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Home My WebLink About2007-02-12 07-088 ORDERItem No. Date: February 12, 2007 Item/Subject: ORDER, Authorizing a $37,500 Replacement Loan to the Maine Aviation Historical Society. Responsible Department: Legal In 2001, the City Council approved a loan to the Maine Aviation Historical Society to allow, the Society to repair the roof of the City building that It leases for purposes of operating the Maine Air Museum. The loan was for ten years with payments deferrnd until May 2007 in recognition that the Museum was a start up operation heavily dependent on volunteers and in-kind contributions. While the Museum has been operating throughout this period, initial Society financial projections are now seen as overly optimistic. The Society has also made a number of other Improvementsto the airport building that R leases. The Maine Aviation Historical Society has requested a five-year extension to the edsting loan agreement and an additional five year deferral of payments. This Order will authored a new ten-year loan with initial payments deferred until 2012. Department Head This was reviewed and unanimously recommended by the Fnance Committee a[ its meeting of January 15, 2007. Recommend approval. City Manager Associated Information: promissory Note Budget Approval n , A�'vlv�a Finance t�r� Fnanoe DireMr Legal Approval: City Salidthr Inlrgtlucetl for L� passage _First raatling page 1 M_ Referral Assi�roCoeodlm Haves 07 088 E 1z CITY OF BANGOR (TITLE.) ORDER, Authorizing a $37,500 Replacement Loan to the Maine Aviation Historical Society. WHEREAS, on October 22, 2001 by Council Order #01-90, the City Council authorized a loan to the Maine Aviation HistOncai Society; and WHEREAS, the Maine Aviation Historical Society occupies a building at Bangor International Airport pursuant to a Lease with the City dated August 18, 1999, and the proceeds of an initial ban from the City were used to improve the building; and WHEREAS, that loan provided that payments would be defamed until May 2007; and WHEREAS, the Maine Aviation Historical Society is requesting, due to funding Issues, a new loan to pay off the original loan with this replacement loan to have a term of ten years and afive year deferral of payment, the same tens and deferral as was provided In the original loan; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Finance Director take all necessary and appropriate anion to loan the Maine Aviation Historical Society $37,500 and use the proceeds to pay off the original loan from the City to the Maine Aviation Historical Society. Said loan is to be evidenced by a promissory note substantially in the form as attached hereto and as approved in final form by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL February 12, 2007 Motion Made and Seconded for Passage Pepe 4e_ //CIT4 CLERR y 0J-088 RH1El qutM1axizing a $37.500 Replacement Loan to the Maine Aviation Historical Society Assigned to Councilor VY V' 07 088 PROMISSORY NOTE AND AGREEMENT LENDER/CREDITOR: City of Bmgor, 73 Harlow Street, Bangor, Maine 04401 BORROWER/DEBTOR(s): Maine Aviation Historical Society, Bangor, Maine 04401 FOR VALUE RECEIVED, the above-named BORROWE"EBTOR, hereinafter collectively referred to as DEBTOR, promises to pay the CITY OF BANGOR (hereinafter termed CITY) at its Office at 73 Harlow Shed, Bangor, Maine, the sum of: $33,700.00 or so much thereof as may be advanced, with the interest upon the pnneipal sum thereof from time to tune advanced, compared Gam the May 1. 2012 and to pay interest on the unpaid principal amount of Ws Note from May 1, 2012 at the rate of 6% par momm until paid. Daring the first five years of this Note DEBTOR shall not be required to pay my principal and no interest shall serene. Demander, both principal and interest on this Note are payable on the first day of each month beginning May 1, 2012 monthly installmm4 of $651.52. The first installment being due on May 1, 2012 and the last such installment due on April 1, 2017 (the "Maturity Date"), when the balance of principal then remaining unpaid with interest at said rate, and any other sums sawed bythis Note shall be paid in full. All payments of principal mrd interest shall be applied as follows: (1) to all seamed and unpaid interest on the unpaid principal balance of this Note; and (2) the remainder to the unpaid principal balance of this Note, until the same is paid in fail. Interest shall be computed as if each full calendar year consisted of 360 days and each fall calendar month coasted of 30 days, for actual number of days elapsed. Use DEBTOR reserves the right to prepay se any time all or any part of the principal amomtofthis Notewithoutthepaymentofmypmalfiesmpremiums. Uponfinalrepaymmtof the principal amount of this Note, the amount of fiermat due shall be rocaienlmed and adjusted to reflect my early or late payments made by the DEBTOR. If my installment due and payable hereunder is in default fm a period of 20 days after notice of DEBTORs fight to cure is given, the CITY may declare the entire debt in default and respire the immediate payment of the unpaid principal amount of this Note, together with accrued interest. Failure of the CITY to promptly give Notice of Right to Clue or to promptly fake my other actions necessary, to accelerate the amounts due hereunder, shall not constitute a waiver ofdefaulS nor shall it be a bar to exemue of my of the £agoing 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 impanel. The following shall constitute a significant impairment ofths prospect of payment or performance: (1) hvmlveacy, assignment for the benefit of traitors, the commencement of my proccc ing under my bankruptcy or solvency laws by or against the DEBTOR; 07 088 (2) Breach of any of the terms and conditions of an Extenuate of Lease between the partes dated August 18, 1999 as the same has been amended and maybe amended from time to time. DEBTOR does hereby waive presentment, demand, protest, notice of protest, demand and/or of dishonor, and the DEBTOR hereby waives, to the extent authonzed by law, any sat all homestead, and other exemption rights which otherwise would apply to the debt evidenced by this Agecown. If suit is instiNted by the CITY to moover upon this Note, the DEBTOR agrees to pay all reasonable attorney's foes 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 mumforceable under law, it shall not affect the validity or enforcement of the remaining obligations or portions tb ceaf. This Nom shall be construed in accordance with and be govemed by, the laws of the StateofMaine. By the signahne below, DEBTOR agrees to the turns of this Agreement and Promissory NOW 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 than the obligations of the undersigned under this NOW shall bejoint and several. Date: MAINE AVIAITON HISTORICAL SOCIETY Witness Name: Tide: STATE OF MAINE Penobscot, as. 2007 Than personally appeared the above named of the Maine Aviation Historical Society and acknowledged the fiamping i chrumevt to be his /riff/ then five act and dead and the free ad and dead of said corporation.. Before me, Notary Public