HomeMy WebLinkAbout2015-09-14 15-313 ORDERCOUNCIL ACTION
Item No. 15-313
Date: September 14, 2015
Item/Subject: Authorizing a Promissory Note from the Bangor Folk Festival to the City of
Bangor
Responsible Department: Legal
Commentary: This Order will authorize the refinancing of the current note from the Bangor
Folk Festival to an amount that is based on a ten year amortization schedule with all other terms
and conditions unchanged. The Bangor Folk Festival currently has a promissory note with the
City of Bangor in the amount of $149,993.56. The note calls for annual payments of $29,991.70
with the final payment of the outstanding balance due November 1, 2016.
The Bangor Folk Festival has requested to refinance its financial obligation to the City by
reducing the payments by roughly 50% and extending the term to ten years. If approved, the
Folk Festival will make a November payment of $14,999.39, which is roughly one half of what is
due under the current agreement. In accordance with all other terms of the agreement, the
payment is due on November 1, 2015 and the final payment of the outstanding balance would
be due November 1, 2016. It is anticipated that the American Folk Festival will be requesting a
new agreement for the operation of the American Folk Festival on the Bangor Waterfront next
year. At that time, the promissory note would be revised to mirror the term of the operation
agreement.
This item was reviewed and recommended for approval by the Finance Committee on
September 9, 2015.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
x Passage
First Reading
Referral
Department Head
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City Manager
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13-313
SEPTEMBER 14, 2015
Assigned to Councilor Baldacci
CITY OF BANGOR
(TITLE.) ORDER, Authorizing a Promisssory Note from Bangor Folk Festival to the City of
Bangor
WHEREAS, the Bangor Folk Festival produces a folk festival on the Bangor waterfront annually;
and
WHEREAS, historically the City of Bangor has provided financial and other support for the folk
festival; and
WHEREAS, the Bangor Folk Festival currently has a promissory note with the City of Bangor;
and
WHEREAS, the Bangor Folk Festival has requested to refinance. its financial obligation to the
City.
By the City Council of the City of Bangor.
ORDERED, THAT, Catherine M. Conlow, City Manager, is hereby authorized on behalf of the
City of Bangor take all approprite and necessary action to refinance the current Promissory Note
from the Bangor Folk to the City for a sum of $149,993.56; based on a ten years amortization;
with a payment of $14,999.36 due on November 1, 2015 and the final payment of the
outstanding balance would be due November 1, 2016; at an interest rate of 0.0%. Said
Promisory Note shall be in substantially the same form as attached hereto and in a final form
acceptable to the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
SEPTEMER 14, 2015
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CLERK
15-313
SEPTEMBER 14, 2015
PROMISSORY NOTE AND AGREEMENT
LENDER/CREDITOR: City of Bangor, 73 Harlow St., Bangor, Maine 04401
BORROWER/DEBTOR: Bangor Folk Festival 40 Harlow Street Bangor, Maine 04401
FOR VALUE RECEIVED, the above-named BORROWER/DEBTOR, hereinafter
collectively referred to as DEBTOR, promises to pay the CITY OF BANGOR
(hereinafter termed CITY) at its Office at 73 Harlow Street, Bangor, Maine, the sum of:
One Hundred Forty-nine Thousand Nine Hundred Ninety-three Dollars and Fifty-six
Cents ($149,993.56) with the interest at the rate of 0.0% per annum until paid. Both
principal and interest on this Note are payable in annual installments of $14,999.36.
The first installment being due on November 1, 2015 and the last such installment due
on November 1, 2016, when all principal and interest remaining unpaid shall be due
and payable.
All payments shall be applied to the principal under this NOTE until the same is
paid in full.
The DEBTOR reserves the right to prepay at any time all or any part of the
principal amount of this Note without the payment of any penalties or premiums. If any
installment due and payable hereunder is in default for a period of 20 days after notice
of DEBTOR's right to cure is given, the CITY may declare the entire debt in default and
require the immediate payment of the unpaid principal amount of this Note. Failure of
the CITY to promptly give Notice of Right to Cure or to promptly take any other actions
necessary to accelerate the amounts due hereunder, shall not constitute a waiver of
default, nor shall it be a bar to exercise of any of the forgoing rights at a later date.
The DEBTOR shall be in default under this Note when the prospect of payment
or performance under this Note is significantly impaired. The following shall constitute a
significant impairment of the prospect of payment or performance:
(1) Insolvency, assignment for the benefit of creditors, the
commencement of any proceeding under any bankruptcy or solvency laws
by or against the DEBTOR;
(2) Breach of an Agreement by and between the City of Bangor and
Bangor Folk Festival of even date.
(3) Failure to produce a folk festival.
(4) Breach of the Agreement by and between the parties of even dated
July 31, 2012.
15-313
SEPTEMBER 14, 2015
DEBTOR does hereby waive presentment, demand, protest, notice of
protest, demand and/or of dishonor, and the DEBTOR hereby waives, to the extent
authorized by law, any and all homestead, and other exemption rights which otherwise
would apply to the debt evidenced by this Agreement.
If suit is instituted by the CITY to recover upon this Note, the DEBTOR agrees to
pay all reasonable attorneys' fees not in excess of 15% of the unpaid debt after default
together with any and all court costs.
If any obligation or portion of this Note is determined to be invalid or
unenforceable under law, it shall not affect the validity or enforcement of the remaining
obligations or portions thereof. This Note shall be construed in accordance with and be
governed by, the law's of the State of Maine.
NOTICE TO DEBTOR: 1) Do not sign this Agreement before you read it. 2) You are
entitled to a copy of this Agreement. 3) You may prepay the unpaid balance at any
time without penalty.
By the signature(s) below, DEBTOR agrees to the terms of this Agreement and
Promissory Note and acknowledges receipt of one completed copy of this Note and the
disclosures, and acknowledges that the DEBTOR has read and is bound by the same.
If the undersigned shall consist of more than one individual or entity then the obligations
of the undersigned under this Note shall be joint and several.
Date:
BANGOR FOLK FESTIVAL
Witness Name:
Title:
STATE OF MAINE
Penobscot, ss.
Then personally appeared the above named ,
of the Bangor Folk Festival and acknowledged the foregoing instrument to be his/her
free act and deed in his/her said capacity and the free act and deed of said corporation.
Before me,
Notary Public State of Maine