HomeMy WebLinkAbout07 019 Friends of the Pavilllion $100,000 Loan Agreement By-Law
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THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
NO. 2007 - 019
BEING A BY-LAW TO AUTHORIZE A LOAN AND ENTER INTO AN
AGREEMENT FOR THE PURPOSE OF RESTORING THE KINCARDINE
BEACH PAVILION
WHEREAS The Municipality of Kincardine is the owner of lands on which is
located a building known as the Kincardine Beach Pavilion (The Pavilion);
AND WHEREAS the Pavilion is considered part of the Cultural Heritage of the
Municipality and surrounding area;
AND WHEREAS the Pavilion is in a state of disrepair and in need of renovations
and repairs;
AND WHEREAS a group of Community Volunteers known as "The Friends of the
Pavilion" has been formed for the purpose of raising money and supplying work
towards the restoration of The Pavilion;
AND WHEREAS the group has applied to The Council of the Municipality of
Kincardine for a Joan to assist them in the restoration of The Pavilion;
AND WHEREAS the group is unincorporated and Gary Michael Gurbin has
agreed to act as Trustee on behalf of the group;
AND WHEREAS the Municipal Act, 2001 s. 107 authorizes a Municipality to
make a grant, by way of a loan to any person, group or body for any purpose that
the Council considers to be in the interests of the Municipality;
AND WHEREAS by resolution # 2007-032 dated January 24,2007, a loan of
$100,000.00 to the "Friends of the Pavilion" was authorized in principle by the
Council of the Municipality of Kincardine;
NOW THEREFORE be it enacted by the Council of the Municipality of Kincardine
as follows:
1. That the restoration of the Kincardine Beach Pavilion is deemed to be in
the interest of the Municipality of Kincardine.
2. That Gary Michael Gurbin is recognized as the Trustee and spokes-
person for an unincorporated association of persons known as "The
Friends of the Pavilion" formed for the purpose of raising money and
providing work related to the restoration of The Pavilion.
3. That a loan of $100,000.00 is approved and authorized to be made to
Gary Michael Gurbin "In Trust" for the Friends of the Pavilion to be paid
from the general revenues of the Municipality.
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By-law No. 2007 - 019
Friends of the Pavilion $100,000 Loan Agreement By-law
Page 2 of 2
4. That the delivery of the loan proceeds is subject to the execution by the
Trustee of the loan agreement attached to this By-law.
5. That the administration of the loan and the liaison between the
Municipality of Kincardine and the Trustee is delegated to the Treasurer
of the Municipality.
6. The Mayor and the Chief Administrative Officer of the Municipality are
authorized to execute the said agreement, attached hereto as Schedule
'A', on behalf of the Municipality and to affix The Corporate Seal thereto.
7. This by-law shall come into full force and effect upon its final passage.
8. This by-law may be cited as the "Friends of the Pavilion $100,000 Loan
Agreement By-law"
READ a FIRST, SECOND, and a THIRD time and FINALLY PASSED this 12th
day of February 2007.
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Th~M~dule "A" to By..Law
No. O,q passedthe~~y
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FRIENDS OF THE PAVILION LOAN AGREEMENT ~'1",u~
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Agreement made this \ G. +L day of f -e.. b v ua. y,-~, 2007
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
(Hereinafter called "Kincardine")
-and-
GARY MICHAEL GURSIN, IN TRUST
For an unincorporated group known as the "Friends of the Pavilion"
(Hereinafter called "The Trustee")
RECITALS
1. Kincardine is the owner of lands on which is located a building known as
the "Kincardine Beach Pavilion" (hereafter called the Pavilion).
2. The Pavilion is in a state of disrepair and requires substantial repairs and
maintenance.
3. The Pavilion is part of the Cultural Heritage of Kincardine and the
surrounding region.
4. The Trustee is the representative of an unincorporated association of
people known as the "Friends of the Pavilion" who have formed for the
purpose of raising money and contributing their time and effort to restoring
the Pavilion.
5. The Council of Kincardine considers the restoration of the Pavilion to be in
the interest of the Municipality.
6. The Trustee on behalf of the group has applied to the Municipality of
Kincardine for a loan of $100,000.00 to be used for the purpose of
restoring the Pavilion.
7. By resolution No. 2007- 032 dated January 24,2007 the Council of the
Municipality of Kincardine approved the loan in principle.
NOW THEREFORE In consideration of this agreement and other good and
valuable consideration it is agreed by the parties as follows:
1. THE LOAN
1.00 The application by the Trustee to Kincardine for a loan of $100,000.00 is
approved by Kincardine.
1.01 The loan shall be subject to the following Terms and Conditions:
>- Principle amount of the loan - $100,000.00
);. Interest rate - The loan shall be non-interest bearing
>- Repayment - The principle of the loan shall be repaid in 10
equal installments of $10,000.00 each. The first such
payment shall be due and payable on December 31, 2008
and further payments of $10,000.00 each shall be due and
payable on the 31 st day of December of each and every year
thereafter and the final payment shall be due and payable on
December 31, 2017
2. CONDITIONS ON ADVANCE OF THE LOAN
2.1 Prior to advancing the loan, the Trustee shall deliver to Kincardine proof of
the following maters:
(a) A bank account has been opened in the name of Gary Michael
Gurbin "In Trust" for the Friends of the Kincardine Beach Pavilion.
(b) The Trustee has delivered to Kincardine a certificate of insurance in
a form satisfactory to the Municipal Treasurer confirming that a
Policy of Liability Insurance has been arranged with minimum
coverage of $2,000,000.00 for all third party claims arising from the
use of the Pavilion by the Trustee and associated members of the
group, with the Corporation of the Municipality of Kincardine as a
named insured.
(c) The Municipality shall pay the cost of providing Property and Boiler
and Machinery insurance covering the Pavilion and contents of the
Pavilion against all risks of loss or damage, subject to standard
insurance wordings. These costs once known shall be invoiced
back to the Trustee.
3. USE OF THE LOAN
3.1 The proceeds of the loan shall be made payable to the Trustee and shall
be deposited to the bank account established as required by Article 2.1 (a)
of this agreement and shall be only for the purpose of restoring the
Pavilion.
3.2 The Trustee agrees that neither he nor any other person associated with
the group shall receive any personal benefit from the loan proceeds either
directly or indirectly including but not limited to payment for personal
services provided to the restoration of the Pavilion or as reimbursement
for any goods supplied by any person for the purpose of restoring the
Pavilion or its contents.
4. OWNERSHIP OF THE PAVILION AND CONTENTS
4.1 It is acknowledged by the Trustee that the legal and beneficial ownership
of the Pavilion and Contents shall remain solely with Kincardine and the
Trustee shall not be entitled to any beneficial interest to the facility in his
capacity as Trustee or on behalf of any other person.
4.2 The Trustee shall not pledge the Pavilion, its contents or associated
structures or improvements or use any of the proceeds of this loan in any
way as security or collateral for any other loan or loan guarantee or loan
applications that he may make for the purpose of restoring the Pavilion.
5. OBLIGATIONS AND DISCLOSURES BY THE TRUSTEE
5.1 The Trustee will submit to Kincardine on an annual basis, a signed
business plan indicating the work completed towards the restoration of the
Pavilion and a detailed list of all expenditures supported by receipts or
vouchers relating to the disbursement of the loan.
5.2 The Trustee will submit to Kincardine on an annual basis, a Financial
Statement of all the financial activity of the group relating to the Pavilion
restoration project, including but not limited to payment of all applicable
taxes and other payments to all levels of government.
5.3 The Trustee will deliver to Kincardine a certificate from a qualified person
confirming that an applicable "Termite Treatment" has been applied to the
Pavilion building. This certificate shall be delivered within one year of the
date of the Kincardine By-law authorizing this agreement.
5.4 No work shall be commenced or continued on the Pavilion by the Trustee
without compliance with the Ontario Building Code Act.
5.5 The obligation to submit annual reports under Article 5.1 and 5.2 shall
commence on the first anniversary date of the Kincardine By-law
authorizing this agreement and on the same date of each year thereafter
until the loan has been repaid in full.
6. DEFAULT
6.1 The Trustee agrees that in the event of a default on the payment of the
loan as agreed in Article 1.01, he or a delegated member of the Friends of
the Pavilion group shall forthwith or as otherwise agreed with Kincardine,
appear as a public delegation at a meeting of the Council of Kincardine in
office at the time of such default to explain the reason for the default and
answer any questions that the Council may have relating to the status of
the loan and the Pavilion restoration project.
6.2 In the event of a default, subject to any other rights it may have under this
agreement, or at law, Kincardine may terminate this agreement and any
license of occupation or other rights that the Friends of the Pavilion might
have shall be terminated forthwith and Kincardine shall have the right to
go into possession and fully administer and operate the Pavilion at its sole
discretion.
7. FURTHER DISCLOSURE AND ADMINISTRATION OF AGREEMENT
7.1 The administration of this agreement on behalf of Kincardine shall be
conducted by the Municipal Treasurer and the Trustee shall report to and
deliver all reports, certificates and make all loan payments to the
Treasurer as required by this agreement.
7.2 The Trustee shall also deliver to the Treasurer any other documents or
information as the Treasurer may demand from time to time in relation to
the loan or the financial activity of the group.
8. ASSIGNMENT
8.1 This agreement shall be binding on the Trustee and Kincardine and shall
not be assigned by the Trustee without the consent of Kincardine as
authorized by By-law.
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Signed sealed and witnessed by the parties hereto:
Witness
Authorized by By-law
No.
Passed the day of
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THE TRUSTEE
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Gary Michael Gurbin
THE CORPORATION OF THE
MUNICIPALITY OF KINCARDINE
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CAO - John deRosenroll