R-35-04 05/24/2004RESOLUTION k - .3U`0y
RESOLUTION AUTHORIZING ACCEPTANCE OF PROPOSAL
FROM BERNARDI SECURITIES, INC.
FOR SERVICES RELATED TO THE ISSUANCE OF
SALES TAX (LONG RUN MARKETPLACE) REVENUE BONDS, SERIES 2004
WHEREAS, the Village of Lemont desires to issue Sales Tax Revenue Bonds for the
purpose of refinancing the outstanding Developer Note with Ryan Companies US, Inc. (Long Run
Marketplace) with the Village of Lemont; and
WHEREAS, the Village of Lemont seeks to utilize the firm of Bernardi Securities, Inc. for
financial services in conjunction with the bond issue; and
WHEREAS, Bernardi Securities, Inc. has presented a proposal to the Village of Lemont
identifying the terms and conditions of the services to be provided.
NOW, THEREFORE, BE IT RESOLVED by the President and Board of Trustees that the
Engagement Letter attached hereto as Exhibit A, authorizing Bernardi Securities to structure and
underwrite bonds for the purpose of refinancing the sales tax agreement with Ryan Companies US,
Inc. as defined in the Annexation Agreement dated March 27, 1999 is hereby approved.
PASSED AND APPROVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF LEMONT, COUNTIES OF COOK, WILL AND DU PAGE, ILLINOIS
on this 24th day of May , 2004.
Debby Blatzer
Peter Coules
Brian Reaves
Steve Rosendahl
Ronald Stapleton
Jeanette Virgilio
Attest:
CHARLENE SMOLLEN, Village Clerk
AYES NAYS PASSED ABSENT
PIAZZA, Vi lage 'r;sident
BERNARDI
SECURITIES, INC.
May 20, 2004
312 - 726 -7324
fax: 312-726-1431
105 West Adams, Suite 1900 • Chicago, Illinois 60603 e-mail: bemardi @bernardisecurities.com
www.bernardisecurities.com
Mr. Gary C. Holmes, Village Administrator
Village of Lemont
418 Main Street
Lemont, IL 60439 -3708
Re: Sales Tax (Long Run Marketplace) Revenue Bonds, Series 2004
Dear Gary,
We are pleased to have been selected by the Village to propose a refinancing of the Village's currently
outstanding Developer Note with Ryan Companies US, Inc.
The refinancing will take place with the issuance of Sales Tax (Long Run Marketplace) Revenue Bonds,
Series 2004 (the "2004 Bonds) ". We understand that the primary source of repayment on the 2004 Bonds
will be sales tax receipts from the Long Run Marketplace development. An additional pledge of Village
wide sales tax receipts is the secondary source of repayment, and is used to show 1.50 times maximum
annual debt service coverage.
The 2004 Bonds will not require any capitalized interest and no debt service reserve account is required.
Our underwriting spread will not exceed 1.10% of the par amount of 2004 Bonds issued and will be
reduced to 0.80% if the Village decides insuring the issue is a feasible option.
Current market interest rates show the Village lowering its net interest rate from 7.00% on the current
developer note to approximately 4.36% on the 2004 Bonds, a savings of $893,964 in sales tax revenue.
However, please keep in mind that prior to the adoption of the Bond Resolution, the estimated savings
will fluctuate as interest rates fluctuate.
We are currently on schedule to adopt the Bond Resolution on the 2004 Bonds at the Village's June 14,
2004 Board meeting, with a closing scheduled for the end of June. Enclosed is a copy of our standard
Engagement Letter, which should be passed at the Village's May 24, 2004 Board meeting. This
Engagement Letter gives Bernardi Securities, Inc. the authority to begin the process of refunding the
Village's developer note.
If you have any questions, please do not hesitate to give Ronald P. Bernardi or me a call.
Sincerely,
BERNARDI SECURITIES, INC.
Robert P. Vail
Assistant Vice President
Enclosure
cc: Mayor John F. Piazza
Mr. Ronald P. Bernardi
Member NASD /Member SIPC
May 20, 2004
Bernardi Securities, Inc.
105 West Adams Street - Suite 1900
Chicago, Illinois 60603 -6207
Gentlemen:
You are hereby authorized to structure and underwrite bonds (the "Bonds ") on behalf of the Village of Lemont, Cook, DuPage
and Will Counties, Illinois (the "Village ") for the purposes of reimbursing Ryan Companies US, Inc., (the "Developer ") for the
costs associated with improving the "Commercial Tract" as defined in the Annexation Agreement dated March 27, 1999 and for
paying costs of issuance associated with the Bonds. We understand the primary underwriting responsibilities will fall to Mr.
Ronald P. Bernardi and Mr. Robert Vail of your firm.
This contract will serve as your authorization to structure and underwrite the Bonds provided the aforementioned conditions are
satisfied. At such time as we have approved all of the documents and proceedings related to the Bonds, you will be expected to
submit a detailed purchase agreement with the final interest rates, dated date, principal maturity dates, and interest payment
dates for the Bonds.
All costs of issuance are to be paid from Bond proceeds. These costs include but are not limited to: underwriting fees, legal
fees, rating fees, credit enhancement costs, bond printing costs, trustee fees, book -entry setup costs, CUSIP costs, and the
official statement printing costs. Our underwriting spread will not exceed 1.10% of the par amount of 2004 Bonds issued
and will be reduced to 0.80% if the Village decides insuring the issue is a feasible option.
This authorization will extend until the first to occur of: (i) such time when, as and if the Bonds are issued or (ii) thirty (30) days
written notice by either the Village or Bernardi Securities, Inc. terminating this contract. This authorizes Bernardi Securities,
Inc. to prepare all necessary documents in conjunction with the Bonds unless otherwise noted.
(Seal)
Village of Lemont
Cook County, 'Ili . Iis
By
Its
ATTEST:
BY #16,--47_.e
Its (
The above proposal accepted this date of , 2004, by the action of the Village President and the Board of Trustees of
the Village of Lemont, Cook Count Illinois.
ACCEPTED: BERNARDI SECURITIES, INC.
Ronald P. Bernardi
President