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HomeMy WebLinkAbout1985-01-28 85-100 RESOLVE65-100 Introduced by Councilor Frankel, January 28, 1985 CITY OF BANGOR �i...l1`kt- relating to proposed .issuance of revenue obligation rnT AI�Er .. ......... .. .. _..... Dydw City Caawifa Hua CityofBaayor: SS90LVSD� WHEREAS, Title 10, Chapter 110, subchapter IV of the Maine Revised Statutes Annotated, as amended, (the Act), authorizes a muicipality to issue revenue obligationsecurities fox the purpose o£. acquiring� constructing, reconstructingrenewing and replacing within its corporate limits 'eligible projects, and WHEREAS, the Act further authorizes ancipality to issue revenue obligation securities for the purpose of providing financ- ing for eligible projects, and WHEREAS, the City of Bangor, Maine (the City) wishes to encour- age and induce John quirk, or an entity to be designated by him, of which he is a general partner or a shareholder, (hereinafter referred to as the Company) to become a user of an eligible project within the meaning ing of the Act (the Project) in accordance with the provisions of the Act, and WHEREAS, the Project is to be the acquisition andconstruction of a motel located on the corner of the intersection of Kittredge Road and Stillwater Avenue, across from the end of the Hogan Road, consisting of all personal and real property and interests therein ncssary to acquire and construct the Project, including but not limited to any land or interest in land, buildings, fixtures, machinery and equipment, and WHEREAS, the City desires to assist the Company in financing the Project for the use of the Company and/or for lease to other users, and WHEREAS, acquisition and rehabilitation of the Project have not commenced, and WHEREAS, the Act provides that any obligation created by revenue obligation securities shall in noeventconstitute indebt- edness of the City of Bangor, the State of Maine,or any political subdivision of either. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR, MAINE, AS FOLLOWS: Section 1. That the Project constitutes an eligible project within the meaning of the Act. Section 2. That for the purpose of financing the Project, the City will issue revenue obligation securities (tbe Securities), in an amount not to exceed $2,500,000. The Securities shall bear interest at such rate or rates, shall be initially issued in such form and denominaticns, and shall contain such provisions as may he prescribed by an indenture of trust (the Indenture) to be entered into by the City and a qualified trust company as Trustee. Section 3. That the Securities shall be secured in the manner to be provideU in the Indenture, shall not constitute any debt o liability or become a pledge of the faith and credit of the State of Maine, of the City of Bangor, or of any political subdivision of either but shall be payable solely from revenues of the Project. Section 4. That the Company, orany party which the Company shallno�ate as lessor to lease to the Company as lessee any property to be used in the Project, or any party which the Company shall nominate as lessee to lease from the Company as lessor any property to be used in the Project, or any party which the Company shall nominate as agent of the Company to develop and manage the Project, is hereby authorized in its discretion to enter into contracts for the acquisition and construction of the Project, the costs of which are to be financed in whole or in part by the proceeds of the Securities. Section 5. That all expenses and fees in connection with the issuance of the Securities shall be borne by the Company or may be paid in whole or in part out of the proceeds from the issue of the Securities. Section 6. That the City Manager of the City, or such agent as shall F aesignated by the City Manager, be, and hereby is, authorized and directed to prepare and file all applications with the Finance Authority of Maine asmay be necessary under the Act to obtain authorization to issue the Securities and to take such further actions as may be necessary or convenient to implement the provisions of this resolution and to comply with the requirements of the Act. Section ]. That this resolution shall constitute official action tower the issuance of the Securities as contemplated by Regulations under Section 103 of the Internal Revenue Code. Section B. That this resolution shall he effective immedi- ately. 65-100 R -R S'0 L Y E 3N OITY COUNCIL. -. Wanuar 36. 1985 ' 4 ssed. Councilor Mccaicm spam' v9. 111 (L Relating to Piopo9ed Issuance Of Revenue lu CLm - obligation securities.