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HomeMy WebLinkAbout1995-12-11 96-59 RESOLVECOUNCIL ACTION Date: DeCsbboK 11 1925 Item NO. 96-59 Item/Subject: Approving Community Development Business Development Loan - Travel Concept, Inc. Responsible Department: Community and Economic Development The Community and Economic Development Committee has reviewed the application of Travel Concept, 'Inc. for a Community Development Business Development Loan in the amount of $25,000 for the purchase of office equipment and working capital for its proposed Bangor office. The request represents 12.51 of the total financing package, 75& of which has been privately secured. The loan will be secured by a first mortgage on real estate having a market value in excess of the loan amount. The project is projected to create 5 new permanent, or part time equivalent, jobs, as least 51% will be for persons who meet the US Department of Housing and Urban Development definition of low or moderate income persons. The Travel Concept, Inc. operation will increase tourist activity from Germany and other European countries which will benefit the operation of the Bangor International Airport and area businesses. Manager's Comments: Associated Information .,1 7 Finance Director Legal Approval: O_ .p city Solicitor �troduaed For .- X— Passage First Reading Page__J_of I Referral Assigned to Councilor Sullivan December 11, 1995 96-59 CITY OF BANGOR (TITLE.) �RRSDIUPa_ Approving Commodity Development Business Development Loan -Travel Concept,1M. . ............... .............. By this; City Cosses of the City OfBaµnr:. BBSOLVBD; WHEREAS, the Couunuriity and Economic Development Committee of rhe City Council of the City of Bangor has reviewed the application of Travel Concept, Inc, a duly organized corporation under the laws of fire Stam of Maine, for a lona to Ne amount of Twenty-five Thousand Dollars ($25,100.00) coact the City of Bangor Continually Develop- menfBusiness Development Iran Program to purchase office equipment and provide working capita for its proposed Bangor office; and , WHEREAS, it has been clacramed that the applicant meets all of the eligibility critena of the Community Development Business Development Loan Program; NOW, THEREFORE, BE IT RESOLVED, by the City Council of me City of Bangor that the application of Travel Concept, Inc, for a loan in the amount of Twenty-five Thousand Dollars ($25,000.00) under the City of Bangor Community Development Business Development Ivan Pmgmm in be usei to finance Ne purchase of office equipment add Provide working capital for the operation of the Bangor, Maine office of Travel Concept, Inc. is hereby approved under Ne following terms and conditions and subject An say additional temps and conditions as may be requiretl by the U.S. Deparunent of Housing and Urban Development, the City Director of Cormuoity Oeveloprom: or City Solicitor: 1. IRAN AMOUNT: $ 25,1100.00 2. INTEREST RATE: 6% feed 3. TERM: 120 months 4. COLLATERAL: First mortgage on a Parcel of land located at 2 Cromwell Drive in Orono, Maine. 96-59 5. CONDITIONS: a. The City shall be given as security a mortgage which shall create a valid first lien on real estate pledged with good aM merchantable tide. b. No liens, attachments or other encumbrances shall exist or be placed or arise on the collateral other than those prior approved by the City. C. The City's final approval and its commitment to fund the loan are conditioned upon its review and acceptance of an appraisal of the proposed collateral by a qualified appraiser acceptable to the City providing a conclusion of value of not less than $25,000. d. Collateral shall be kept in good repair, and all taxes anal assessments thereat shall be paid when due. e. Travel Concept, Inc. provide evidence, satisfactory to City, of additional financing freta Bawkir Corporation, or other documented source, in an amoum of not less than $25,000. f. Travel Concept, Inc. provide evidence, satisfactory to the City, of not less Bun $150,000 m private equity invested be Travel Concept, Inc. g. Travel Concept, Inc. shall order into a Job Creation Agreement with the City whereby du Borrower agrees m me its best efforts to create or cause to be created, within 36 months of loan closing, 5 new permanent full Bone jobs, or part -rime jobs that are equivalent m 5 fall time jobs, or a combination thereof, for penaons, not less than 51% of whom, at the tinre of thein employment, will be members of households of low or moderate income as defused by the U.S. Secretary of Housing and Urban Development. h. No later than March 1 of each year, Travel Concept, Inc. shall famish City annul financial statements for the preceding year which wi6 include a balance sheet, income statement add cash flow statement I. No loan communism given by City shall be assignable by Travel Concept, Inc. IN CITY COUNCIL Decanter Il, 1995 �1 96-59 Passed I R E S O L V E Councilor Beldacci Abstained r Approving Community Development CITY CLERK Business Development Loan - Travel Concept, Inc.