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
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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.