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Home My WebLink About1996-05-13 96-226 RESOLVECOUNCIL ACTION g6-226 Item No. Date May 13, 1996 Item/Subject: Resolve, Authorizing City Manager to Execute Addendum to Lease with General Electric Company and Related Documents Responsible Department: Legal Short-term industry conditions have made it necessary for General Electric Company's Bangor turbine division to reschedule principal payments on some $18 million of bank financing borrowed through Bangor Target Area Development Corporation in connection with GE's several recent plant expansions. Debt service on these obligations is currently paid by GE intheform of increased rents to the City of Bangor for GE's land and buildings atBIA. The City in turn assigns the increased rental amount plus certain tax increment financing r over to Bangor Target, to amortize the existing loans. Rescheduling of principal payments due under this arrangement will take the form of an additional $600,000 loan from Fleet to Bangor Target. (cont'd on next page) ^^ V`a � Department Head Manager's Comments: ^^ - � 4 ]j U Y City Manager Associated Information: Resolve, NauVb City Sol'c'tor IntroducSd For X Passage First Reading Referral Page a of 3 Assigned to Councilor Soucy May 13, 1996 96-226 _ CITY OF BANGOR (¶jLEJ gggglbgt._Authorizing_ city Manager to Execute Addendum to Lease with General Electric Company and Related Documents By the City County ofde City OfBmumr. RESOLVED. the City Manager is hereby authorized, on behalf of the City of Bangor, to execute an addendum to the City of Bangor's current lease agreement with General Electric Company for lease of land and buildings at Bangor International Airport, and other documents necessary to facilitate a $600,000 loan from Fleet Bank of Maine to Bangor Target Area Development Corporation for the benefit of General Electric company at its Bangor facility. All such documents will be in a form approved by the City Solicitor. IN CITY COUNCIL May 13. 1996 Passed &4LE 96-226 E E S 0 L Y E Authorizing City Manager to Execute Addendum no Lease v[ ea Electric Company and Related Documents 96-226 The attached Council Resolve would authorize the City Manager to execute an •'addendum to lease" and other documents, all to be drafted, necessary to facilitate this loan. Due to the current assignment arrangement, the City's consent is necessary to make the transaction work. Net rents and taxes derived by the City from GE under the current lease will be unaffected by the City's consent. ENS M. Stumpfel, Esq. City Solicitor City of Bangor 73 Harlow Sireet Bangor, Maine 04401 Re: Fleet Bank of Maine/Bangor Target Area Development Corporation Dear Erik: Please find enclosed a proposed Closing Agenda to be used in connection withtM above- captored closing. If you have any questions regarding the same, please advise. IS r ly, ane R. Rush Pat Enclosure rVV E: D ��• n fi 19� e7c.:�+.rib'NPoEhiT 96-226 EATON, PEABODY, 0flADFOflD & VEAGUE, P.A. ATTORNEYS AT LAW FLEET CENTER EXCHAME AI P.D. BOX 1210 BANGOR, MAINE DEPOSIT 210 1101.61 nall I "I'll 11IRT11 FAA MOM SAUTERNE I'll 1. JAWAY 11111 1 "1 �DWARUD WARFARE III TIMES I AUDI MIDDLE R MADFORD, FORCE I ISO 'ALI.' AM' PAUL I. SMIGNIS ALLOW L. VGAQUA 05TIRED 1987 II A .10612 LINES A MET ISMAT A "IN. I.C. I "I THOMAS A JERRIE" JUDY A 6 METCALF JOHN WL CONTI, REFINED 119 9 •°< en May 6, 1996 OLIN L, PORTER '""A" I A "I'llINATTLE11.1 "ITT ALUXTH CARRIER LUCY OEM EAST BLUE HILL WADHERB 'DRAWN 'All' ""'I 'All U11.11L.11.190141A1-1 1451011111 STREETOF I "'ALL MIT' I'll IAWARE COUSAILL F 1111111 [DRIVERS MATCH. 1.MACHIM L WILK 39 EAST MAIN STREET ENS M. Stumpfel, Esq. City Solicitor City of Bangor 73 Harlow Sireet Bangor, Maine 04401 Re: Fleet Bank of Maine/Bangor Target Area Development Corporation Dear Erik: Please find enclosed a proposed Closing Agenda to be used in connection withtM above- captored closing. If you have any questions regarding the same, please advise. IS r ly, ane R. Rush Pat Enclosure rVV E: D ��• n fi 19� e7c.:�+.rib'NPoEhiT 96-226 PRELRvnNARY LOAN CLOSING AGENDA Borrower: Bangor Target Area Development Corporation Lender. Fleet Bank of Maine Amount: $600,000.00 Date: Docurients 1. Promissory NOW Addendum (EPB&V) 2. EstoppelL er (City) 3. UCC -11 Search (EPB&V) 4. Connell Resolve to ratify closing (EPB&V) 5. Corporate Vote and Certificate of Good Startling (EPB&V) 6. Addendum to 1 -case for additional rental (City) ]. Conflict Letter (EPB&V)