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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