HomeMy WebLinkAbout2006-04-24 06-153 RESOLVEItem Ro, 06 153
Date: April 24, 2006
Item/Subject RESOLVE, Approving Community Develdpme t Business Development Loan —
Hallmaell International, LLC
Responsible Department: Community and Economic Development
This Resolve would applause a federally funded! Community Development Business Development
Loan to Hallowell International, LLC to assist In the Boancing of a new heat pump
manufacturing, assembly, and distribution facility at 110 Hildreth Street in Bangor. Hallowell
projects to employ as many as 31 persons at the end of the Bast year of production, 280 at the
end of the second year, and in excess of 400 at full production at the end of the third year.
Department Head
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Budget Approval:
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Legal Approval:
aty Solicitor
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es 153
Assigned to Couoailor Distrito April 26. 20%
CITY OF BANGOR
(TIrLE.) Resolve, Approving Community Development Business Development Loan —
Hallowell Internabonal, LLC
WHEREAS, Hallowell International, LLC holdes a license agreanert allowing for the manufacture,
assembly and distribution of an advanced technology cold weather heat pump; and
WHEREAS, Hallowell International, LLC desires to locate their facility in the CRY of Bangor and projects
employing as many as 31 persons by the end of the first year of production, 280 at the end
of the second year, and in excess of 400 at full production at the end of the third year, and
WHEREAS, the new employment generated by Hallowell International, LLC maks R eligible for
assistance under the City's Community Development Business Development Loan program;
and
WHERAS, the number of new jobs created by Hallowell International, LLC at its new facility will provide
a substarntal public bereft by providing a significant number of new employment
opportunities in Bangor and the surrounding area;
NOW, THEREFORE, BE IT ORDERED BY THE CRY COUNCIL OF THE CRY OF BANGOR THAT the
Overbear of Comminity and Economic Development is authorized W make available to Hallowell
International, LLC a Community Development Business Development Loan in an amount not to exceed
$200,000 under the following terms and cenditlons:
Use: $100,000 for lease payments due to City on property leased by Hallowell
International, LLC at 110 Hildrelh Sheet with the balance to be used for the
purchase of machinery and equipment working capital, or other use approved by
Me City.
Collateral: Sufficient business assets
Term: y years
Interest Rate: WSI Prime Rafe at time of loan
Loan Complains: Annual payment of interest and 1/7 of loan amount due annually but will be
forgiven As t paid in any year that Hallowell intematanal, LLC maintains certain
agreed on employment levels on property or in Bangor as follows:
May 1, 2006 through April 30,2007: Minimum 20 employees
May 1, 2007 though April 30, 2008: Mirdmum SO employees
May 1, 2008 tough end of loan period: Minimum of 100 employees
Note: The above employment levels are be be trimmed at the and of the time
pence.
Other: Evidence, satsfactrnry to the City Solicitor, on a before April SO 2006, of equity
financing / investment caphal for the project of not less than $1.5 million.
Itl CITY C CiL
April 26, 2006
Motion Made and Secwded
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