HomeMy WebLinkAbout1999-03-22 99-139 ORDERCOUNCIL ACTION
Date: March 22 1999 Item No. g iig—
Rem/Subject: Audicrizing the Financing for Acquisition of TlRaffroed Street and Business Developmrn[
Loau to RCBH Corporeaon Though the Issuance of a General Fund General Obligation
Promissory Now to 0m Airport
Responsible Department: Community and Economic Development
Comnrentary:
The total costs for the acquisition of RC/BH Corporation's interest in 7 Railroad Street, and relocation of the
Commercial Refrigeration business owned by RCiBH is $Y15,500. In addition, City financing for RCBH
Corporation's acquisition of 739 Odlin Road is $15,000. This Council Order would authorize lire borrowing
of $395,500 from the Airport's Enterprise Fund to accomplish Nu purpose.
The Finance Committee recommends approval.
Dep6run ent Hedd
Manager's Comments:
p'ry Manager
Associated Information 6 lj�t �Ka'e''°°'S rtc
Budget Approval:
AW
Ftmance Direcror
Legal Approval:
City Suici ur
Intro uced For
Pawls¢
First Reading Page_aP
Referral
AmiA,N b fnuneJw Blanchette llarch 22. 1999
CITY OF BANGOR
(TITLE.)(®1'bET Authorizing the Financing for Acquisition of]] Railroad Street
1M r --"'-"'-And Business Development Loan to RC/1311 Corporstion Tlwagh
the Issuarrz of General Fund General Obligation Promissory
Nae to the Airport
By W City CoynaB oftha Oft of Ru .'
ORDERED,
TWT there is hereby authorized the issuance ofa general obligation promissory note to
the Airport Fund for $395,500 in or around Munch, 1999. A copy of said note is attached hereto.
IN CITY COUNCIL
Narch 22, 1999
Notice, For Passage Node and
Seconded
Passed
CITY CLW
99-139
O ROER
Title, Authorising the Financing for
Acquisition of ]] Railroad Street dad
Beninese Developmmat Lass, to M/DN
Cuipurefion lfii6jxtyke *IABP uaoce'of'a'
General Obligation Promissory Note to
GLo.A1vP..t............
�.............
lr.
^ ./..". 1 W
NNnn Aogned to
Councilman
99-139
PROMISSORY NOTE
$395,500.00 Bangor, Maine
March _, 1999
FOR VALUE RECEIVED, the City of Bangor, a municipal
corporation organised and existing under and by virtue of the laws
of the State of Maine, with a mailing address of 93 Harlow Street,
Bangor, Maine 04401, federal tax identification number 01-60000-20,
as a general Obligation of the City of Bangor, hereby uncondition-
ally promises to pay to the City of Bangor Airport Fund, as
dedicated revenues under the Federal Aviation Act, Title 49 US Code
sections 49101(13) and 47107(b), the principal sum of Three Hundred
Ninety-five Thousand and Five Hundred Dollars ($395,500.00), with
interest on the unpaid principal balance as set out in Schedule "A"
attached hereto.
Both principal and interest due under this promissory note
shall be paid in regular installments as set out in Schedule "A"
attached hereto, with the first such installment due on May 1, 2000
and the final installment due on May 1, 2004. All interest accrued
on the unpaid principal balance prior to the date of the first
installment payment shall be paid as part of the first installment
payment.
Both principal and interest due on this promissory note
shall be payable at Bangor, Maine in lawful money of the United
States of America, without right of deduction or setoff.
Treasurer's Initials
Page 1 of 5
99-139
The City of Bangor reserves the right to prepay, without
penalty or premium, all or any part of the principal hereof on any
installment payment date, with any such prepayment to be applied to
the remaining installments of principal in reverse order of their
maturities. In the event of prepayment in full or part, written
notice of the prepayment stating the date and amount thereof shall
be given by the City of Bangor Finance Director to any holder of
this promissory note. Such notice shall be given within ten (10)
calendar days after the prepayment date. Written notice of
prepayment in full under this paragraph shall operate as a
satisfaction hereof. Any prepayment of principal or interest due
under this promissory note shall be made from funds appropriated by
the Bangor City Council for that purpose.
This promissory note shall, at the option of the holder,
become due and payable in full ninety (90) days after written
notice from the holder to the City of Bangor Finance Director. For
this purpose, the City of Bangor Airport Fund shall constitute the
holder, and written notice shall be given by the City of Bangor
Airport Director or successor officer performing the same functions
as the Airport Director, upon prior authorization.
Upon default in the prompt and full payment of any install-
ment of principal or interest due on this promissory note, the
entire unpaid principal hereof and interest thereon to the date of
payment shall immediately become due and payable at the option and
Treasurer's Initials
Page 2 of 5
99-139
upon the demand of the holder hereof. For this purpose, demand
shall be made by the City of Bangor Airport Director or successor
officer performing the same functions as the Airport Director. An
installment payment made in full within ten (10) calendar days of
the due date of such installment as set out in "Schedule A" shall
not constitute a default under this paragraph.
The failure of the holder hereof to exercise any of its
rights hereunder in any instance shall not constitute a waiver of
such rights in that or any other instance.
This promissory note shall be assignable by any holder
hereof upon prior written consent of the City of Bangor by its
Finance Director, upon authorization.
IN WITNESS WHEREOF, the City of Bangor has caused this
promissory note to be sealed with the City Seal and executed by
Ronald I. Heller, its City Treasurer, countersigned by its
municipal officers, this day of March, 1999.
WITNESS: CITY OF BANGOR
(By)
Edward A. Barrett Ronald I. Heller
City Manager City Treasurer
(ae t0 each)
Michael W. Aube Joseph M. Baldacci
City Councilor City Councilor
Patricia A. Blanchette Michael R. Crowley
City Councilor City Councilor
Page 3 of 5
Nichi S. Farnham Gerry G.M. Palmer, Jr.
City Councilor City Councilor
John M. Rohman James M. Tyler
City Councilor City Councilor
Judith L. Vardamis
City Councilor
Page 4 of 5
99-139
Schedule A
to
Promissory Note to
City of Bangor Airport Fund
Total Amount Bormae6 S 395.500
Interest Rate 6.00%
Term (Years) 5
Payment
Number
Paymem
Deb
Total
Pe men[
Interest
P menl
Principal
Prymanl
Outstanding
Balance
1
5/1N0
70,60707
$23,730.00
$ 54,877.07
$ 34Q622.93
2
Viii
75,66107
$20,437.38
$ 55.223.70
$ 285,399.23
3
611N2
72,715.07
$17,123.95
$ 55,591.12
$ 22$808.11
4
5I1103
69,769.07
$13,788.49
$ 55,980.59
$ 173,827.52
5
5/1N4
184,257.17
$10,42965
$173,89.52
$
RCBH Finanong.ds Bangor Community Bconome Development 3I18H9