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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 u -r •y�n� 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. IL CIS4 COOPCSL Jme 9, 3003 wciaa was aaa seramea fu[ P3aeage= eaaaea ;c :chemo. X 93-303 (TITLE,) nacwritin the city wvsger to Mecete a ev venal Electric Coveaey