HomeMy WebLinkAbout1998-11-23 99-21 ORDERCOUNCIL ACTION
pate: Nneember 23 1998
Item No. 9921
Item/subject: Extending Option Agreement with Realty Resources Chartered - Former Freese's Building
Naeponailale Department: COmmonity & ECOnomio Development
Commentary:
By passage of Council Order 98-98, on January 26,1998, the City authorized a Purchase Option Agreement with
Realty Resources Chartered for the purchase and development of the Main Street section of the farmer Freescs
Department Store building. The Option expires November 30, 1999 unless extended. The Option contains a
provision that it can be extended by the City Council if the Realty Resources is making a good faith effort to
redevelop the property and progress was being made. Financing commitments have now been secured for the
projectand final building plmsam year completion It is expected that transfer of the properlyto Realty Resources
will occur and construction will begin before the end of December oftlus year.
This Order would authorize an amendment to the Agreement extending the option period to December 31, 1998.
�O im�i� sa
Manager•$ Comments: �J _ fl ift6m)
City Manages
Associated In££ormation
Budget Approval:
Finance DireCtOr
Legal Approval:
,City solicitor
Introduced Per Pasfiage O First &aadiM ❑ Referral
Page�_o£�
Amig,Wbfummgor Aube November 23, 1998
CITY OF BANGOR
(TITLE.) tC/CUBL Extmdmg Option Agreement_wrN Realty Resources Chartered_
Former Crewe's Building
By Gs city Cannan of the My ofBanner:
ORDERED,
TUT WHEREAS, the City of Bangor and Realty Resources Chartered are patties to a
Purchase Option Agreement, as authorized by Council Order 498- 98 passed by the Bangor City
Council on January 26, 1998, for the purchase and redevelopment of a portion of the former
Freeses Building; and
WHEREAS, the Option in Section A.5. provides that the Option may be extended
by the City Council for aperiod of six momhs if the Developer is pursuing the development in
goad faith; and
WHEREAS, the Developer, Realty Resources Chartered has been punning the
development in good f hii as evidenced by the permits obtained and £nuncing secured to support
the prune: thus f ; and
WHEREAS, additional time is necessary, to complete building plans, sausage
construction financing and complete Maine State Housing Authority financing loathe project;
and
WHEREAS, it is anticipated that all necessary permit and financing will be
obtained to permit covstmction to begin on or before December 31,1998;
NOW, THEREFORE, by the City Council of the City of Bangor, be it
ORDERED, THAT the City Manager, on behalf of the City of Reagan, is hereby authorized to
execute a First Amendment to the Purchase Option Agreement between Realty Resources
Chartered and the City of Bangor to extend the Option Agreement for Purchase and
Development of Portion of Former Freese's Building to December 31, 1998, said Amendment
to be in a loan approved by the office of the City Solicitor.
IN CITY COONCIL
November 23. 1998
Passed
CI
99-21
ORDER
Title, Extending Option Agreement with
u
Realty Resources Cbartered eForest
Freeae'e Buildin8... ..
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Councilman