HomeMy WebLinkAbout2001-08-13 01-319 ORDERItem No. 01-319
Denis 8-13-01
Item/lbubjec : Oder, Realleadi Bond Pro detls
Reeganable Department. Finance
Early in calendar year 2000, Me Oty Issued $1,934,000 in General Oblgation Bonds for the acquisition,
reconstruction, renwaded, and cieveldpment of the Freese's Building. These Ponds were intended to bring Me
front potion of the building into "white box" condition and m Winds the location of the Maine Discovery
Museum in this property. Apprmimalely $700,000 of this amount was tied he the portion of the building which
was not Included in the Museum project. Recently, Mere has been discussion regarding Me possible uses for
this remaining partbn d[he building and of whether the City should purchase it from Me developer Such
Purchase would take the form of relieving the developer from the requirement to repay the amounts spent on
the renovators to this portion of the balding.
In oder to allo v for the greatest possible fletidliN In bath ownership ant use of this remaining portion of the
building, we recommend that the Council reellomte the ported of the bands originally designated for this
portion of the building to other already approved projects. Bond funds would be replaced with an interfuM
loan hasavened the City and the Airport at an appropriate interest nate. Tlwse steps and allow, for example, the
ON to awn this portion of the building and lease all or Mata a of it m for pari entities without con0ict with
Federal Treasury regulations.
I recommend your approval of the attached order reallocating a portion of these fulls Inoourgr CSO
projects.
D"
Manager's Comments:
A Public Heading Is required prior ttoaavottee oon this item. Recommend approval
rA+m���
Op1 ' GN Manager
AasPdatM Information: Oder, Pull Notice
can
Legal Approval:
Sol tlror
Introduced for
Passage
_X_ First Reading Page_ of
Rererral
01-319
:.-.� Assigmdto Couxilor Blanchette August 13, 3001
CITY OF BANGOR
(TITLE.) ORDER, RPALLOCATlNG GOND PROCEEDS
6y the 6Ny, CbwaB of the 011y ofBNWr.
WHEREAS, on Sep[anbrr M, 1M the Bangor0ry, Countl adapted Order No. 91
auMgdring Me Issuance of the City's general obligation bands in an amount not to exceed $2,000,000 to
be ussH to provide firtndrg fora ban or grant of bond procee+ls to a hrivate developer for Me
acquisition, recpnsMRBon, renwatern and de Iapmeft of the front two-thirds o'the Mner FoeeY
4paMrent Acre bolding In downtown Bangor, M be used for ammerdal Wrponses or for other MCfon-
proft activities, all as shall be determircd and approved by the Rance Nrectar, with the approWl of the
Finance Committee; and
WHEREAS, on January N, 2000 the Gly Council adopted Order No. OD88 (wllectively with
Order No. %-352, Me "Rbr fides') amending Me pmjeet dewipt hot ankined in the first paragraph to
Indirect tine option for Me Ory m purchase the renovated former Preese's Department Store (the
"Hojet'); and
WHEREAS, on Anwry 31, 2000 Me Cry issued as 2000 Gema& Obligation Bonds in the
aggregate pnnopH amount of $3,105,000 (the °EOMs'), $1,9M M of Mich was to ber used or the
Project, and
WHEREAS, Me Gly MAV ewdeeM Het It will hryrKe a oorpon of the %OkCi with other monks
available to Me City; and
WHEREAS, $699,915 of Me protests of the Bonds Issued M finance Me Project (which amount
Include; Investment earnings on soon proceeds) (Me "Faces Proceeds9 will not her needed for Me
Project and such &cess ProceMs must to Albmted or rewllomted to other gwllfylrg projects w project
octs;
NOW, THEREFORE, by the any Coumll Uthe City of Bangor, be 0 hereby:
ORDERED, THAT Me Project approval in the Prior Orders be and hereby, Is amenced to induce,
and Me Excess Promr6 of the Bonds be and hereby are albratetl to fund a portion of the Ory§ C50
Projects.
THAT, In all other respeca, the Prior Orders are hereby ratified and confirmed.
IN CIT4 COUNCIL
August 13. 2001
Pixa[
C CLHPC
IN CM C IL
Augest 47. 2001
Notion Made Had
Secwded-to open Poblfc
Hearing. Public Hearing
Opened. No One fxon the
Public cane forward. Motion
Nade aad Seconded to mesa
Public Hearing. Poblle
Hearing. Public Hearing
Closed.
Notfm Made and Seconded
for Passage
C
p 01-319
ml1
(TITLE,) Neallocatfag coed Pteceeda
i
01-319
The Banger City Coundl All had a Public Hearing at IN Regular Meeting
at 7:30 PM on Monday, August 22, 2001 in the City Council Chambers,
on the thiel floor of City Hall, 73 Harlow Street Bangor, Maine, for the
Purpose of hearing Public Comment an a Proposed Re-allocatbn of
$699,915 of Proceeds (inoun ing earnings on such proceeds) of General
Obligation BolMs the CM pwfously Issued Pursuant to Council Cn e
No. 98-362 (Adopted September 28, 1998). Reallocated Proceeds will be
used to fund CSO Project. ACopy or the entire order is available to the
public In the City Clerics Office at Bangor City Hall. The public inNlaci
to address the Council on this proposes rtallocation of bond proceeds.
August 13, 2001 Wil E. Campbell, City denk