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Home My WebLink About2005-08-08 05-272 RESOLVEItem No. 05-272 gate: Ausust8 2005 Item/subject: RESOLVE, AppreAngCommunity Development Business Development Loan - Hallowell International, LLC Responsible Department: Community and Economic Development This Resolve woWd approve a federally funded Community Development Business Development Loan to IlWlowell intonational, LLC, m assist in the financing ofa new heat pump manufacturing, assembly and distribution facilityat 110 Hlldmth Sued in Bangor. Hallowell projects to employ as many as 31 p ms attheendofthefirstye ofprodudion,280mNeendofihesecondyea,andinexcessof400atfidl production at the end of the third year. _ Department Head This has been reviewed with the Business and Economic Development Committee in Executive Session. Recommend approval. nal ... ( � ,g�/Jfi City Manager Budget Approval: �.CLJ Hnance Dirator i Passage _ First Reading Pape _ M_ Rader Ds -272 AMENDED BY SUBSTITUTION Assigned to Councilor Tremble August 8, 2005 v 4 CITY OF BANGOR (TITLE.) Resolve, Approving CommunityDevelopmmtBusinessDevelopmentLoan— Hallowell International, LLC By the Ciy Coond7ofthe City ofBdC l: RESOLVED, THAT WETUREAS, Hallowell Increased, LLC is the bolder of a licience staanmant allowing for its msmifica ,assembly and distribution of an advmtted Whireogy mid another bent pump; and diHBRBA3, Hallowell Imanationl, LLC desires to locate the facility as the City of Bangor cad in gocm to aoploy as merry as 31 peresis at Me aid of the fimt year of production, 280 at the and ofthe easter You, and in excess of 400 a fall production a the and of the Mird year; and WFffAEA$ theeem gatentW by Helloxllfotavatiuoal, LLC makes it eligible farssnsmncewdn ew City's (,ommuoiry Development Business DevelopmeW Lear ]'rogam;mM WHBRAS idea number of new jobs treated by Hallowell Intababoad, LLC at its new( fight, will provide a satsmmiN public Interim by providing a uguifiwrn wooden of Are amploymw opportunities in Buagm and the generatiing area; NOW, TBERFFORB, BE IT ORDERED BY THE DITY MIP NCH. OF TF@ CITY OF BANGOR THAT the Birmetor of Community end Economic Development is sentenced to make available as Flint lWemmiwa4 LLC a Cummniry Oevelupman Business Development Use in an amount rot to exceed 5200,000 order Mai fi lowug term red continued was: $100,000tabdusedfaloasepaymewtedlw Na CltyWMpettyleasedby Hallowell International, LLC at 110 Hildreth Steel and Me bilanceto be wed tartbe Damhase of machinery and equipmem% working cagtal or Mer use operated by the City. Collateral: "clear busNeas assets Term: 7rem Interest Rate: WSJ Prime Rate at tlme of loan Loan Conditions: Annual payrnanf of interest and IR of loan amoumdue annually but will be forgiven as R paid in any year Met Hallowell International, LLC maintains certain agreed on employment levels on property or In Bangor as follows: Augueg,2005thmugh Apd130,2006: Minimum4employees May 1, 2006 Mrugh Aprb 30, 2007: Minimummemployees May 1, 2007 Mough April 30, 2008: Mini mum 80 employees May 1, 2006 though end of ban perlod: Minimum of 100 employees Note: The shove employment Ideas are to be measured atthe end of to time perbd. Other: Evidence, swifedtory to Me City Winter. on or before December 30, 2005, of equity finemJng 1 imoroment capital for Me prefect 0 rot less Man $1.5 million. 05-2]2 r Assigned to fntmcilox 2teab3e August e, 2005 ° CITY OF BANGOR (TITLE.( Resolve, Approving CommunityDevelopmeutBusiness Development Loan— Ffallowell International, LLC By The otyCaMnalOfbffe ayOf&V,=- RESOLVED, V, =:RESOLVED, THAT WHEREAS Hallowell Vnemenmal, LLC is thsholderof t Release moment allowing for its manufxmre, anemblywnd diminution ofan advanaedtechnology coldwaMerM1a(sump; and WHEREAS, Hallowell International, LLC Meiree W Mete the buggy large CityofBangor and projects roemployasmaoyas 31 persons lathe and ofthe firesearofpseedyg n, 2guat Meeh offh second year, and in agents of400at full pmtluel inn et the ew afue uib yw; and WHEREAS Me new wploymmrgnereced by Hallowell lncemational, LLCMAM it eligible fmasi4anre under Me City's Community Devalopmwnt Burinme; Devebpmwnt Lown Program; and WHEREAS the number of new jabs ciemed by Hallwvell International, LLCa its new fsailirywill provide a emotional public tmefit byproviding a significua number afmw, employmntoppoMnitiet In ImusT and Me surrounding area; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Me Director of Commmirs and Extreme Development is authorized to make available to Hallowell murnaNnal, LLC a Community Development Inemws Development Wan in m==I not to exceed 5200,000 under &a following burns and coMitins Ula: $100,0000W used for lease payments due Me City on properly leaned! by Hallot Imonumental, LLC W 110 HiUmM Sheet and this balances b be uam per Me Whereas of madiiwry and equipment, working capital or other use approved by Me City. Cdlaferal: Sufficianl business assets Tahm: Tyeam Inbnat Rab: WSJ Prime Rab at fine M ban Loan COMB Annual payment of Interest and 1O of loan amount due annually but will be fatgiwon as stuff in my year Mat Hallowell Inbmestoni LLC mainUise certain agreed on employment levels on prop" or in Bangor as tnllowa: August9,2009Mrcugh APr1W,2011(1: Minimumiemployees May 1, 200(1 through Apol 30, 2001: Mini mum 20 employees May 1, 2007 though April 302009: Minanum W employees May 1, MN though eM M ban period, Mingtlumoft00employee Nota: The above employment levels ere to the mossured 9the end of the time per W. Oder Evitlerxe saksafcbry M the "Solbaor, or epuity bouncing I Investment capital For the poject 0 not laws Met 815 million. IN CITY wowciL M,gnat g. zoos Matins Made and Seconded for Passage Milan Made and Stranded to Amend by Subustitution now, almost Passed Motion Made end Seconded for Passage as Amended PA paslosky a Commission Caebeon spoke in Favor Don d Claudia Lens and Jeff Clark spoke agaiaet Motion Dmbced Vote: y-1 Convenor voting yes: Allen. Cusleell, D`grrico. Cratslek, Greene, Stave, Tremble Couacnora social; an: Farrington Meet lo Abeast: Maces y o5-Fyz MBS0LVB (rMdd npprovlag Community Development Suelneas neve t Loan - Ma o eir lnternariooal;LLC Assigned to Counnciloe��q/I�YA/NN. (4 &t!e