'ordinance
WHEREAS, the City of Chicago (the "City"), a home rule unit of government under Section 6(a), Article Vll 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, BJ Wright Preservation, LP, an Illinois limited partnership (the "Borrower"), the sole general partner of which is BJ Wright GP, LLC, an Illinois limited liability company, has proposed renovation of a certain low-income housing development project of 12 garden style four-story apartment buildings and 15 two-story townhomes, all of which shall comprise approximately 272 residential dwelling units, located in the City on various parcels between Maxwell Street, Morgan Street, 14th Place, Racine Avenue and Blue Island Avenue, and known as the Barbara Jean Wright Court Apartments (the "Project"); and
WHEREAS, the Borrower has requested that the City issue multi-family housing revenue bonds, notes or other indebtedness in an amount not to exceed Forty-Four Million Seven Hundred Thirty-Two Thousand Dollars ($44,732,000) (the "Bonds") for the purpose of financing all or a portion of the Project costs, including but not limited to the costs incurred in connection with the issuance of the Bonds and funding certain reserves, if required; 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 ofthe Bonds (if and when issued) within the meaning of Section 1.150-2 ofthe 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 reasonably expects to issue the Bonds and lend the proceeds thereof ("Bond Proceeds") to the Borrower, or an entity affiliated with or related to the Borrower, for the purpose of financing all or a portion of the Project costs, including but not limited to the costs incurred in connection with the issuance of the Bonds and funding certain reserves, if required. The maximum principal amount of Bonds which the City intends to issue for the Project will not exceed Forty-Four Million Seven Hundred Thirty-Two Thousand Dollars ($44,732,000)
SECTION 3. Certain Eligible Project Costs will be incurred by the Borrower, or an entity affiliated with or related to the Borrower, in connection with the Project prior to the issuance of the
Bonds. The City reasonably expects to reimburse original expenditures (as that term is defined in the Treasury Regulations) incurred within 60 days preceding the adoption of this ordinance with respect to the Project with proceeds of the Bonds.
SECTION 4. The Eligible Project Costs to be reimbursed with Bond Proceeds will be paid initially from funds ofthe Borrower, or an entity affiliated with or related to the Borrower.
SECTION 5. This ordinance is consistent with the budgetary and financial circumstances ofthe City. No funds from sources other than the 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 the Bond Proceeds.
SECTION 6. This ordinance constitutes a declaration of official intent of the City with respect to the Project 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 ofthis 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 ofthe date of its passage and approval.
Finance/Housing Deals A-L/BJWright/Ordinance - Inducement/ordinance - bond inducement v1 .docx
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CH1CAGO January 26. 2022
To the President and Members ofthe City Council:
Your Committee on Finance having had under consideration a communication recommending a proposed ordinance concerning the authority to issue Multi-Family Revenue bonds, or debt instruments to BJ Wright Preservation LP. BJ Wright GP LLC for the Barbara Jean Wright Court project acquisition and renovation of various residential buildings between Maxwell Street, Morgan Street, 14lh Place, Racine A venue and Blue Island Avenue in the 25th Ward.
O2021-5S82
Having had the same under advisement, begs leave to report and recommend that your Honorable Body pass the proposed
This recommendation was concurred in by viva voce vote of members ofthe
committee with 0 dissenting vote(s).
Respectfully submitted.