Daley Directs City Underwriters To Contribute $60,000 To Local Charities

Mayor Richard M. Daley presents a check for $60,000,00 to four local charitable groups on behalf of the City's underwriters. With Mayor Daley (from left to right) are: SIDONIE WALTERS-LAWRENCE; BILL MORRIS, VICE PRESIDENT, CEORGE K. BAUM AND COMPANY; STEVE WHITEHEAD, EXECUTIVE DIRECTOR, GREATER CHICAGO FOOD DEPOSITORY; KELLY WELSH; EILEEN O'CONNOR, SPECIAL EVENTS, CITY OF CHICAGO SHARING-IT PROGRAM; ED BEDORE; CLARK BURRUS, SENIOR VICE PRESIDENT, FIRST CHICAGO; WALTER KNORR; MAYOR DALEY; RAY SOUVCEK, EXECUTIVE DIRECTOR, HAYMARKET HOUSE; STUART FUCHS, VICE PRESIDENT, GOLDMAN SACHS; RICK ROBERTS, EXECUTIVE DIRECTOR, CHICAGO CHRISTIAN INDUSTRIAL LEAGUE; JOSEPH O'CONNOR, ASSOCIATE DIRECTOR; GREG LAUGHLIN, MORGAN STANLEY; ADRIENNE ARCHIA EARL, ASSISTANT BUDGET DIRECTOR.

Mayor Richard M. Daley recently announced the City of Chicago has persuaded four of its bond underwriters to each contribute $15,000 to local charitable groups from funds the underwriters had previously designated for dinner banquets to commemorate the closing of bond issues.

The scrapping of the bond closing banquets represents a major break with one of the oldest traditions in the public finance industry. Daley also noted that the contributions were only the first in what would become a new tradition for Chicago's underwriters.

The four charitable institutions, which each received $15,000, are Haymarket House, the Chicago Christian Industrial League, the Greater Chicago Food Depository, and the City's Sharing It Program.

Mayor Daley presented checks to representatives of each group during a ceremony at City Hall.

"I am proud to be in the forefront of this issue. This money is needed by groups that are helping Chicago's least fortunate," Daley said. "In the future, any underwriter seeking to do business with Chicago must do so with the clear understanding that contributions like these will be one of the requirements they must fulfill."

On hand for the presentation ceremony were Chicago's Chief Financial Officer Edward J. Bedore, Budget Director Sidonie Walters-Lawrence, Comptroller Walter K. Knorr, Corporation Counsel Kelly R. Welsh and representatives of the four underwriting firms involved, Goldman, Sachs & Co., George K. Baum & Company, First Chicago Capital Markets, Inc., and Morgan Stanley & Co. Incorporated.

The money for the dinners and the contributions comes from the proceeds of the bond issues, which also covers all other costs associated with completing bonds issuances.

"The bond issue closing dinner is one of the most revered traditions of the municipal bond business," Bedore said. "But it was not a tough decision for us when we weighed the tradition against the public good that could be achieved with this money."

The contributions to Haymarket House and the Chicago Christian Industrial League were derived respectively from $100 million in United Airlines Special Facility Bonds and $179 million in American Airlines Special Facility Bonds. The funds will be used by the groups to help programs and shelters for homeless people who have been staying at O'Hare International Airport.

The contributions to the Greater Chicago Food Depository and the Sharing It Program were derived respectively from $125.6 million and $256 million bond refinancings by the Public Building Commission for the City Colleges of Chicago and the Chicago Board of Education. The contributions will be used to distribute food to the needy throughout the holiday season.

December 1990 / Illinois Municipal Review / Page 5