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HomeMy WebLinkAbout1999-11-08 00-017 ORDERItem No, 00-17 Date: 11-8-99 Dam/Subject:. ORDER Authorizing the Temporary Borrowing of $1,934,000 Rome the General Fund by the Economic Development Fund Responsible Dal amnenb Commenbry: 0.s you Www, the Fmese's Building project Is nearing completion. We had originally been Informed that our loan In the amount of $1,934,000 would not be needed until this coming December or January. As it happens, our funding Is required within the neQ week or so, depending upon when a certificate m occupancy Is issued by Cade. As this borrowing had previously been authorized by the Council, we had planned W Include it in our bond issue in January. However, the anent need for our funding requires us W advance funds prior to the annual borrowing. We are therefore recommending that the $1.9 million be borrowed by the Economic Development fund from the General Fund until such time as bond proceeds are available. In this compaA R should also be noted that there s a chance the $1.9 mllllon may not be included In the January bond Issue, depending upon the ultimate disposition of the front portion of the building's that three Floors. SpetlO011y, the extent to which this space is occupied by -qualified" not-for-profit entitles Will, in large part, determine the type of financing we will have to do. Accordingly we should await the outcome of current ruminations in this regard. Ultimately, however, thus Is a temporary borrowing meant to be taken out by a long term financing once certain critical decisions are reached. As always, 1 recommend your approval and am available to answer any questions you might have Departnent Head --------------- ManageYS Co-pm'm�ents: �p,4fx6ovJ. lk�tyj unQO jKaoub ua wil}fi�a. Doti" UClIV City Manager RS Iated Dnfarmatlan: Order Budget Approval: FinanceDirector Legal Approval: City Solicitor x Passage _ Fist Reading Page—of Referral Aasi(mNbCournUw Abe November 8, 1999 CITY OF BANGOR (TITLE.) Order, Autherbring the Tonawar,v Humming of $1,934,000 from the Genual Fund by the Ewricande D vehlI mert F1md By Me Oty Count# of Me Oty of Bangor. ORDERED, TRAT WHEREAS, the Qty Council had previously authorized the bonding of $1,934,000 In order to provide a loan for renovations In the rree i Building; and WHEREAS, such funds have not yet been obtaoned through the CM^ annual borrowing; and WHEREAS, wh funds will be required poor to the Qty's annual borrowing; and WHEREAS, the ulEmate decision as co how W finance the ffeese' pmjeQ will depend upon informabon he Qty has yet to obtain; NOW, THEREFORE, BE rf ORDERED, THAT the General fund loan the wm of $1,934,000 W the Economic Derelopnent Fund for a tern not W edend beyond January 31, MI; and BE IT FURTHER ORDERED, THAT omb bbnowing, which will not be mcwn:ed by a note, shall mm a rate of in arest of 596, compounded se niannually. IN c11Y CO88cn November 8, 1999 Notion for Passage Made and Seconded Passed a„ b Gan O N08H Title,. Authorizing the Prepare" Borrow- ing of $1,936,000 from the General Food by "a gconaefe Oevelopmeut Youd �l �