Title
Debt Service Program - Update and Parameters Ordinance for the Series 2026C General Obligation Bonds
History
In February 2026, the Village issued two series of General Obligation Bonds to finance anticipated capital and redevelopment projects. Series 2026A consisted of taxable bonds used to acquire two strategic properties, while Series 2026B consisted of tax-exempt bonds issued to support Tax Increment Financing (TIF) and other public improvement projects.
The proposed Series 2026C Parameters Ordinance authorizes the issuance of not to exceed $21,300,000 in General Obligation Bonds, consisting of both taxable and tax-exempt debt, to finance priority capital, redevelopment, and economic development initiatives. The proposed borrowing would be repaid through dedicated revenues associated with the Downtown Orland Park project and the proposed former Andrew Corporation redevelopment.
The bond issuance is dependent upon the establishment of a new TIF District encompassing the former Andrew Corporation property at 10500 W. 153rd Street, as well as implementation of the recently executed Redevelopment Agreement (RDA) Amendment with E&R Development, LLC (Edwards Realty) and the ground lease with the University of Chicago Medicine.
2026C General Obligation Bonds
Use of Bond Proceeds:
Bond proceeds may be used to fund the following components of the Project:
1. Heroes Park/Utility Relocation Improvements - $11.3 million
• The recently approved RDA with E&R Development, LLC provides for approximately $13.8 million in reimbursable infrastructure improvements.
• Of that amount, $2.5 million is available from the Village's 2025 bond proceeds, reducing the new borrowing required to approximately $11.3 million.
• The majority of this project and utility improvements are anticipated to be completed before the end of 2026 with the total project completion anticipated in the Summer of 2027.
2. Former Andrew Corporation Redevelopment - $10 million
• Subject to the creation of a new TIF District and execution of a redevelopment agreement with the property owner of 10500 W. 153rd Street, approximately $10.0 million is anticipated to fund environmental remediation and other TIF eligible costs necessary to prepare the site for future residential redevelopment.
• Remaining bond proceeds would also be used for major athletic field improvements and new pickleball courts at Centennial Park.
This overview kicks off the process to issue bonds to fund this year’s new developments.
Tentative Bond Sale Schedule (Subject to Change)
• July 20, 2026: Village Board adopts Parameters Ordinance.
• August 2026: Competitive bond sale; interest rates established.
• September 2026: Bond closing and receipt of bond proceeds.
The Parameters Ordinance delegates authority to designated Village officials to complete the bond sale within established parameters, including maximum principal amount, interest rate, maturity schedule, and other financing terms approved by the Village Board.
Recommended Action/Motion
I move to approve an ordinance providing for the issuance of not to exceed $21,300,000 General Obligation Bonds, Series 2026C, 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.