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
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