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
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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
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