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HomeMy WebLinkAbout2009-03-23 09-115 ORDERCOUNCIL ACTION Item No. 09 115 Date: March 23, 2009 Item/Subject: ORDER, Extension of Business Development Loan — RC/BH Corporation Responsible Department: Community & Economic Development Commentary: In 1999, the City of Bangor acquired RC/BH Corporation's interest in 77 Railroad Street as part of the riverfront project and financed the relocation of the Commercial Refrigeration business owned by RC/BH Corporation to 739 Odlin Road through a loan of $150,000. The BanAir Corporation loaned $50,000 as well as part of the acquisition financing. RC/BH Corporation has been making monthly payments of $1,231.42 to the Economic Development Fund and $410.57 to the BanAir Corporation based on a 20 year amortization schedule, with payments for 10 years and a balloon payment due April 1, 2009. RC/BH Corporation is current in its payments and has made them on time. RC/BH Corporation is requesting to extend the term of the loan with both the City and the BanAir Corporation for five (5) years under the same terms and conditions. 1. BORROWER: RC/BH Corporation, a sub -chapter S corporation. 2. LOAN AMOUNT: One Hundred Fifty Thousand Dollars ($150,000.00). Balance remaining as of April 1, 2009, $105,288.41 3. PURPOSE OF LOAN: To acquire land and building located at 739 Odlin Rd. 4. RATE: 7.75% fixed for the term of the loan. 5. TERM: Five (5) years. 6. COLLATERAL: First lien on real estate and fixtures located at 739 Odlin Rd. The lien is shared pro -rata with the BanAir Corporation. 7. Loan Payments: $1,231.42 due monthly based on a twenty (20) year amortization with remaining principal and interest due at maturity. Department Head Manager's Comments: City Manager Associated Information: Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Finance Director Page _ of _ 09 115 Assigned to Councilor D' Errico March 23, 2009 ' CITY OF BANGOR (TITLE.) ORDER, Extension of Business Develoment Loan — RC/BH Corporation WHEREAS, the Bangor City Council by passage of Council Order 09-140 on March 22, 1999 approved a Business Development Loan dated April 5, 1999 between the City of Bangor and RC/BH Corporation in the amount of $150,000; and WHEREAS, by Council Order 04-82 the Bangor City Council extended the loan with RC/BH Corporation; and WHEREAS, RC/BH Corporation has requested that the term of the loan be extended for an additional five (5) years: BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized, on behalf of the City of Bangor, to execute an extension of the Business Development Loan with the RC/BH Corporation in a form approved by the City Solicitor or Assistant City Solicitor. The extension will be for five (5) years and all other terms and conditions of the Promissary Note and Agreement and Mortgage Deed will remain unchanged. IN CITY COUNCIL March 23, 2009 Passed �- ITY CLERK O R D E R (TITLE,) Estention of Business Development Loan — RC/BH Corporation Assigned to Councilor _ 42 L-ol G%✓-�"