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HomeMy WebLinkAbout1985-08-12 85-284 RESOLVE85-284 IotYMaCed by Councilor Willey, Awryst 12, 1985 0 1 CITY OF BANGOR (TITLE) �Rfto Ci dela, rng _t p opoaea.x nce o{ _Revenue Securities By cis City CoanoW of Citi of Bas . BESOLVED, WHEREAS, Title 10, Chapter 110, subchapter IV of the Maine Revised Statutes Annotated, as amended, (the Act), authorizes a municipality to issue revenue obligation securities for the purpose of acquiring, constructing, reconstructing, renewing and replacing Within its corporate limits eligible projects, and WHEREAS, the Act further authorizes a municipality to issue revenue obligation securities for the purpose of providing financing for eligible projects, and WHEREAS, the City of Bangor, Maine (the City) wishes to encourage and induce Adams -Russell, Inc., a Maine corporation, (hereinafter referred to as the Company) to become a user of an eligible project within the meaning of the Act (the Project) in accordance with the provisions of the Act, and WHEREAS, the City is the owner of land on which the Project is to be located (Lot Number 21 of the Airport Industrial Park Subdivision, 448 Griffin Road, at Bangor International Airport), which land is leased to the Company, and WHEREAS, the Project is to be the acquisition and con- struction of an addition to the electronic component manu- facturing facility awned and operated by the Company, consisting of all personal and real property and interest therein necessary 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 WHEREAS, acquisition and construction of the Project have not commenced, and WHEREAS, the Act provides that any obligation created by revenue obligation securities shall in no event Constitute indebtedness 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 (the Securities), in an amount not to exceed One Million Three Hundred Thousand Dollars ($1,300,000), the proceeds of which shall be used to acquire and construct the Project. The Securities shall bear interest at such rate or rates, shall be initially issued in such form and denominations, and shall contain such provisions as may be 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 provided in the Indenture, shall not constitute any debt or 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, or any third party which the Company shall nominate as lessor to lease to the Company a lessee any property to be used in the Project, or any third 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 third 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 casts of which are to be financed in whole or in part by the proceeds of the Securities. section S. That all expenses and fees inconnection 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 be designated by the City Manger, be, and hereby is, authorized and directed to prepare and file all applications with the Finance Authority of Maine as may ben essary 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 7. That the law firm of Eaten, Peabody, Bradford 6 Veague, P.A. be designated bond counsel for the Project. Section 8. That this resolution shall constitute official action toward the issuance of the Securities as contemplated by Regulations under Section 103 of the Internal Revenue Code. Section 9. That this resolution shall be effective imnedi- ate Ly. - in city council august 12,1985 Passed 85-284 RESOLVE Relating to Proposed lssueance of Revenue Obligation Securities