HomeMy WebLinkAbout2019-06-24 19-267 Order
06/24/201919-267
06/24/2019
19-267
Community & Economic Development
Order
R08-002
Title, Order
Approving a Community Development Business Loan to Soft Touch Tissue & Paper, LLC located at 1491
Hammond Street
This Order will authorize the approval of a $250,000 Business Development Loan with Soft Touch
Tissue & Paper, LLC., located at 1491 Hammond Street. Soft Touch Tissue & Paper, LLC is a new
venture that will convert paper and tissue manufactured in Downeast Maine, to finished products for
customers in the paper goods industry.
Soft Touch has asked the City for City’s Community Development Business Development Loan in the
amount of $250,000 to provide gap funding for their expansion in Bangor. Financing of the
expansion includes capital to make building improvements, train workforce, and provide operating
capital. The yearly loan payments may be forgiven provided that Soft Touch Tissue & Paper, LLC
creates 25 new full time jobs, with at least 51% of those (13) new positions filled by individuals from
low-moderate income backgrounds, within 3 years.
Aside from creating jobs, this investment will benefit the City because it will help with much needed
improvements on a building that has been underutilized for a number of years. In addition, it assists
in the start up of a value-added business that builds on Maine’s forest products industry, utilizing
tissue paper from another Maine community.
Business & Economic Development Committee
06/24/2019
Recommend for passage
50
This item was reviewed by the Business & Economic Development Committee in Executive Session on June
18, 2019.
New Business
06/24/201919-267
CITY OF BANGOR ORDER
06/24/2019
19-267
Graham
Approving a Community Development Business Loan to Soft Touch Tissue & Paper, LLC located at 1491
Hammond Street
WHEREAS, Soft Touch Tissue & Paper is creating a new business in Bangor, providing significant investment
and job creation in the community; and
WHEREAS, the new employment to be created by Soft Touch Tissue & Paper, LLC makes it eligible for
assistance under the City's Community Development Business Development Loan Program; and
WHEREAS, the number of new jobs and investment created by Soft Touch Tissue & Paper, LLC will provide a
substantial public benefit:
Be it Ordered by the City Council of the City of Bangor that,
the City Manager is authorized to execute any and all documents necessary to make available to Soft Touch
Tissue & Paper, LLC a Community Development Business Development Loan in an amount not to exceed
$250,000. Said loan shall be forgivable under certain terms and conditions, including the creation of at least
twenty-five (25) new employment opportunities, benefiting principally low-moderate income individuals. Said
loan shall be in a final form as approved by the City Solicitor or Assistant City Solicitor.
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