HomeMy WebLinkAbout1989-09-25 89-387 RESOLVEeane
Date w9/25/89 „ it" No. 89-387
Item/Bubject: Resolve of Support for Bangor Youth Hockey
Responsible Deprtmanp Finance
Commentary: Me attached resolve would indicate the support of the
City Council to .assist Bangor Youth Bockey In financing their
building project. The present, idea would be for Bangor Youth
Hockey to seek a private book loan for approximately nine (9) ....
months at which time the City borrowing would be used to pay
off the Bangor Youth, Hockey loan and provide financing of
$180,000 for a three. year period.
N
Marepw's Commands:
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Budget Approval
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Legal Approval
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Introduced For
®Passage
❑First Heading
❑Referral
Page t of I
89-38]
Assigned to Councilor Seal, September 25, 1989
CITY OF BANGOR
:(TITLE.) bPf . mail sypa c f a gar. Yoath Hockey Building Construction
I
ByW Ciq Coumil of My of Bangor: -
MSOLVBD,
L Whereas the Bangor City Council supports the effaces of Bangor Youth Hockey
in its building construction project; and,
Across the Bangor City Council recognizes a obligation to easier Bangor
Youth Hockey in financing its construction; and,
Whereas the timing for the City c0 participate in such financing would
be more appropriate In the Spring of 1990; now therefore,
Be It Resolved that the Bangor City Council intends to include up t0
$180,000 in the 1990 Capital Improvement Budget which is to be
funded by a spring borrowing package.
In City Council 8epte r 25,1957
Passed
City Cle[ '� '
89-38]
E E 5 0 L V E
Council Support for Bangor YwN 8xkey
Builth= Conatry tion
MEMO 89-387
Legal Department
TO: wan Cifu r„ Mm I
FROM:
AE:
On Tnursday, September 14, 1989, Ted Jellison and I met with
Or. Angela Gilladoja to discuss the four option outlined by the City
Manager in respect to the expansion of the youth hockey facilities. Also
attending the meeting were Jane, SaxI, City Councilor, Don Buffington and Bob
Ferrer.
Prior to the meeting I had Terri transcrihe Ed Barrett's
comments so there would he a clear understanding of the issues raised. I
also met with Ted Jellison and Bob Farrar at same length to discuss the
options and to develop information and questions that might he asked when we
net with Dr. Gilladoga.
After reviewing the four options, we indicated to her that
the cleanest and quickest approach scold to for the Association to simply
borrow the money and seek a Council appropriation for the additional coat of
the Scan. It was finally decided not to pursue that option inasmuch as the
Council had specifically discussed the appropriate fondieg for the Hockey
Association and was felt chat additional monies would not be available.
The other option, which seared to he the ccncensus of the
Council at your last meeting, is for a City borrowing of the funds necessary
for the project. The obvious benefit to the Association would be an
expected less cost due to the tax exampt status of our loans.
There are acre practical problems with a City hoerowinl.
First, the avant involved is quite small. In addition, there az
administrative costs associated with any borrowing, and with such a small
amount involved they might prove to be excessive. Finally, there was sone
concern expressed by Ted that it might have same psychological impact to the
rating caipanies unless it was included along with a larger bond issue.
The final result of our discussions which, I felt, went very
well, was a decision to have the Association proceed with its hank loan on a
short-term casis until the City does its borrowing next June. At the same
time, an effort will be made to have the bank either waive or make a
contribution to the Association which will Keep the Association's casts at
the sere level as they would have been if the City Immediately borrowed the
money. Next June the borrowing would be included in the City's regular
borrowing bond issue.
In order for the C ncil to finalize the arrao event and to
make a final decision on the matter, a Resolve will he prepared for the next
Wuncil agents outlining specifically tore procedure to he followed. In
addition, Ted plans to review it with to joint meeting of the Finance and
G erraental Operations C ittees to he conducted this week.
R.E.M.
tc
pc: W sacrett
Ted Jellison