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HomeMy WebLinkAbout1998-12-16 99-36 ORDERCOUNCIL ACTION Data: December lfi 1998 Item NO. 99-36 rImISubject Aurhoraingl,ease Option AgreememtaRb Realty Reamers Chartered-Former Frame's Building Roapern iblo Department Community & economic Development Documentary: The City recently issued a request for proposals for use of space on the bottom three floors on the Main Street side of the Freese's building. In addition to the proposal received from Partnerships for Healthy Communities to establish a e children's museum, the City received proposals from the university of Maine, The Department of Art and The Museum of Art, and the Maine College of Art. Both schools propose art instruction and display. To allow time for the City no review these proposals, interview repconsider of both schools, and c aider the proposals submitted, the City needs to r space in the Freese's building after title to the property is transferred to Realty Resources this month. This Order would authori2e a lease option agreement with Realty Resources Chartered. It would provide anasignable option for the City to lease the ring apace not proposed fors use by the children's mu The option to lease the space, encompassing approximately 12,000 square feet of area n three floors, would allow the City to enter a lease agreement with Realty Resources before March 1, 1999, orn assign its option to o r both of the schools that submitted proposals for the space. There would be no cost to the City for the option. The terms of the future lease agreement would have to be worked out, but the rent, as proposed, would not exceed the expenses Incurred for operating the pertinent apace, plus a management fee not to exceed 0 of rental income from the space. DePwfrmant Beau— Manager's Comments: city Manager Associated Information Attached to the Order Budget Approval: No budget required Finance Director Lagai Approval: rfJY 1 y Solicitor Introduced For ❑ Passage ❑ Bleat Reading ❑ Referral Bagayofy 9-36 AB A!®0® Assilsodto Councilor verdamis December 16, 1998 , CITY OF BANGOR RIiLEJ (Prbrrr, Authorizing Lost Option Agreement with Jpiq Foramens. D.C. Former By not City Cowell of the City ofBanyor: ORDERED, THAT WHEREAS, the City of Bangor has approved the proposal of nn Parteera. LLC for the acquisition and development of a portion of the real property known as the Former Freese's Building located at 70.96 Main Street in Bangor; and WHEREAS, under the terms of an Option Agreement for purchase and Development of a Portion of Former Freese's Building between the City and dBC Perteers. LLC dated February 27, 1998, the City is scheduled to transfer ownership of the property to MC Partnere, LLC prior to December 31, 1998; and WHEREAS, Ne City has received proposals from the University of Maine and the Maine College of Art for the use of a portion of the some in the Former Freese's Building; and WHEREAS, to provide adequate time for the City to review and consider the proposals received from the University of Maine and the Maine College of Art. and to potentially make provisions to accommodate the proposals received, the City desires to reserve the space in the Former Freese's Building designated as "Remaining Net Rentable Area" on Exhibit A to the proposed "Lease Option Agreement for a Portion of Former Freese's Building" attached hereto, by obtaining an assignable option an lease the space for a limited Period of time after Ne term cfer of title to Ne property to Jim Pa¢ s. LLC NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager, on behalf of the City of Bangor, is authorized to enter an lease option agreement with .IDC Partnere, LLC for space in the Former Freese's Building described as ` Remaining Net Rentable Area" on Exhibit A to Ne proposed "Lease Option Agreement for a Portion of Former Freese's Building" attached herem, under terms and conditions substantially as commined in the anached "Lease Option Agreement fora Portion of Former Frmse's Building", and in a final form approved b3 the City Solicitor or Assistant City Solicitor. - IN CITY COUNCIL December 16, 1998 Passed A True Copy, Attest' ITY CLERK 99-36 Ardgnedmfutmcilm Verdamis December 16, 1998 CITY OF BANGOR (TITLE.) (ffirDBTm AmMorbrmgEease Option. Agreement with Realty Resource .Chartered...... Former Barne's Building By the City Commit of the Ofty of Dammam TAT WHEREAS, the City of Bangor has approved de proposal of Realty Resources Chartered for Ne acquisition mei development of a porion of flue real property known as Ne Former Freese's Bwlain g located at 70.95 Main Street in Bangor; and WHEREAS, under We terms of an Option Agreement for Purchase mm Development of a Portion of Former Fame's Building between the City and Realty Resources Chartered dated February 29, 1998, the City is scheduled to transfer ownership of the property to Realty Resources Chattered prior to December 31, 1998; and WHEREAS, the City has received proposals from the University of Maine and de Maine College of An for the use of a portion of rhe space in Ne Farmer Freese's Building; and WHEREAS, an provide adequate time for the City an review and consider the proposals received from the University of Maine and the Maine College of An and to porermally make provisions an accommndaze the proposals received, the City desires to reserve the space in de Partner Freese's Building designated as "Reatairuag Net Rentable Area" on Exhibit A to dw proposed "Lease Option Agreement for a Portion of Former Freese's Building" attached hereto, by obtaining an assignable option to lease the space for a limited period of time after me fonder of title to the property m Realty Resources Chartered; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Ne City Manager, on behalf of the City of Bangor, is authorized to enter an lease opium agreement with Realty Resources Chartered for space m the Former Frexam's Building described as " Remaining Net Rentable Area" on Exhibit A to Ne proposed "Lease Option Agreement for a Portion of Former Freese's Building" attached hrwtq under terns and conditions substantially as wnmined in the attached "Leme Option Agreement for a Portio of Fortner Frazee's Building", and in a final firms approved by Ne City Solicitor or Assistant City Solicitor. IN CITY COUNCIL Dacesier 16. 1998 Motion t0 a end by Substituting the words ".IMC Partnere. LLC" wherever the words " Realty Resources Chartered" appear Motion Seconded Passed as Amended CI LERM 99-36 ORDER Title, Authorizing Lease Option Agreement with Realty Resources Chartered - Former Freese's Building ...................................... ...................................... Councilman 99-I6 LEASE OPTION AGREEMENT FOR A PORTION OF FORMER FREESE'S BUILDING THIS AGREEMENT is made this _ day of 1998, by and between the CITY OF BANGOR, a municipal corporation Ranted in the County of Penobscot, State of Maine (herelnafler "CITY'), and REALTY RESOURCES CHARTERED dmeinafter "OPTIONOR"), a Mauve corporation having a principal place of business in Rockport, Cowry of Roux, State of Maine. WITNESSETH: WHEREAS, We CITY has approved We OPTIONOR'S proposal for the acquisition and development of a portion of We real Property known as the Former Fmeese's Building, Iocaad at 1496 Main Street in Bangor; and WHEREAS, under the terms of an Option Agreement for purchase and! Development of a Portion of Former Freese's Building between the CITY and OPTIONOR dared February 21, 1998, We CITY is schetluled to transfer ownersldp of We property, to OPTIONOR prior to December 31, 1998; amt WHEREAS, the CITY has rexived proposals from the University of Maine aof the Maim: College of Art for the use of a portion of We space in We Former Freese's Building; and WHEREAS, or provide adequate fins, for CITY to review and consider We proposals receival from We University of Maine and We Mame College of An, rad to potentially make provisions to accommodate the proposals received, We CITY desires to reserve We space in We Former Freese's Building designated as "Remaining Net Rentable Area" on Exhibit A attached hereto by olmomimg an assignable option to lease We space for a Period of time after We transfer of We premises to Realty Resources Chartered; NOW, THEREFORE, Realty Resources Chartered, for consideration paid, hereby grams m We CITY an option to enter a lease for the space in We Former Emote's Building described as "Remaining Nor Rentable Area" on Exhibit A umched herein, in aceordame with We following terms rust wnditioov set forth below: 1. Optinn pan . This Option shall ma tram the date hereof until March 1, 1999, or until such later date as the parties may agree. 2. Exercise of Ormon The CITY may exercise alis option and lease We subject property by giving written mmfice of its imrot m do so to We OPTIONOR at any time Radial; tM option pmiod. 3. 1g . The lease shall be in a form agreed m by We parties. OPTIONOR agrees flat the rent provided for in the lease Well not exceed We amount of all costs perinorrt to Page 1 of 3 99-36 the use of the promises leased, including debt service, utilities, real estate faxes, repairs, mamoom ore amt insurance, plus a management fou in an amount nm to exceM six percent (6%) of the gross income of the premises leased. 4. OPTIONOR Not to Convev or Emumber Tide During the term of the option the OPTIONOR shall not voNmarily convey, mortgage or otherwise encumber the option premises or any portion thereof, without CITY'S prior written consent except as provided in Section 3 above. 5. Assignment. CITY may assign its rights under this Lease Option Agreement at say time. 6. Option Bilming on OPTIONOR'S The Option granted shall be binding upon the OPTIONOR, its successors and assigns, and shall inure to the becefit of CITY oral, as provided in Section 5 above, Ne OPTIONOR'& successors and assigns. 7. Sevembilite. If any provision of this Lease Option Agreement is deterudvN to be invalki or unenforceable miler law, it shag not affect the validity, or enforcement of the remaining obligations or portions hereof. S. Notice. Any notice under this Lease Option Agreement by either parry to the other shall be sufficiently given or delivered if rt is dispatcLus! by registered or certified mail, postage prepaid, ream receipt requested, or delivered personally, and a. in the case of the OPTIONOR, is addressed mor delivered personally to the President, Realty Resources Chartered, 247 Commercial St., Rockport, ME 04856. b. in the case of the CITY, is addressed w or delivered personally to the CITY, do City Manger, City Hall, 73 Harlow Street, Bangor, Maine 09401. or to such other person or addresses as the parties may designate in writing m the other. W WITNESS WHEREOF, the parties hereto have set their hands the my and year fust written above. :aliY'O]9:TdC[HU:! By Witness Edward A. Barrett Its City Manger Page 2 of 3 By witness Joseph M. Cloutier Its President STATE OF MAINE Penobscot, ss. , 1998 Then pemonally appeared the above-named Edward A. Bameu, in his capacity as the City M ger of the City of Bangor, and acknowledged the foregoing imoment to be his frees wxI deN in such capacity and the free act and deM of the City of Bangor. Before on, Printed Name: Notary Pablic Attorney at law STATE OF MAINE Knox, ss. , 1998 Then personally appeared the above,n ed Joseph M. Cloutier, in his capacity M Presirlem of Realty Resources Chartered and wIcnowledgexi the foregoing insu unem to be his free act and deed in such capacity and the free act and deed of the Corpom ion. Before me, PrintM Name: Notary Public Attorney at Law Page 3 of 3 ,« )!)t !!)I Ul ,« 99-36 }.!! � pa sn s° a "��� ss� � °��� 3 s @ V� � ��f� "I r �� Pi 9�N � � a a Fe