HomeMy WebLinkAboutBy-law No. 2012-037 THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW NO. 2012-037
A BY-LAW TO AUTHORIZE THE EXECUTION
OF A GUARANTOR AGREEMENT BETWEEN THE
MUNICIPALITY OF BAYHAM
AND
THE ELGIN MILITARY MUSEUM
WHEREAS the Council of the Corporation of the Municipality of Bayham is desirous of
entering into a Guarantor agreement with the Elgin Military Museum;
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM ENACTS AS FOLLOWS:
1. THAT the Mayor and Clerk be and are hereby authorized to execute the Agreement
attached hereto as Schedule "A" and forming part of this by-law between the Elgin
Military Museum and the Municipality of Bayham.
2. THAT this by-law shall come into full force and effect upon final passing.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 5TH DAY
OF APRIL 2012
• YOR CLERK
��e f,g'L ��� 37
- v
March 15, 2012
Elgin Military Museum
Guarantor Agreement—Project Ojibwa
1. The Municipality of Bayham (the Municipality) will act as guarantor for the Elgin Military Museum
(the Museum) on an appropriate line of credit, loan or similar financial instrument, for the
purpose of the relocation of the HMCS Ojibwa from its current location in Halifax NS to its
placement on lands located at the easterly side of the harbour in Port Burwell, ON. The line of
credit is to used only for eligible expenses, which shall only be those incurred for such move
commencing March 23, 2012 and terminating approximately September 8, 2012. Such line of
credit/loan shall not exceed $6,000,000.
2. The Municipality will not be guarantor for any expenses relative to the restoration or ongoing
maintenance of HMCS Ojibwa upon its placement at Port Burwell, for the construction of any
interpretive centre, museum, or similar structure(s) at the site, nor any future operating costs for
such facility.
3. Fulfilling the role as guarantor as noted in paragraph 1 shall be subject to the following:
a) The Museum has made best efforts to exhaust other financing mechanisms including surety
bonding.
b) The Museum shall establish banking arrangements for Project Ojibwa separate from current
operations for its facility at St. Thomas.
c) The Museum shall establish an independent line of credit/loan to the maximum it can
establish (the Primary Account) and shall utilize such for all borrowing prior to utilizing the
line of credit/loan subject of this agreement (the Secondary Account).
d) Any and all agreements required by any financial institution relative to the Municipality
acting as guarantor shall be to the satisfaction of the Municipality at its sole discretion.
e) The Museum shall provide copies of all contract agreements over $5,000 regarding the move
of HMCS Ojibwa to the Municipality for review (in confidence if applicable).
f) Any draws/payments from the Secondary account in excess of$5,000 shall require prior
approval from the Municipality as represented by its Treasurer or Administrator.
g) The Museum shall apply all fundraising, grant and operational revenues associated with
Project Ojibwa to reduce the Secondary Account forthwith, prior to the Primary Account, and
shall retire the letter of credit/loan as quickly as possible, to enable the municipality to be
released as guarantor.
h) The museum shall not undertake construction activities excepting those required for the
move and placement of HMCS Ojibwa prior to retiring the Secondary Account, unless the
Municipality consents.
i) In the event of any default by the Museum, any and all assets of the Museum, excepting
artifacts, shall be liquidated and applied to the Secondary Account before any payment by
the municipality.
j) The Museum will provide a monthly financial report to the Municipality regarding the status
of Project Ojibwa.
March 15, 2012
k) The Museum shall retain a professional fundraiser for assistance with Project Ojibwa within
three (3) weeks of completion of this agreement. Alternate arrangements may be permitted
by mutual agreement.
I) Any and all expenses of the Municipality incurred in order to act as guarantor for the
museum, including but not limited to interest costs, shall be recoverable from the museum.
Dated this.5i day of rm re-h 2012.
Municip. ity of Bayham
lnl.'r Milita + useu