Title
Ninety 7 Fifty on the Park Line of Credit/Term Loan Provider - Approval
History
As previously approved by the Board and as per the terms of the Redevelopment Agreement between the Village of Orland Park (Village) and Flaherty & Collins (F&C), the Village will obtain financing for the total cost (less F&C’s equity contribution) of the Ninety 7 Fifty on the Park development.
Upon determining that the most cost efficient method was the establishment of a bank line of credit that converts to a term loan, with the subsequent issuance of a minimum of two (2) series of taxable general obligation bonds, the Village reached out to a number of financial institutions to gauge their interest in providing the line of credit/term loan financing.
After discussions with a number of financial institutions, we narrowed our selection to Fifth Third Bank and PNC Bank. A summary of the terms and conditions offered by each is attached to this agenda item. Many of the terms and conditions listed by Fifth Third and PNC that relate to the structure of the financing are the same. One significant difference is that Fifth Third is requesting that we maintain our non-credit banking relationship with them for a minimum of five (5) years. This request is not listed as a term and/or condition, but was requested in conversation and will be built into the contract extension that will be brought to the Board in the coming months. Based upon this request, staff asked Fifth Third to provide proposed fee increases over the five (5) year extension term. Fifth Third’s proposal included a 3% fee increase in year one (1) of the extension, no increase in years two (2) and three (3) and a 2% increase in years four (4) and five (5). Staff also advised Fifth Third that should the Village agree to a contract extension, the Village would need language added to our extension agreement that allowed the Village to cancel the contract should Fifth Third not continue to enhance its services an...
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