2018-11 Approving the Transfer of Volume Cap in Connection with Private Activity Bond Issues, and Related Matters

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c1cda CENTRAL ILLINOIS ECONOMIC DEVELOPMENT AUTHORITY #1 Industrial Park Drive• Hillsboro* Illinois 62049 •Tel: 866-325-7525•Web:vwvw.cieda.biz March 20,2018 The Honorable Julie Moore-Wolfe,Mayor City of Decatur 1 Gary K.Anderson Plaza Decatur,IL 62523-1196 Dear Mayor Moore-Wolfe: The Central Illinois Economic Development Authority (CIEDA) respectfully requests consideration for the transfer of your 2018 Home Rule Volume Cap to CIEDA for economic development and housing projects. We have mutually benefited from working with other communities that have allowed CIEDA to successfully issue over$13,995,000 in bonds that have created over 193 jobs. CIEDA is in the process of developing relationships with home rule communities and other regional development authorities in working together to accommodate the Volume Cap needs of their projects. Some years, we have more projects than Volume Cap and other years we have more Volume Cap than projects. At the end of the calendar year, Volume Cap can be carried forward for three years,but once carried forward, it can no longer be transferred. We have developed a mutually beneficial relationship between communities, counties and other regional development authorities to graciously share this valuable resource for the benefit of the region. We feel it is fair to help a neighbor that has helped us in the past. The rising tide raises all of the boats. As you may be aware,home rule communities receive a direct allocation in 2018 equal to their population times $105. The 2018 State of Illinois Allocation guidelines identify Decatur's population at 76,122, so your 2018 Volume Cap Allocation is $7,992,810. You are required to obligate this allocation by May 1St of each calendar year or it automatically goes back to the State of Illinois for reallocation to other entities in June of each calendar year. If the City of Decatur would consider passing an ordinance transferring their 2018 allocation to CIEDA prior to May 1St, then CIEDA would be able to keep this cap until December 31St. This action would allow the City to maintain control of their Volume Cap past May 1St CIEDA is interested in serving in this capacity in order to develop a relationship with home rule communities to be able to trade cap in up and down years. We respectfully request if you have no need for the cap by September 1St that you allow us to use it to benefit the residents of CIEDA. If the City is interested, I have taken the liberty of enclosing a draft ordinance for you to review as well as a draft letter to the Governor's Office. I am available to meet with any City official you wish regarding this matter. Please call me at 866-325-7525 if you have any questions. Please send a copy of the Ordinance/Resolution and notification letter to the Governor's Office of Management and Budget,as well as a copy to CIEDA Chicago at 1032 S. Vine Ave,Park Ridge,IL 60068. Sincerely, Andrew Hamilton Executive Director