EDC Minutes 2005 11-17-05 APPROVED 12 -15 -05
Paize 1 of 3
ECONOMIC DEVELOPMENT COMMITTEE
Thursday, November 17, 2005
7:00 pm
City Hall Conference Room
Present:
Mayor Art Prochaska Tony Scott, Kendall County Record
Alderman Joe Besco Stephanie DeHainaut
Alderman Marty Munns Jim DeHainaut
Alderwoman Valerie Burd Michael Kranse, MPI Communities
Finance Director Tracy Pleckham Art Zwempke, Robert Arthur Land Co.
City Attorney John Wyeth Sharon Leifheit Coldwell Banker
Kelly Kramer Jennie Leifheit, CB Primus Realty
Mary Ann Schafer, Coldwell BankerScott Harmon
Unde Harmon Barb Celler, Coldwell Banker
Jeann Martinez John Phillipchuck, Moser Enterprises
Sharon Wiley, Coldwell Banker Carla Hill, Coldwell Banker
Kevin McCann, Speer Financial Peter Raphael, William Blair
Janice VanRiper, VanRiper Insurance Agency
Lynn Dubajic, YEDC John Purcell, Kendall County
Paula Wilkinson, Kettley Realtors Brenda Wicker
Scott Harmon Steve Wicker
The meeting was called to order at 7:00 pm by Chairman Munns.
1. Approval/Correction of Minutes: September 15, 2005
4. PC 2005 -51 Van Riper Insurance Agency — Rezoning 708 -710 N. Bridge Street
This is a duplex on Rt. 47. The petitioner would like to be rezoned as B! For an
Insurance Agency. The Plan Commission meeting had 1 person who spoke opposed
to the change. The concern was for parking and access. There was also question
about whether this was illegal spot zoning. There are other B3 uses in the vicinity.
The property is surrounded by R4. The plan Commission voted 2 in favor and 3
against. There is not usually much traffic in and out of an Insurance Agency. The
building would be kept the same. This will move on to COW.
5. PC 2005 -49 Oak Grove Subdivision —1 % Mile Review — There was a question
about the cul -de -sac becoming a road connection. The smallest lot is 27,000 square
feet with 30,000 — 36,000 being the average size lots and the largest lot is more than
40,000 square feet. This will move on to COW.
2. EDC 2005 -01 SSA Tax Policy — Scott Harman spoke about the confusion the tax
creates. It is actually set up as a loan would be with interest and a lien on the property.
There is very little disclosure required. Prospective buyers may not be aware of the
SSA tax, and therefore the price of the home is not competitive, and not clear. He
would like to see a listing price disclosure on the SSA lien amount. He was not given
an amount, he was given a payment schedule. He would also like to see a disclosure
about what the SSA funds.
Pate 2 of 3
John Purcell said an SSA is not more affordable, it is similar to a non -SSA in cost.
John Purcell asked what happens if the homeowner can't pay the tax. Are the
homeowners forced into foreclosure? An SSA distorts the market because the price of
the home appears to be less. If the home was priced higher, the schools and the city
would get taxes based on the higher price, and that would be more money for the
county, the city and the schools.
John Butler talked about the 6.875% SSA rate in Raintree village imposed in
September of 2003. The average mortgage rate at this time was 4.9 %. John Butler
wanted to know why the city would allow float funding nearly double what the
homeowners would be able to get. The Bonds are tax free to the Bond holders. There
is a management fee of $12,000 per year to manage the bonds. If there was no SSA,
that service would not be needed. To be able to compare the true value of an SSA
home vs. a non -SSA home is very difficult. The salespeople don't bring up the SSA.
Alderman Besco pointed out that last year the Aldermen were looking for more
information about SSAs. Alderman Besco asked if the foreclosure rate is higher on
homes with an SSA.
Carla Hill is an agent at Coldwell Banker/Primus Realty in Plano. She said the lender
she spoke to sees the SSA as a tax and the borrower must qualify for both the house
and the tax. An appraiser she spoke with said an SSA makes it very hard to find the
value of the home. She also asked why a homeowner would pay off the tax if they
were not going to live there for the next 30 years. Marianne Schaffer from Coldwell
Banker ?Primus Realty in Yorkville said some lenders do not consider the cost of the
SSA tax into the prospective home buyer's debt ratio.
Mayor Prochaska said the cities are asking the developers to fund more things up
front. An SSA bond would be financing that would allow the developer to fund these
things.
A man spoke about the SSA's in Montgomery. He said 13 homes went to a tax sale at
the county out of 735. This is 2 %. He had heard nothing about foreclosures but
rumors.
Art Zwempke worked on the SSA for Grande Reserve. It was a privately held
development. With the SSA financing and allocating resources wisely, the developer
was able to fund building the school without the referendum. An SSA allows a 30
year payback. A Bank would want the money back in 2 — 3 years. The tax on
undeveloped land is paid by the developer.
It would be nice to have a requirement that the consumer be informed. Also there
could be requirements for SSA's. The improvements the SSA funds could be limited.
This will come back to EDC in December.
3. EDC 2005 -02 Draft Economic Incentives Policy to Attract
Commercial/Industrial Business to Yorkville — Lynn Dubajic's only question was
on Page 2 and Page 4 under incentive parameters. What was the meaning of Public
improvements completed on a grant basis? It will now read Public improvements
completed on a specified basis. This will go on to COW.
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6. EDC 2005 -03 Kendall County Transportation Development Fees Draft
Agreement — John Purcell said the money Yorkville collects for transportation would
be spent on roads within the city limits or roads that Yorkville residents will use. This
will be revised for Yorkville. Fran at the county will need some information before it
can be revised. This will come back to EDC for discussion.
7. EDC 2005 -04 Feasibility of Relocating Overhead Power Lines to Underground —
This was requested to be postponed until December EDC.
8. Additional Business — Alderwoman Burd requested that a discussion about the facade
agreement be put on next month's agenda. She would like to know what kind of
recourse there would be if an owner would do something not in the facade agreement
after the grant is given.
Alderman Munns said a subdivision is requesting a name change from Cornerstone to
Briarwood. This will move on to COW.
The meeting was adjourned at 9:10 pm.
Minutes submitted by Laura Leppert.
--.s
John Butler
2082 Raintree Road
Yorkville 11 60560
Administrators and attendees November 17, 2005
Economic Development Meeting
Yorkville, I160560
A few points and questions regarding the SSA bond issuance considerations facing our
city.
1
What is the rate at which previous SSA bonds were issued? My understanding is it was
6.875 %. Why is our public funding of infrastructure done at such a high rate? Who holds
the bond and is earning this high rate of interest? I know the residents are paying it.
How does this rate compare with other public funding occurring during the same time
frame in our city?
Who is currently holding those bonds?
Why, when we need $6.5mi1 in funding do we issue a $9mi1 bond?
Would the developer or our city play this loose with funding margins if they themselves
were responsible for repayment? Or are we simply passing our inefficiency along to those
who will buy the homes?
Is Lennar or any of it's agents a holder of the issued bonds for Raintree Village?
Same question for other developers and their SSA's.
What is the fee we are paying the consultant ( David Taussig & Associates ) who \ - 11X
administers the bonds?
If bonds were issued directly by the city, then charged back to the developer would
administrative costs have been lower?
Overall, considering all associated costs, is it more or less expensive, per dollar financed
to establish and administer an SSA or through traditional means? Is this documented?
SSA's create conditions where a buyer has difficulty comparing the "true" price /value of
the house compared to other "non -SSA" houses including those on the resale market.
This additional variable creates potential confusion for the buyer and creates a convenient
marketing advantage for the developer with an SSA approval. This is an unleveling of the
home consumer playing field in favor of the developer.
1/3
Is it possible that a homeowner, who is purchasing a home at the maximum of their credit
capacity, be put into a foreclosure risk situation due to the fact that the SSA creates a
guaranteed additional loan in the amount of the home's SSA bond?
Example: Buyer Qualifies for a $200,000 loan and puts $40,000 down
Buyer purchases a $240,000 SSA supported home
Assume a $25,000 SSA bond liability supporting the property
Had the home not had SSA support, it would be advertised and sold as a
$265,000 house
This Buyer would not qualify.
Has this buyer been inadvertently overextended since the SSA bill will
come due and represents a type of "additional mortgage" coming due while they
are already at their maximum credit limit paying their initial $200,000 mortgage.
In this case, the SSA has exposed a city resident to additional forclosure
risk, creating a potential burden of enforcement to our city.
It appears that the advantage of SSA issuance accrues to the developer by creating an
additional financial variable for buyers to consider and a substantial additional. difficulty
in making value comparisons with other homes which although higher priced, are not
burdened by an SSA bond lien. This difficulty in comparison may present the false image
that the home is less expensive than it actually is, giving the SSA emboldened developer
a sales advantage at the expense of the average house hunting consumer.
Another advantage accrues to the developer by insulating the developer from the risk
associated with traditional methods of infrastructure funding. As well, the incentive to
fund the infrastructure efficiently is gone, as the developer has no profit motive tied to the
infrastructure development portion of the development area.
It would appear also that in the event of unforeseen delays, the developer has little motive
tied to any infrastructure investment to complete the development. The risk associated
with any uncompleted or vacant development areas may accrue to the local residents,
initial SSA owners in the early phases of the development, and our city.
As a matter of public policy it would apopear that easing the burdens of development for
multi billion dollar developers and further quickening the pace of their development
footprint in Yorkville can only contribute to our public infrastructure and school funding
challenges. The residential market will grow rapidly enough under current demographic
trends. Artificial modification of those conditions by creating SSA supports for home
supply by developers is unnecessary and unreasonable when viewed from the perspective
of current tax rates, student population per classroom and the associated educational
quality concerns it raises.
2/3
I believe the methods our city fathers and staffs use to review SSA's and the impact they
have upon our city and it's future population of citizens and registered voters provides a
window through which we can see the care they may exercise in the future in such
fiduciary matters. If they support SSA bond issuance it may be seen they favor support of
developers, many of whom are making millions of dollars turning the farm and forest
land of Yorkville into mega - developments at the expense of local constituents. As a
registered voter I become wary when our elected officials choose to shift cost and
financial risk from multi billion dollar development firms onto their future local
constituents. It calls into question whether or not such decision malting is in evidence
with regard to issues impacting current constituents.
It may be reasonable to view the council's position on SSA's as a prism through which to
view the management of their fiduciary responsibility to the citizens of Yorkville. I look
forward to the council's decision to reject future SSA's for new development in Yorkville
and to preserve public confidence that our elected officials hold the interests of it's
citizenry as a sacred trust.
3/3
Special Service Area Comments
Yorkville Economic Development Committee
Thursday, November 17, 2005
by
Scott Harmon
511 Parkside Lane
Yorkville, Illinois 60560
630 - 385 -8530
scottOwbiscom. corn.
fx 866 - 400 -9456
The SSA has introduced a lot of confusion into the homeowner finance process. On one
hand the SSA is called a tax in the brochure that is distributed by the developer, while in
the purchase agreement the SSA is covered with a Special Service Area Financing Rider.
The SSA should be defined as a loan and not a tax since the liability to the homeowner is
based on a set principal amount and is subject to interest charges. The SSA is very
similar to a home equity loan or line of credit which places a lien on the property.
The difference between the SSA and a conventional financing vehicle is that a SSA
apparently requires very little disclosure to the individual taking on the liability. The
terms of financing are not clearly defined with the actual liability amount, the interest
rate, and /or an amortization schedule, and total interest charges.
Another reason the SSA should not be classified as a tax is that it can not be treated as a
property tax deduction on federal or state income taxes. While it may be possible to
deduct the interest paid on the SSA, it may be difficult to identify the amount of interest
that is eligible for each tax year. With a home equity line or other conventional financing
it would be much easier for the borrower to claim the deduction as interest paid for
financing a primary residence.
Even though a schedule of payments for the Raintree Village SSA indicates that the total
cost of the SSA to the homeowner for the entire term of the SSA would be $69 it's
not quite clear if that number is guaranteed. When you look at the SSA rider in the
purchase contract it states the $69,062 would be the maximum amount payable in the
years 2006 thru 2032. Yet, according to the brochure the maximum tax will increase
1.5% per year, but we need to be advised that the increase from year to year may be more
than 1.5 %.
There appears to be some issues as to when and how the SSA is disclosed to potential
buyers by the developer's sales staff.
Two cases in point.
One potential buyer was not made aware of the SSA until they had spent several weeks
discussing the options available for the home. This buyer determined that the sales price
plus the cost of the SSA made the product no longer priced competitively and felt
deceived and withdrew plans to buy from that developer.
The other prospective buyer was not made aware of the SSA tax until after signing the
purchase contract and making a deposit. When the buyer complained about this issue the
developer offered the buyer a refund of their deposit money.
It is not clear or published as to what amenities /improvements are suppose to be delivered
in the SSA.
It is not clear as to what the interest rate is being charged and why the scheduled payment
amount increases annually until the SSA expires.
The SSA is an additional lien on the property and adds to the real cost of the home to the
buyer. If you must sell your home you must convince the potential buyer to accept the
transfer of the SSA lien or you will need to raise the selling price to cover the cost to pay
off the balance.
It is very difficult to establish comps in an area where you have a mix of SSA funded
homesites versus developer funded homesites. You use to be able to look at sales
transaction amounts as a basis for comparisons. Now, in most SSA areas the actual value
of the property is hard to determine based on it is sales price history and what impact the
SSA has on the properties valuation.
The payoff process is not very well documented and in itself is a confusing process. Last
year when we asked for a payoff amount for our parcel it took over two weeks to get a
figure. Additionally, we were told the amount was $25,000 by the developer, then we
were told that the amount was $28,000 by the SSA administrator. Fortunately, the
amount ended up being just under $25,000 due to a pre - payment reserve credit amount of
$2,640 off of the original principal amount of $26,450. All of this data became evident
well after we closed on the home. Part of the payoff includes. redemption premiums and
recording fees for an additional $900 in cost to the homeowner.
It appears that the interest rate for the SSA 2003 -100 is between 6.5 and 6.875% based on
the annual payment required for Year 2006. But as the SSA ages the annual payment
increases without any explanation or disclosure why this is the case. Most likely the
principal and /or interest rate increases, but without an amortization schedule it is difficult
to come to a conclusion why the payment amounts increase annually.
The SSA allows the developer to advertise lower prices and not disclose the full cost of
the home. This gives an appearance that they are offering more home for less money
when compared against other developments where the developer burdens the costs
associated with improving the land parcels and passes it on to the buyer in the actual sales
price.
When it comes to resale you will be showing a lower valuation on the home and a higher
tax bill. This could have a negative impact based on the effective property tax rate being
higher on a SSA property versus a non -SSA property. This is based on the first year
payment amount only. In some cases, on the lower cost homes in the SSA, the effective
property tax rate could be as high as 9.5 %.
One argument for the SSA is that you can save approximately $600 on your property tax
bill by having a lower assessment. This holds true if the assessor does not take the
financed infrastructure costs into consideration as part of the total value of the property.
There is nor reason why the assessor will not include the costs assocated with the SSA in
the assessment, especially since the purpose of the SSA is to add value to the property per
the purchase agreement.
The SSA is a very costly finance instrument based on numbers disseminated at the
October 25 hearing about the next -phase SSA in Raintree Village. Based on the amount
being financed and what the actual cost of improvements would be the SSA comes in at a
42% premium cost to the homeowner. 15% for Reserve Amounts, 15% for Capitalized
Interest and 12% for administrative costs. Using the numbers I have from the Raintree
SSA 2003 -100. This SSA had $7.15M issued for phase one. Based on the next -phase
SSA ratios, the cost of improvements were $5M, Reserves and Interest were $760K each
and administrative costs were $608K. Based on 270 units the infrastructure improvement
cost per parcel is only $18,569. Add on the 42% premium each buyer would pay an
additional $7,789 for infrastructure costs associated with each home the total cost is
$26,447. In essence the total cost of the home is the purchase price plus $26,447.
Knowing this, some buyers might not think they are getting such a good deal as they
originally believed.
Thes $26,447 is being financed via the SSA amount that is payable each year. Based on
this initial balance and the schedule of payments of the SSA the total payments will be
$69,205 with a total finance charge of $42,758 over a 27 year period. On average the
periodic payment is $2,500 per year. Over the term of the SSA the realized effective
interest rate is 8.645 %, provided the total payments do not increase.
Now, if you looked at the fact that the actual cost of the improvements was only $18,569,
the realized effective rate would have been approximately 13 %. 1 believe all SSA
homeowners would have opted to have the $18,569 included in the purchase price and
incorporated any debt obligation into their primary mortgage balance with much more
favorable financing terms, even with the possibility of receiving a higher assessment.
i
Suggestions:
The developers should advertise the pricing of the homes as the desired price plus the
current principal balance attached to the lien for the SSA. Existng home lisitings should
disclose the SSA balance. Both of these will give the non -SSA seller a level playing field
and the potential buyer a solid figure of what the real cost of the home will be.
A Good Faith Estimate or similar disclosure document should be provided pertaining to
this funding mechanism.
An amortization schedule should be disclosed. This could easily be attached to the Good
Faith Estimate.
A list of the amenities /improvements covered by the SSA should be provided.
A clear explanation of the tax deductability of the SSA tax or interest should be provided.
Question the need of SSA for future developments while other residential projects are
being developed without them in our market.
Raintree Village SSA Analysis
Line Item 2004 2005
Principal $ 26,447.32 $ 26,450.66
Maximum Taxes
Parcel $ 2,099 $ 2,099
Aggregate $ 567,462 $ 563,264
Units 270 268.3487375
Principal Outstanding (SSA) $ 7,150,000 $ 7,098,000
Principal Outstanding (Parcel) $ 26,447.32 $ 26,450.66
Premium $ 793.42 $ 793.52
Principal to be called $ 26,447.32 $ 26,450.66
Redemption Premium 3% 3%
Fees $ 91.00 $ 100.00
Reserve Fund Credit - 10% $ (2,644.73) $ (2,645.07)
Current Debt Service Reserve Requirement $ 715,000.00
Revised Debt Service Reserve Requirement $ 712,355.00
PREPAYMENT AMOUNT $ 24,687.01 $ 24,699.11
RTV - SSA 2005 Allocation Premium RTV - SSA 2003 -100 Parcel ** Prem Cost
Base Improvement Costs $ 6,600,000 70% 5,020,213 $ 18,569
Reserve Amount $ 1,000,000 11% 15% 760,638 $ 2,814 $ 2,814
Capitalized Interest Amount $ 1,000,000 11% 15% 760,638 $ 2,814 $ 2,814
Adminstrative Costs $ 800,000 9% 12% 608,511 $ 2,251 $ 2,251
Total SSA Bond Amouint $ 9,400,000 100% 42% $ 7,150,000 $ 26,447 $ 7,879
Less Reserve Credit $ (2,645)
Plus Redemption Premium + Fees $ 894
Total Premium Cost/Unit Prepaid $ 6,128
` NOTE: Parcel Amount Based on 270 Units
RAINTREE VILLAGE Don't my regular real. estate taxes pay for these Public
SPECIAL SERVICE AREA TAX Improvements?
No. The regular real estate taxes are used to pay for
MOST FREQUENTLY ASKED QUESTIONS Village services.
ON SPECIAL SERVICE AREA TAXES Can I prepay my Special Service Area Tax?
Who is responsible to pay the Special Service Area Each homeowner can elect to prepay its Special Service
Tax? Area Tax at anytime, which will relieve the property of
the lien. In order to determine the prepayment amount,
A homeowner is responsible for the tax from the time contact the Special Service Area Administrator.
they take possession of the home. Be aware that the
Special Service Area Tax is NOT payable in arrears like Who is the Special Service Area Administrator?
general ad valorem taxes. For example, you are
responsible for paying the 2002 tax levy in 2003 for the David Taussig & Associates has been retained to perform
2003 Special Service Area taxes, prorated for the period certain administrative services for the special service
you lived in the home during 2003. The Special Service area. Payoff amounts on your property and other
Area taxes are listed on a separate line item on your tax questions can be addressed to David Taussig &
bill. Associates at 1- 800 - 969 -4382.
% ','hen is the Special Service Area Tax due and who How much will my tax be?
will notify me?
The annual special tax is limited to the "Maximum Tax"
The Special Service Area Tax is normally due in June as set forth in the establishing ordinance, and if you are
and September along with general ad valorem taxes. It the original home purchaser, in the rider to your sales
xvill appear as a separate line item on your tax bill from contract. Taxpayers typically pay approximately 90% of
Lake County. Your mortgage lender may already be the Maximum Tax. The Maximum Tax is subject to a
escrowing amounts to pay the Special Service Area Tax. 1.5% increase per year. However, please be advised, if
your special service area is not taxed at the Maximum
Why do we have to pay this additional tax? Rate, the increase from year to year may be greater than
1.5 %.
The Special Service Area Tax is being collected to pay
off bonds that were issued to fund the public Why would Special Service Area increases not be
improvements in your service area. Like a mortgage, the consistent over the life of my payments?
bond payments were spread over a thirty year period to
keep the annual payment manageable. The amount required each year is equal to the interest and
principal on the bonds due plus administrative expenses
What are Public Improvements? less remaining funds in the Capitalized Interest Account
and projected earnings. In addition, some homeowners
Examples of public improvements include water, sewer, have chosen to prepay the Special Service Area tax,
roads, stormwater drainage, and streetlights. thereby reducing the total amount needed each year.
However, the amount due will not exceed the maximum
Aren't these Public Improvements included in the tax amount due for each area.
price of the home?
For how many years is the tax owed?
In communities that have not financed the public
improvements with special service area bonds, the cost of The final tax payment is for the levy year 2031 which is
the public improvements would be factored into the cost collected in 2032.
of the home. In communities with special service area
bond financed public improvements, the price of the
home has been reduced to account for the Special Service (OVER)
Area Tax.
Special Service Area Financing Rider
RE: Yorkville SSA No. 2003 -100
This rider ( "Rider ") is attached to and made part of that certain Raintree
Village Purchase Agreement ( "Purchase Agreement ") dated Mav 27, 2004
between D. Scott Harmon AND Linda L. Harmon ( "PURCHASER ") and
Raintree Village L.L.C., an Illinois limited liability company ( "Seller ") for
Lot (9 � in Raintree Village Subdivision (the "Home "). Seller and
Purchaser hereby agree as follows:
Purchaser hereby acknowledges and agrees:
(a) The Home part of United City of Yorkville Special Services
Area No. 2003 -100 pursuant to an "Establishing Ordinance" adopted by the Unitec
City of Yorkville ( "City "), Illinois. The Establishing Ordinance authorized tl
levy, extension and collection of a Special Service Area Tax upon the Home, in
the manner more specifically described below, in connection with certain "Publi
Improvements" that will confer a special benefit on the Home (including, withol
limitation, streets, storm and sanitary sewer and potable water system). In
connection therewith, the City, pursuant to a certain "Bond Ordinance ", author-
ized the issuance of municipal bonds to pay for the Public Improvements, incluc
ing the financing and other costs associated with the funding of the Public
Improvements.
(b) The Home is subject to the obligation to pay.the Special
Service Area Tax, which shall be a lien on the Home. This Special Service A rec.
can be levied on the Home each Calendar Year from 2005 to 2031 and collected
each Calendar Year from 2006 to 2032. The Maximum Annual Special Service Area
-Tax on the Home shall first be payable in Calendar Year 2006 in the amount of
not more than $2,099. The Special Service Area Tax on the Home may increase
each year but will be limited to the amounts set forth on Exhibit A to this
Rider.
(c) It is anticipated that the Special Service Area Tax may be
included in the regular real estate tax bills for the Home. If the Special
Service Area Tax is billed separately, then it may be billed at different times
than reqular real estate taxes.
(d) That the Special Service Area Tax as may be authorized by the
Establishing Ordinance and Bond Ordinance, which accrues on a yearly basis,
imposes a lien on the Home that, if not paid as required in a timely fashion,
may eventually result in the foreclosure of that lien (similar to the conse-
quences of becoming delinquent on mortgage payments or general real estate
taxes) .
(e) The Purchaser will not object to the validity of the
Establishing Ordinance, the Bond Ordinance and the Special Service Area Tax,
including any advertisements, notices, hearings or action provided or taken in
connection with the adoption of the Establishing Ordinance and the Bond
Ordinance or otherwise, the designation of the Home as part of the Special
Service Area pursuant to-the Special Service Area Tax Law, the findings in the
Establishing Ordinance and the Bond Ordinance that the Public Improvements
confer a special service benefit on the Home, the determination that the Public
Improvements are of the type that may be financed under the Special Service
Area Tax Law and the determination that the formula for apportioning the
Special Service Area Tax to the Home is rational in light of the special servic
benefit conferred upon the Home.
(f) That Purchaser, by taking title to the Home, hereby agrees to
accept title subject to the Special Service Area and all rights and impositions
--A r.lkl 4 r.= f- 4 rN"� 1- 4 mr e-,acA i wit - hnio 1 i mi t nt i nn . t .Sneclal
i
Special Service Area Financing Rider (Cont
Service Area Tax, which obligations shall be covenants running with the land.
The Deed that Purchaser will receive pursuant to Paragraph 6 of the Single
Family Home Purchase Agreement shall contain a recitation of such covenants,
conditions and restrictions as a permitted exception to title.
(g) That the Special Service Area tax will be levied each year to
raise funds which will be used to make payments which will become due and
payable with respect to the Bonds during the year in which the tax payment
becomes due. Thus, for example, the real estate tax bill for the Home for
calendar year 2005, which will be issued and will become payable in 2006, will
contain a line item for Special Service Area taxes in the amount of not more
than $2,099, which will be used to make payments with respect to the Bonds whic
will become due and payable with respect to 2006. Since the Purchaser is
responsible for Purchaser's share of Bond payments for the period from and afte
the Closing Date, and since the taxes for the year prior to the year in which
the Closing Date occurs are levied to cover this obligation, at Closing, the
Purchaser will be required to pay to Seller a prorata portion of the Special
Service Area Tax on the Home for the year prior to the year in which the closir
occurs, prorated from the Closing Date to the end of the year. Also, because
all of the Special Service Area taxes levied with respect to the Home for the
year of closing will be levied to pay amounts attributable to, and which become
payable during, the year after the year of closing, the Purchaser will be
required to pay all of the Special Service Area Tax levied on the Home for the
year of closing which are due and payable in the following year and Seller wil:
give no proration credit to Purchaser at Closing for any such Special Service
Area Tax.
(h) This Rider shall be incorporated into and be deemed an
integral part of the Single Family Home Purchase Agreement. In the event of
any conflict between the Rider and the Single Family Home Purchase Agreement,
the terms of this Rider shall control.
(i) Any term capitalized by not otherwise defined in this Rider
shall have the meaning ascribed to it in the Single Family Home Purchase
Agreement to which this this Rider is attached.
Dated: 1 �I Aq 2-7 , 200_4
SELLER: PURCHASER:
RAINTREE VILLAGE L.L.C.,
an Illinois limited liability company /
. I
By: �� J
Authorized Agent
i
EXHIBIT A TO
SPECIAL SERVICE AREA FINANCING RIDER TO
SINGLE FAMILY HOME PURCHASE AGREEMENT
City of Yorkville, Kendall County, Illinois
Special Service Area Number 2003 -100
Special Tax Bonds, Series 2003 (Raintree Village Project)
Collection Maximum Special Tax per
Levv Year Year Single Familv Detached Home,
2005 2006 2,099.00
2006 2007 2,130.00
2007 2008 2,162.00
2008 2009 2,194.00
2009 2010 2,227.00
2010 2011 2,260.00
2011 2012 2,294.00
2012 2013 2,328.00
2013 2014 2,363.00
2014 2015 2,398.00
2015 2016 2,434.00
2016 2017 2,471.00
2017 2018 2,508.00
2018 2019 2,546.00
2019 2020 2,584.00
2020 2021 2,623.00
2021 2022 2,662.00
2022 2023 2,702.00
2023 2024 2,743.00
2024 2025 2,784.00
2025 2026 2,826.00
2026 2027 2,868.00
2027 2028 2,911.00
2028 2029 2,955.00
2029 2030 2,999.00
2030 2031 3,044.00
2031 2032 3,090.00
Kendall County Record Article
Thursday, October 27, 2006
Raintree Village resident questions SSA in subdivision
11- 10 -'05 13;58 FROM -DAVID TAUSSIG & ASSO 19499553767 T -420 P003/003 F -841
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PIN 05-09 -205 -201 Prepared for: Scott and Linda Harmon
Lot 03 Fax: 866.400.9456
Address: 511 Parkside Lane, Yorkville, Illinois 60560 Phone:
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PRINC IPAL $26,450.66
PRINCIPAL QUOTIENT 0.3726%
MAXIMUM SPECIAL TAX $563,264 $2,090.00
OUTSTANDING PRIGIPAL
SERIES 2003 $7,098,000 $26,450.66
PREMIUM $79152
PRINCIPAL TO BE CALLED $26,450.66
REDEMPTION PREMIUM 3.0000
DEFEASANCE (BOND YEAR ENDING 03/0112006) $0 -00
INTEREST
SERIES 2403 $24 $900.24
PRINCIPAL
SERIES 2003 $0.00 $0.00
REINVESTMENT $0.00 $4.00
SPECIAL TAXES PAID BUT NOT UTILIZED
LEVY YEAR 2005 /COLLECTION YEAR 2006 [1) $0.00 $0.00
CAPITALIZED INTEREST ($243,993.75) ($909.24)
FEES $100.00
ADMINISTRATIVE FEES $100.00
RESERVE FUND CREDIT ($2,645.07)
RESERVE FUND CREDIT ($2,645.07 ja
:fh` ! •.! , . '' _ "
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[1) The Levy Year 2005 /Collection Year 200$ special tax will be levied on all parcels prepaying after
October 1, 2005. Property owner will have to pay the Levy Year 2005/Collection Year 2006 special
tax to Kendall County to avoid delinquency penalties, Property owner will be reimbursed by the United City
of Yorkville upon proof of payment.
I K: 10LIENTS21Ybrkv hISSA 2003 -100 Administration \PrepaymenAMarch 20081Prepay SFD (14arman).123