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HomeMy WebLinkAbout1983-04-11 83-157 RESOLVE83-15] Introduced by Councilor Soucy, April ll, 1983 CITY OF BANGOR (iITLEJ ¢snlU¢�....neiattns-to_F Qpaxed_zs_assnse...sf... Roxfaee- ... ........_..... _. ___._ Obligation,_,Se 1ties.-,_K oduskeag Valley A «xecee_[42-5a _Central.9treet) By du MY Lbsiud Of fW ofBMWs, BBSOLVBB, WHEREAS, Title 10, Chapter 110, subchapter IV of the Maine Revised Statutes Annotated (the Act), authorizes a municipality to revenueissue obligation securities for the purpose of acquiring, constructing, reconstructing, renewing and replacing within its corporate limits projects for theec reconstruction of existing build- ings (reconstruction projects), and WHEREAS, the Act further authorizes a municipality to issue revenue obligation securities for the purpose of providing financing forreconstruction projects, and WHEREAS, the City of Bangor, Maine (the City) wishes to encour- age and induce KENDUSKEAG VALLEY ASSOCIATES, a Maine partnership (hereinafter referred to as the Partnership) to become a user of the project as defined in the Act (the Project) an accordance with the provisions of the Act; and WHEREAS,the Project is to be the acquisition and'rehabilita- tion of an existing building known as the Kirstein Black located at 42-50 Central Street in downtown Bangor to be used for commercial purposes such as business and professional office space and other commercial uses permitted by the Act, consisting of all personal and real property and interests therein necessary to acquire and construct the Project, including but not limited to the building and all renovations thereto, site modifications, elevators, and any land or interest in land, buildings, machinery and fixtures, and WHEREAS, the Kirstein building is at least fifty years old, and WHBRSAS, the Kirstein building is located in an existing c - martial area in which a substantial public benefit will result from rehabilitating the building rather than allowing its continued deterioration or removing the building for new construction, and WHEREAS, the City desires to assist the Partnership in finan- cing the Project for the use of thePartnershipand for lease to other users, and WHEREAS, acquisition, reconstruction and rehabilitation of the Project have not commenced, and WHEREAS, the Act provides that any obligation created by revenue obligation securities shall i nevent o constitute indebt- edness of the City Of Bangor, the State ofMaine,or any pol}tical 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 aonstruction of existing building project within themeaningof theAct. Section 2. That for the pufposes of financing the Project,,the City will issue c revenue obligation securities (the Securities), in n amount net to exceed Seven Hundred Fifty Thousand Dollars (5750,000). 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 anindentdre 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 banner to be provided in the Indenture, shall net 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 Partnership, or such other entity controlled by the partners as the Partnership may designate, is hereby author- ized in its discretion to enter into contracts for the construction of theProject, 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,Partnership.o;_, 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 s shall be designated by the City Manager, be, and hereby is, authorized and directed to prepare and file all applications with the. Maine Guarantee Authority as may 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 require- ments of the Act. - -2- Section ]. 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 B. That this resolution shall be effective immediately. -3- 83-15] IN CITY COUNCIL _ ,.April 11, 1983 - " Beal. R E 5 0 Y E CITY GPK Relating to Aroposed Is of Revenue - OEligation Senssitie - Keedaekeag Valley Associates )42-50 Central Street).