ACTION REQUESTED:
Title
Communication from the City Manager and Finance Director/Comptroller with a Request to ADOPT an ORDINANCE Providing for the ISSUANCE of TAXABLE GENERAL OBLIGATION BONDS, SERIES 2015C, in an Aggregate Amount Not to Exceed $7,600,000, and TAXABLE GENERAL OBLIGATION BONDS, SERIES 2015D, in an Aggregate Amount Not to Exceed $2,000,000, of the City of Peoria, Peoria County, Illinois to Provide for Certain Improvements within said City, and Providing for the Levy of a Direct Annual Tax Sufficient to Pay the Principal of and Interest on Each of Said Series of Bonds, and Authorizing the Sale of Said Bonds to the Purchasers Thereof.
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BACKGROUND: On February 11, 2014 the City Council approved the First Amendment to Annexation Agreement with James S. Chambers, Thomas J. Chambers, and Terry L. Chambers, owners and Twenty Four Corp, LLC, Petersen Companies, LLC, and Petersen Hospitality, LLC to allow for the development of a sports complex and athletic facility. As part of the annexation agreement the City agreed to issue bonds in the amount of $7,600,000 for the Peoria Sports Center SSA and $2,000,000 for the Holiday Inn SSA with repayment being assured as general obligation bonds.
On November 25, 2014 the City Council approved an Early Work Loan Agreement in an amount not to exceed $3,000,000 with Twenty Four Corporation LLC (TFC). As part of the Early Work Agreement the City staff negotiated several other conditions that clarified and defined the City's obligations under the First Amendment to the Annexation Agreement. Specifically, the parties acknowledged and confirmed that the City shall have no further obligation to create any Special Service Areas (SSA), levy or collect SSA taxes, provide the SSA funding, or incur the Debt Obligations described in the First Amendment until:
* TFC has provided to the City a commitment for debt financing, from a reputable financial institution or other reasonably accepted lender, and/or cash e...
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