HomeMy WebLinkAbout03 - Municipality of Bayham - Project Ojibwa Package
MEDIA RELEASE
MARCH 12, 2015
Municipality of Bayham – Project Ojibwa
On March 10, 2015 the Royal Bank of Canada (RBC) informed the Municipality that it is
calling u pon the Municipality of Bayham to pay the sum of six million dollars
($6,000,000.00)**. That sum is the amount of the loan guarantee which the Municipality
provided to the Royal Bank of Canada in connection with Project Ojibwa.
The RBC advises that it has advanced the full amount of the loan to the Elgin Military
Museum and that the Elgin Military Museum is in default of its repayment obligations to
the Royal Bank of Canada. The Royal Bank of Canada has elected to call the loan as a
consequence of the default and the Municipality is responsible for payment pursuant to
the terms of the Guarantorship Agreement.
The Council of the Corporation of the Municipality of Bayham will conduct a Public
Information Session on Monday March 16, 2015 at 7:00 PM at the Vienna Community
Centre located at 26 Fulton St. Vienna, ON. The Public Information Sessi on will provide
a recap of events and explain the process moving forward. Please note, the Public
Information Session will not feature a question and answer period.
For additional information please refer to Staff Report CAO 19/15 re Project Ojibwa –
Financial Plan. The report is available on the Municipal Website at www.bayham.on.ca
and through the Municipal Office located at 9344 Plank Rd, Straffordville, ON.
** The Elgin Military Museum has until March 20, 2015 to pay said funds. Should the Elgin
Military Museum not be able to make the payment the Municipality of Bayham letter of
credit will be called on by the Royal Bank of Canada on March 20, 2015.
PROJECT OJIBWA PUBLIC INFORMATION SESSION
TO BE HELD ON
MONDAY, MARCH 16, 2015 AT 7:00PM
AT THE VIENNA COMMUNITY CENTRE, 26 FULTON STREET
Corporation of the Municipality of Bayham
Project Ojibwa – Information Sheet
1) Why does the Municipality have to pay the six million dollars ($6,000,000)?
On August 2, 2012 the Council of the Corporati on of the Municipality of Bayham passed
By-law No. 2012-089 being a by-law to authorize an irrevocable standby letter of credit
facility with the Royal Bank of Canada, to guarantee borrowing by the Elgin Military
Museum to the maxi mum amount of six million dollars ($6,000,000.00). The Elgin
Military Museum borrowed money through a credit facility with the Royal Bank of
Canada, against the six million dollar letter of credit. The Elgin Military Museum failed to
make payments on the loan and the Royal Bank of Canada called upon the Municipality
of Bayham irrevocable letter of credit in the amount of six million dollars ($6,000,000.00).
2) Where will the money to pay the six million dollar ($6,000,000) letter of credit come
from?
Coun cil has approved a plan where the Municipality will debt finance the six million
dollars ($6,000,000) from The Toronto-Dominion Bank for a ten (10) year term loan,
twenty-five year (25) amortization period, in the amount of six million dollars
($6,000,000.00), at a rate of interest of 2.71% per annum*. This will require loan
payments of $27,555.95/month. For the remaining ten (10) months in 2015 the
Municipality will utilize reserves to pay the amount required ($275,559.50). In 2016, if
the Municipality has not recouped funds from the Elgin Military Museum or obtained
funding from upper levels of government, the Municipality will incorporate $330,671.40
into the tax levy.
* Rate of 2.71% is subject to credit approval. The Toronto-Dominion Bank is not
currently the Municipal Financial Institution.
3) Will this affect my taxes, and if yes, how much?
In 2015, the Municipality will utilize reserves to pay the amount required ($275,559.50).
In 2016, if the Municipality has not recouped funds from the Elgin Military Museum or
obtained funding from upper levels of government, the Municipality will incorporate
$330,671.40 into the tax levy. $330,671.40 represents a 10.3% total levy increase over
2014 notional dollar value. As taxes incorporate all expenses of the Municipality
depending upon government funding and operational expenses the total levy impact in
2016 may be more or less than that amount.
4) Will this affect property values and the ability to sell property in the Municipality?
A number of factors influence the real estate market and the Municipality cannot
speculate on property values or real estate. The Council of the Corporation of the
Municipality of Bayham intends to work to ensure the Municipality of Bayham tax rates
continue to stay competitive within Elgin County and surrounding areas.
5) Will Municipal services be affected now and going forward?
Every year the Municipality is tasked with reviewing service levels. The 2015 Budget
service levels are not presently affected by the Project Ojibwa letter of credit. If the
Municipality cannot find upper levels of government financial support, services going
forward in 2016 may be affected. The Council of the Corporation of the Municipality of
Bayham will work diligently in the interim to attempt to source upper levels of
government financial support for the six million dollar letter of credit debt.
6) What happens to the ability for the Municipality to borrow money?
The Municipality of Bayham debt capacity, or ability to borrow money , is determined by
Ontario Regulation 403/02 – Debt and Financial Obligation Limits. The Ministry of
Municipal Affairs and Housing calculates municipal debt capacity (Annual Repayment
Limits - ARL) based on data contained in Municipal Financial Information Returns. The
2015 Municipality of Bayham Annual Repayment Limit is $1,249,960. Including the six
million dollar ($6,000,000) letter of credit loan, and the Station 1-Fire Hall Loan, the
Municipality will be utilizing 31.7% of its available debt capacity. The Municipality will still
have 68.3% of its available debt capacity to borrow money.
7) How does this affect current issues with the facilities?
The Council of the Corporation of the Municipality of Bayham was investigating and
considering options to ensure Municipal facilities were safe, sustainable and viable
before the requirement to pay the six million dollars ($6,000,000) was identified. The
goal continues to be that facilities are safe, sustainable and viable within the financial
realities of the Municipality.
8) Have upper levels of government been approached for financial assistance?
During 2014, staff under the direction of Council made numerous requests of upper
levels of government including:
a. MP requested assistance to source an entity to hold the guarantee in place of the
Municipality and/or pay out the same.
b. MPP requested assistance to source an entity to hold the guarantee in place of
the Municipality and/or pay out the same.
c. Request of FedDev, Heritage Canada, National Defence and Public Works
Canada to assume the Guarantor ship and/or pay out the same, as permitted
under Federal Legislation via incorporation into the Federal Budgetary Estimates
Further, the Municipality is currently engaged in a Senior Government Cash Strategy to
aggressively lobby for the financial support of senior levels of government to pay out or
assume the financial responsibility of Project Ojibwa.
9) Who is now responsible for the HMCS Ojibwa?
The payment of the letter of credit by the Municipality to the Royal Bank of Canada
results from the Guarantorship Agreement, which is between the Municipality and the
Royal Bank of Canada.
The payment has no direct impact upon ownership of Elgin Military Museum assets
including the HMCS Ojibwa. The Municipality can demand payment by the Elgin Military
Museum of the amount which the Municipality has been required to pay on behalf of the
Elgin Military Museum and can commence litigation proceedings against the Elgin
Military Museum for the recovery of money owing.
10) Does the Municipality paying the six million dollar letter of credit leave the Elgin
Military Museum with no responsibility for its actions, specifically financial
responsibility?
The responsibilities of both the E lgin Military Museum and the Municipality are set out in
the Guarantorship Agreement. In essence, the Municipality becomes a creditor of the
Elgin Military Museum as a result of the letter of credit payment.
11) What becomes of the Elgin Military Museum?
There are several possibilities, however, it seems likely that the E lgin Military Museum
will be stripped of its assets by creditors through the legal system and will be unable to
function.
12) Will the Municipality ever get the money for the six million dollar ($6,000,000) letter
of credit back?
On March 12, 2015 the Council of the Corporation of the Municipality of Bayham
directed staff to pursue available legal remedies under the Guarantorship Agreement
between the Elgin Military Museum and the Municipality.
While it may be possible to recover judgment, it may not be possible to recover the sum
owed under the judgment, because it is likely that the liabilities of the E lgin Military
Museum will exceed the value of the assets of the Elgin Military Museum.
13) What does the Municipality get out of paying the six million dollar ($6,000,000)
letter of credit?
As a result of By-law No. 2012-089, passed on August 2, 2012, being a by-law to
authorize an irrevocable standby letter of credit facility with the Royal Bank of Canada, to
guarantee borrowing by the Elgin Military Museum to the maximum amount of six million
dollars ($6,000,000.00) the Municipality of Bayham had a contractual requirement to the
Royal Bank of Canada to pay the six million dollars ($6,000,000). The Municipality does
not get anything tangible from paying the amount. The Municipality is paying its debt to
the Royal Bank pursuant to By-law No. 2012-089.
14) How will this affect the image, pride, reputation and economic prospects of the
Municipality of Bay ham?
In 2012, the Council of the Corporation of the Municipality of Bayham supported a
project with the potential to have a significant economic impact in the Municipality of
Bayham with a July 2011 IBI Group report estimating the project had the potential to
create a ‘$14.4 million in impact on Elgin County which was generated using the Ontario
Ministry of Tourism's TREIM model’. The fact is that the project failed and did not
generate the expected economic impact. T he Council of the Corporation of the
Municipality of Bayham now intends to work harder than ever to ensure the Municipality
of Bayham tax rates continue to stay competitive within Elgin County and surrounding
areas. Council intends to work to ensure that the Municipality of Bayham is known firstly
for its community, its people, its businesses and opportunities.
15) What efforts did the Elgin Military Museum put into fundraising?
It is the understanding of the Municipality that the Elgin Military Museum hired two
separate professional fundraiser s and both failed to generate any funds, citing that once
the Project Ojibwa was placed in its final location, it was nearly impossible to raise funds
to cover debt.
16) Why did the Elgin Military Museum fail to live up to its responsibilities to the
Municipality?
A number of subjective reasons can be developed as to why the Elgin Military Museum
failed to succeed with Project Ojibwa, the main fact appears to be that the Elgin Military
Museum did not generate enough attendance to generate enough revenue to fund all
expenses, specifically debt obligations.
17) How much money does the Elgin Military Museum owe the Municipality of
Bayham?
The Elgin Military Museum owes the Municipality of Bayham the following monies:
a. $6,000,000 – letter of credit
b. $102,000 – Guarant orship fees
c. +any and all future legal fees pertaining to Project Ojibwa and the Guarantorship
agreement.
The sub-total the Elgin Military Museum currently owes the Municipality is $6,102,000 +
any and all future legal fees pertaining to Project Ojibwa and the Guarantorship
Agreement.
18) What did the Municipality do to prevent the Municipality from being responsible
for the six million dollar letter of credit?
The Council of the Corporation of the Municipality of Bayham made multiple efforts to
source information from the Elgin Military Museum including correspondence and
meetings on the following dates:
a. July 26, 2013;
b. January 29, 2014;
c. June 18, 2014;
d. August 27, 2014;
e. November 28, 2014
f. December 22, 2014
g. January 9, 2015
h. January 29, 2015
The general subject matter of the aforementi oned meetings pertained to the
Guarantorship Agreement as authorized by By-law No 2012-037 and efforts of the Elgin
Military Museum to comply with the c ontractual requirements of the Guarantorship
Agreement.
As a result of the December 22, 2014 direction of Council, staff also attempted to have
an audit of the Elgin Military Museum conducted, however failure of the Elgin Military
Museum to provide the appropriate documents to the auditors resulted i n the process
being cancelled.
19) With a general knowledge that the Elgin Military Museum was not complying with
the requirements of the Guarantorship Agreement, why didn’t the Municipality
take action earlier against the Elgin Military Museum, pursuant to the
Guarantorship Agreement?
Beyond the efforts the Municipality and the Legal Counsel of the Municipality made as
outlined in Section 18, of this information sheet, any action the Municipality would have
taken, would have resulted in the Municipality being immediately responsible for the full
six million dollar letter of credit. The Council of the Corporation of the Municipality of
Bayham determined that it would be more financially beneficial to the Municipality for the
Elgin Military Museum to be given the opportunity to succeed and generate a positive
cash flow. Further, the Municipality is not responsible for Project Ojibwa failing. The
failure rests solely on t he Elgin Military Museums inability to fund its financial
requirements.
20) Why didn’t the Municipality make the loan payments to prevent the letter of credit
from being called upon?
On April 5th 2012, the Council of the Corporation of the Municipality of Bayham passed
By-law No. 2012-037, a by-law pursuant to Section 107 of the Municipal Act, 2001, to
authorize a municipal guarantee for borrowing by the Elgin Military Museum. Any
payments made beyond the terms of the Guarantorship Agreement would have
increased the Municipality’s total exposure to the Royal Bank of Canada.
21) What legal proceedings is the Municipality currently involved with pertaining to
the Elgin Military Museum?
a. On October 17th, 2014 the Municipality of Bayham was served with a Statement
of Claim by Mammoet Canada Eastern Ltd. and Heddle Marine Service Inc. in
which the Plaintiffs claim that they are owed a cumulative amount of one million,
one hundred thirty one thousand, and eight dollars and ninety-two cents
($1,131,008.92) by the Elgin Military Museum and the Municipality. The action is
in its "discovery" phase and the Municipality is defending this action on its own
behalf.
b. Pursuant to the Guarantorship Agreement, the Municipality will immediately
commence litigation proceedings agai nst the Elgin Military Museum for the
recovery of funds owing.
22) Does the Municipality have any plans to try and operate the HMCS Ojibwa as a
successful tourist site?
The Municipality does not have the right to operate or seize the property of the E lgin
Military Museum , because the Municipality is not a secured creditor. The R oyal Bank of
Canada is known to be a secured creditor and may appoint a receiver to manage the
affairs of the E lgin Military Museum . The primary function of a receiver is to protect the
interest of the creditor. It could be in the interest of whoever is responsible for managing
the assets of the E lgin Military Museum to operate the HMCS Ojibwa as a tourist site,
but this is entirely outside the Municipality's power.
REPORT
CAO
TO: Mayor & Members of Council
FROM: Paul Shipway, Administrator
DATE: March 12, 2015
REPORT: CAO-19/15 SUBJECT: PROJECT OJIBWA – FINANCIAL PLAN
OVERVIEW
The Royal Bank of Canada is calling upon the Municipality of Bayham to pay the sum of six million
dollars ($6,000,000.00) by March 20, 2015. That sum is the amount of a loan guarantee which the
Municipality provided to the Royal Bank of Canada in connection with Project Ojibwa.
The Royal Bank of Canada advises that it has advanced the full amount of the loan to the Elgin
Military Museum and that the Elgin Military Museum is in default of its repayment obligations to the
Royal Bank of Canada. The Royal Bank of Canada has elected to call the loan as a consequence
of the default and is looking to the Municipality for payment of the six million dollars ($6,000,000.00)
pursuant to the terms of the Guarantorship Agreement.
This report is intended to provide a comprehensive outline of the position of the Municipality of
Bayham with respect to the Municipality's financial obligations resulting from the Project Ojibwa
matter. More specifically this report recommends that Council give consideration to rai sing funds
due to the Royal Bank of Canada as described in more detail below. This report also recommends
that further steps be taken to mitigate the impact of the emergent need to fund debt related to
Project Ojibwa.
Note:
i. On March 10, 2015 the Royal Bank of Canada served the Elgin Military Museum with a
demand for payment of the indebtedness. The Elgin Military Museum has until March 20,
2015 to pay said funds. Should the Elgin Military Museum not be able to make the payment
the Municipality of Bayham letter of credit will be called on by the Royal Bank of Canada on
March 20, 2015.
BACKGROUND
The Elgin Military Museum’s plan to obtain the HMCS Ojibwa was supported by Federal Community
Adjustment Funds in the amount of one million nine hundred thousand dollars ($1,900,000.00). The
grant was conferred on the basis of a business plan (July 2011 IBI Group Tourist Commercial
Destination Study – HMCS Ojibwa, Port Burwell ) which stated:
The Regional Tourism Profile for Elgin County showed that in 2008 some 17,000
person visits were made to historic sites and 10,000 person visits were made to
museums or art galleries. Annual visitation at existing submarine exhibits ranges
from 20,000 and 125,000 visitors annually.
Therefore, the Business Plan's estimate of attracting 100,000 visitors per season
may be somewhat aggressive. However, it is important to recognize the large
market potential, as there are more than 16 million people living wit hin a 3 to 4
hour drive of Elgin County. Research has shown that due to 'time poverty' and
economic conditions, there is a growing interest in shorter, more affordable trips
that are taken close to home. In terms of visitor spending, assuming the average
visitor spending in Elgin County continues to grow and reaches $70 per person
visit by the time the Ojibwa and museum are opened in 2013, 100,000 annual
visitors could generate an additional $7 million in visitor spending for the County.
A ripple effect of this direct tourist spending will also be seen through indirect
impacts (e.g. the production and supply of goods that support the tourism
attraction, such as the printing/production of information brochures) and induced
impacts (e.g. the re-spending by employees of the Ojibwa display who benefited
through the initial tourist spending (via wages) on consumer goods such as
groceries, clothing, etc.). An estimate of $14.4 million in impact on Elgin County
(direct, indirect and induced) was generated using the Ontario Ministry of
Tourism's TREIM model.
On April 5th, 2012, the Council of the Corporation of the Municipality of Bayham passed By-law No.
2012-037, a by-law pursuant to Section 107 of the Municipal Act, 2001, to authorize a municipal
guarantee for borrowing by the Elgin Military Museum.
On August 2nd, 2012, the Council passed By-law No. 2012-089, a by-law to authorize an irrevocable
standby letter of credit facility with the Royal Bank of Canada, to guarantee borrowing by the Elgin
Military Museum to the maximum amount of six million dollars ($6,000,000.00).
Over the course of the project, the Royal Bank of Canada advanced these funds to the Elgin
Military Museum under a loan agreement. It is the Municipality’s understanding that the cost of
Project Ojibwa has greatly exceeded the Elgin Military Museum's estimates. There were delays in
opening the submarine for public viewing and this reduced revenue from the project. Loan
payments due to the Royal Bank of Canada by the Elgin Military Museum had fallen into arrears by
the end of 2014.
Two unpaid creditors of the Elgin Military Museum have commenced legal proceedings against the
Elgin Military Museum with respect to Project Ojibwa. Those creditors named the Municipality as a
defendant concerning the debt of the Elgin Military Museum, on the theory that the Municipality was
a proponent (rather than a supporter) of the financial model . The amount said to be owing by the
Plaintiffs in this action is approximately 1.2 million dollars ($1,200,000). The Municipality is
defending this action on its own behalf.
Staff estimate the total cost of Project Ojibwa to the Elgin Military Museum , as of January 16, 2013,
to be approximately eight million eight hundred and forty six thousand two hundred twenty four
dollars ($8,846,224.00). This total does not take into account expenses incurred by others,
including the Municipality. For example, the Municipality is currently owed approximately one-
hundred-two thousand dollars ($102,000) in Guarantorship Fees by the Elgin Military Museum . This
amount is shown on the Municipalit y’s Financial Information returns (FIR’s) as a Contingent Liability
(amount owed to the Municipality).
DEFAULT OF THE ELGIN MILITARY MUSEUM
Throughout the project, the Municipality has raised and sought to rectify, concerns regarding
deficiencies in the financial information being provided. The Elgin Military Museum was required,
under the Guarantorship Agreement, to provide information concerning its activities, revenues and
the use of funds, to the Municipality. It is the opinion of staff that the Elgin Military Museum has not
honoured these obligations.
On October 17th, 2014 the Municipality of Bayham was served with a Statement of Claim by
Mammoet Canada Eastern Ltd. and Heddle Marine Service Inc. in which the Plaintiffs claim that
they are owed a cumulative amount of one million, one hundred thirty one thousand, and eight
dollars and ninety-two cents ($1,131,008.92) by the Elgin Military Museum and the Municipality.
The action is in its "discovery" phase and there is no additional information to report.
On December 18, 2014, following an in-camera meeting, Council passed the following public
resolution:
"THAT the Council of the Corporation of the Municipality of Bayham formally
acknowledge the financial arrangements of the Elgin Military Museum and the Royal
Bank of Canada;
AND THAT the Council of the Corporation of the Municipality of Bayham direct staff to
utilize funds from the Operating Reserve to obtain financial and legal guidance
pertaining to the future of the Municipality's credit facility with the Royal Bank of
Canada;
AND THAT Council schedule a meeting pursuant to the Municipality of Bayham
Procedural By-law for December 22, 2014 at 10:00 a.m.
At the Special Meeting of December 22, 2014, Council passed the following public resolution:
"THAT the Council of the Corporation of the Municipality of Bayham request that the
Elgin Military Museum immediately submit to a full audit of the entire Elgin Military
Museum to be conducted by Graham Scott Enns at the expense of the Municipality of
Bayham, within the next two weeks;
AND THAT the Elgin Military Museum provide any and all requested information to
Graham Scott Enns in due haste;
AND THAT the Elgin Military Museum immediately provide access to any and all
correspondence, agreements, contracts and documents (records), in any format, be it
confidential or not, in regards to Project Ojibwa, its acquisition or operation s, including
those pertaining to any form of government relations, to the Administrator of the
Municipality of Bayham;
AND THAT the Administrator be delegated authority to execute and operationalize any
and all of the above actions of Council."
Pursuant to Council direction, Staff contacted Graham Scott Enns to conduct an audit of the Elgin
Military Museum and the Elgin Military Museum agreed to the same. However, after numerous
attempts to obtain documentation from the Elgin Military Museum, the audit was cancelled as it was
not progressing or producing results due to the inability of the Elgin Military Museum to produce the
requested and required documentation. Additionally, on January 29, 2015, the Administrator of the
Municipality of Bayham spent the day at the Elgin Military Museum reviewing docum entation. These
activities failed to provide additional information on the financial position of the Elgin Military
Museum .
It is reasonably clear, however, that attendance figures have consistently failed to achieve the
levels anticipated by the IBI report. Consequently, the revenue stream generated by Project Ojibwa
is inadequate to support the financial obligations of the Elgin Military Museum, the most significant
of which have to do with debt repayment.
FINANCIAL AND STATISTICAL INFORMATION CONCERNING THE OJIBWA PROJECT
Information conc erning the activities of the Elgin Military Museum have been obtained by staff from
the Project Ojibwa and Elgin Military Museum websites:
1) The Municipality of Bayham financial projections of expense and revenue also add ed to the
concern regarding the project. Utilizing information obtained from the Project Ojibwa and the
Elgin Military Museum websites, the following statistics are illustrated:
a. 2014-2015 Project Ojibwa Hours of Operation
i. May 17, 2014 to September 8, 2014 = 115 Days
ii. 10 AM to 6 PM= 8 Hours
iii. September 9, 2014 to May 16, 2015 = 249 Days
iv. 12 AM to 5 PM= 5 Hours
v. Total 2014-2015 Hours of Operation= 2165 Hours
b. 2014-2015 Estimated Project Ojibwa Minimum Staffing Costs
i. 3 persons at minimum wage (3 x 2165 x $11 = $71,445.00)
c. 2014-2015 Estimated Project Ojibwa Debt Financing Responsibilities
i. $35,000.00/month = $420,000.00/year (based on a 25 year term at 3.5%)
ii. $104,000 Royal Bank of Canada Letter of Credit Fees
iii. 2014-2015 Project Ojibwa Total Projected Expenses $595,445.00
iv. Please note expenses do not include any overhead fees, insurance, realistic
staff costs, utilities or various contractual responsibilities.
d. 2014-2015 Project Ojibwa Projected Revenues
i. 2013 proclaimed (undocumented attendance) 30,000 persons
ii. Please note this translates to 14 persons/hour, for every hour indicated in
Section 1(a)
iii. Each tour averages one hour in length
iv. Adult entry price $15.79/person (includes tax)
v. 2013 projected revenue $473,700.00
e. 2014-2015 Projected Net Surplus/Deficit -$121,745.00
2) The Canada Revenue Agency Registered Charity non -audited financial statements of the
Elgin Military Museum for the time period of 2008 -2013 indicate the Elgin Military Museum
has never issued charitable receipts of more than $115,000.00 per annum. (Please note the
2012 charitable receipts includes a $325,000.00 estate donation.)
Elgin Military Museum- Financial Statements
Year Revenue Charitable
Receipts
Expenditures
2008 $141,011.00 $10,334.00 $82,457.00
2009 $96,832.00 $50,236.00 $96,362.00
2010 $110,864.00 $43,919.00 $164,992.00
2011 $477,157.00 $40,188.00 $703,835.00
2012 $423,426.00 $357,432.00 $7,629,489.00
2013 $538,997.00 $110,134.00 $921,908.00
3) The Canada Revenue Agency Registered Charity non -audited financial statements of the
Elgin Military Museum for the time period of 2008 -2013 have annually trended towards a
growing deficit.
Elgin Military Museum - Financial Position
Year Liabilities Financial Position Assets
2008 $237,762.00 $269,684.00 $507,446.00
2009 $237,577.00 $255,838.00 $493,415.00
2010 $237,577.00 $261,551.00 $499,128.00
2011 $518,976.00 -$61,588.00 $457,388.00
2012 $8,430,563.00 -$7,267,651.00 $1,162,912.00
2013 $7,778,250.00 -$7,650,585.00 $127,665.00
4) Utilizing the information provided by the Elgin Military Museum, additional information can
be garnered about the success of the Elgin Military Museum operations and Project Ojibwa
in 2014.
June 2014 July 2014 August 2014
Revenue $31,633.16 $57,542.06 $69,670.55
Attendance 1,946 3,710 4,462
Revenue/Person $16.25 $15.50 $15.61
Average Revenue/Person June-August 2014 - $15.77
Average Persons/Month June-August 2014 – 3,372 persons/month
From this information it can be derived that if annually Project Ojibwa could draw its average
monthly attendance for June-August 2014 it would see total visitors of 40,464 persons and
$638,117 annual revenue. However due to the steep decline in attendance even in June from the
three month aver age (-43%) it is not realistic to think that said attraction totals are plausible during
the winter months.
OPTIONS FOR FUNDING THE PROJECT OJIBWA GRANT
On August 2nd, 2012, through By-law No. 2012-089, the Municipality provided a "grant", in the form
of a guarantee. Now that the Bank has called upon the Municipality for payment, the Municipality
must fund the grant. Staff present the following financial model for Council consideration:
Debt Finance Six Million Dollars
10 Year Term at 2.71%, 25 year amortization = $27,555.95/month or $330,671.40/year
2015 Annual Repayment Limit = 31.7%
Levy Impact (2014 Dollars) = 10.3%
Note:
i. Staff did investigate the possibility of utilizing internal borrowing from reserve funds to finance
a portion of the debt (up to one million dollars $1,000,000) however the drop in interest rates
have made it more financially prudent to borrow the entire amount externally. To internally
finance from reserve funds, to ensure funding matched historical investment return, the rate
would be 2.9% (three year historical average).
ii. Staff sought rates from all major lenders with 2.71% from TD Canada being the best available
rate.
a. Rates are subject to credit approval. TD is not currently the Municipal Financial
Institution.
In this financial model, staff would recommend the first year of payments, until January 1, 2016 for
the s ix million dollar $6,000,000 letter of credit, would utilize reserves to make the payments.
Specifically the Rate Stabilization reserve which as of January 2, 2015 has a balance of $393,000
(10 months of payments = $275,559.50). Utilizing reserves for 2015, to make loan payments, would
prevent a levy increase in 2015, related to the six million dollar loan and would allow the levy to be
m ore reasonably impacted over the coming years. These numbers are estimates, but staff believe
the aforementioned plan represents a responsible and sustainable solution given the financial
realities of the Municipality.
The aforementioned option presently c omplies with Ontario Regulation 276/02 which regulates
municipal bank loans. Further, the auditor has no concerns with this proposal , as long as any
borrowing by -law is properly enacted and clearly sets out the terms of the borrowing.
Existing Debt
Staff recommend Council assess existing Municipal debt, in order to minimize utilization of the
Annual Repayment Limit as calculated by the Ministry of Municipal Affairs and Housing. The
Municipality currently has the following loans:
Loan #1 – Port Burwell Fire Hall
a. ($715,000 - 14 Year RBC Term Loan) 12 Years remaining at 3.56% - Balance as of
1/1/15 = $612,552.50
b. $42,815.44 Principal and Interest of $22,184.56 in 2015
Staff propose for this loan to remain for the remainder of its term.
Loan #2 – Port Burwell Water System
a. ($358,633 - 10 Year RBC Term Loan) 5 Years remaining at 4.1% - Balance as of
1/1/15 = $222,823.52
b. $35,496.95 Principal and Interest of $8,551.01 in 2015
To dispose of this loan staff propose to immediately utilize water reserves to pay off the remainder of
the loan ($222,823.52 Principal, Interest and Penalty of $22 ,000 in 2015 which would leave
approximately $335,387.33 in the water reserve as of the c ommencement of 2015). The purpose of
removing this loan is to i ncrease debt capacity on the Financial Information Returns (FIR).
Minimizing debt capacity utilization is important as debt servicing charges have the ability to strain
operating budgets and potentially “crowd out” other operating expenditures on programs and
services that are mandated, expected and valued by citizens.
COMPANION INITIATIVES
Besides general requests for a more productive relationship with the Elgin Military Museum, staff
have made the following formal requests of various organizations:
1. MP requested assistance to source an entity to hold the guarantee in place of the
Municipality and/or pay out the same.
2. MPP requested assistance to source an entity to hold the guarantee in place of the
Municipality and/or pay out the same.
3. Request of FedD ev, Heritage Canada, National Defence and Public Works Canada to
assume the Guarantorship and/or pay out the same, as permitted under Federal Legislation
via incorporation into the Federal Budgetary Estimates
4. Three (3) Federal Access to Information Request s submitted (still awaiting two (2)
responses)
In more detail, perhaps the most effective plan forward to minimize the financial impact on the
Municipality is to continue with the following strategies already in the implementation phase:
1. Senior Government Cash Strategy: A strategy to aggressively lobby for the financial
support of senior levels of government to pay out or assume the financial responsibility of
Project Ojibwa. This issue is further complicated by the fact that senior levels of government
hav e been attempting to avoid supporting non-critical local infrastructure and tangible capital
items.
2. Managing Debt Strategy: W ith a concerted effort to assess inventory and surplus and
remove non -essential or non -sustainable equipment, property and general ly assets, efforts
can be made to mitigate overall financial impacts. This can be seen as a continuation of
current staff efforts including streetlights and resource procurement, which lower operational
costs and can offset the impact of the Project Ojibwa debt.
3. Legal Strategy: The Municipality will pursue various legal actions against the Elgin Military
Museum. However this is a complex discussion and informed consideration will need to take
place and actions, when considered with a cost benefit analysis, will be largely determined
by the actions of the Federal Government, Royal Bank of Canada and other unsecured
creditors.
RECOMMENDATION
1. THAT Report CAO-19/15 re Project Ojibwa - Financial Plan be received for information;
2. AND THAT the Council of the Corporation of the Municipality of Bayham direct staff to
immediately disseminate the Media Release attached hereto as Appendix ‘A’;
3. AND THAT Council direct staff to hold a Public Information Session on March 16, 2015 at
7:00 PM at the Vienna Community Centre to present the information outlined in Report
CAO-19/15;
4. AND THAT Council direct staff to bring forward a by-law for Council consideration to
authorize the Treasurer to pay out the Water Infrastructure Loan from the Royal Bank of
Canada as authorized by By-law No. 2009-095 and By-law No. 2009-108;
5. AND THAT Council direct staff to bring forward a by-law for Council consideration to
authorize external borrowing in the amount of six million dollars ($6,000,000.00) from TD
Canad a for the purposes of the Municipality of Bayham;
6.AND THAT Council direct staff to pursue legal remedy of the situation against the Elgin
Military Museum pursuant to the terms of the Guarantorship Agreement;
7.AND THAT the Council of the Corporation of the Municipality of Bayham delegate authority
to the Administrator to operationalize the same;
8.AND THAT the C ouncil of the Corporation of the Municipality of Bayham direct staff to
immediately and aggressively pursue an upper levels of government cash management
strategy.
R espectfully Submitted by:
P aul Shipway
Administrator
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
BY-LAW NO. 2015-027
BEING A BY-LAW TO AUTHORIZE THE EXTERNAL
BORROWING UPON DEBENTURES IN THE AMOUNT OF SIX
MILLION DOLLARS ($6,000,000.00) FROM TliE TORONTO.
DOMINION BANK (''TD'') FOR THE PURPOSES OF THE
MUNICIPALITY OF BAYHAM
WHEREAS on April 5th , 2012 the Council of the Corporation of the Municipality of Bayham
passed By-law No. 2012-037 , being a by-law, passed pursuant to Section 107 of the Municipal
Act, 2001, as amended, to authorize the execution of a Guarantorship Agreement between the
Municipality of Bayham and the Elgin Military Museum;
AND WHEREAS on August 2nc1 , 2012 the Council of the Corporation of the Municipality of
Bayham passed By-law No. 2012-089, being a by-law to authorize an irrevocable standby letter
of credit with the Royal Bank of Canada in the amount of six million dollars ($6,000,000.00);
AND WHEREAS on March 10, 2015 the Royal Bank of Canada called upon the Municipality of
Bayham standby letter of credit in the amount of six million dollars ($6,000 ,000.00);
AND WHEREAS Section 401(1) of the Municipal Act, 2001, S.O . 2001 , c. 25, as amended
provides that a Municipality may incur a debt for municipal purposes, whether by borrowing
money or in any other way, and may issue debentures and prescribed financial instruments
and enter prescribed financial agreements for or in relation to the dEbt;
AND WHEREAS the Municipality of Bayham Treasurer updated the Municipality of Bayham 's
most recent annual debt and financial obligation limit received from the Ministry of Municipal
Affairs and Housing in accordance with the applicable regulation and, prior to authorizing the
financial arrangement, the Treasurer determined that the estimated annual amount payable in
respect of the proposed financial arrangement, would not cause the Municipality to exceed the
updated limit of annual debt and financial obligations and that the approval of the proposed
financial arrangement, by the Ontario Municipal Board, was not required;
AND WHEREAS the Council of Municipality of Bayham desires to enter into a financial
arrangement, with The Toronto-Dominion Bank ("TD") for a ten (10) year term loan , twenty-
five year (25) amortization period, in the amount of six million dollars ($6,000,000.00), at a rate
of interest of 2 .71% per annum.
NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS A BY-LAW AS FOLLOWS:
1 . THAT the Mayor and the Treasurer are hereby authorized to execute the financial
arrangements with the The Toronto-Dominion Bank ("TD") attached hereto as Schedule 'A',
on behalf of the Municipality.
2 . THAT the proceeds realized in respect of the long term loan shall be applied to the costs
incurred for the Municipality of Bayham -Project Ojibwa letter of credit financing.
3. THAT the Treasurer is authorized to make the monthly princ ipal and interest payments
outlined in Schedule 'B' to satisfy the requirements of the long term loan arrangement with
The Toronto-Dominion Bank ("TD").
4 . THAT the Treasurer shall present a refinancing plan for the amount outstanding as at
March 20, 2025 noted on Schedule 'B', at the last meeting of Council prior to March 20 ,
2025.
a. Note: Payments may vary slightly due to daily interest calculations
5 . THAT this By-law shall take effect on the day of passing .
READ A FIRST, SECOND AND THIRD TIME AND FIMALL Y PASSED THIS 12TH DAY OF
MARCH 2015.
Iii/~ ~xv:k'h~d
CL K MAYOR
il!] Commercial Banking
COMMERCIAL LOAN AMORTIZATION SCHEDULE
Enler values Cllent Name: Municipofity of Boyham
Loanomovnt $ 6,000.000.00 Sales llranc:h: London CBC
Annual Interest Rote 2.71 ex. loan Number: TBD
Monthly Equivalent Rote 2.71 %
Rote Term in months 120 -Loan summary
Amortization period In months 300 61 Scheduled payment aclual $ 27,557.15
Number of payments per yeor 12 Payment frequency monthly
Stort Dote 20-Mor-15 Scheduled number of payments 120
Firs! Payment Dale 20-Apr~ Total In terest $ 1.380.289.49
Rate Term Maturity Dote ; .. fa:·cri 21". ~02<; Balance at End of Ra te Term $ 4.073.431.49
PytNo
Payment Date Beginning Balance Scheduled Payn\9111 Prlnclpal Interest Enclng Balance Cumulaftve llllerelt Days
1 20/041'2015 6,000,000.00 27,557.15 13,747.29 13,809.86 5,986,252.71 13,809.86 31
2 20/0512015 5 ,986,252.71 27,557.15 14,223.39 13,333.76 5,972,029.33 27,143.63 30
3 20/06/2015 5,972,029.33 27,557.15 13,811 .67 13,745.48 5,958,217.66 40,889.11 31
4 20/0712015 5,958,217 .66 27,557.15 14,285.83 13,271.32 5,943,931.83 54,160.43 30
5 20/08/2015 5,943,931 .83 27,557.15 13,876.34 13,680.81 5,930,055.49 67,841 .24 31
6 20/0912015 5,930,055.49 27,557.15 13,908.27 13,648.88 5,916,147.22 81,490.12 31
7 20/1012015 5,916, 147.22 27,557.15 14,379.54 13,177.61 5,901,767.68 94,667.73 30
8 20/1112015 5 ,901 ,767.68 27,557.15 13,973.38 13,583.77 5,887, 794.30 108,251 .50 31
9 20/1212015 5,887,794.30 27,557.15 14.442.69 13,114.46 5,873,351.60 121,365.95 30
10 20/01/2016 5,873,351.60 27,557.15 14,038.79 13,518.36 5,859,312.82 134,884.32 31
11 20/02/2016 5,859,312.82 27,557.15 14,071.10 13.486.05 5,845,241.72 148,370.37 31
12 20/03/2016 5,845,241.72 27,557.15 14,971 .46 12,585.69 5,830,270.25 160 ,956.05 29
13 20/0412016 5,830 ,270.25 27,557.15 14,137.94 13.419.21 5,816, 132.31 174,375.26 31
14 20/05/2016 5,816,132.31 27,557.15 14,602.31 12,954.84 5,801,530.00 187,330.10 30
15 20/0612016 5,801 ,530.00 27,557.15 14,204.09 13,353.06 5, 787,325.90 200,683.15 31
16 20/0712016 5 , 787,325.90 27,557.15 14,666.48 12,890.67 5,772,659.43 213,573.83 30
17 20/08/2016 5, 772,659.43 27,557.15 14,270.54 13,286.61 5, 758,388.88 226,860.43 31
18 20/09/2016 5 ,758,388.88 27,557.15 14,303.39 13,253.76 5,744,085.49 240,114 .1 9 31
19 20/1012016 5 ,744,085.49 27,557.15 14,762.79 12,794.36 5,729,322.70 252,908.55 30
20 20/11/2016 5,729,322.70 27,557.15 14,370.29 13,186.86 5,714,952.41 266,095.41 31
21 20/1212016 5,714,952.41 27,557.15 14,827.68 12,729.47 5,700,124.73 278,824.88 30
22 20/01/2017 5,700,124.73 27 ,557.15 14,437.49 13,119.66 5,685,687.24 291 ,944.54 31
23 20/0212017 5,685,687.24 27 ,557.15 14,470.72 13,086.43 5,671,216.52 305,030.97 31
.24 20/0312017 5,671 ,216.52 27,557.15 15,767.23 11,789.92 5,655,449.28 316,820.88 28
25 20/04/2017 5,655,449.28 27,557.15 14,540.32 13,016.83 5,640,908.96 329,837.71 31
26 20/0512017 5,640,908.96 27,557.15 14,992.60 12,564.55 5,625,916.36 342,402.26 30
27 20/0612017 5,625,916.36 27,557.15 14,608.29 12,948.86 5,611,308.06 355,351 .11 31
28 20/07/2017 5,611,308.06 27,557.15 15,058.54 12,498.61 5,596,249.52 367,849.72 30
29 20/0812017 5,596,249.52 27,557.15 14,676.58 12,880.57 5,581,572.95 380 ,730.30 31
30 20/09/2017 5,581 ,572.95 27,557.15 14,710.36 12,846.79 5,566,862.59 393,577.09 31
31 20/10/2017 5,566 ,862.59 27,557.15 15,157.54 12,399.61 5,551 ,705.05 405,976.70 30
32 20/11/2017 5,551,705.05 27,557.15 14,779.1 0 12,778.05 5,536,925.95 418,754.75 31
33 20/1212017 5 ,536,925.95 27,557.15 15,224.22 12,332.93 5,521 ,701.74 431,087.69 30
34 20/0112018 5 ,521,701.74 27,557.15 14,848.16 12,708.99 5,506,853.58 443,796.68 31
35 20/0212018 5 ,506,853.58 27,557.15 14,882.33 12,674.82 5.491 ,971.24 456,471 .49 31
36 20/0312018 5 ,491 ,971 .24 27,557.15 16,139.87 11,417.28 5,475,831.37 467,888.77 28
37 20/04/2018 5 ,475,831 .37 27,557.15 14,953.74 12,603.41 5,460,877.64 480,492.19 31
38 20/0512018 5,460,877.64 27,557.15 15,393.61 12,163.54 5,445,484.03 492,655.73 30
39 20/06/2018 5,445,484.03 27,557.15 15,023.59 12 ,533.56 5,430,460.45 505,189.30 31
40 20/0712018 5,430,460.45 27,557.15 15,461 .36 12 ,095.79 5,414,999.09 517,285.09 30
41 20/08/2018 5 ,414,999.09 27,557.15 15,093.75 12,463.40 5,399,905.34 529,748.49 31
42 20/09/2018 5 ,399,905.34 27,557.15 15,128.49 12 ,428.66 5,384, 776.85 542,177.15 31
43 20/1012018 5 ,384,776.85 27,557.15 15,563.11 11,994.04 5,369,213.73 554,171.18 30
44 20/11/2018 5 ,369,213.73 27,557.15 15,199.13 12,358.02 5,354,014.60 566,529.20 31
45 20/1212018 5,354,014 .60 27,557.15 15,631.63 11,925.52 5,338,382.97 578,454.72 30
46 20/01/2019 5 ,338,382 .97 27,557.15 15,270.09 12,287.06 5,323, 112.88 590 ,741 .78 31
47 20/0212019 5,323, 112 .88 27,557.15 15,305.24 12,251.91 5,307,807.64 602 ,993.69 31
48 20/03/2019 5,307,807.64 27,557.15 16,522.73 11,034.42 5,291,284.91 614,028.11 28
49 20/04/2019 5,291 ,284.91 27,557.15 15,378.50 12,178.65 5,275,906.41 626,206.76 31
50 20/0512019 5,275,906.41 27,557.15 15,805.61 11 ,751.54 5,260, 100.80 637,958.30 30
51 20/0612019 5 ,260, 100.80 27,557.15 15,450.27 12,106.88 5,244,650.53 650,065.18 31
52 20/0712019 5,244,650.53 27,557.15 15,875.23 11,681.92 5,228,775.30 661 ,747.10 30
53 20/08/2019 5,228,775.30 27,557.15 15,522.37 12,034.78 5,213,252.93 673,781.88 31
54 20/09/2019 5 ,213,252.93 27,557.15 15,558.10 11 ,999.05 5, 197,694.83 685,780.93 31
55 20/10/2019 5 ,197,694.83 27,557.15 15,979.82 11,577.33 5,181,715.01 697,358.26 30
56 20/1112019 5,181,715.01 27,557.15 15,630.69 11 ,926.48 5, 166,084.32 709,284.72 31
57 20/1212019 5, 166,084.32 27,557.15 16,050.23 11,506.92 5, 150,034.10 720,791 .65 30
58 20/0112020 5,150,034.10 27,557.15 15,703.61 11 ,853.54 5, 134,330.49 732,645.19 31
59 20/0212020 5,134,330.49 27,557.15 15,739.75 11 ,817.40 5,118,590.74 744,462.59 31
60 20/0312020 5 ,118,590.74 27,557.15 16,536.05 11,021 .10 5, 102,054.69 755,483.69 29
61 20/04/2020 5 ,102,054 .69 27,557.15 15,814.04 11 ,743.11 5,086,240.65 767,226.80 31
62 20/0512020 5,086,240 .65 27,557.15 16,228.07 11,329.08 5,070,012.58 778,555.88 30
63 20/0612020 5 ,070 ,012.58 27,557.15 15,887.79 11 ,669.36 5,054, 124. 79 790,225 .24 31
64 20/0712020 5 ,054, 124.79 27,557.15 16,299.61 11,257.54 5,037,825.19 801,482 .79 30
65 20/0812020 5 ,037,825.19 27,557.15 15,961 .87 11,595.28 5,021,863.31 813,078 .06 31
66 20/0912020 5,021,863.31 27,557.15 15,998.61 11,558.54 5,005,864.71 824,636.61 31
67 20/1012020 5,005,864.71 27,557.15 16,407.10 11 ,1 50.05 4,989,457.60 835,786.65 30
68 20/1112020 4,989,457.60 27,557.15 16,073.20 11,483.95 4,973,384.41 847,270.61 31
l'ylNo
Pavm-ntDot. Beginning Balance Scheduled Pavm-nt Prtnclpal Interest Enclng Balance Cumulatlve lnlerest Days
69 2011212020 4,973,384.41 27,557.15 16,479.45 11,077.70 4,956,904.96 858,348.31 30
70 2010112021 4,956,904.96 27,557.15 16,148.12 11,409.03 4,940,756.84 869,757.34 31
71 2010212021 4,940,756.84 27,557.15 16,185.29 11,371.86 4,924,571.55 881,129.20 31
72 20103/2021 4,924,571.55 27,557.15 17,319.44 10,237.71 4,907,252.12 891,366.92 28
73 20/0412021 4,907,252.12 27,557.15 16,262.40 11,294.75 4,890,989.71 902,661.66 31
74 20/0512021 4,890,989.71 27,557.15 16,662.97 10,894.18 4,874,326. 74 913,555.84 30
75 20/0612021 4,874,326.74 27,557.15 16,338.19 11,218.96 4,857,988.55 924,774.80 31
76 20/0712021 4,857 ,988.55 27,557.15 16,736.48 10,820.67 4,841,252.07 935,595.47 30
77 20/0812021 4,841,252.07 27,557.15 16,414.31 11,142.84 4,824,837. 76 946,738.31 31
78 20/09/2021 4,824,837.76 27,557.15 16,452.09 11,105.06 4,808,385.67 957,843.37 31
79 20/1012021 4,808,385.67 27,557.15 16,846.96 10,710.19 4,791,538.71 968,553.56 30
80 2011112021 4,791,538.71 27,557.15 16,528.73 11,028.42 4,775,009.97 979,581.97 31
81 2011212021 4,775,009.97 27,557.15 16,921.31 10,635.84 4, 758,088.66 990,217.81 30
82 20/0112022 4,758,088.66 27,557.15 16,605.72 10,951.43 4,741,482.94 1,001, 169.24 31
83 20/0212022 4, 7 41,482.94 27,557.15 16,643.95 10,913.20 4, 724,839.00 1,012,082.45 31
84 20/0312022 4,724,839.00 27,557.15 17,734.66 9,822.49 4,707,104.33 1,021,904.93 28
85 20/0412022 4, 707' 1 04.33 27,557.15 16,723.07 10,834.08 4,690,381.26 1,032,739.01 31
86 20/0512022 4,690,381.26 27,557.15 17,109.81 10,447.34 4,673,271.45 1,043, 186.35 30
87 20/0612022 4,673,271.45 27,557.15 16,800.94 10,756.21 4,656,470.51 1,053,942.56 31
88 20/0712022 4,656,470.51 27,557.15 17,185.34 10,371.81 4,639,285.17 1,064,314.37 30
89 20/0812022 4,639,285.17 27,557.15 16,879.17 10,677.98 4,622,406.00 1,074,992.35 31
90 20/0912022 4,622,406.00 27,557.15 16,918.02 10,639.13 4,605,487.98 1,085,631.48 31
91 20/1012022 4,605,487.98 27,557.15 17,298.90 10,258.25 4,588,189.08 1,095,889.73 30
92 20/1112022 4,588, 189.08 27,557.15 16,996.77 10,560.38 4,571,192.31 1, 106,450.11 31
93 20/1212022 4,571,192.31 27,557.15 17,375.29 10,181.86 4,553,817.02 1, 116,631.97 30
94 20/0112023 4,553,817 .02 27,557.15 17,075.89 10,481.26 4,536,741.14 1, 127, 113.24 31
95 20/0212023 4,536,741.14 27,557.15 17,115.19 10,441.96 4,519,625.95 1, 137 ,555.20 31
96 20/0312023 4,519,625.95 27,557.15 18,161.28 9,395.87 4,501,464.67 1, 146,951.07 28
97 20/04/2023 4,501,464.67 27,557.15 17,196.38 10,360.77 4,484,268.29 1,157,311.84 31
98 20/0512023 4,484,268.29 27,557.15 17,568.90 9,988.25 4,466,699.38 1, 167 ,300.08 30
99 20/06/2023 4,466,699.38 27,557.15 17,276.40 10,280.75 4,449,422.99 1,177,580.84 31
100 20/0712023 4,449,422.99 27,557.15 17,646.52 9,910.63 4,431,776.47 1,187,491.47 30
101 20/0812023 4,431,776.47 27,557.15 17,356.78 10,200.37 4,414,419.69 1,197,691.84 31
102 20/09/2023 4,414,419.69 27,557.15 17,396.73 10,160.42 4,397,022.96 1,207,852.26 31
103 20/1012023 4,397 ,022.96 27,557.15 17,763.23 9,793.92 4,379,259.73 1,217,646.18 30
104 20/1112023 4,379,259. 73 27,557.15 17,477.65 10,079.50 4,361,782.07 1,227, 725.67 31
105 20/1212023 4,361,782.07 27,557.15 17,841.73 9,715.42 4,343,940.35 1,237,441.10 30
106 20/01/2024 4,343,940.35 27,557.15 17,558.95 9,998.20 4,326,381 .40 1,247,439.30 31
~07 20/0212024 4,326,381.40 27,557.15 17,599.36 9,957.79 4,308,782.04 1,257,397.09 31
108 20/0312024 4,308, 782.04 27,557.15 18,279.69 9,277.46 4,290,502.34 1,266,67 4.54 29
109 20104/2024 4,290,502.34 27,557.15 17,681.94 9,875.21 4,272,820.40 1,276,549. 75 31
110 20105/2024 4,272 ,820 .40 27,557.15 18,039.88 9,517.27 4,254,780.52 1,286,067 .02 30
111 20/0612024 4,254,780.52 27,557.15 17,764.16 9,792.99 4,237,016.36 1,295,860.01 31
112 20/0712024 4,237,016.36 27,557.15 18,119.63 9,437.52 4,218,896.73 1,305,297 .53 30
113 20/0812024 4,218,896. 73 27,557.15 17,846.75 9,710.40 4,201,049.98 1,315,007.93 31
114 20/09/2024 4,201,049.98 27,557.15 17,887.83 9,669.32 4,183,162.15 1,324,677 .25 31
115 20/10/2024 4,183, 162.15 27,557.15 18,239.59 9,317.56 4,164,922.56 1,333,994.81 30
116 20/1112024 4, 164,922.56 27,557.15 17,970.98 9,586.17 4,146,951.58 1,343,580.98 31
117 20/12/2024 4, 146,951.58 27,557.15 18,320.24 9,236.91 4, 128,631.34 1,352,817.89 30
118 20/01/2025 4, 128,631.34 27,557.15 18,054.51 9,502.64 4, 110,576.83 1,362,320.53 31
119 20/02/2025 4, 110,576.83 27,557.15 18,096.07 9,461.08 4,092,480.76 1,371,781.61 31
120 20/03/2025 4,092,480.76 27,557.15 19,049.27 8,507.88 4,073,431.49 1,380,289.49 28
This Schedule has been provided to you at your request for your convenience. While eve.ry reasonable effort has been made to
ensure accurate calculations, we cannot guarantee them. The information contained herein is based on certain assumptions and
is for illustration purposes only. It is not to be relied on. The terms and conditions of the lending agreements you sign with TD
shall govem your payment obligations and if there is any inconsistency between the information contained In this schedule and
the terms and conditions of the lending agreements, the lending agreements shall govern. Any legal or tax Issues should be
connrmed by your own legal or tax advisors.
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
MAYOR
CA-e'1,1.e A 71-, V& �"'2 -U 37
March 15, 2012
Elgin Military Museum
Guarantor Agreement — Project Ojibwa
I. 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.
1) 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.
A�,I
Dated this day of rfv�hare-h 2012.
Municip ity of Oayham
THE CORPORATION OF THE
MUNICIPALITY OF BAYHAM
BY-LAW 2012-089
BEING A BY-LAW TO AUTHORIZE AN IRREVOCABLE STANDBY LETTER OF
CREDIT FACILITY WITH THE ROYAL BANK OF CANADA
WHEREAS Section 11 (2) (5) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides
that a lower -tier municipality may pass by-laws respecting the economic, social and
environmental well-being of the municipality, and;
WHEREAS Section 11 (3) (5) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides
that a lower -tier municipality may pass by-laws respecting matters within the culture, parks,
recreation and heritage sphere of jurisdiction, and
WHEREAS Section 107 (1) of the Municipal Act, 2001, S.O. 2001, c.25, as amended, provides a
municipality may make grants, on such terms as to security and otherwise 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 interests of the
municipality, and
WHEREAS Section 107 (2) (a) of the Municipal Act, 2001, S.O.2001, c.25, as amended, provides
that such grants include the power to guarantee a loan and to make a grant by way of loan and to
charge interest on the loan, and;
WHEREAS the Council of the Municipality of Bayham approved a Guarantor Agreement with
the Elgin Military Museum with By-law 2012-37;
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS AS FOLLOWS:
1. THAT the Mayor and Treasurer be authorized to sign the Irrevocable Standby Letter of
Credit Facility with the Royal Bank of Canada, in the amount of up to $6,000,000, as set
out in Schedule `A'.
2. THAT this by-law shall come into force and effect upon its passing.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED this 2"d Day of
August, 2012.
i
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Schedu'e A to application for Standby Letter of Credit dated Augist 3, 2012
We �-rereby issue this I -evocable standby later of c+ d:t no. — in your fanrour'or the account
of The Corporation of Om Municipallty of Ba sham to secure ban Ina fa :I',:i'es byway of liens and any
ether banking se vices wnatsoever -,rarred ar to .3e granted by your bank to Tee E;g n MH:tary Museum
!nc. IdentiFed as Trojec, aj.bwe expenses. General operating acmj its and laan facilities am
e..c:WW from this guarantee.
Atg.St 3, 2012
M: ROYAL HANK OF CAMCA
SPEC'": AP` LICA'MM AND AGREEMENT FOR STANDBY �^'t3t OF CiMf OR
G, ARACEE DATED August 3, 2312 (THE-APPLICAnO1W'') BMTED BY -rHE UMDEPSiGNED
C -HE "CU5 IW.ER') MD ADDREMED TO ROYAL BANK OF CMADA E °BAIWC 3
In misrderakim of the Bank isswig the Cmit refe.rrer+ tv on tt!e reverse s" of :he AppIkwjon,
the Custdrm acknowiedg-as and agrees as 1;311aws:
I. the Bank in Is c$;c-c�y as the Ber...5c" oy of the Cten t he dEameL to ba ard tvaW
for all purpza &s a Party that Is separ re ar d distinct f mT the Ba.-, in its capacity as
ft issuer of the Omit, arra t1werom as a llft4 party" wttb'n *e meanIng of ?(X 500.
Z. The a anom and agreemerts a: Vw Cmtc—r set ou` on tr!e mw-je srdo of t;,e
AV!mcMm ti+ fl app;;, le` acoordance wrth their tam, amid the Customer wa:vas any
ddbrKe thet moo at gny Herta e:r«st ar arise by reaon of Ow Swe;: wV bat ". baser
and :,he Be-*tcisy o: U Cred#t.
Corparat,co! of Ble P;"rrlpak't',i cf Say mm
pew:�Z��
Per;
'Ttea�uret'
PckroMedged and opted
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