HomeMy WebLinkAbout1984-12-10 85-57 RESOLVE85-5]
Introduced by Councilor Cow, December 10, 1989
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CITY OF BANGOR
(TITLE) l6011120 --- the, City,''s„R,eveuue,
Budget Traveler,�-11 Inc.P1 1.roject (Series 1983)
By the City Cement of the City Of Dumper
MWLVRD,
WHEREAS, pursuant to and in accordance with the provisions of Title 10,
Chapter 110 of the Maine Revised Statutes Annotated, as assured (the "Act"),
the City of Bangor, Heine (the 'Issuer") proposes to undertake the
acquisition, construction and financing of the Project referred to below; and
WHEREAS, the Issuer is authorized by the Act, to acquire, construct and
improve, or
cause to be acquired, constructed and improved, industnial-
co®erclalfacilitles; and
WHEREAS, the issuer is authorized by the Act to issue revenue bonds Payable
solely from the r and receipts derived from the sale or leasing of the
facilities acquired and constructed through the issuance of such revenue
bonds; and
WHEREAS, Budget Traveler, Inc. (the "Company"), a corporation incorporated
under the laws of the State of Maine desires to establish and operate a 132 -
unit motel located on Odlin Road in the City of Bangor, Maine; and
WHEREAS, it is proposed that the facility W owned directly or indirectly by
one of the principal shareholders, officers or key employees of the
Company end leased to the Company; and
WHEREAS, the Company is desirous to finance the acquisition of land, the
construction of buildings thereon, and the installation of certain equipment
therein (the "Project") to be located in the City of Bangor, all as authorized
by the Act; and
WHEREAS, the Company has cot commenced acquisition or construction of more
than 10% of the Project as of the date of this Resolution; and
WHEREAS, the Bonds shall not be payable from the revenues
of the Issuer other
than those derived pursuant t asale or lease agreement (the "Agreement")
u
and related financing documents and shall never constitute an indebtedness of
the Issuer.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY of BANGOR,
MAINE, as follows:
Section 1. That the Project constitute& a "project" under the Act
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Section 2. That the acquisition, construction and improvement of the
Project be and the same are hereby authorised.
Section 3. That for the purpose of paying the cost of the Project, the
Issuer will issue City of Bangor, Industrial Development Bonds (Budget
Traveler, Inc. Project - Series 1985) (the "Bonds"), which shall constitute
revenuobligation bonds under the Act, 1n not toexceed
$2,500, m 000. The Bonds shall bear interest at such rates, shall be Initially
Issued in the form, shall be in such denominations, shall be numbered, shall
be dated, shall mature, shall be subject to redemption prior to maturity,
shall have such provisions for reglatration, shall be in such form and shall
have such other details and provisions as shall be prescribed by an Indenture
(the "Indenture") to be entered into by the Issuer and a bank acting a
Trustee.
Section 4. The Bonds shall be limited obligations payable solely from
the revenues pledged to their payment and shall not be considered general
obligations of the Issuer or the State of Maine. The holder of the Bonds
shall never have the right to demand payment from moneys derived by taxation
or any other x of the Issuer except those revenues pledged to the
payment of the BOMB xe
in the manner to be provided in the Indenture.
Section 5. No covenant, stipulation, obligation or agreement herein
contained shall be deemed to be acant, stipulation, obligation o
agreement of any officer, agent or employee of the Issuer in Us individual
capacity.
Section 6. Any action heretofore taken by the Company initiating the
construction of the Project 1s hereby ratified, confirmed and approved, and
the Company is hereby authorized to commence such construction.
Section I. The Company is authorised to select underwriters or
Purchaser to prepare and submit to the Issuer proposals for the purchase of
the Bonds.'
Section 8. The expenses and fees in connection with the issuance of the
Bonds shall be borne completely by the Company or paid out of the proceeds of
the Bonds.
Section 9. The City Finance Director of the Issuer, or such agent shall
be designated by the City Finance Director, is hereby authorized and directed
to distribute copies of this "solution to the Company, file all necessary
applications with the Finance Authority of Maine and to do such further things
r perform such acts as may be necessary ox anent to implement the pro-
visions of this Resolution and takeother actions to induce the Company to
construct the Project.
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Section 10. This Resolution shall constitute official action coward the
issuance of obligations to provide such facilities for the purposes of the
Internal Revenue Code of 1956, as amended, and the Federal Income Tax Begn-
latfans thereunder.
Section 11. The issuance of the Bands shall in all respects he subject
to the satisfaction of all the provisions of the pct with respect thereto.
Section 12. This Resolution shall take effect i®ediately.
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IN CIwJ C00MIL Pialitling for the Issuance of the City'$
0eceatur 10, 1984 -
Passed. Councilor' thy abstaining. Revenue oNe - B t elar, The. . Project.
tactic 9B5). -
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