Loading...
HomeMy WebLinkAbout2001-01-22 01-110 ORDERItem No. 01-110 Data: January 22. 2001 Item/Subject: ORDER, Authorizing the City Manager to Execute a Letter of Agreement — General Electric Company Responsible Department: Community& Economic Development Commentary: As part of the General Electric Company expansion, a loan agreement will be entered into between Bangor Target Area Development Corpordion and Fleet National Bank for which General Electric Company will be a Guarantor. It will be necessary for the City and GE to enter into a Fifth Amendment to the lune 30,1993 lease between the parties. The attached letter am forlh the agreement betwom the City and GE to enter into a Fifth Amendment of the lease and includes note Wore that will be included in the lease amendment The terms ate that the City will agree to adjust the Lease rental payments to cover the debt service on the new financing to Target for City building improvements and expansions needed by GE and that any amounts advanced by GE as Guarantor under We Loan Agreement be credited to the amounts due under the Lease Agreement with GE. Comments: City Manager Associated Information: Approval: //� /Fin�aance Director Legal Approval: a %�/��' _ City Solicitor ///olicitor Introduced for _ Assignadw Councilor Blanchette Sanuaxy 22, 2001 CITY OF BANGOR (TIRE.) Order, Authorizing the City Manger to Execute a Letter otAgreement— General Electric Company &Me Qty CooBalaf e0y of 9&w. NOW, THEBTFORE, it is ORD9RED Net The City Manageris hereby authorized to execubs a Letter ofAgmemmtbetween the City of Bangorand Gmaal Electric Company. Said Lena of Agreement shall be in substaatially the farm as attached hereto. IN CITY COUNCIL January 22, 2001 mtiw Kn Suspend the Rules, to Consider Council. order MI -110 Node and Seconded Rules SWspeaded Notion for Passage Made and Seconded Passed (7J ©.ems V 01-110 ORDER mde,duthorizing the City Manager to Execute a Letter of Agreement - Cenral Electric Company A ignecl to Councilor 91 GE Power SyafemS XWM M, npwynna GanwalienuicC toy qtr natal Analyal 53413iMn fl n GEBangor BanBw, MEG 01 P ne: 20 7 9 412 5 05w008' M 2505 Fac207941-5808wOC8'64,5808 January 22, 2001 Rod Mckay-Director DECD-CityofBangor 73 Harlow Street Bangor, ME 04401 RE: FiMAddeadim to Lease Dear W. Mckay As we discussed, in connection with Had certain Loan Agreement to be entered unit by and between Bangor Target Area Development Corporation and Fleet National Bahr for which General Electric Company shall be the Guarantor (the "Loan Agreement'), it will be necessary for the City of Bangor and General Elechfc Company to enter into a fifth addendam (the `PiM Addendum') to that certain Amended and Restated htdeature of Lease, dated Jane 30, 1993, as amended, by and between the City of Bangor and General Electric Company life "Lease'). The purpose of the Fifth Addendum will be to adjust the rental payment under the Lease w cover debt service associated with financing the expansion of General Electric Company's Bangor facilities. This letter sets forth the agreement between the City of Banger and General Electric Company to enter into the Fifth Addendum upon completion of the expamion project and the associated conversion of a revolving credit prontissory now to a rebinding term now. The Fifth Addendum shall include the following: t) An appropriate adjustment to the Lease rental payment to coven the additional debt service. 2) An appropriate set -of provision which shall afford General Electric Company the right at all times to set off any amount due from General Electric Company as Guarantor under the Loam Agrevnan against any amount payable at any time by General Electric Company to the City of Bangor ureter the Lease. Rod McKay Page 2 Please have an authorized representative of the City of Bangor sign a copy of this letter in the space provided below to indicate the City ofBaogor's acceptance of and agreemem with the above-described provisions and return such signed copy to me. Sincerely, Keith M. Brangwynne AC=DA DAGF01)70: CityofBaogor Print or Type Name: Signature: Title: Date: [SEAL]