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HomeMy WebLinkAbout07 053 Minor Soccer Loan Agreement (2) . . . . THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE BY-LAW NO. 2007 - 053 BEING A BY ~LAW TO AUTHORIZE A LOAN AND ENTER INTO AN AGREEMENT WITH THE KINCARDINE & DISTRICT MINOR SOCCER CLUB WHEREAS Section 107 (1) of the Municipal Act 2001, S.O. 2001, c. 25 as amended, provides that a municipality may make grants, on such terms as to security and othelWise as the council considers appropriate, to any person, group or body, including a fund, within or outside the boundaries of the municipality for any purpose that council considers to be in the interest of the municipality; AND WHEREAS the Kincardine & District Minor Soccer Club stored its equipment and uniforms in a municipally-owned shed at the Davidson Centre for Kincardine and District; AND WHEREAS the equipment shed and its contents were destroyed by fire on January 9, 2007; AND WHEREAS the Kincardine & District Minor Soccer Club had no content insurance on its equipment and uniforms; AND WHEREAS the Kincardine & District Minor Soccer Club applied to the Municipality of Kincardine for a loan of $42,000.00 to be used for the purpose of purchasing new equipment and uniforms in order to carry on the 2007 soccer season; AND WHEREAS it has been determined that minor soccer incorporates the values of the municipality by enhancing the quality of life for the community through recreational opportunities that promote the health and fitness of its residents; AND WHEREAS the Council of the Corporation of the Municipality of Kincardine deems it expedient to loan the Kincardine & District Minor Soccer Club $42,000.00; NOW THEREFORE the Council for The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That a loan of $42,000.00 is approved and authorized to be made to the Kincardine & District Minor Soccer Club to be paid from the general revenues of the Municipality. .. ./2 . . . . By-law No. 2007 - 053 Minor Soccer Loan Agreement By-law Page 2 2. That the delivery of the loan proceeds is subject to the execution by the Trustee of the loan agreement attached to this By-law as Schedule "A". 3. 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. 4. That the Mayor and CAO be authorized to sign, on behalf of the Corporation of the Municipality of Kincardine, the said agreement with the Kincardine & District Minor Soccer Club attached hereto as Schedule "A". 5. This by-law shall come into full force and effect upon its final passage. 6. This by-law may be cited as the "Minor Soccer Loan Agreement By-law" READ a FIRST and SECOND TIME this 18th day of April, 2007. ~~ Mayor erk READ a THIRD TIME and FINALLY PASSED this :2..11dl- of }4,4-Y, 2007. 9aw..o. Agreement made this,;l~y Of~ 2007 BETWEEN: This is Schedule" 1L " to By..Law No~DD7-0!3passed theJt:l];;day of J 20~7 ~j..~ Clerk ., THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE (Hereinafter called "Kincardine") -and- KINCARDINE & DISTRICT MINOR SOCCER CLUB (Hereinafter called "The Trustee~') RECITALS 1. As a result of the fire to the equipment shed at the Davidson Centre on January 9, 2007, and that Kincardine & District Minor Soccer Club had no content insurance, and that their equipment and uniforms stored in the shed are in a state of disrepair. 2. The Council of Kincardine considers minor soccer to be an important program within the municipality. 3. The Kincardine & District Minor Soccer Club has applied to the Municipality of Kincardine for a loan of $42,000 to be used for the purpose of purchasing new soccer uniforms and equipment. NOW THEREFORE In consideration of this agreement and other good and valuable consideration it is agreed by the parties as follows: 1. THE LOAN 1.0 The application by Kincardine Minor Soccer Association to Kincardine for a loan of $42,000 is approved by Kincardine. 1.01 The loan shall be subject to the following Terms and Conditions: -Principle amount of the loan - $42,000 -Interest Rate - The loan shall be non-interest bearing -Repayment - $30,000 of the loan shall be forgivable in its entirety once the last installment is received by the Municipality. The remaining $12,000 to be repaid in 10 installments of $1 ,200 over a ten year period. The first such payment shall be due and payable by December 31, 2007 and further payments shall be due and payable by the 31 st day of December of each and every year thereafter and the final payment shall be due and payable by December 31, 2016. 2. CONDITIONS ON AnV ANCE OF THE LOAN The Trustee shall put into effect and maintain in its name, at its expense, all the necessary insurance that would be considered appropriate for a prudent undertaking of this type of operation for the period during which the Agreement is in effect with insurers acceptable to the Municipality, including: 1. Commercial General Liability Insurance, for third party bodily injury, personal injury and property damage to an inclusive limit of not less than One Million Dollars ($1,000,000.00) per occurrence. The policy shall include: (a) The Corporation of the Municipality of Kincardine as an additional insured; (b) Cross Liability (c) Tenants Legal Liability (d) Contents coverage on a replacement cost basis for all property owned by the Trustee wherever located; and (e) A thirty (30) day written notice of cancellation 2. The Trustee shall provide the Municipality with a valid Certificate of Insurance as evidence of the above coverage's upon signing the agreement. The Trustee shall provide the Municipality with any renewal replacement certificates as may be necessary during the term of the Agreement. 3. USE OF THE LOAN 3.1 The Trustee agrees that nobody associated with the Kincardine & District Minor Soccer Club shall receive any personal benefit from the loan proceeds either directly or indirectly. 4. DEFAULT 4.1 The Kincardine Minor Soccer Association agrees that in the event of a default on the payment of the loan as agreed in Article 1.0 I, a representative of the group will 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. 4.2 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/or rights that the Kincardine & District Minor Soccer Club might have shall be tenninated forthwith. 5. FURTHER DISCLOSURE AND ADMINISTRATION OF AGREEMENT 5.1 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. 5.2 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. 6. ASSIGNMENT 6.1 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. Signed sealed and witnessed by the parties hereto: SIGNED, SEALED AND DELNERED in the presence of MUNICIPALITY OF KINCARDINE ayor Per_ T, L.- ~_\<. ~k John deRosenroll, CAO KINCARDINE & DISTRICT MINOR SOCCER CLUB Per Z dGlZr rJ-. Richard Osborne, President per~ Steve eau, Ice ident