journal of the proceedings of the city council of the city...

(Published by the Authority of the City Council of the City of Chicago)

COPY

JOURNAL of the PROCEEDINGS of the

CITY COUNCIL of the

CITY of CHICAGO, ILLINOIS

Regular Meeting—Tuesday, June 28,1983

atlO:OOAJ)f.

(Council Chamber—City Hall—Chicago, Illinois)

OFFICIAL RECORD.

HAROLD WASHINGTON Mayor

WALTER S. KOZUBOWSKI City Clerk

Juns 28, 1983 COMMUNICATIONS, ETC. 117

Attendance at Meeting.

Pre^entT-Honorable Harold Washington, Mayor, and Aldermen Roti, Rush, Evans, Bloom, Sawyer, Beavers, Humes, Hutchinson, Vrdolyak, Huels, Majerczyk, Madrzyk, Burke, Brady, Langford, Streeter, Kellam, Sheahan, Kelley, Sherman, Stemberk, Krystyniak, Henry, Marzullo, Nardulli, W. Davis, Smith, D. Davis, Santiago, Gabinski, Mell, Frost, Kotlarz, Banks, Damato, Cullerton, Laurino, O'Connor, Pucinski, Natarus, Oberman, Hansen, McLaughlin, Orbach, Schulter, Volini, Orr, Stone.

Absent—Aldermen Kenner, Hagopian.

Call to Order.

On Tuesday, June 28, 1983 at 10:00 A.M. (the day and hour appointed for the meeting) Honorable Harold Washington, Mayor, called the City Council to order. Honorable Walter S. Kozubowski, City Clerk, called the roll of members and it was found that there were present at that t ime: Aldermen Roti, Rush, Evans, Bloom, Sawyer, Beavers, Humes, Hutchinson, Vrdolyak, Huels, Majerczyk, Madrzyk, Burke, Brady, Langford, Streeter, Kellam, Sheahan, Kelley, Sherman, Stemberk, Krystyniak, Henry, Marzullo, Nardulli, W. Davis, Smith, D. Davis, Santiago, Gabinski, Mell, Frost, Kotlarz, Banks, Damato, Cullerton, Laurino, O'Connor, Pucinski, Natarus, Oberman, Hansen, McLaughlin, Orbach, Schulter, Volini, Orr, Stone--48.

Quorum present.

^ Invocation.

Reverend Brian Braun, St. Justine Martyr Church, opened the meeting with prayer.

R E P O R T S A N D C O M M U N I C A T I 0 N S F R O M C I T Y O F F I C E R S .

fle/errec^—PROPOSED ORDINANCE TITLED BUDGET REFORM AND . ACCOUNTABILITY ORDINANCE OF 1983 CONCERNING

ANNUAL BUDGET PREPARATION AND ADOPTION PROCESS.

Honorable Harold Washington, Mayor, submitted the fol lowing communication, which was, together w i th the proposed ordinancs transmitted therewith. Referred to the Committee on Finance:

OFFICE OF THE MAYOR CITY OF CHICAGO

June 28, 1983.

To the Honorable, The City Council- of the City of Chicago:

LADIES AND GENTLEMEN—I am transmitt ing today for your consideration a proposed ordinancs tit led the Budget Reform and Accountability Ordinance of 1983. This ordinance provides for a more open and thoughtful annual budget preparation and adoption process for the City of Chicago. Your prompt attention to and approval of this ordinancs is apprsciated.

Your favorable considsration of this ordinance wil l bs appreciated.

Very truly yours, (Signed) HAROLD WASHINGTON,

Mayor.

118 JOURNAL—CITY COUNCIL—CHICAGO June 28, 1983

fle/erz-erf—PROPOSED ORDINANCE TO AUTHORIZE EXECUTION OF MEMORANDUM OF INTENT WITH SAS CATERING, INC. FOR

ISSUANCE OF SPECIAL FACILITY REVENUE BONDS.

Honorable Harold Washington, Mayor, submitted the fo l lowing communication, which was, together with ths proposed ordinance transmitted therewith. Referred to the Committee on Finance:


June 28, 1983.

To the Honorable. The City Council of the City of Chicago:

LADIES AND GENTLEMEN—I transmit herewith an ordinance authorizing the execution of a memorandum of intent w i th SAS Catering, Inc. for the issuance of special faci l i ty revenue bonds in an amount not exceeding $5,000,000 to finance flight kitchen facilities at Chicago-O'Hare International Airport.

Your favorable consideration of this ordinance wil l be. appreciated.


Mayor.

Referred-PROPOSED ORDINANCE TO AUTHORIZE EXECUTION OF MEMORANDUM OF INTENT WITH UNITED AIR UNES, INC., FOR

ISSUANCE OF SPECIAL FACILITY REVENUE BONDS.

•Honorable Harold Washington, Mayor, submit tsd ths fo l lowing communication, which was, together wi th the proposed ordinance transmitted therewith. Referred to the Commit-tee on Finance:


June 28, 1983.

To the Honorable. The City Council of the City of Chicago:

LADIES AND GENTLEMEN—I transmit herewith an ordinance authorizing the execution of a memorandum of intent wi th United Air Lines, Inc. for the Issuance of special facil ity revenue bonds in an amount not exceeding $750,000,000 to finance certain facilit ies at Chicago-O'Hare International Airport.

Your favorabis consideration-of this ordinance wi l l be appreciated.


Mayor.

CITY COUNCIL INFORMED AS TO MISCELLANEOUS DOCUMENTS FILED OR RECEIVED IN CITY CLERK'S OFFICE.

Honorable Walter S. Kozubowski, City Clerk, informed the City Council that documents have been filed or received in his office, relating to the respective subjects designated as fol lows:

Proclamations.

Proclamations of Honorable Harold Washington, Mayor, designating times for special observances as fol lows:

June 28, 1983 COMMUNICATIONS, ETC. 119

"BLIND SERVICE ASSOCIATION MONTH IN CHICAGO": Month of May, 1983;

"CIRCUS VARGAS DAY IN CHICAGO": June 22, 1983;

"BARRY MANILOW WEEK IN CHICAGO": June 22 through June 26, 1983;

"CHICAGO ROSE OF TRALEE DAY IN CHICAGO": June 24, 1983;

"ALPHA GAMMA PI DAY IN CHICAGO": June 26, 1983;

"HABITAT FOR HUMANITY DAY IN CHICAGO": Juns 26, 1983; ,

"CHILDREN'S HEALTH DAY IN CHICAGO": June 27, 1983;

"HANDICAP SELF-AWARENESS MONTH IN CHICAGO": Month of July, 1983;

"LET FREEDOM RING FOR CHICAGO'S BABIES DAYS IN CHICAGO": July 3-4, 1983;

"GOLDEN ANNIVERSARY ALL-STAR DAYS IN CHICAGO'': July 4 through July 7, 1983;

. "NEW WORLD PATRIOTISM- DAY COALITION PARADE DAY IN THE CITY OF CHICAGO": July 4, 1983;

"CHICAGO THEATER PROJECT DAY": July 6, 1983;

'THE MINORITY WOMEN'S CENTER FOR CAREER DEVELOPMENT AND CAREER ADVANCEMENT DAY IN CHICAGO":

July 9, 1983;

"NATIONAL COUNCIL OF LA RAZA DAYS IN CHICAGO": July 19-21, 1983;

Acceptances and Bonds under Ordinances.

Also acceptances and bonds under ordinances as follows:

American Medical Association: Acceptance and bond under an ordinance passed on March 31, 1983 (vaults); f i lsd on Juns 27, 1983;

Amsrican National Bank and Trust Company of Chicago, U/T No. 50282: Acceptance and bond under an ordinance passed on March 31, 1983 (vaulted areas); filed on June 23, 1983;

Hemlock Federal Savings" and Loan Association: Acceptance and bond under an ordinancs passsd on Octobsr 6, 1982 (ornamental clock); f i led on June 23, 1983.


CITY COUNCIL INFORMED AS TO PUBLICATION OF ORDINANCES.

The City Clerk informed the City Council that all those ordinances which were passed by the City Council on June 22, 1983, and which were required by statute to be published in book or pamphlet form or in one or more newspapers, were published in pamphlet form on June 28, 1983, by being printed in ful l text in printed pamphlet copies of the Joi jrnal of the Proceedings of the City Council of the regular meeting held on June 22, 1983, [published by authority of the City Council in accordance wi th the provisions of Section 5-5 of the Municipal Code of Chicago, as passed on December 22, 1947], which printed pamphlet copies were delivered to ths City Clerk on June 28, 1983.

MISCELLANEOUS COMMUNICATIONS, REPORTS, ETC. REQUIRING COUNCIL ACTION (TRANSMITTED TO THE CITY COUNCIL

BY THE CITY CLERK). •

The City Clerk transmitted communications, reports, etc. relating to the respective subjects listed below, which were acted upon by ths City Council in each.case in the manner noted, as fo l lows:

Report on "Calumet Skyway Toll Bridge."

A communication from Walter K. Knorr, Acting City Comptroller, addressed to the City Clerk, transmit ing a copy of the certif ied report prepared by Laventhol St. Horwath, and also a copy of the Financial Statements for the period ending December 31, 1982.—Placed on File.

Zoning Reclassification of Particular Area.

Also applications (in tr ipl icate) together w i th the proposed ordinance for amendment of the Chicago Zoning Ordinance, as amended, for the purpose of reclassifying a particular area, which was Referred to the Committee on Zoning, as fol lows:

Unlimited Communications—to classify as a Communication Planned Development and supplementing the B7-5 and B7-6 General Central 'Business District symbols and indications shown on Map No. 4-E bounded by

No. 1212 S. Michigan Avenue.

Claims against the City of Chicago.

Also claims against the City of Chicago, which were Referred to the Committee on Claims and Liabilities. f i lsd by ths fol lowing:

Amsrican Family Ins. Group and Kimberlee B. Gambill, American States Ins. and Heidi Blattnsr, Andsrson Rubsn E., Ashe John P.;

Baglsy Evelyn C, Benn Johnnie, Bsrbakov S., Bowman Ruth;

Dunitz Nelson I.;

Estrada Pedro;

Fegert Chariss D.;

Grabowski James, Great MichasI J.;

Illinois Bell Tslsphons Co. (3);

Juns 28, 1983 COMMUNICATIONS, ETC. 121

Lewis Johnny;

Martin Eric, Inc.;

Nationwide Ins. Co. and Phyllis Schmidt;

Palm Frank R., Peters Renes, Phillips Donia, Price Wilbert 0.;

Riffert Joseph, Rosing Janet;

Schwab Charles H., Sentry Ins. and Stransky & Son, Sonley John W., State Farm Ins. Co. (2) Pankaj Bhalakia and John Caldbeck;

Thil l Michael J.

Settlements and Suits with Entries of Judgments Against City.

Also reports f rom the Corporation Counsel (filed in ths Offics of the City Clerk on Juns 23, 1983) addressed to the City Council (signed by Timothy D. O'Hara, Assistant Corporation Counsel) as to suits against the City of Chicago in which settlements were made and judgments entered as of the period ended Apri l , 1983.—Referred to the Committee on Claims and Liabilities.

Placed on f//e~NOTIFICATION AS TO SELECTION OF PROXY TO AFFIX SIGNATURE OF MAYOR TO CITY OF CHICAGO CONSTRUCTION

LOAN NOTES, SERIES 1983 (PRESIDENTIAL TOWERS PROJECT—FHA INSURED MOI^TGAGE LOAN).

The City Clerk transmitted ths fo l lowing communicat ion, 'which was Placed on File:


June 22, 1983.

NOTICE OF DESIGNATION OF PROXY

To the Honorable, The City Council o f the City of Chicago:,

LADIES AND GENTLEMEN— Please take notice that I have selected and do hersby dssignate Daniel E. Murphy as my proxy for me in my name, place and stead to affix my signature as Mayor of the City of Chicago to any and all City of Chicago, Illinois, Construction Loan Notes, Series 1983 (Presidential Towsrs Project—FHA Insured Mortgage Loan), whsthsr in temporary or definit ive fo rm, to be issued In ths aggregate principal amount of not to exceed $180,000,000 by Ordinance adopted by the City Council on March 31, 1983, and any instrument, agreement, csrt i f icats or document rsquirsd to bs signsd by the Mayor pursuant to such ordinance.

Appended hereto is a wr i t ten signature of my nams as the same wi l l appear on such Notss, instrumsnts, agrsements, certif icates and documents as executed by said Daniel E. Murphy, w i t h the proxy's signaturs underneath, all as required by statute and the above-referenced ordinance.


Mayor.

[Signature form appsndsd as stated]


Placed on File—REPORT OF VOUCHER PAYMENTS FOR PERSONAL SERVICES FOR MONTH OF MAY, 1983.

The City Clerk transmitted ths fo l lowing report received from Walter K. Knorr, Acting City Comptroller, which was Placed on File and ordered published:

[Voucher Payment printed on page 123 of this Journal.]

R E P O R T S O F C O M M I T T E E S .

Committee reports were submitted as indicated below. No request under the statute was made by any two aldermen present to defer any of said reports for f inal action thereon, to the next regular meeting of the Council, except where otherwise indicated.

COMMITTEE ON COMMITTEES AND RULES.

Draft ing of Ordinance Directed for Vacation of Specified Public Alley.

The Committee on Committees and Rules submitted a report recommending that the City Council pass the fol lowing proposed order transmitted therewith:

Ordered. That the Commissioner of Public Works is hereby directed to prepare an ordinance for the vacation of all of the north-south 16-foot public alley in the block bounded by W. Rice Street, W. Chicago Avenue, N. Campbell Avenue, and N. Western Avenue for Security Savings and Loan Association (File No. 1-26-83-837); said ordinance to be transmitted to ths Committee on Strests and Alleys for consideration and recommendation to the City Council.

On mot ion of Alderman Stemberk the foregoing proposed order was Passed, by a viva voce vote.

Buildings Declared Public Nuisances and Ordered Demolished.

The Committee on Committees and Rules submitted a report rscommending that the City Council pass the fol lowing proposed ordinance transmitted thsrswi th:

WHEREAS, The buildings located at No. 2241 W. Cullerton Street, and No. 759 S. Washtenaw Avenue, are so deteriorated and weakened that each is structurally unsafe and a menace to life and property in its vicinity; now, therefore,

Be It Ordained by the City Council of the City of Chicago:

SECTION 1. The buildings located at No. 2241 W. Cullerton Strsst, and No. 759 S. Washtenaw Avenue, are declared public nuisances and the Commissionsr of Inspectionai Services is authorized and directsd to dsmolish the same.

SECTION 2. This ordinance shall be effective upon its passage.

On mot ion of Alderman Stemberk ths foregoing proposed ordinance was Passed, by a viva voce vote.

Buildings Declared Public Nuisances and Ordered Demolished.

The Committee on Committees and Rules submitted a report recommending that ths City Council pass the fo l lowing proposed ordinance transmitted therewith:

(Continued on page 124)

June 28, 1983 REPORTS OF COMMITTEES 123

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(Continued from page 122)

WHEREAS, The buildings at the fol lowing locations, to wi t :

No. 1307 N. California Avenue, No. 1309 N. California Avenue, No. 1311 N. California Avenue, No. 1315 N. California Avenue, and No. 1317 N. California Avenue,

are so deteriorated and weakened that each is structurally unsafe and a menace to life and property in its vicinity; now, therefore.

Be It Ordained by the City Council o f the City of Chicago:

SECTION 1. The buildings at the fol lowing locations, to wi t :

No. 1307 N. California Avenue, No. 1309 N. California Avenue, No. 1311 N. California Avenue, No. 1315 N. California Avenue, and No. 1317 N. California Avenue,

are declared public nuisances, and the Commissioner of Inspectionai Services is authorized and directed to demolish the sams.

SECTION 2. This ordinancs shall bs sffsctive upon its passage.

On motion of Alderman Stemberk the foregoing proposed ordinance was Passed, by a viva voce vote.

Congratulations Extended John C. Reinhardt on 88th Birthday.

The Committee on Committees and Rules submitted a report recommending that the City Council pass the fol lowing proposed resolut ion transmitted therewith:

WHEREAS, John C. Reinhardt celebrated his 88th Birthday on Tuesday, April 26, 1983; and

WHEREAS, John C. Reinhardt was born and raised in Chicago; and

WHEREAS, He faithful ly served our country as a Private in the 7th Division, 3rd Infantry Headquarter Company during Wor ld War 1; and

WHEREAS, He w'as a devoted employee of the American Can Company, located in the Chicago area, for a number of years; and

WHEREAS, John C. Reinhardt w i l l serve as Grand Marshall in the Norwood Park Memorial Day Parade, in the 41st Ward, on May 30, 1983; now, therefore.

Be It Resolved. By the Mayor of the City of Chicago and the Members of the City Council assembled here this 28th day of June, 1983, that we hereby extend our very best wishes to Mr. John C. Reinhardt and wish him success and happiness in his future endeavors; and

Be It Further Resolved. That the Norwood Park Memorial Day Parade Association shares our sentiments; and

Be It Further Resolved. That a suitable copy of this resolution be presented to Mr. John C. Reinhardt.

On motion of Alderman Stemberk the foregoing proposed resolution was Adopted by a viva voce vote.


Congratulations Extended the Well ington-Oakdale Old Glory Marching Society on Its Twentieth Anniversary.

The Committee on Committees and Rules submitted a report recommending that the City Council pass the fol lowing proposed resolution transmitted therewith:

' WHEREAS, Ths Well ington-Oakdale Old Glory Marching Society (WOOGMS), perhaps this great City's most informal and enthusiastic organization, celebrates its twentieth anniversary wi th a Memorial Day Parade, May 30, 1983; and

WHEREAS, WOOGMS, which is comprised of neighbors f rom the Lincoln Park/New Town Community, former marchers who have moved away f rom the community, and people f rom all over the City of all ages and backgrounds, was begun in 1963 by Al Weisman, who wi th a flag led neighborhood children on a short Memorial Day march. Over the years many hundreds of citizens have joined in that annual march; and

WHEREAS, Now a neighborhood institution, WOOGMS typif ies Chicago's wel l -known "I W i l l " spirit and dedicates celebration of Memorial Day and the demonstrat ion of patriotism in a unique and festive way; now, therefore.

Be It Resolved. That we, the Mayor and Members of ths City Council of the City of Chicago, gathered hers this 28th day of June, 1983, A.D., do hereby of fer 'our congratulations and best wishes to the Wellington-Oakdale Old Glory Marching Society on twenty years of encouraging festive community patriotism and togetherness, and our most sincere hopes for continued success and inspirat ion; and

Be It Further Resolved: That we encourage all citizens to join WOOGMS in its annual Memorial Day Parade, May 30, 1983; and

Be It Further Resolved. That a suitable copy of this resolution be presented to the Wel l ing ton-Oakdale Old Glory Marching Society.

On motion of Alderman Stemberk the foregoing propo'sed resolution was Adopted by a viva voce vote.

Tribute to Late Selma Guthman.

The Committee on Committees and Rules submitted) a; report recommending that the City Council pass the fol lowing proposed resolution transmitted therewith:

WHEREAS, Selma Guthman, beloved mother of Jack Guthman, Chairman of the Zoning Board of Appeals of the City of Chicago, was summoned to her eternal reward on May 2nd, 1983, and thersupon was laid to rest an outstanding saga of an outstanding woman of the Hyde Park Community; and

WHEREAS, Sslma Guthman, together w i th her late husband, Albert, had the courage and ths ingsnuity to gst passags on the last boat leaving Germany in Dscsmbsr, 1939, and together wi th her son. Jack, escaped the clutches of the Nazi Regirhe and came to the land of America where they became deeply appreciative of the freedom of our country, ths right of mankind to live, work and be free from discrimination and persecution and became devotees of building good wi l l and justice for all humanity; and

WHEREAS, Selma Guthman was given the opportunity to live in this free environment, she dedicated herself to Hadassah and to the cause of Israel and to her congregation Rodfei Zedek Congregation so that members of her faith could have an opportunity to practice their religion and particularly the children of Israel would have a right to grow up f res f rom ths threats of a dictatorship; and

WHEREAS, Selma Guthman was deeply appreciative of the City of Chicago because it gave hsr son. Jack Guthman, ths opportunity to partlcipats in communal and polit ical affairs of ths City of


Chicago and to become a devoted servant of our City, which gave to her a sense of pride and appreciation of the privilege of equal opportunity; now, therefore.

Be It Resolved. That we, the Mayor and Members of the City Council, gathered here the 28th day of June, 1983, do hereby officially extend our heartfelt sympathy to her son. Jack, and his family; and

Be It Further Resolved, That a suitable copy of this Resolution be submitted to Jack Guthman.

On motion of Aldeman Stemberk the foregoing proposed resolution was Adopted by a viva voce vote.

Congratulations Extended Explorer Scout Adalbert Bielski for His Outstanding and Unselfish Work in the Boy Scouts of America.

The Committee on Committees and Rules submitted a report recommending that the City Council pass the fol lowing proposed resolution transmitted therewith:

WHEREAS, Adalbert BlelskI joined Boy Scouts of America, Troop 865 at the age of 11 years; and

WHEREAS, At ths ags of 14 ysars he became an Explorer Scout in Explorer Scout Post 2162; and

WHEREAS, Adalbert Bielski, hsid positions of rssponsibility and leadership, both as a Boy Scout in Troop 865 and as an Explorer Scout; and

WHEREAS, Adalbert Bielski has shown himself to be an outstanding camper at the Owasippe Scout Reservation and was elected by his fel low Scouts to the "Order of the Arrow" a brotherhood of honored campers, where hs is presently Vice-Chief of the Lu-Mennepec Chapter of the Order of tho Arrow; and

WHEREAS, He earned the Ad Altare Dei Religious award on January 6, 1981; and

WHEREAS, Explorer Scout Adalbert Bielski has exemplified the finest kind of scouting since the day he first joined at the age of 11 years; now, therefore,

j Be It Resolved,.^y the Mayor and Members of the City Council of the City of Chicago assembled

this 28th day of June, 1983 that their sincere congratulations go to Explorer Scout Adalbert Bielski ' for his outstanding and unselfish work in the Boy Scouts of America.

On motion of Alderman Stemberk the foregoing proposed resolution was Adopted by a viva voce vots.

Ordinances, Orders and Resolutions Referred to Designated City Council Committees.

The Committee on Committsss and Rules submitted the fol lowing report:

CHICAGO, June 24, 1983.

To the President and Members of the City Council:

Your Committee on Committees and Rules to which were referred (on May 11, 1983, May 25, 1983, June 8, 1983, and June 22, 1983), ths propossd mattsrs attached hereto, begs leave to recommend that your Honorable Body Refer said prop6ssd matters to ths City Council Committses as designated herewith.


These recommendations were concurred in by 12 members of the committee, with no dissenting vote.

Respectfully submitted, (Signed) FRANK D. STEMBERK,

Chairman.

On motion of Alderman Stemberk the foregoing committee report was Approved by a viva voce vote.

Alderman Burke moved to Reconsider the vote by which the Committee Report for the Committee on Committees and Rules was approved. The motion Prevailed.

Alderman Burke then moved to Refer the ordinance authorizing the execution of an Airport Use Agreement wi th Ozark Air Lines, Inc., the execution of an Amendment No. 2 to the Airport Use Agreement with various airlines, and execution of a Credit Agreement w i th the First National Bank of Chicago to ths Committee on Finance instead of the Joint Committee of Aviat ion and Finance due to a legal technicality.

The motion Prevailed by a viva voce vote, and said proposed ordinance was Referred to the Committee on Finance.

The fol lowing is a list of ordinances, orders and resolutions which were Referred to ths City Council Committees as designated:

Referred to the Committee on Finance:

Communication from the Mayor appointing David F. Schulz as Budget Director (rsfsrred 5/25/83)

Communication from ths Mayor appointing Wil l iam F. Ware as Mayor's Administrative OKicsr (rsfsrrsd 5/25/83)

Communication f rom ths Mayor appointing James D. Montgomery as Corporation Counsel (referred 5/25/83)

Ordinance authorizing the Mayor on behalf of the City to enter into and execute an agreement with ths Stats of Il l inois in respect to the 1983 Intermittent Resurfacing Program, (referred 6/22/83)

Ordinancs authorizing the Mayor to enter into and execute an agreement on behalf of ths City wi th the Illinois. Department of Transportation in respect to the Federal Highway Planning Assistance Program (referred 6/22/83)

Ordinancs providing for ths fi l ing of a grant application in respect to the Urban Mass Transportation Administration Section 8 Transit Planning Funds Program, and authorizing the Mayor to enter into and execute any and all contracts on behalf of the City pertaining to the grant application (referred 6/22/83)

Two ordinances providing first, for the filing of a grant application for $4,410,000 wi th the Economic Development Administrat ion in respect to the Emergency Jobs Act of 1983 program, and authorizing the Mayor to enter into and execute any and all contracts on behalf of the City, pertaining to the grant application; and, second, for the fi l ing of a grant application for $565,000 wi th the Economic Development Administration i n , respect to the Emergency Jobs Act of 1983 program, and authorizing the Mayor to enter into any and all contracts on behalf of ths City, psrtaining to ths grant application (referred 6/22/83)

Reports f rom the Corporation Counsel (filed in the Office of the City CIsrk on May 5, 1983) addressed to the Council (signed by Timothy 0. O'Hara, Assistant Corporation Counsel) as to suits against ths City of Chicago in which settlements were made and judgments entered as of the period ended March, 1983. (referred 5/11/83)

128 JOURNAL—CITY COUNCIL—CHICAGO Juns 28, 1983

Propossd resolution to congratulate tha Children's Home and Aid Society of Illinois on the occasion of their 100th Anniversary and to proclaim the week of May 8, 1983 to be Children's Home and Aid Society of Illinois Week in the City of Chicago (referred 5/11/83)

Proposed resolution requesting the State of Illinois and/or the City of Chicago to expand allocated funds for New Street Construction Program (referred 5/11/83)

Free Permits for Charitable Institutions (rsfsrred 5/11/83)

License Fes Exemptions for Charitable Institutions (referred 5/11/83)

Cancellation of Warrants for Collection (referred 5/11/83)

Refund of License Fee (referred 5/11/83)

Proposed order to replace a City light pole at No. 2400 S. Troy Strest (referred 5/11/83)

Proposed order to install a light pole in the alley in the rear of the premises at No. 3740 W. 57th Street (referred 5/11/83)

Proposed ordinance to amend Chapter 185.1 of ths Municipal Code of the City of Chicago -concerning the exemption of senior citizens who own specif ied-type residences f rom payment of the sewer service charge (referred 5/11/83)

Ordinance authorizing the execution of Airport Use Agreement wi th Ozark Air Lines, Inc., the . execution of an Amendment No. 2 to the Airport Use Agreement with various airlines and

the execution of a Credit Agreement wi th the First National Bank of Chicago, (referred 6/22/83)

Referred to the Committee on Administration. Reorganization and Personnel:

Proposed resolution to conduct a study to detsrmins whsthsr the Bureau of Street Traffic shall be transferred to Streets and Sanitation or whether the street functions previously covered-by said Bureau shall be transferred to the Department of Public Works (referred 5/11/83)

Referred to the Committee on Aviation:

Ordinance providing for the conditional approval of an industrial revenue bond in the amount of $1,000,000 for ths construction of a project by Midway Airlines, Inc. (referred 6/22/83)

Referred to the Committee on Buildings:

To amend Chapter 87 of the Municipal Code of the City of Chicago by adding a new section. Section 410.16, concerning general standards of electrical Installations (referred 5/11/83)

To amend the 1983 Annual Appropriations Ordinance rsducing the assessment contained under "Garbage and Refuse Collection" by that sum of the money necessary to create a fund to reimburse condominium ownsrs for the payments for private scavenger service, etc. (referred 5/11/83)

Referred to the Joint Committee Comprised of the Committee on Cable Television and the Committee on Intergovernmental Relations:

Proposed resolution to declare strong City Council opposition to United States Senate Bill S66 (referred 5/11/83)

Referred to the Committee on Claims and Liabilities:

Sundry Claims against the City of Chicago (rsferrsd 5/11/83, 5/25/83, 6/8/83 and 6/22/83)

Juno 28, 1983 REPORTS OF COMMITTEES 129

Referred to the Committee on Cultural Development and Historical Landmark Preservation:

Communication f rom Wil l iam M. McLenahan, Director, Commission of Chicago Historical and Architectural Landmarks, rscommending that the Chicago Building be designated as a "Chicago Landmark", (referred 5/25/83)

Communication f rom Wil l iam M. McLenahan, Director, Commission of Chicago Historical and Architectural Landmarks, recommending that the structure known as the Immaculata High School and Convent Buildings bs dssignated as an off icial "Chicago Landmark", (rsferrsd 6/22/83)

Referred to the Committee on Economic Development:

Ordinance providing for the conditional approval of an industrial revenue bond in the amount of $2,000,000 for the construction of a project by Silvestri Corporation and/or the No. 2720 North Paulina Limited Partnership (referred 6/22/83)

Ordinance providing for the conditional approval of an industrial revenue bond in ths amount of $3,100,000 for the construction of a project by Washington/Halsted Associates - 1983. (referred 6/22/83)

Ordinance providing for the conditional approval of an industrial revenue bond in the amount of $1,300,000 for the construction of a project by R. P. Weiner St. Company (referred 6/22/83)

Ordinance providing for the conditional approval of an industrial revenue bond in the amount of $900,000 for the construction of a project by L fit B Products of Illinois, Inc. (referred 6/22/83)

Referred to the Committee on Employment:

Proposed resolution requesting that ths Committee on Employment determine the number of vacancies currently among the officer posit ions'in the Police Department wi th a v iew toward keeping the Police Department fully manned at all t imes (referred 5/11/83)

Referred to the Joint Committee Comprised of the Committee on Health and the Committee on Human Rights and Consumer Protection:

Proposed ordinance to amend Chapter 95, Section 95-23, of the Municipal Code of the City of Chicago by adding a new section. Section 95-23.1, concerning food establishments who treat various raw foods w i t h a sulfit ing agent and consumer notif ication thereof (referred 5/11/83)

Referred to the Committee on Housing and Neighborhood Development:

Communication f rom the Mayor appointing Joseph E. Gardner as Commissioner of Departmsnt of Neighborhoods (referred 6/8/83)

Referred to the Committee on Intergovernmental Relations:

Communication f rom Sheila Jones, midwest representative of the National Dsmocratic Policy Committss, concerning a propossd resolution calling for ths snd of a "nuclear freeze" and introduction of "pro-ban" weapons (rsfsrrsd 5/11/83)

Proposed resolut ion urging the Corporation Counsel to amend the current f i rs code by rsquiring that upholstery used in any hotel, hospital, or nursing home be fabricated of f i re resistant materials by January 1, 1987 (rsfsrred 5/11/83)

Referred to the Committee on Land Acquisition and Disposition:

Communication f rom Zulksy, PIkarski and Gottlick, attorneys, transmitt ing a proposed ordinance


to annex certain parcel of land f rom the County of Cook to the City of Chicago (referred 5/11/83)

Referred to the Committee on Leases:

Proposed order to investigate all City leases with a v iew to implement economies in the col lection of fees (referred 5/11/83)

Ordinance authorizing ths City Comptroller of the City of Chicago to execute a lease to Festivals, Inc. for the third floor of the North Headhouse of Navy Pier, No. 600 East Grand Avenue, Chicago, Illinois, for ths operation of its offices (refsrrsd 6/22/83)

Referred to the Committee on Local Transportation:

Establish a bus stand at S. Stony Island Avenus (east curb) from a point 90 feet north of . the north property line of E. 81st Street to a' pioint 140 fest north thereof (instead of f rom

a point 12 feet north of the north property line of E. 81st Street to a point 165 feet north thereof) (referred 5/11/83)

Memorialize the Chicago Transit Authority to install bus passenger shelters at the southeast corner of W. 47th Street and S. Cicero Avenue;^ the southeast corner of W. 49th Street and S. Cicero Avenue; and the southeast corner of W. 50th Street and S. Cicero Avenue (referred 5/11/83)

Referred to the Committee on Police. Fire and Municipal Institutions: i

Proposed ordinance extending ths current firearms registration deadline date to October 30, 1983 (referred 5/11/83).

Proposed resolution urging the Committee oni Police, Fire and Municipal Institutions to hold hearings to determine whether the rights of seventy-six employees of the Chicago Fire Department were violated (referred 5/11/83).

Proposed resolution urging that police officers be assigned to all City public parks and be provided wi th three-wheel motorcycles, where possible, so that thsy can cover wider areas of ths park whi le on duty, etc. (referred 5/11/83).

Referred to the Committee on Special Events and World's Fair:

; Proposed resolution to Immediately hold hearings to determine the f inancial feasibil ity of "ChicagoFest" and "Taste of Chicago" and proceed wi th planning upon that determination (referred 5/11/83). '

Referred to the Committee on Streets and Alleys:

Amsrican National Bank &. Trust Company of Chicago, as Trustee U/T No. 46636 — to construct, maintain and use vaulted sidewalk space adjacent to its property locatsd at No. 185 N. Wabash Avenue (referred 5/11/83).

The Northern Trust Company — to maintain sidewalk containing electric snow melting facil i t ies and steel curbs near W. Adams Street and S. Wacker Drive (rsfsrred 5/11/83).

The University of Chicago — to maintain and use two steam tunnels used to service the Accelarator Building located at Nos. 5604-5620 S. Ellis Avenue (referred 5/11/83).

Texas Eastern Transmission Corporation — to maintain, opsrate, remove, replace and rspair a private pipeline for the transmission and transportation of oil, petroleum and petroleum products beginning at a point on S. Kedzie Avenue and continuing east under and across S. Kedzie Avenue north of the center lins of W. 36th Strset, etc. (referred 5/11/83).

To construct a catchbasin alongside the premises located at No. 3859 W. 55th Place (referred 5/11/83)7


Chicago Rotoprint Company — to maintain and use three sample basins located at N. Knox Avenue adjacent to the premises at Nos. 3117-3155 N. Knox Avenue (referred 5/11/83).

Northwestern University — to maintain and use- as now constructed a ut i l i ty service tunnel to be used for the purpose of steam distribution, beginning east of the east line of N. Fairbanks Court and proceeding easterly to E. Superior Street, etc. (referred 5/11/83).

Issuance of a permit to Norman E. Wesley to maintain and use an existing canopy attached to ths building or structurs located at No. 3301 N. Southport Avenue (referred 5/11/83).

Board of Local Improvements for Alley Improvements for the grading, paving and improving spscifisd alleys (referred 5/11/83).

Proposed ordinance to amend Chapter 33 of the Municipal Code of the City of Chicago by adding a new section to be known as Section 33-5.1, to prohibit minor expressway repairs during the hours of 6 A M . to 7 P.M. (referred 5/11/83).

Referred to the Committee on Traffic Control and Safety:

Establish Loading Zones at Sundry Locations (referred 5/11/83).

Restrict Movement of Vehicular Traffic to Single Direction on Specified Public Ways (referred 5/11/83).

Limit Parking of Vehicles during Specified Hours at Specified Locations (referred 5/11/83).

Prohibit at All Times Parking of Vehicles at Specified Locations (referred 5/11/83).

Prohibit Parking of Vehicles during Specified Hours at Specified Locations (referred 5/11/83).

• Installation of Traff ic-Control Signals (referred 5/11/83).

Installation of Traffic Signs (referred 5/11/83). -

Fix Weight Limit of Five Tons for Vehicles on Specified Streets (referred 5/11/83).

Close ' to Traffic Portions of Specified Strests for ths Conduct of Carnivals, Fairs, Sidewalk Sales, etc. (referred 5/11/83).

Two proposed ordinancss to amend Chapter 27 of ths Municipal Code of the City of Chicago by adding new sections. Sections 350.1 and 350.2, concerning motor vehicle suspension system and bumper regulations (referred 5/11/83).

Referred to the Committee on Zoning:

Eternity Church OGIC —• to classify as an R3 General Residence District instead of a B5-2 General Service District the area shown on Map No. 28-E bounded by E. 108th Street, S. Michigan Avenue, etc. (referred 5/11/i83).

Edward Miesczak c/o Di Monte St. Lizak — to classify as an R4 Gsneral Residence Distr ict instead of a B2-1 Restricted Retail District the area shown on Map No. S - M b o u n d s d by W. Addison Strsst, N. Narragansett Avenue, etc. (referred 5/11/83).

Steven Tisma — to classify as a C l - 1 Rsstricted Commercial District instead of a B4-1 Restricted Service District the area shown on Map No. 11-K bounded by N. Lowell and N. Kildare Avenues etc. (referred 5/11/83).


American National Bank of Chicago, U/T No. 15104 — to classify as an R4 General Residence District instead of an R3 General Residence District the area shown on Map No. 6-F bounded by W. 28th Street, S. Emerald Avenue, etc. (referred 5/25/83).

Arc Cable St Communications, Inc. — to classify as a Communications Planned Development the area shown on Map No. 3-E at No. 845 N. Michigan Avenue (referred 5/25/83).

Cragin Service Corporation — to classify as an 'R4 General Residence District instead of a C l - 1 Rsstricted Commsrciai District the arsa shoyt/n on Map No. 9-M bounded by W. Berenice and N. Narragansett Avenues, etc. (referred 5/25/83).

Cragin Service Corporation — to classify as an. R4 General Residence District instead of a C l - 1 Restricted Commercial District ths area shown on Map No. 9-M bounded by W. Byron Street, N. Narragansett Avenue, etc. (referred 5/25/83).

Handy Andy Home Improvement Centers, Inc. —' to classify as a C2-1 General Commercial District instead of a C3-1 Commercial Manufacturing District the area shown on Map No. 3-J bounded by N. Keystone, W. Grand, N. Kariov Avenues, etc. (referred 5/25/83).

McDonald's Corporation — to classify as a B4-1! Restricted Service District instead of a B3-1 General Retail District the area shown on Map No. 22-H bounded by W. 95th Street, S. Oakley Avenue, etc. (referred (5/25/83).

R. Donald Johnson — to classify as a Business Planned Development instead of an R2 Single-Family Residence District the area shown on Map No. 13-P bounded by W. Bryn Mawr and N. Cumberland Avenues, etc. (referred 5/25/83).

Alvin E. Rossnbloom — to classify as a B4-2 Restricted Service District instead of a R4 General Rssidsnce District ths area shown on Mao No. 7~G bounded by the alley next north of and parallel to W. Wellington Avenue, a line 50.00 fest west of and parallel to N. Kenmore Avenue; W. Wellington Avenue; and N. Kenmore Avenue (referred 6/22/83).

• i [ Northwest Institute for Contemporary Learning — to classify as an R3 General Residence District instead of a B4-1 Restricted Service District the area shown on Map No. 3-L bounded by the alley next north of and parallel to W. Division Street, a lins 51 feet 5 1/2 inches west of and parallel to N. Leclaire Avenue W. Division Street; and a line 176 feet west of and parallel to N. Leclaire Avenue;(rsferred 6/22/83). ' ':

Modern Development Inc. — to classify as an R5 General Residence District instead of an R3 General Residence Distr ict ths area shown] on Map No. 6-F, bounded by W. 25th Place; a. linQ 75 feet east of S. Wallace Street; the alley next south of W. 25th Place; and S. Wallace Strsst (referred 6/22/83).

Exchange National Bank c /o Robert J. Weber j - 7 to classify as a C2-3 General Commercial District instead of a C2-1 General Commercial Disti;ict, the area shown on Map No. 5-N, bounded by a lins 101.54 feet north of and parallel to W. Bloomingdale Avenus; the alley next east of and parallel to N. Harlem Avenue; W. Bloomingdale Avenue; and N. Harlem Avenue (referred 6/22/83).

Wayne Gripman — to classify as an M l - 1 Restricted Manufacturing District instead of a B4-1 Rsstrictsd Ssrvice District, ths arsa shown oh Map No. 1-L bounded by W. Chicago Avenue; a line 100 feet east of and parallel to N. Lotus I Avenue; ths alley next south of and parallel to Chicago Avenue; and N. Lotus Avenue (referred 6/22/83).

Juns 28, 1983 REPORTS OF COMMITTEES 133

KFC National Management Company — to classify as a B4-3 Restricted Service District instead of a B3-3 General Retail District the area shown on Map No. 19-H, bounded by a line 155.50 feet north of W. Howard Street; the alley next east of N. Marshfield Avenue; W. Howard Street; N. Marshfield Avenue (referred 6/22/83).

KFC National Management Company — to classify as a B4-1 Restricted Service Distr ict instead of a B2-1 Restricted Retail District the area shown on Map No. 18-G, bounded by a line 157.53 feet north of W. 74th- Street; S. Racine Avenue; W. 74th Street; and tha alley next west of S. Racine Avsnus (referred 6/22/83).

To classify as an R3 General Residence District instead of an M l - 1 Restricted Manufacturing District the area shown on Map No. 5-H bounded by N. Wood Street; W. Bloomingdale Avenue, etc. (referred 5/11/83).

To classify as a B2-1 Restricted Retail District instead of a B4-2 Restricted Service District the arsa shown on Map No. 11-H boundsd by W. Irving Park Road, N. Ashland Avenue, etc. (referred 5/11/83).

To classify as a B2-1. Restricted Retail Distr ict ' instead of a B3-3 General Retail District and a B5-2 and B5-3 General Service District the area shown on Map No. 11-H bounded by W. Irving Park Road, N. Damen Avenue, etc. (rsfsrred 5/22/83).

To classify as a B2-1 Restricted Retail District instead of a B3-3 General Retail District, B4-2 Restricted Service District and B5-3 General Service District the area shown on Map No. n - H bounded by W. Irving Park Road, N. Oakley Avenue, etc. (referred 5/11/83).

To classify as a: B2-1 Restricted Retail District Instead of a B4-2 Restricted Service District, C l - 1 Restricted Commercial District and C2-1 General Commercial District the area shown on Map No. 11-1 bounded by W. Irving Park Road, N. Western Avenue, N. Rockwell Street, etc. (referred 5/11/83).

To classify as a B2-1 Restricted Retail District instsad of a B4-r2 Restricted Service District the area shown on Map No. 9-H bounded by W. Irving Park Road, N. Hermitage Avenue, etc. (referred 5/11/83).

To classify as a B2-1 Restricted Retail District instsad of a B3-3 General Retail District, B5-2 and B5-3 General Service District the area shown on Map No. 9-H bounded by W. Irving Park Road, N. Lincoln and W. Larchmont Avenues, etc. (referred 5/11/83).

To classify as a B2-1 Restricted Retail District instead of B4-2 Restricted Service District and B5-3 General Service District the area shownj on Map No. 9-H bounded by W. Irving Park Road, N. Damen Avenue, N. Leavitt Street, etc. (referred 5/11/83).

To classify as a B2-1 Restricted Retail District instsad of a C2-2 General Commercial District ths arsa shown on Map No. 9-H bounded by W. Irving Park Road, N. Bell and N. Western Avenues, etc. (referred 5/11/83).

James D. Ahsrn Sign Company, No. 3257 S. Harding Avenus, for ths srection of a sign/signboard at No. 150 W. 63rd Strest (Shell Oil Company) (referred 5/11/83).

Acme-Wiley Corporation, No. 2480 N. Greenleaf Avenue, for ths erection of a sign/signboard at No. 3020 N. Ashland Avsnus (Wag's Restaurant) (referred 5/11/83).

Doyle Signs, Inc., No. 232 Interstate Road, Addison, Illinois for the erection of a sign/signboard at No. 3415 N. Western Avenue (Armanetti Wines and Liquors) (referred 5/11/83).

At this point in the proceedings Alderman Burke moved to Discharge the Committee on Committees


and Rules from further consideration of a proposed resolution concerning the submission of criteria '^ for implementation of the Summer Youth Employment Program, and also a proposed resolution authorizing ths extension of contracts of delegate organizations funded under Community Development Year Vlll for a specified period.

The motion to Discharge the Commit tss Prevailed by a viva voce vote.

Alderman Burke then moved that the two proposed resolutions be Referred to the Committee on Finance.

The motion Prevailed by a viva voce vote, and the said proposed resolutions were Referred to the Committee on Finance.

RECESS TAKEN.

At this point in the proceedings. Alderman Burke moved that the City Council do Recess until 1:00 P.M. for the purpose of al lowing the Committee on Finance to hold a committee meeting concerning various crit ical matters.

Ths motion Prevailed by a viva vocs vote and the City Council Stood in Recess.

CITY COUNCIL MEETING RESUMED

At this point in the proceedings Honorable Harold Washington, Mayor, called the City Council to order.

COMMITTEE ON FINANCE.

Authori ty Granted for Execution of an Airport Use Agreement w i th Ozark Air Lines, Inc Etc.

The Committee on Finance submitted a report recommending that the City Council pass a proposed ordinance as amended, transmitted thsrswi th , authorizing the execution of an Airport Use Agreement with Ozark Air Lines, Inc., Etc.,

On motion of Alderman Burke the said propossd ordinancs was Passed, as amended, by yeas and nays as fol lows:

Yeas—Aldermen Roti, Rush, Evans, Bloom, Sawyer, Bsavsrs, Humes, Hutchinson, Vrdolyak, Huels, Majerczyk, Madrzyk, Burke, Brady, Langford, Streeter, 'Kellam, Sheahan, Kelley, Stemberk, Krystyniak, Marzullo, Nardulli, W. Davis, Smith, D. Davis, Santiago, Gabinski, Mell, Frost, Kotlarz, Banks, Damato, Cullerton, Laurino, O'Connor, Pucinski, Natarus, Oberman, Hansen, McLaughlin, Orbach, Volini, Orr, S tone--45.

Nays—None.

Alderman Stemberk moved to Reconsider the foregoing vote. The motion was Lost.

Alderman Burks rsqussted that the rscord reflect that ths said passed ordinancs was transmit ted to the Mayor for his signature at 1:30 P.M.

[Airport Use Agreement Ordinance with Ozark Air Linss, Inc., Amsndment No. 2 to ths Airport Uss Agreement to Provide Funding of Operation and Maintenance Reserve

Fund and Interim Financing Credit Agreement w i th First National Bank of Chicago is printed on pages 135

through 185 of this Journal.]

June 28, 1983 REPORTS OF COMMITTEES ^35

AN ORDINANCE AUTHORIZING THE EXECUTION OF AN AIRPORT USE AGREEMENT WITH OZARK AIR LINES, INC., THE

EXECUTION OF AN AMENDMENT NO. 2 TO THE AIRPORT USE AGREEMENT WITH VARIOUS AIRLINES AND THE EXECUTION OF

A CREDIT AGREEMENT WITH THE FIRST NATIONAL BANK OF CHICAGO

WHEREASr the City of Chicago (the "City") is a duly constituted and existing municipality within the meaning o£ Section 1, Article VII of the 1970 Constitution of the State of Illinois (the "Constitution")p and is a home rule unit under Section 6 (a) p Article VII of tlie Constitution; and

WHEREAS, the City owns and operates an airport known as Chicago-O'Hare International Airport (the "Airport"), and is in the process of planning and designing a major redevelopment of the Airport; and

WHEREAS, as part of such redevelopment the City has entered into an Airport Use Agreement and Terminal Facilities Lease (the "Airport Use Agreement"), and an Amendment No. 1 thereto, with each of United Airlines, Inc., American Airlines, Inc., Trans World Airlines, Inc., Northwest Orient Airlines, Inc., Delta Air Lines, Inc., and USAir, Inc., and wishes to enter into an Airport Use Agreement, and an Amendment No. 1 thereto, with Ozarl( Air Lines, Inc. (referred to herein collectively as "Airline Parties"), to provide among other things, for the financing of the facilities and improvements included in the redevelopment of the Airport, and for the establishment of the respective rates and charges of the Airline Parties for, and the obligations of the City regarding, the use and operation of the Airport;̂ and

WHEREAS, the City and teach of the Airline Parties wish to enter into an Amendment No. ]2' to the Airport Use Agreement to provide for the funding of ^he Operation and Maintenance Reserve Fund created under the Airport Use Agreement; and

WHEREAS, the Airline Parties have requested that the City enter into a Credit Agreement to provide for an interim borrowing to fund the Operation and Maintenance Reserve Fund to be payable solely out of eunounts on deposit in the Junior Lien Obligation Debt Service Fund, as such term is defined in the Airport Use Agreement; and

WHEREAS, the City, as a home rule unit pursuant to the Constitution, is authorized and empowered to issue its revenue obligations to finance the cost of the redevelopment of the Airport; now, therefore.


Be it Ordained by the City Council of the City of Chicago:

Section 1. Airport Use Agreement with Ozark. The Airport Use Agreement and Amendment No. 1 attached hereto as Exhibit A between the City and Ozark Air Lines, Inc. are hereby approved. The Mayor is hereby authorized and directed to execute an Aiirport Use Agreement and Amendment No. 1 and to deliver the same to Ozark Air Lines, Inc. for and on behalf of the City, and the City Clerk is hereby authorized to attest the same and to affix thereto the corporate seal of the City. Such Airport Use Agreement and Amendment No. 1 may contain such non-substantive changes as shall be approved by the Mayor, and his execution thereof shall constitute conclusive evidence of the City Council's approval of any and all such changes.

Section 2. Amendment No. 2 to Airport Use Agreements. The Amendment No. 2 to the Airport Use Agreement attached hereto as Exhibit B ("Amendment No. 2") is hereby approved. The Mayor is hereby authorized and directed to execute an Amendment No. 2 to each of the Airport Use Agreements signed by the Airline Parties and to deliver the same to each of the Airline Parties for and on behalf of the City, and the City Clerk is hereby authorized to attest the same and to affix thereto the corporate seal of the City. Each such Amendment No. 2 may contain such non-substantive changes as shall be approved by the Mayor, and his execution thereof shall constitute conclusive evidence.of the City Council's approval of any and all such changes.

Section 3. Credit Agreement and Airport-Junior Lien Obligation Revenue Note. The Credit Agreement with The First National Bank of Chicago attached hereto as Exhibit C (the "Credit Agreeraent") to provide for an interim borrowing to fund the Operation and Maintenance Reserve Fund created under the Airport Use Agreement and the Airport Junior Lien Obligation Revenue Note attached thereto (the "Airport Revenue Note") are hereby approved. The First National Bank of Chicago is hereby appointed paying agent for the iAirport Revenue Note. Any borrowings under the Credit Agreement shall be limited obligations of the City payable solely from, and secured by, amounts on deposit in the Junior Lien Obligation Debt Service Fund, as such term is defined in the Credit Agreement, which amounts shall be pledged to The First National Bank of Chicago in accordance with the provisions of Section 705 of the General Airport Revenue Bond Ordinance, as such term is defined in the Credit Agreement, to the payment of principal of and interest on the Airport Revenue Note, subject and subordinate, however, to the prior pledge of Revenues, as such term is defined in the Credit Agreement, and other moneys heretofore made by the C'i'ty

June 28, 1983 REPORTSOFCOMMITTEES 137

pursuant to the General Airport Revenue Bond Ordinance for the benefit and security of the holders of the Bonds, as such term is defined in the Credit Agreement, heretofore or hereafter issued. The Airport Revenue Note and any interest thereon shall not constitute an indebtedness of or a loan of credit of the City within the meaning of any constitutional or statutory limitation, and neither the faith 'and credit nor the taxing power of the City, the State of Illinois or any political subdivision thereof shall be pledge,


limit or describe the scope or intent of any provision of this Ordinance.

Section 7. Provisions in Conflict Repealed. All ordinances, resolutions, and orders, or parts thereof, in conflict with the provisions of this Ordinance are, to the extent of such conflict, hereby repealed. This Ordinance shall be made available to the public by the City Clerk, City Hall, Chicago, Illinois. Copies are to be made available in the office of the City Clerk for public inspection and distribution to members of the public who may wish to avail themselves of a copy of this Ordinance.

Section 8. Effective immediately. This Ordinance is adopted pursuant to the powers of the City as a home rule unit of local government under section 6(a) of Article Vll of the Constitution and is not enacted pursuant to Article 8 of the Illinois Municipal Code. The City Council hereby finds that the matters contained in this Ordinance are a matter of urgency which require that this Ordinance be in full force and effect immediatelyi from and after its adoption.

..̂ Exhibit A omitted for printing purposes.]


AMENDMENT NO. 2 TO

AIRPORT USE AGREEMENT AND TERMINAL FACILITIES LEASE

This Amendment No. 2 to Airport Use Agreement and Terminal Facilities Lease ("Amendment No. 2") made and entered into as of this 1st day of June, 1983, by and between the City of Chicago, a municipal corporation and home rule unit of local government organized and existing under the laws of the State of Illinois ("City"), and , a corporation organized and existing under the laws of the State of ("Airline"),

WITNESSETH:

WHEREAS, the City and the Airline have entered into an Airport Use Agreement and Terminal Facilities Lease dated as of , 1983, as amended by Amendment No. 1 to Airport Use Agreement and Terminal Facilities Lease dated as of , 1983 (the "1983 Use Agreement"); and

WHEREAS, it is necessary and advisable to amend the 1983 Use Agreement in certain respects; ,

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained. City and Airline agree as follows:

• Section 1. Subparagraphs (ii) and (iii) of Paragraph

(a) of Section 5.03 of the 1983 Use Agreement are hereby amended to read as follows:

"(ii) Airline's prorata share, if any, established pursuant to Section 5.04(b), of Debt Service (reduced by Investment Income allocated in accordance with Section 6.02(b)) allocated in accordance with Section 6.01 to Type B Public Use Premises and to relocation costs incurred pursuant to Section 9.13;

plus

(iii) Airline's prorata share, established pursuant to Section 5.04(c), of

(1) Debt Service (reduced by Investment Income allocated in accordance with Section 6.02(b)) allocated in accordance with Section 6.01 to Type A


Public Use Premises, to those capitalized costs of implementing the provisions of this Agreement described in Section 8.02(a) (vii), and to the costs of funding- or refinancing required deposits into the Operation and Maintenance Reserve Fund;

(2) O&M Expenses of the Terminal Area identified in accordance with Section 6.02;

(3) Airport Development Fund and Emergency Reserve Fund payment requirements calculated pursuant to Sections 10.02 and 11.02, respectively, and Special Capital Projects Fund payment requirments, if any, pursuant to Section 7.10, as each such payment requirement is allocated pursuant to Section 6.03 to the Terminal Area; and

(4) Net Deficit, if any, of the Terminal Support Area calculated pursuant to Section 12.01 and allocated pursuant to Section-6.04 to the Terminal Area;"

Section 2. Paragraph (a) of Section 6.01 of the 1983 Use Agreement is hereby amended to read as follows;

"(a) City shall maintain accurate records allocating Debt Service for each Fiscal Year among the CRCs. The allocation of Debt Service shall be based on actual expenditures made out of the proceeds of obligations giving rise to such Debt Service for each Capital Project described in the Airport Development Plan and in any future schedules of Capital Projects presented by City to the Airline Parties in accordance with Article VIII; provided, however, that Debt Service attributable to those capitalized costs of implementing the provisions of this Agreement described in Section 8.02(a)(vii) shall be allocated thirty-five percent (35%) to the Terminal Area, thirty-five percent (35%) to the Airfield Area, twenty percent (20%) to the Terminal Support Area and ten percent (10%) to the International Terminal Area; and, provided, further, that Debt Service attributable to the costs of funding or refinancing required deposits into the Operation and Maintenance Reserve Fund, for each Fiscal Year, shall be allocated among the CRCs in the Seune proportion as O&M Expenses, for such Fiscal Year, are allocated etmong the CRCs. Such allocation shall separately identify Debt Service


allocated to the Terminal Area for (i) all Exclusive Use Premises (excluding Exclusive Use Premises which are part of a Special Facility Improvement), (ii): any Exclusive Use Premises which are part of a Special Facility improvement, (iii) tenant improvements pursuant to Section 9.12, (iv) relocation costs incurred pursuant to Section 9.13, (v) Type A Public Use Premises, (vi) Type B Public Use Premises, (vii) those capitalized costs of implementing the provisions of this Agreement described in Section 8.02(a)(vii), (viii) those Capital Projects enumerated in Section 5.05(b), and (ix) the costs of funding or refinancing required deposits into the Operation and Maintenance Reserve Fund; and shall separately identify Debt Service, if any, during construction for each of the foregoing."

Section 3. Paragraph (a) of Section 8.01 of the 1983 Use Agreement is hereby amended to read as follows:

"(a) City may make or authorize to be made Capital Expenditures (and, with respect to item (ii) below, expenditures for improvements at airports other than the Airport in accordance with Section 10.04, and with respect to item (vi) below, expenditures to fund all related costs of issuance and associated financing costs, including, but not limited to, costs of capitalized interest, debt service coverage requirements, credit facility fees and required deposits into any debt service reserve fund or other fund established in the ordinance or resolution authorizing such obligations and required deposits into the Operation and Maintenance Reserve Fund) from the following sources without approval of Airline or a Majority-in-Interest: (i) amounts in the Maintenance Reserve Fund; (ii) amounts in the Airport Development Fund; (iii) proceeds of Government Grants-in-Aid (excluding any City-sponsor matching share); (iv) proceeds of any passenger facility charge or similar tax levied by or on behalf of City; (v) proceeds of insurance or any condemnation award with respect to any assets or property at the Airport, to the extent such proceeds are not deemed revenues in accordance with generally accepted accounting principles and are expended to replace that which was destroyed or taken; and (vi) proceeds of obligations issued by City pursuant to Section 8.02."

Section 4. Paragraph (a) of Section 8.02 of the 1983 Use Agreement is hereby ainended to read as follows:

"(a) Provided that the I notice required by Section 8.04 has been given to Airline, City may issue obligations for any one or more of the following'purposes, and to fund all related costs of issuance and associated financing costs, including but not limited to, costs of capitalized interest.


debt service coverage requirements, credit facility fees and required deposits into any debt service reserve fund or other fund established in the ordinance or resolution authorizing such obligations, and include the Debt Service thereon in the calculation of Airport Fees and Charges, in accordance with the provisions of Articles V and VI, without approval of Airline or a Majority-in-interest: (i) to fund (1) the cost of designing, constructing and equipping Priority I Capital Projects, (2) the Airline-Funded Cost of designing, constructing and equipping Priority II Capital Projects, subject to the provisions of Section 9.07, and (3) the cost of designing, constructing and equipping Capital Projects necessary to comply with any valid rule, regulation or order of any Federal or state agency; (ii) to fund the cost of tenant improvements pursuant to Section 9.12, or the cost of relocation expenses pursuant to Section 9.13; (iii) to fund insurance or condemnation award deficiencies pursuant to Section ,19.04(d) or 19.05; (iv) to redeem the 1959 Bonds; (v) to refinance, on a long-term, permanent basis, obligations which were issued originally to finance, on a short-term, interim basis, the cost of funding required deposits described in subsection (viii) below, the cost of designing, constructing and equipping Capital Projects described in subsection (i) above, or the cost of tenant improvements and relocation costs described in subsection (ii) above, or, to the extent necessary from time to time to prevent a default thereon, to renew such short-term interim obligations with other short-term obligations; (vi) to refund or refinance Special-Facility Revenue Bonds (1) pursuant to and only at the times required by the Special Facility Use Agreement dated as of August 1, 1982 by and between City and Delta Air Lines, Inc., or (2) pursuant to and only at the times required by any agreements entered into by and between City and any Airline Party pursuant to Section 9.14; (vii) to fund other capitalized costs of implementing the provisions of this Agreement, such as the costs of designing, creating and Implementing accounting and cost management systems, and program and construction management costs and^expenses; and (viii) to fund required, deposits into the Operation and Maintenance Reserve Fund. The use of the proceeds of General Airport Revenue Bonds in the manner set forth in that certain Escrow Deposit Agreement, dated as of April 1, 1983, by and; among City, Delta Air Lines, Inc. and Continental Illinois National Bank and Trust Company of Chicago, shall be deemed to constitute a refunding of Special Facility Revenue Bonds 'pursuant to . . . the Special Facility Use Agreement dated as of August 1, 1982 by and between the City and Delta Air Lines, Inc.* within the meaning of this Section."

Section 5. Subparagraph (11) of Paragraph (b) of Section 8.02 of the 1983 Use Agreement is hereby amended to read as follows:


" (ii) Each issue or series of obligations issued pursuant to subsection (a) of this Section 8.02 by City (other than obligations issued to finance, on a short-term, interim basis, the cost of designing, constructing and equipping Capital Projects, or the cost of funding required'deposits into the Operation and Maintenance Reserve Fund, and obligations issued to renew such obligations) shall be issued pursuant to the General Airport Revenue Bond Ordinance or a Special Facility Financing Arrangement and shall mature over a period of not less than fifteen (15) years and shall provide for approximately level annual payments of principal and interest."

Section 6. The following subparagraph (viii) is hereby added to Paragraph (b) of Section 8.02 of the 1983 Use Agreement:

" (viii) In the event obligations are issued by City pursuant to subsection (a) of this Section 6.02 to finance the cost of jfunding required deposits into the Operation and Maintenance Reserve Fund on a short-term, interim, basis, the following shall apply:

(1) Any such obligation shall bear interest at a rate not in excess of the average of the then current prime interest rates of the three largest domestic Banking institutions headquartered in Chicago; and

(2) City shall permanently finance, as soon as reasonably feasible, pursuant to the requirements of subsection (ii) above, the cost of funding such required deposits into the Operation and Maintenance Reserve Fund out of the proceeds of subsequent issues of General Airport Revenue Bonds."

Section 7. Paragraph (h) of Section 9.04 of the 1983 Use Agreement is hereby amended to read as follows:

"(h) Within one hundred eighty (180) days after the completion of a Capital Project!:or component thereof. City shall prepare, execute and deliver to the Airlines' Representative, and, in the case of a Capital Project or component thereof which includes .any Exclusive Use Premises, to those Airline Parties which will occupy such premises, a cost allocation certificate (the "Cost Allocation Certificate"), setting forth in reasonable detail a breakdown of the costs of design, construction and equipping of such project or


component, including an allocation of such costs among each of the following:

(i) the costs allocable to each CRC; and

(11) for such costs allocable to the Terminal Area, the costs allocable to (1) Exclusive Use Premises of all Airline Parties (excluding Exclusive Use Premises which are part of a Special Facility improvement), (2) any Exclusive Use Premises which are part of a Special Facility Improvement; (3) tenant improvements pursuant to Sections 9.12, (4) relocation costs incurred pursuant to Section 9.13, (5) Type A Public Use Premises, (6) Type B Public Use Premises, (7) those capitalized costs of implementing the provisions of this Agreement described in Section 8.02(a) (vii), (8) those Capital Projects enumerated in Section 5.05(b), and (9) the costs of funding or refinancing required deposits into the Operation and Maintenance Reserve Fund;

and adding for each component a prorata portion of the costs incurred in connection with (A) the issuance.of obligations issued to fund the cost of such project or component prior to the date of completion, (B) the amounts withdrawn from any capitalized interest account and used to pay interest accruing on such obligations during the construction period, and' (C) the amounts withdrawn from any capitalized interest account and used to pay interet accruing on such obligations following the completion of construction. Following the depletion of all amounts in any capitalized interest account held to pay interest on such obligations. City shall amend the Cost Allocation Certificate as necessary to reflect any amounts withdrawn from such capitalized interest account and used to pay interest on such obligations subsequent to the Initial preparation, execution and delivery of the Cost Allocation Certificate. In addition. City shall amend the Cost Allocation Certificate to give effect to the application to such Capital Project or component thereof of the proceeds of any obligations issued to fund such project or component after the preparation, execution and delivery of the Cost; Allocation Certificate as theretofore amended."

Section 8. This Amendment No. 2 may be simultaneously executed in several counterparts,' each of which shall be an original and all of which shall constitute but one and the same Instrument.


IN WITNESS WHEREOF, City has caused this Amendment No. 2 to be executed on its behalf by its Mayor, pursuant to due authorization of the City Council of City, and its seal to be hereunto affixed and attested by the City Clerk of City, and Airline has caused this Amendment No. 2 to be executed on its behalf by its President and its _ _ _ ^ - Secretary, pursuant to due authorization of its Board of Directors, all as of the day and year first above written.

Attest: CITY OF CHICAGO

City Clerk Mayor

Approved:

Comptroller

Approvedt DEPARTMENT OF AVIATION

Corporation Counsel Commissioner

Attest:

By:

Secretary President

JOURNAL-CITY COUNCIL-CHICAGO j „ „ , 23, 1983

$25,000,000.00

CREDIT AGREEMENT

between

CITY OF CHICAGO

arid •

THE FIRST NATIONAL BANK OF CHICAGO

[Page manhera in Table a i Cantanta and a t tha botrsam of ti:a pages ar« i n t a x s a l docaaant: rafarancaa and do not correapond t s paga aumfaexa of t h i s Jooxaal . I


TABLE OF CONTENTS

ARTICLE I DEFINITIONS Section 1.1 Definitions

ARTICLE II THE CREDIT Section 2.1 The Commitment. . . . . . . . . Section 2.2 Making of Loans; Notice . . . . Section 2.3 The Note. . • . . Section 2.4 Limited Obligation of the City;

Pledge of Junior Lien Obligation Debt Service Fund.

Section 2;5 Interest on Note. . . , . . . . Section 2.6 Prepayments . • • • • . • • . . Section 2.7 Place of Payment. . . . . . . . Section 2.8 Reduction or Termination

of the Credit • . • • • • • • Section 2.9 Bond Issuance . . . . . . . . .

3 3

8 8 9 9

10 11 15 16

16 16

ARTICLE III Section Section

Section Section Section Section

REPRESENTATIONS AND WARRANTIES 3.1 Authority of the City . . . 3.2 Validity of Ordinance, ,

Agreement and blote. . . 3.3 Litigation. . . . . . . . 3.4 Legislation . . . . . . . 3.5 Permits and Approvals . . 3.6 No Conflicts. .: . . . . .

17 L7

18' 19 19 20 20

ARTICLE IV COVENANTS Section 4.1 Section 4.2 Section 4.3 Section 4.4 Section 4.5 Section 4.6

Financial Reports . . . Maintenance of Airport. Airport Use Agreements. Debt Service. . . . . . Use of Proceeds . . . . Compliance with GARBO .

ARTICLE V CONDITIONS TO LOANS Section 5.1 All Loans . . . • Section 5.2 First Loan. . . .

21 21 22 22 23 23 23

23 24 24

ARTICLE VI EVENTS OF DEFAULT Section 6.1 Events of Default Section 6.2 Other Remedies. .

26 26 27

ITICLE VII Section Section Section Section Section Section Section Section Section

M 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9

MISCELLANEOUS Waiver of Default . . . . . . . Notices . . . . . . . . . . . . No Waiver; Cumulative Remedies. Survival of Agreements. . . . . Successors. . . . . . . . . . . Counterparts. . . . . . . . . . Liability . . . . . . . . . . . Governing Law and Construction. Term of Agreement . . . . . . .

28 28 29 29 29 30 30 30 30 31


CREDIT AGREEMENT

THIS AGREEMENT, dated as of , 1983, is

entered into between the CITY OF CHICAGO, a municipality and a

home rule unit (the "City") , and THE FIRST NATIONAL BANK OF

CHICAGO, a national banking association (the "Bank").

H i Z N S £ 1 S I S'

WHEREAS, the City is a duly constituted and existing

municipality within the meaning of Section 1 of Article VII of

the 1970 Constitution of thejS'tate of Illinois, and is a home

rule unit under Section-j6 fei" I of Article VII of the Constitution

and in accordance therewith is authorized to own and operate

commercial and general aviation facilities;

WHEREAS, the City currently owns and operates an

airport known as Chicago-O'Hare International Airport;

WHEREAS, the City has determined, to expand and improve

the Airport and has executed Airport Use Agreements with various

airlines pursuant to which suĉ i airlines have agreed to pay the

costs of such expansions and improvements;

WHEREAS, to fund such expansions and improvements, the

City has issued, pursuant to

June 28, 1983 REPORTS OF COMMITTEES ,49

A i r p o r t , i nc lud ing r e n t a l s , f ees and cha rges payable by c e r t a i n

a i r l i n e s pursuant to the Ai rpor t Use Agreements;

WHEREAS, under Sec t ion 70S of the General A i r p o r t

Revenue Bond Ordinance the Ci ty i s pe rmi t t ed t o i s s u e no t e s and

o the r indebtedness subord ina te t o t h e Bonds and payab le s o l e l y

out of amounts on d e p o s i t in the J u n i o r Lien Ob l iga t i on Debt

Serv ice Fund c r e a t e d by the General A i r p o r t Revenue Bond

Ordinance;

WHEREAS, t h e Ci ty has determined t h a t i t i s d e s i r a b l e

and in the p u b l i c i n t e r e s t for i t to- borrow money from . the 'Bank

from t ime t o t ime i n order ' t o fund r e q u i r e d d e p o s i t s i n t o t h e

Operation and Maintenance Reserve Fund c r e a t e d by t h e A i r p o r t

Use Agreements and i n evidence o'f i t s o b l i g a t i o n t o repay such

loans to i s sue a Note t h e r e f o r ;

WHEREAS, t h e Note a n d ' t h e i n t e r e s t t he reon s h a l l be

l imi ted o b l i g a t i o n s of the Ci ty payable s o l e l y from, and

secured by , amounts on d e p o s i t from t ime t o t ime i n t h e J u n i o r

Lien Obl iga t ion Debt Se rv ice Fund, which amounts a r e p ledged

hereunder i n accordance wi th t h e p r o v i s i o n s of S e c t i o n 705 of

t h e General A i rpo r t Revenue Bond Ordinance t o t h e payment of

p r i n c i p a l of and i n t e r e s t on t h e No te , s u b j e c t and s u b o r d i n a t e ,

however, t o the p r i o r pledge made by t h e Ci ty of Revenues and

o the r moneys p u r s u a n t t o t he Genera l A i r p o r t Revenue Bond

Ordinance for the b e n e f i t and s e c u r i t y of t he h o l d e r s of Bonds;

- 2 - ,


WHEREAS, the Note and the interest thereon do not

constitute an indebtedness or a loan of credit of the City

within the meaning of any constitutional or statutory

limitation, and neither the faith and credit nor the taxing

power of the City, the State of Illinois or any political

subdivision of the State of Illinois is pledged for payment of

the principal of or interest on the Note;

WHEREAS, the Note will be issued pursuant to this

Agreement and the Ordinance adopted by the City Council of the

City on June 28, 1983, which authorizes the execution and

delivery of thiS' Agreem,": . and the Note upon the terms and

conditions set forth in the Ordinance and this Agreement; and

WHEREAS, the Bank is willing to make loans to the City

on the terms and conditions and for the purposes herein set

forth and to accept the Note-issued by the City hereunder as

evidence of such loans;

NOW, THEREFORE, in consideration of the mutual agree-

ments herein contained, the parties hereto agree as follows;

ARTICLE I

DEFINITIONS

Section 1.1 Definitions. In addition to the terms

defined elsewhere in this Agreement, and unless otherwise

defined or the context otherwise requires, the following terms

- 3 -

June 28, 1983 REPORTS OF COMMITTEES 1^1

shall have the meanings indicated below for purposes of this

Agreement:

"Airport" means Chicago-O'Hare International Airport.

"Airport Use Agreements" means those certain Airport

Use Agreement and Terminal Facilities Leases dated as of

February 1, 1983 or May 12, 1983, as the case may be, by and

between the City and various airlines, as amended and supple-

mented from time to time.

"Assessment Rate" means the net assessment rate per

annum payable by the.Bank to ;the.Federal Deposit Insurahce

Corporation (or any successor) for the insurance of domestic

deposits of the Bank, as estimated by the Bank.

"Average Prime Rate" has the meaning assigned to that

term in Section 2.5 hereof.

"Bank" means The First National Bank of Chicago.

"Base Floating CD Rate" means the latest weekly average

of secondary market morning offering rates in the United States

for three-month certificates of deposit of major United States

money market banks. The Base Floating CD Rate shall be deter-

mined weekly by the Bank on the basis of reports by certificate

of deposit dealers to, and published by, the Federal Reserve

Bank of New York, or, if such publication shall be unavailable.

- 4 -


on the basis of any other sources reasonably selected by the

Bank. The Base Floating CD Rate shall change effective Monday

of each week, if the Bank determines that the average for the

preceding week has changed. In the event that the Base Floating

CD Rate for any period cannot be equitably determined, in the

judgment of the Bank, the Floating CD Rate for such period shall

be deemed to be the Corporate Base Rate.

"Bonds" has the meaning assigned to that term in GARBO.

"Business Day" means any day on which the Bank is open

for business in Chicago, Illinois.. . • • • '

"City" means the City of Chicago.

"Constitution" means the 1970 Constitution of the State

of Illinois.

"Commitment" has the meaning assigned to that term in

Section 2.1 hereof.

"Corporate Base Rate"' means the rate per annum from

time to time announced by the Bank as its corporate base rate.

. "Council" means the City Council o£ the City.

"Credit" has the meaning assigned to that term in

Section 2.1 hereof.

- 5 -

June 28. 1983 REPORTS OF COMMITTEES 1 "

"Debt Serv ice" has the .meaning ass igned t o t h a t terra

in the Airpor t Use Agreements.

"Drawing Date" has the meaning ass igned t o t h a t term 1

in Section 2.2 hereof.

"Event of Default" means any of the events described

in Article VI hereof.

"First Period" has the meaning assigned to that term

in Section 2.5 hereof. ,

"Floating CD Rat*"-means, the sum of (a) .50%" per annum

plus (b) the quotient of


"Junior Lien Obligation.Debt Service Fund" has the

meaning assigned to that term in GARBO.

"Loans" has the meaning assigned to that term in

Section 2.1 hereof.

"Note" has the meaning assigned to that term in

Section 2.3 hereof.

"Operation and Maintenance Reserve Fund" has the

meaning assigned to that term in the Airport Use Agreements.

"Ordinance", means "An .OrciihancQ Authorizing the

Execution of an Airport. Use Agreement with Ozark Air Lines,

Inc., the Execution of an Amendment No. 2 to the Airport Use

Agreement with Various Airlines and the Execution of a Credit

Agreement with The First National Bank of Chicago"" adopted by

the Council on June 28, 1983. .

"Reduced Amount" has the meaning assigned to that term


"Regulation D" means Regulation D of the Board of

Governors of the Federal Reserve System from time to time in

effect and shall include any successor or other regulation of

said Board of Governors relating to reserve requirements

applicable to member banks of the Federal Reserve System.

"Reserve R^equirement" means the maximum aggregate

reserve requirement (including all basic, supplemental, marginal i'

- 7 -


and other reserves and taking into account any transitional

adjustments) which is imposed under Regulation D on three-month

non-personal time deposits of $100,000 or more. For purposes

of computing transition adjustments, the reserve ratio in effect

on August 31, 1980 shall be deemed to be 6%.

"Revenues" has the meaning assigned to that term in

GARBO.

"Second Period" has the meaning assigned to that term


"Termination Da-^" means the earlier .of (a) any date

as may be determined (i) by .the Bank pursuant to Article VI

hereof or (ii) by the City pursuant to Section 2.8 hereof or

(b) June 30, 1985.

"Unmatured Event of Default" means any confiition,

event, or act which if it were to continue uncured would, with

lapse of time or notice or both, constitute an Event of Default.

ARTICLE II

THE CREDIT

Section 2,1 The Commitment. Subject to the terms and

conditions of this Agreement, the Bank agrees to lend to the

City, not more frequently than twice in each calendar year,

during the period from the date of the execution of this

Agreement up to, but'not including, July 1, 1984 such amounts

- 8 -


(the "Loans") as the City may from time to time request, but

not exceeding the amount of Twenty-Five Million Dollars

($25,000,000.00) (or such reduced, amount as may be fixed

pursuant to Sections 2.8 and 2.9 hereof) in the aggregate at

any one time outstanding (the "Credit") (the Bank's obligation

to make such Loans being herein called the "Commitment").

Section 2.2 Making of Loans; Notice. Each Loan shall

be in integral multiples of $5,000.00 and in a principal amount

of not less than $4,000,000.00. The City shall give the Bank at

least two Business Days' prior written notice of each Loan,

specifying the total amount and' the date thereof (the "Drawing

Date"). Not later than 12:00 noon, Chicago time, on the

Drawing Date specified in the City's notice, the Bank shall

make the proceeds of the Loan available to the City, in

immediately available funds, at the Bank's main office in

Chicago, Illinois.

Section 2.3 The Note. (a) All Loans made by the Bank

shall be evidenced by a single Airport Junior Lien Obligation

Revenue Note of the City (the "Note") in substantially the form

attached hereto as Exhibit A. the Note shall be dated the date

of the first Loan to the City hereunder and-shall mature on

June 30, 1985. The Bank shall, and is hereby authorized by the

City to, record on the schedule attached to the Note, or to

otherwise record in accordance with its usual practice, the

- 9 -

June 28, 1983 REPORTSOFCOMMITTEES I57

date and amount of each Loan and of each principal payment.

The aggregate unpaid principal amount shown on the schedule

attached to the Note shall be rebuttably presumptive evidence

of the principal amount owin

journal of the proceedings of the city council of the city...

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