Loading...
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 74.,keo8���to A.w.v*�.O 6`h are�Cam. x Associated Information: 4 nt �n o^vair7af ui..Yt. "t� Budget Approval: prance Director Legal Approval: aty Solicitor Introduced for K Passage _ First Reading Page _ of _ Referral 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 % n E SO LSOE arrllj APprvvivg Co®Sty 0evelo nt Mosinee¢ Omelopmevt Loev - Ee oue Ivtery tim 1. LLC mwgn Ngo Ce000lMt V&4. a 5VI