HomeMy WebLinkAbout09- Bozeman Downtown Recovery Fund Participation Agreement with Northwestern EnergyBOZEMAN DOWNTOWN RECOVERY FUND
PARTICIPATION AGREEMENT
The City of Bozeman, Montana (the "City") desires to establish a fund to be
known as the Bozeman Downtown Recovery Fund (the "Fund"), which Fund is to be
used to provide financial assistance in the form of loans on an expedited basis to certain
businesses and/or property owners (Affected Owners) located in downtown Bozeman,
Montana to assist in the recovery of businesses affected by the explosion and fire that
occurred in downtown Bozeman, Montana, on March 5, 2009 (the "March 5 Events").
Northwestern Energy agrees to contribute $50,000 to the Fund (the "Funding
Amount").
The City will loan all or part of the Fund to Affected Owners or an entity agreeing
to process the funds on behalf of the Affected Owners as determined exclusively by the
City. Loans from the Fund ("Fund Loans") may require repayment and may be backed
by adequate security, as determined exclusively by the City, including assignment of
applicable insurance proceeds or other amounts received by Affected Owners in regard
to the March 5 Events. The City will use reasonable efforts to collect from Affected
Businesses, by the Maturity Date and thereafter as necessary, the outstanding amounts
of all Fund Loans.
The City has established a capitalization strategy for the Fund that requires
money in the Fund to be loaned-out in the amounts and order listed below, fully utilizing
one source before moving to the next source:
$50,000 from the City General Fund.
$50,000 from the Northwestern Energy contribution.
iii. $110,000 from the City's Housing Revolving Loan Funds.
iv. $90,000 from the City's Economic Development Revolving Loan Fund.
The Fund capitalization strategy also requires repayment of funds to be credited to
sources in the following order, fully crediting one source before moving to the next:
$90,000 to the City's Economic Development Revolving Loan Fund.
$110,000 to the City's Housing Revolving Loan Funds.
iii. $50,000 to Northwestern Energy for their contribution.
iv. $50,000 to the City General Fund.
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Northwestern Energy agrees any repayment made under this Agreement will be
pursuant to the repayment schedule listed above.
To the extent Northwestern Energy does not receive full repayment of the
Funding Amount, such Northwestern Energy may treat such deficiency as a donation to
the Fund or otherwise as such Northwestern Energy may deem appropriate, provided,
however, that the Northwestern Energy will not have any further recourse against the
Fund or the City with respect to such deficiency if the City otherwise complies with its
obligations under this Participation Agreement.
Northwestern Energy is providing the Funding Amount as a gesture of goodwill
to assist the City in its efforts to quickly address immediate concerns of the Bozeman
downtown district in regard to recovery from the effects of the March 5 Events. Entering
into this Participation Agreement, providing any Funding Amount, or otherwise taking
any actions in regard thereto, is not and shall not be deemed an admission of any fault
or liability on the part of the Funding Participant, with respect to the March 5 Events or
otherwise, which fault and liability are expressly denied by Northwestern Energy.
This Participation Agreement is entered into by the City and Northwestern
Energy as of the date set forth below.
City:
ATTEST:
CITY OF BOZEMAN
By: u
Chris A. Kukulski, Bozeman City Manager
acy m n, Cle k of Bozeman City Commission
APPROVED TO FORM:
re Sullivan, Bozeman City Attorney
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Northwestern Energy:
Name: / ~ra•,.,~F C . ~~~~-
Title: C ~ ~)
Funding Amount: $ ,~ G, O~ Q
Date: S~- / 3 - ~
1360026.2