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HomeMy WebLinkAbout22 085 Kincardine Outdoor Volleyball Association Loan Agreement By-lawTHE CORPORATION OF THE MUNICIPALITY OF KINCARDINE BY-LAW NO. 2022 - 085 BEING A BY-LAW TO AUTHORIZE A LOAN AND ENTER INTO AN AGREEMENT WITH THE KINCARDINE OUTDOOR VOLLEYBALL ASSOCATION (KOVA) WHEREAS Section 8 (1) and 9 of the Municipal Act, 2001, S.O. 2001, c. 25, as amended, provide that the powers of a municipality under this or any other Act shall be interpreted broadly so as to confer broad authority on the municipality to enable the municipality to govern its affairs as it considers appropriate and to enhance the municipality’s ability to respond to municipal issues and has the capacity, rights, powers and privileges of a natural person for the purpose of exercising its authority under this or any other Act; AND WHEREAS the said Municipal Act 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 the Council of The Corporation of the Municipality of Kincardine deems it advisable to enter into a loan agreement with the Kincardine Outdoor Volleyball Association (KOVA) in the amount of $63,000; NOW THEREFORE the Council of The Corporation of the Municipality of Kincardine ENACTS as follows: 1. That The Corporation of the Municipality of Kincardine enter into a loan agreement with the Kincardine Outdoor Volleyball Association (KOVA) in the amount of $63,000, attached hereto as Schedule A. 2. That the loan agreement with the Kincardine Outdoor Volleyball Association be exempt from Policy GG.2.19 Municipal Loans to Ratepayers. 3. That the loan be funded from and repaid to the Contingency Reserve. 4. That the Mayor and Chief Administrative Officer be authorized and directed to execute, on behalf of The Corporation of the Municipality of Kincardine, loan agreement with the Kincardine Outdoor Volleyball Association (KOVA), attached to this by-law as Schedule ‘A’. 5. That this by-law shall come into full force and effect upon its final passage. Page 2 of 2 Kincardine Outdoor Volleyball Association Loan Agreement By-law By-law No. 2022 - 085 6. That this by-law may be cited as the “Kincardine Outdoor Volleyball Association Loan Agreement By-law". READ a FIRST and SECOND TIME this 2nd day of May, 2022. READ a THIRD TIME and FINALLY PASSED this 2nd day of May, 2022. Mayor Clerk LOAN AGREEMENT This Agreement made this 2nd day of May , 2022. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE (Hereinafter referred to as the "Municipality") -and- KINCARDINE OUTDOOR VOLLEYBALL ASSOCIATION (KOVA) (Hereinafter referred to as the "Association") RECITALS I. The Council of the Municipality of Kincardine considers recreational volleyball to be an important program within the Municipality. II. The Association has applied to the Municipality of Kincardine for a loan of $63,000 to be used for the purpose of constructing four (4) outdoor volleyball courts. III. Council has approved this loan to be borrowed from the Contingency Reserve, with full repayment (interest-free) to be made by the Association through fundraising efforts and league revenues over a maximum period of eight (8) years. NOW THEREFORE, in consideration of this agreement and other good and valuable consideration it is agreed by the parties as follows: 1. THE LOAN (a) The application by the Association for a loan of$63,000 is approved by the Municipality. (b) The loan shall be subject to the following Terms and Conditions: • Principal amount of the loan - $63,000 • Interest Rate — The loan shall be non-interest bearing. • Repayment — The principal of the loan shall be repaid in installments noted with the following terms: • $63,000 payable over a maximum period of eight (8) years, being equal payments of$7,875 per year. • At any time, the Association may make lump sum payments towards the loan amount. • The first payment of$7,875 is due on or about October 2nd, 2022. • The remaining seven (7) payments of$7,875 will commence on or about October 1st, 2023 and each subsequent payment will be provided on or about October 1 st, 2024, on or about October 1 st 2025, on or about October 1st, 2026, on or about October 1st 2027, on or about October 1st, 2028, and on or about October 1st 2029 until the $63,000 is paid. • The Association will provide repayments to the Municipality through a fundraising platform as well as through annual league revenues. 2. CONDITIONS ON ADVANCE OF THE LOAN Prior to advancing the loan, the Association shall deliver to the Municipality proof of the following matters: (a) The Association agrees to maintain appropriate insurance coverage for their operations, including liability, content, and property. (b) The Association agrees to forward a copy of their policy to the Municipality for information purposes only. (c) The Association agrees to maintain insurance coverage during the period of this loan agreement. 3. USE OF THE LOAN (a) The loan will be used solely for the purpose of constructing four (4) volleyball courts to be located at Station Beach at the North Side of the Rotary Snack Shack. (b) The Municipality will manage the funds and oversee the construction phase as a municipal project. (c) The Municipality will provide tax receipts for donations received related to the project in accordance with the Charitable Donations Policy (G.G.2.4). 4. OWNERSHIP OF THE MATERIALS/CONTENT (a) It is acknowledged by the Association that the legal and beneficial ownership of the proposed volleyball courts and the land on which they are erected shall remain under the ownership of the Municipality of Kincardine. 5. OBLIGATIONS (a) The Association will submit to the Municipality on an annual basis, a Community Report outlining all the financial activity of the group relating to the Kincardine Outdoor Volleyball Association. 6. DEFAULT (a) The Association agrees that in the event of a default on payment of the loan as agreed in Section 1(b), it or a delegated member of the Association shall forthwith or as otherwise agreed by with the Municipality, 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. (b) In the event of a default, subject to any other rights it may have unfer this agreement, or at law, the Municipality may terminate this agreement and/or rights that the Association might have shall be terminated forthwith. 7. FURTHER DISCLOSURE AND ADMINISTRATION OF AGREEMENT (a) The administration of this agreement on behalf of the Municipality shall be conducted by the Department of Corporate Services and the Association shall report to and deliver all reports, certificates and make all loan payments to the Department of Corporate Services as required by this agreement. 8. ASSIGNMENT (a) This agreement shall be binding on the Association and the Municipality and shall not be assigned by the Association without the consent of the Municipality as authorized by By-law. Signed, sealed, and witnessed by the parties hereto: Olivia KemM`r)el Signed with Consign0 Cloud(2022/05/03) IIIII"IIII'lll'lllllllllllll IIII01111111 Verify with verifio.com or Adobe Reader. KINCARDINE OUTDOOR VOLLEYBALL ASSOCIATION Witness Arthur Thurland M Signed with Consign0 Cloud(2022/04/28) I'llllllllllllllll""IImI IIII Verify with verifio.com or Adobe Reader. Arthur Turland, President Sign Alexis Goallaontllllllllllllllllllllllllk"nM Veh with verifio.corn or Adobe Reader. I'�I IIMIIII Alexis Gallant, Treasurer THE CORPORATION OF THE MUNICIPALITY OF KINCARDINE GerryGlover °I°ICI°"' Signed withsignO Cloud(2022/OS/03) Verify with verihe com or Adobe Reader. IIII Gerry Glover, Mayor Roxana Baumann IpIIIIIIIIiI Signed with Consign0 Cloud(2022/05/03) IIIII"IIIIIIIIII'lllllllll IIO IIII Ilmllll Verify with verifio.com or Adobe Reader. Roxana Baumann, Acting CAO