HomeMy WebLinkAbout2014-03-24 14-117 ORDERCOUNCIL ACTION
Item No. 14-117
Date: March 24, 2014
Item/Subject: ORDER, Extending Business Development Loan — RC/BH Corporation
Responsible Department: Community & Economic Development
Commentary: This order will authorize a five year extension of a Business Development Loan with
RC/BH Corporation. In 1999 the City of Bangor acquired RC/BH Corporation's interest in 77 Railroad
Street as part of the riverfront project. The City also financed the relocation of the Commercial
Refrigeration business owned by RC/BH Corporation to 739 Odlin Road, Bangor through a loan of
$150,000. The BanAir Corporation also loaned $50,000 as part of the acquisition financing and has
agreed to extend the loan for five years.
During the past 15 years 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 an amortization
schedule of 20 years. A balloon payment is scheduled for April 1, 2014. RC/BH Corporation is
current in its loan payments and has made them on time.
RC/BH Corporation is requesting to extend the term of the loan with the City of Bangor for five (5)
years under the same terms and conditions.
1. LOAN BALANCE REMAINING: As of April 1, 2014, $65,961.61
2. RATE: 7.75% fixed for the term of the loan.
3. COLLATERAL: First lien on real estate and fixtures located at 739 Odlin Rd., Bangor.
The lien is shared pro -rata with the BanAir Corporation.
This item was reviewed and recommended for approval by the Business & Economic Development
Committee at its March 18, 2014 meeting.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Department Head
.` 01, ,
City Manager
Page _of_
Finance Director
City olicitor
14-1.17
MARCH 24, 2014
Assigned to Councilor Nealley
CITY OF BANGOR
(TITLE.) ORDER, Extending 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 Orders 04-82 and 09-115 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 24, 2014
X217
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CITY GURK