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.