McHenry County Blog

Representation of the SportsPlex entrance across from where Rt. 176 meets Rt. 47 from the east.

A press release has arrived from Lakewood Village President Erin Smith about the financing of the McHenry County SportsPlex, which the village approved for the west side of Route 47 opposite the south leg of Route 176. Here it is:

Village President, Erin Smith, made the following statement regarding the Sports Complex proposed for development on the west side of Route 47, just south of Route 176:

“The Village of Lakewood was informed yesterday that the sale of bonds required to finance the Sports Complex will not be completed by the December 31st deadline as required for Recovery Zone financing.

Erin Smith seen making her pitch for approval to the McHenr6 County Board.

“Missing this deadline means the project forfeits eligibility for $18M in tax-advantaged Recovery Zone Bonds.

“These bonds were first approved by the McHenry County Board and then transferred to the Upper Illinois River Valley Development Authority (UIRVDA).

“This news is disappointing, but does not mean that the project will not proceed.

“Andrew Hamilton, Executive Director of UIRVDA, reaffirmed UIRVDA’s continued support of the project today. UIRVDA has the authority to issue taxable bonds which could replace the Recovery Zone portion of financing.

“A representative from Stern Brothers, the firm responsible for the sale of the bonds, indicated they have identified investors interested in purchasing the bonds, but the terms and conditions of the sale could not be finalized by December 31st.

“I am proud of the way our Village Board and Village Staff have supported this project and grateful for the support we have received from elected officials at the County, State and Federal levels.

“There is risk associated with any commercial development and, recognizing this risk, the Village Board has not committed any tax dollars from Lakewood or McHenry County residents.

“We will meet with the development team after the holiday to assess the impact
of the delay in financing.

“Lakewood remains strongly committed to commercial development along the Route 47 corridor and we are hopeful that the Sports Complex will be an integral part of our plan.

“We are also confident that other suitable projects will come forward as the intersection of two major State highways makes this one of the most desirable development locations in the County.”

Confirmation has been received that Woodstock’s Frank Wedig will again run for the McHenry County Board in District 5.

That district covers Dorr Township, which covers most of Woodstock and Bull Valley, plus the eastern part of Grafton Township, including parts of Huntley, Lake in the Hills, Lakewood and Crystal Lake.

Wedig ran two years ago. You can find out how well he did here.He then ran for Dorr Township Trustee.

Wedig was competitive, running 158 votes behind the lowest Republican, Joseph Evanoff.

Wedig received 84% of the votes of the lowest Republican vote getter. (That is the margin prior to adding in absentee and early voting results, which were not tremendous in this election.)

Most recently,. the Green Party came out against the Woodstock baseball stadium’s being allocated $15 million in Federal Stimulus Recovery Zone Bonds.

There are four Republicans who have taken out primary petitions in District 5:

• Tina Hill (incumbent)
• John Jung (who lost to Democrat Paula Yensen last year)
• Dave Frederick
• John Vrett

The winners will face Democrat Jim Kennedy and Wedig.

Crystal Lake borrowed a little over $22 million at unheard of low rates last night to finance Vulcan Lakes and water and sewer projects and re-financing of 1998 bonds.

Utilizing Federal stimulus-subsidizes, the city will end up paying just 3.062% interest on $5 million on Recovery Zone Bonds authorized by the McHenry County Board. The bonds are General Obligation bonds backed by the 45% Federal tax credits on the interest and the city’s
Home Rule Sales Tax, unless the Vulcan Lakes Tax Increment Financing money can be used to offset it.

“It’s the first sale by a local unit of government in the State of Illinois,” financial adviser Phil McKenna told the council. (City Finance Director Mark Nannini, whose office’s work received an Award for Excellence from the Government Finance Officers Association, can be seen standing behind McKenna.)

“You become leaders in the market.”

With a new choice opened up by the Federal government under which 45% of the Recovery Bond interest will be sent to city hall every six months, “We just looked at the lowest interest cost,” he explained.

The bonds can now be taxable or tax-free, as municipal bonds traditionally have been.

In the refunding of $4.675 million  bonds, there were four bids.  A technique was used in which if bids were within 2/100 of a percent those interested were given two minutes to offer another bid.

“One firm bid six times; another 4 times and they got it,” McKenna said.

Even though there was “a favorable interest rate environment going in,” he continued, the city saved $772,000 in interest costs.

The final $12.435 million was borrowed under the Build America Bond program.   The net interest rate, after figuring in the 35% interest subsidy from the Federal government, was 3.089%.

McKenna’s firm received $30,000 for its work on the sale.