2013-21 APPROVING THE TRANSFER OF VOLUME CAP IN CONNECTION WITH PRIVATE ACTIVITY BOND ISSUES

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I ICIEDA CEN! ML 1LUNOIS E00NOMIC pC ELOPMEW AUTHOR February 27, 2013 The Honorable Michael T.McElroy,Mayor City of Decatur 1 Gary K.Anderson Plaza Decatur,IL 62523-1196 Dear Mayor McElroy: The Central Illinois Economic Development Authority (CIEDA) respectfully requests consideration for the transfer of your 2013 Home Rule Volume Cap to CIEDA for economic development and housing projects. We mutually benefit from working with other communities that allow CIEDA to successfuuIly issue bonds that can create new jobs. CIEDA is in the process of developing relationships with home rule communites and other regional development authorities in working together to accommodate the Volume Cap needs f their projects. Some years,we have more projects than Volume Cap and other years we have more Volume C�p than projects. At the end of the calendar year, Volume Cap can be carried forward for three years, but once c�rried forward, it can no longer be transferred. We have developed a mutually beneficial relationship between counities, counties and other regional development authorities to graciously share this valuable resource fortreenefit of the region. We feel it is fair to help a neighbor that has helped us in the past. The rising tide raises f the boats. As you may be aware, home rule communities receive a direct allocation in 2013 equal to their population times $95. The 2013 State of Illinois Allocation guidelines identify the City of Decatur's population at 76,096 so your 2013 Volume Cap Allocation is $7,229,120. You are required to obligate this allocat on by May I" 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 ransferring their 2013 allocation to CIEDA prior to May 1", then CIEDA would be able to keep this cap unt 1 December 31'. This action would allow the City to maintain control of their Volume Cap past May 15`. 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 I"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 theGovernor'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 Governor] Notification letter to: CIEDA Chicago, 1608 W.Belmont Avenue, Suite 203,Chicago, IL 60657. Thank you. Sincerely, I Andrew Hamilton Executive Director l