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Villa Park board approves up to $15 million in bonds to finance St. Charles Road redevelopment
Summary
The Village of Villa Park approved an ordinance authorizing up to $15 million in general-obligation bonds (series 2025B) to reimburse redevelopment costs in the St. Charles Road TIF area for a Marquette Real Estate Investments LLC project; the village plans a bond sale the week of Dec. 1 and expects a roughly 4% interest rate over 20 years.
The Village of Villa Park on Nov. 19 approved an ordinance authorizing issuance of up to $15,000,000 in general-obligation bonds, series 2025B, to reimburse certain redevelopment project costs in the St. Charles Road commercial-corridor TIF district and to support a proposed project at 100–110 S. Phil Ave. The vote was recorded as a roll call 'yes' by Trustees Cardola, Cozart, Kumar and Sabri.
Manager Rivas and staff said the bonds are tied to a redevelopment agreement with Marquette Real Estate Investments LLC. "This ordinance authorizes the issuance of up to $15,000,000 in general obligation bonds to support the redevelopment," Manager Rivas said, explaining the bonds would reimburse project costs and authorize related agreements.
Mark Geratina, senior vice president at Spear Financial, told the board the village plans to sell the bonds in the week of Dec. 1 and expects to lock in an interest rate ‘‘right around 4% over 20 years.’’ He said the bonds are scheduled to close on Dec. 15, which is when the village would receive proceeds, but emphasized bond sale and closing are conditioned on the developer meeting its obligations under the redevelopment agreement.
Trustees pressed staff on contingency planning and taxpayer exposure. Trustee Cozart asked what would happen if the developer does not close as expected; Geratina said the bonds would not be sold until the closing is in place. When asked whether homeowners could be liable if TIF revenues fall short, staff answered that TIF incremental revenues are the expected payment source and that a backup property-tax levy could be used if needed; the village also requires roughly 1.25 times coverage as a buffer.
The ordinance passed after a motion by Trustee Cozart and a second by Trustee Sabri. The board’s staff presentation and the Spear Financial comments said sale timing, rate lock and closing mechanics will be coordinated with the developer and bond counsel before proceeds are received.
