HomeMy WebLinkAbout2003-06-09 03-207 ORDERAMON
Item No. ovom
Date: June 9. 2003
Item/Subject: ORDER- Authorming City Manager to Exemne a Sixth Addendum to 1. Base --General
Electriccompany -
Responsible Department: Legal
Commentary:
This amendment is to adjust the ran amounts due the City from General Electric to conform with
refinancing of the loan which financed GE's building aspersions in the BIA Commercial / Industrial
Park. The expansions were financed by Fleet National Bark through a loan to the Bangor Targe Area
Development Corporation, for which General Electric Company is the Guarantor. The City's lease
agreements with GE and GE's loan guarantee provide security her Target's loan from Fleet. The rental
payments paid by GE to the City include a base lease amount, which the City retains, and an additional
lease amount sufficient us pay the debt service on the Target loan from Fleet The City assigns the
additional lease payments it receives from GE to. Target. Target than uses the lease payment revenue to
make loan payments due to Fleet This financing arrangement meets the needs of all the portion involved.
It also keeps the debt off the City's books arM avoids any risk to the City.
Stall' recommends approval
Department Head
City Manager
Associated Information:
Legal Approinal:
IntrpJueed for
VPassage
_ First Reading Page _ of
Referral
LLll Aaigned to Cowcilm Paiiivg[vv .Iuue 9, 2003
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CITY OF BANGOR
(TITLE.) Oder, Authorizing the City Manger to Execute a Sixth Addendum to Lease -
- General Electric Company
By Nie OIy tbtmtl/ of ahe IXy of83rgon
ORDERED
THAT the City Manager is authorized, on behalf of the City of Bangor, to execute a Sixth
Addendum to Lease with Genwnl Electric Company to revise the rental amounts presently due
under Article IH(B)(1)mid IB(E)(2)ofthe 1993 Amended and Restated Indenture of Le an
previously wounded and revised, to conform to the debt service schedule far the Iuue 2003
Promissory Note and Loan Agreement between Bangor Target Area Development Corpormiou
and Fleet Bank of Maine.
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