ^— To the President and Members of the City Council: Your Committee on Finance having had under consideration

 

 

 

An ordinance evidencing the City's intent to issue City of Chicago Multi-Family Housing Revenue Bonds (Mayfair Commons Apartments Project).

 

02016-9137

 

$6,500,000

Amount of Bonds Not to exceed:

 

 

 

 

 

 

 

 

 

 

Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the proposed Ordinance Transmitted Herewith

 

(a (viva voce vote

dissenting vote(s).

 

This recommendation was concurred in by

of members of the committee with

 

/

 

 

 

Respectfully submitted

 

Chairman

 

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