Title
Consideration and action on an ordinance providing for the issuance of not to exceed $40,500,000 General Obligation Bonds, Taxable 2026A and Tax-Exempt 2026B GO Bonds for Capital and Redevelopment, to finance various capital improvements in and for the Village, providing for the levy of taxes to pay said bonds, and authorizing the sale of said bonds to the purchaser thereof.
History
The proposed parameters ordinance authorizes the Village of Orland Park to issue up to $40,500,000 in taxable and tax-exempt General Obligation Bonds to finance a series of priority capital, redevelopment, and economic development initiatives (collectively, the “Project”). The Village has identified several major capital and redevelopment needs and does not have sufficient available funds to complete them without borrowing.
2026 General Obligation Bonds
Parameters for the Taxable General Obligation Bonds, Series 2026A and General Obligation Bonds, Series 2026B
-Maximum issue size: $40,500,000
-Maximum maturity date: December 1, 2051
-Authorization to sell Bonds expires: June 15, 2026
-Maximum interest rate: 7% taxable/5.50% tax-exempt
-Optional call dates: Allowed, will be set forth in Notification of Sale, but not later than 10 ½ years from the date of issuance (2036). May call portions of maturities in increments of $5,000.
-Designated Officers: Village President and one of the Village Manager or Finance Director, or any other officer or employee of the Village so designated by a written instrument signed by the President or the Finance Director.
-Method of Sale: Competitive Sale.
Use of Bond Proceeds:
Bond proceeds may be used to fund the following components of the Project:
1. Dick’s House of Sports (Repaid Through TIF)
A. $6.8 million (taxable) - Incentive to Dick’s House of Sports
• RDA planned for approved at 12/1/25 BOT meeting.
• $6.8M must be funded into escrow by 2/27/26. Dick’s target opening: Spring 2029.
• First 3 years of principal & interest capitalized.
B. $3 million (nontaxable) - Public Infrastructure
• $2M: stormwater improvements (Orland Square Mall area).
• $1M: traffic signal replacement at Regent/153rd.
2. Ravinia Extension (Repaid Through TIF)
A. $4.7 million (nontaxable) - Project Costs
• Covers:
o $200K ROW acquisition
o $3M roadway construction
o $1.5M traffic signals at LaGrange Rd/161st St.
• First 3 years of principal & interest capitalized.
B. Additional Project
• $3.8 million (nontaxable) undergrounding of electrical transmission lines (159th St./LaGrange Rd. to the west of Costco).
3. Former Riviera Property (Referendum)
A. $3.2 million (nontaxable) - Acquisition & Improvements
• $2.2M property purchase (tentative agreement).
• Additional $1M for partial demolition, repairs, planning.
• Referendum planned Spring 2027 for potential recreation center/senior center.
• If referendum fails → sell property for residential development.
• First 3 years of principal & interest capitalized.
4. Planned Capital Improvement Program Debt per Adopted Fiscal Year 2026 Budget
A. $10 million (nontaxable) (Repaid Through General Government Funds)
• Approved as part of June 5, 2023 Capital Improvement Plan & Five-Year Financial Plan.
• Listed in Plan as FY 2026 new debt authorization.
B. $9 million (nontaxable) Planned Water Infrastructure Improvement Debt (Repaid Through Water & Sewer Fund)
• Approved as part of June 5, 2023 Capital Improvement Plan & Five-Year Financial Plan.
• Listed in Plan as FY 2026 new debt authorization.
This overview kicks off the process to issue bonds to fund this year’s capital program as well as other new developments planned and budgeted for 2026. The tentative schedule is as follows:
Bond Sale Timetable
-December 15, 2025: Board adopts parameters ordinance
-January 26, 2026: Bond Sale (interest rates are locked in)
-February 16, 2026: Closing. Bond Proceeds received
The Parameters ordinance identifies officials that may execute the bond sale, and the criteria upon which the bonds may be sold. These criteria include the time frame, maximum interest rate, term of repayment, among others. With recent market conditions, the parameters ordinance will provide a longer window to allow the sale. This will give the Village the opportunity to delay the sale if market conditions are not favorable.
Capital Improvement Plan
Of the total $40.5 million in bond authority, $10 million for General Capital Fund and $9 million included within the Water & Sewer Fund (a combined $19 million) were already anticipated and incorporated into the Village’s 2023 Capital Improvement Plan (CIP). These amounts were identified as necessary to fund long-range infrastructure projects-including watermain, roadway, and facility improvements-and were included as part of the Village’s multiyear financing strategy.
The remaining bond capacity addresses additional project components and redevelopment opportunities that were not fully funded in the original plan but are now necessary to advance priority Village initiatives.
The ordinance set forth authorizes the Village to abate all or a portion of the bond & interest levies and use other lawfully available funds to repay the bonds. In fact, the Village’s plan of finance includes utilizing property tax revenues generated by the proposed TIF districts for the repayment of any debt issued to finance the development of those proposed TIF districts. The Village also intends to abate a portion of the bond & interest levy for projects that are a part of the original 2023 CIP and use revenues generated from the incremental 0.5% home rule sales and new utility taxes that were authorized in 2023.
Recommended Action/Motion
I move to adopt an Ordinance entitled: AN ORDINANCE PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $40,500,000 GENERAL OBLIGATION BONDS, SERIES 2026A AND 2026B, OF THE VILLAGE OF ORLAND PARK, COOK AND WILL COUNTIES, ILLINOIS, FOR THE PURPOSE OF FINANCING VARIOUS CAPITAL IMPROVEMENTS, PROVIDING FOR THE LEVY AND COLLECTION OF A DIRECT ANNUAL TAX SUFFICIENT FOR THE PAYMENT OF THE PRINCIPAL OF AND INTEREST ON SAID BONDS AND PROVIDING FOR THE SALE OF SAID BONDS TO THE PURCHASER THEREOF.