HomeMy WebLinkAbout2004-02-23 04-82 ORDERItem No. 04-62
Date: Febmary 23. 2004
Item/Subject: ORDER, EMarslon of Business Development Loan - RC/BM Corporation
Responsible Department: Community Q Economic Development
Commentary:
In 1999 the City of Bangor acquired RCIBH Corporation's interest in 77 Railroad Street as part athe
dverhunt protea The City also financed the relocation of the Commercial Refrigeration business owned
by RC/BH Corporation to 739 Odin Road, Bangorthrough a loan of $150,000. The BarW r Corpomtion
loaned $50,000 as well as part of dre acquisifion financing.
RCIBH Corporation has been making mordhy payments of $1,231.42 to the Economic Development
Fund and $410.57 to the Ba v it Corporation based on an amomation schedule a20 years, with
payments foronly 5 were and a balloon payment due Aprill, 2004. RCIBH Corporation is curets in its
loan payments and has made them on time.
RUSH Corporation is requesting to extend the term of the ban with both the City of Bangor and the
9aMir Corporation for five (5) Were under the same terms and conditions.
1. BORROWER: ROSH Corporation, a sub -chapter S corporation.
2. LOAN AMOUNT: One Hundred Fifty Thousand Dollars ($150,000.00). Balance remaining as
of April 1, 2004,$132,080.57
3. PURPOSE OF LOAN: Loan proceeds were used to acquire land and building located at 739
Odin Rd.
4. RATE: 7.75% fixed for the tern of the loan.
5. TERM: Five(5)years.
6. COLLATERAL: First ien on real estate and f mics located at 739 Odin Rd,, Bangor. The
mortgage is shared pro -rata with Die BanAir Corporation.
7. Loon Payments: $1,231.42 due momhybased on a twenty (20) year ammmuntion with
remaining principal and interest due at maturity.
Department Head
Managers Comments: 7]a,� g,,,�„4w;.tp onA� Qr�Sttb
n
City Manager
Budget Approval:
Finance Director
Legal Approval:
City SoliM
Int uced for
Passage
_ First Reading Page—of—
Referral
age_of_Referral
04-82
';�/z Asaigo ib Cmmcilw faehvell Febx„ary 23. 2004
CITY OF BANGOR
(mtfLE.)Order, Extension of Business Development Loan -RC/BH
Corporation
By ore City Cm wofBre city of&Ven..
ORDERED,
WHEREAS, the Bangor City Council by passage of Council Order 99-140 on
March 22, 1999 approved a business development loan dated April 5, 1999 belvreen the City of
Bangor and RC/BH Corpotztmn in the amount of $150,000; and
WHEREAS, repayment of the loan is based on a twenty year amortization
schedule with all principle and interest remaining due after the first Ove years in a single
balloon payment, and
WHEREAS, RC/BH Corporation has requested that the date by which all
remaining principle and Interest Is due be extended for an additional Me (5) years;
NOW, THEREFORE, BE rr ORDERED BY THE CRY COUNCIL OF THE CITY OF
BANGOR THAT, the City Manager a hereby authorized, on behalf of the City of Bangor, to
execute an amendment to the RC/BH Corporation ban documents extending the data by which
all remaining principle and interest is due in a single baAaan payment by an additional fwe (5)
years, in a form approved by cite City Soliritor or Assistant City Solickar. AN other terns and
conditions of Me Promissory Note and Agreement and Mortgage Deed will remain unchanged.
PebivaU 33, 3006
Passed
D�pTY CITT CL.
ORDER
(TITLE,) esreasfon of Business Developoent
Loan - DC M Coryoia[ion
AssigneY to Coomellor 1. a Ilij