HomeMy WebLinkAbout07 286 The Paddy Walker Heritage Society Loan Agreement (2007)
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THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
BY-LAW
NO. 2007 - 286
BEING A BY-LAW TO AUTHORIZE A LOAN AND ENTER INTO AN
AGREEMENT WITH THE PADDY WALKER HERITAGE SOCIETY
WHEREAS the Society is the representative of an incorporated association of
people known as the Paddy Walker Heritage Society who have fonned for the
purpose of raising money and contributing their time and effort to restoring the
Walker House;
AND WHEREAS the Walker House is in a state of ongoing rehabilItation and
requires further repairs and maintenance and is part of the Cultural Heritage of
Kincardine and the surrounding region;
AND WHEREAS the Council of Kincardine considers the restoration of the
Walker House to be in the interest of the Municipality;
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 Council has approved this loan by means of By-law No. 2007 -
71, being the consolidated budget for the Municipality of Kincardine;
AND WHEREAS the Council for The Corporation of the Municipality of
Kincardine deems it advisable to enter into a loan agreement with The Paddy
Walker Heritage Society in the amount of $1 00,000.00;
NOW THEREFORE the Council for The Corporation of the Municipality of
Kincardine ENACTS as follows:
1. That The Corporation of the Municipality of Kincardine approve a loan, in
the amount of $1 00,000.00 to The Paddy Walker Heritage Society.
2. That the loan is to be interest free with the terms and conditions of
repayment being noted in the attached Schedule 'A'.
3. That the Mayor and CAG be authorized to sign, on behalf of the
Corporation of the Municipality of Kincardine, the agreement with The
Paddy Walker Heritage Society, which is attached hereto as Schedule
"A".
4. This by-law shall come into full force and effect upon its final passage.
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The Paddy Walker Heritage Society loan Agreement (2007) By-law
By-law No. 2007 - 286
5. This by-Jaw may be cited as the "The Paddy Walker Heritage Society
loan Agreement (2007) By-law".
READ a FIRST and SECOND TIME this 3'" day of October, 2007.
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READ a THIRD TIME and FINALLY PASSED this 3'" day of October, 2007.
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Clerk
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PADDYWALKERHERJTAGESOCIETY ~Q.,...,..~
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Agreement made this c:::>
day of {fx>7IDbD y . 2007
BETWEEN:
THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE
(Hereinafter called "Kincardine)
THE PADDY WALKER HERITAGE SOCIETY
As an incorporated group
(Hereinafter called "The Society")
RECITALS
1. The Society is the owner of lands on which is located a building known as
the "Paddy Walker Heritage Home".
2. The Walker House is in a state of ongoing rehabilitation and requires
further repairs and maintenance.
3. The Walker House is .part of the Cullural Heritage of Kincardine and the
surrounding region.
4. The Society islhe representative of an incorporated association of people
known as the Paddy Walker Heritage Society who have formed for the
purpose of raising money and contributing their time and effort to restoring
the Walker House.
5. The Council of Kincardine considers the restoration of the Walker House
to be in the interest of the Municipality.
6. The Society has applied to the Municipality of Kincardine for a loan of
$100,000.00 to be used for the purpose of restoring the Walker House.
7. Council has approved this loan by means of by-law # 2007-71, being the
consolidated budget for the Municipality of Kincardine in the year 2007.
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 Society to Kincardine for a loan of $100,000.00 is
approved by Kincardine.
1.01 The loan shaff be subject to the following Terms and Conditions:
. Principal amount of the loan - $100,000.00
. Interest rate - The loan shall be non-interest bearing
. Repayment - The principal of the loan shall be repaid in
installments as noted in schedule 'A':
Schedule 'A'
1) At the end of the years 2009 through 2013, the Society shall
repay a sum $5,000.00 per year. At the end of2013, a total
of $25,000.00 shall be repaid. (Installment #1)
2) At the end of years 2014 through 2021 the Society shall
repay a sum of $9,375.00 per year. At the end of 2021 a
total of $75,000.00 shall be repaid (Installment #2).
All repayments shall become due on Dec. 31st of the
assigned year and upon completion of repayments in
installments #1 ($25,000.00) and installment #2
($75,000.00), the total repayment of $100,000.00 is deemed
repaid.
2: CONDITIONS ON ADVANCE OF THE LOAN
2.1 Prior to advancing the loan, the Trustee shall deliver to Kincardine proof of
the following matters:
(a) A bank account has been opened in the name of the Paddy Walker
Heritage Society.
(b) The Society agrees to maintain appropriate insurance coverage for
their operations, including liability, content and property, machinery
and boiler. The Society agrees to forward a copy of their policy to
the Municipality for information purposes only.
(c) The Society agrees to maintain insurance coverage during the
period of this loan agreement.
3. USE OF THE LOAN
3.1 The proceeds of the loan shall be made payable to the Society 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 Walker
House.
4. OWNERSHIP OF THE WALKER HOUSE AND CONTENTS
4.1 It is acknowledged by the Society that the legal and beneficial ownership
of the Walker House and contents shall remain solely with the Society.
5. OBLIGATIONS AND DISCLOSURES BY THE SOCIETY
5.1 The Society wilt submit to Kincardine on an annual basis, a signed
business plan indicating the work completed towards the restoration of the
Walker House.
5.2 The Society will submit to Kincardine on an annual basis, a Community
Report outlining all the financial activity of the group relating to the Walker
House restoration project.
6. DEFAULT
6.1 The Society agrees that in the event of a default on the payment of the
loan as agreed in Article 1.01, it or a delegated member of the Society
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 Walker House restoration project.
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 Society shall report to and
deliver all reports, certificates and make all loan payments to the
Treasurer as required by this agreement.
8. ASSIGNMENT
8.1 This agreement shall be binding on the Society and Kincardine and shall
not be assigned by the Society without the consent of Kincardine as
authorized by By-law.
8.2 The July 13, 2007 Paddy Walker Heritage Society loan repayment letter
from Maureen Couture, Chair of Fundraising and Public Relations
Committee shall tonn Schedule 'B' of this agreement.
8.3 The attached Paddy Walker Heritage Society business plan for the years
2008 through 2020 shall form Schedule 'C' to this agreement.
Signed sealed and witnessed by the parties hereto:
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Passed the 3~d dayof~,2007.}
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<"DILuv G "J)U2JICcN
Witness V
THE SOCIETY
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Vice-President - Graham Mahood
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THE CORPORATION OFTHE
MUNICIPALITY OF KINCARDINE
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CAO - John deRosenro
SC\-\cGULG <3
July 13, 20Q7
John deRosenroll
Chief Administrative Officer
Municipality of Kincardine
RR. #5, 1475 Concession 5
Kincardine, ON N2Z 2X6
Dear John:
We are responding to your request for a repayment proposal from the
Walker House for the $100,000 interest-free loan that the Municipality has so
kindly approved for the Paddy Walker Heritage Society, in order to assist with the
completion of the capital portion of the restoration of the Walker House.
Over the next twelve to eighteen months, we intend to complete the
construction project. OUf goal is to have the building substantially complete for
the 2008 Kincardine Old Boys and Girls Reunion. The loan from the municipality
will not be sufficfent to completely cover these costs; therefore, we will be
continuing our fundraising to raise the required funds (an additional $25,000 to
$75,000 depending upon the requirements for our kitchen). We have also
recently received approllal1or a minor lIafiance to construct a workshop and
storage shed to the west of the building, and thatwiU also be undertaken over the
summer and fall.
Consequently, we are requesting that we defer annual payments on the
loan until 2009, and to repay the loan in increasing annual payments until the
year 2021. Specifically, we would propose the following:
Each of the years 2009 through to 2013-
2014 to 2021 - $9,375 per year
$5,000 per year
$25,000
75,000
$100,000
Total repaid by 2021
As an organization, as you are aware, we are also required to fundraise
and secure grant funding for the operation of the Walker House, in addition to the
construction funding. Operations will, of course, be ongoing every year. We
have been fortunate in securing grants for summer student employees, and for
other functions, and we hope to continue to receive these. We have been very
successful thus far, and sincerely appreciate the assistance that has been
provided to the Walker House from the municipality since the inception of the
restoration project.
We look forward to your approval of this repayment plan. If you have any
questions or require further infonnation, please do not hesitate to contact us via
our Public Relations and Fundraising Chair, Maureen Couture.
Sincerely,
Maureen Couture, Chair
Public Relations and Fundraising
Paddy Walker Heritage Society
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