HomeMy WebLinkAbout1998-12-16 99-34 ORDERCOUNCIL ACTION
Date: December 16 1990 99_34
ItNo.
m®/Subject: Authorizisglsasewith Ogden to Purchase AgrcementwithRealtyReourcesamlered-
Former Frer e's Building- Children's Museum Space
Responsible Department: Community s Economic Development
Commentary:
The City and Realty Resources Chartered recently issued a request for
proposals for use of space on the bottom three floors on the main Street side
of the Freenes's building. Realty Resources has an option with the City to
acquire and redevelop the apace involved. A proposal was received from
Partnerships for Healthy Communities to establish a children's museum
approximately 22,000 square feet of the available space, along with receiving
two other proposals for other available space. To accommodate the proposal,
the City needs to reserve apace in the Freese's building after its title to the
property is transferred to Realty Resources later this month. It is proposed
the City enter an agreement with Realty Resources whereby it would have, until
December 31, 2000, an assignable lease with an option to purchase the space
needed for the museum.
This would give the Partnership 24 months needed to
raise $3.6 million for establishing the ms Thin Order would autburize the
agreement with Realty Resources. The leasewould be in effect from the time the
space is ready for occupancy sometime during the third quarter of 1999, to
December 31, 2000. The cost of the lease would not exceed the allocated
p
exenses incurred by Realty Resources for maintaining the pertinent space,
including utilities, heating, maintenance, taxes, i and repayment due
the City o its loan to Realty Resources. The estimatecostof the lease i
$66,000 to $88,000. The purclase coat of the space would be the pro rata cost
of the improvements attributed to the lower three floors which is budgeted to
be $1,934,300. Therefore, if the children's mu used 60k of the available
space, the purchase coat would be approximately $1,8160,580.
De ru mt xe� d
manager'a Cents:
aec&Q/
City Manager
Associated Information
Attached to the Order
Budget Approval:
Finance Director
Legal Approval:
v9(µ y l
Sty /ici Wr
Introduced Por Passage 0 First Reeding 0 Referral
Pasmyofy
99-34
AS 6!ffiIm15U
Awigned to Counedm Rohmao December 16, 1998
..0 CITY OF BANGOR
(TITLE.) (orber, _Autheirizing Lease with Option to Purchase Agreement with.,.MC Partners,
LLC -Former Freese's Building- Children's Museum Space
By the City Counsel of the Oity of Banner.
ORDERED,
TRAT WHEREAS, the City of Bangor has approved the proposal of d11C Partnere.
CCC for the acquisition atM development of the Main Street section of the
former Freese's Building located at 74-96 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
Dmic Partnere, tic dated February 27, 1998, the City is scheduled to
transfer ownership of the property to nc Partners, lac prior to
December 31, 1998; and
WHEREAS, the City has received a proposal from Partnerships for Healthy
Communities to establish a children's museum in a portion of the space in the
Former Freese's Building; and
WHEREAS, to provide adequate time for the Partnerships for Healthy
Communities to raise $3.6 million to establish the museum, the Partnership has
requested the City reserve the space needed for the children's museum by
oletdm g an assignable lease until December 31, 2000, with an option to purchase
until December 31, 2000, the space in the Former Forest's Building designated
as "PHC - Children's Museum' on Exhibit A to the proposed "Lease with Option
m Purchase" attached hereto;
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 into a lease with an option to purchase agreement with
JhB Partners, tic for space in the Former Freese's Building designated
as "PHC - Children's Museum" on Exhibit A to dm proposed "Lease with Option
to Purchase- attached hereto, under terms and conditions substantially as
contained in the "Lease with an Option to Purchase a Portion of Former Forest's
Building' attached herein, and in a final form approved by the City Solicitor or
Assistant City Solicitor.
IN CITY COUNCIL
December 16, 1998
Parsed
A True Copy, Attest:
99-34
Apig„ed to Cawcilar Aobmav December 16, 1998
p CITY OF BANGOR
(TITLE.) (PrbRYr---`Uthor@sng Lmmewith Option to Purchase Agreemeutwidt Realty Resources
Chartered -Former Frame's Building- ChiMren's Museum Space
By Lbs City Canned of We MY of Boater.
ORDERED,
THAT WHEREAS, the City of Bangor has approved the proposal of Realty Resources
Chartered for the acquisition Dal development of the Main Street section of the
former Fresse's Building located m 74-96 Main Soviet in Bangor; and
WHEREAS, under the terns of an Option Agreement for Purchase and
Development of a Portion of Former Freese's Building between the City and
Realty Resources Chartered dated February 27, 1998, the City is scheduled to
(mother ownership of the property to Really Resources Chartered prior to
December 31, 1998; and
WHEREAS, the City las received a proposal from PmmersMps for Healthy
Commuotties to establish a children's museum in a portion of the space in the
Former Proven's Building; and
WHEREAS, to provide adequate thine for the Partnerships for Healthy
Contrarieties to raise $3.6 million to establish the museum, We Partnership has
requested the City reserve the Were needed for the children's museum by
obtaining av assigmble lease until December 31, 2000, with an option to purchase
until December 31, 2000, the space in the Former Freese's Building designated
n"PHC-Cldld 's Museum"on ExhibitAm Neproposed'Leasewith Opdm
to Purchase" anuchN harem;
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE
CI'T'Y OF BANGOR THAT dm City Manager, an behalf of the City of Bangor,
is authorized to enter into a lease with an option By purchase agreement with
Reay Retraces Chartered for space in the Former Freese's Building designated
as "PHC - Children's Museum" on Exhibit A to the proposed "[ease with Option
to Purchase" attached herein, under terms and conditions subsmnfiavy as
coomived in the "frame with an Option to Purchase a Portion of Former Freese's
Building' attached herein, and in a final foam approved by the City Solicitor or
Assistant City Solicitor.
IN CITY COUNCIL
December 16, 1998
Motion to Amend by Substituting the wards
"CMC Partners, LLC" wherever the words
"Realty Resources Chartered" appear.
Motion Seconded
Passed as arended
LEM
99-34
ORDER
Title, Authorizing Lease with Option to
Purctuse Agreement with Realty Resonated
Chartered - Tome[ Freese's Rulldin� -
Ch11d2en"e'hu9ehm gpe�e .."
Aeeigned to -
Councilmen
m
99-34
LEASE WITH OPTION TO PURCHASE
THIS INDENTURE OF LEASE, executed this_day of 1998, by
and between:
REALTY RESOURCES CHARTERED, a corporation duly organized and exisdng under
and by virtue of the laws of the State of Maine, and having a place of business at 247 Commercial
Street, Rockport, Maine (hereinafter sometimes referred to as "Lessor)
AND
CITY OF BANGOR a municipal corps nma duly mgawed and mating under and by
virtue of the laws oftmState of Maine, and having its principal offices at 73 Harlow Street,
Burger, Maine (hereinafter somntimes referred to as "Lessee')
WITNESSETH:
WHEREAS, Realty Resources Chartered is the owner of the Main Street portion of the
former Freese building located at 74-% Main Street, Burger, Maine; and
WHEREAS, Lessees wishes to lease a certain portion of said building;
NOW, THEREFORE, the parties do mutually agree as follows:
ARTICLE I-PREMISES
The Lessor, for and in consideration of the rents to be paid and the obligations to be perfomred by
Lessee as hereinafter provided does hereby demise and lease me Lessee, and the Lessee does
hereby take and lease, upon and subject to the terms and conditions hereinafter expressed, a
certain portion of the former Freese's building designated as "P.H.C. - Children's Museum"
attached hereto on Exhibit "A".
ARTICLE II- TERMS
TO HAVE AND TO HOLD the demised premises unto the Lessee commencing the date that the
demised Premises is in "white box" condition, and tenninming on December 31, 2000
ARTICLE If -COMPUTATION OF ANNUAL RENTAL
Commencing the date the demised premises is in "white boor' condition, Lessee shall pay to
Lessor a monthly rent equal to the debt service, real estate tmres, maintenance expenses, mility
costs and insurance attributable to the demised premises and a management fee of six percent
(b%) of the gross revenue of the demised premises.
99-34
V M OIO0'-TknQtl:!<eISCMIIWRIW I".11911is:ANI(IINV UNO nky,SM
A. Lessee shall have the fight to use, occupy and maintain the premises herein described in
reasonably business -like, careful, clean, and reasonably safe manner for the purposes of
children's museum and for no other purposes whatsoever without the prim written content of the
Lessor which consent shall act be unreasonably withheld.
B. All improvements on the demised premises shall be constructed and maintained in
accordance with all applicable building, fire, and property maintenance codes of the State of
Maine, and the Laws and Ordinances of the City of Bangor including the site plan approval
process outlined in the Laws and Ordinances of the City of Bangor. Poor to cornmenciug arty
construction, Lessee shall secure all ncessary approvals from the City of Bangor, the State of
Maine, and the United States requited under any applicable law, ordinance or regulation,
including City of Bangor Planning Board approval.
C. Lessor, through its agents, shall have m all reasonable times the right, upon reasonable
notification to the Lessee, to go on and inspect the premises, any buildings, structures or
improvements thereon, with an authorized representative of the Lessee, and the fight of access to
utility systems located on the demised premises for the purposes ofmaintenanca, repair,
correcdon, or inspection. For purposes of this paragraph, "reasonable nmification" shall intrude
any =us] notification to the Lessee or its agent not less then one business day prior to the date of
inspection. "Reasonable three shall mean anytime during Lessee's regular business hours, or
during normal weekday business boors if Lessee shall cease operations or shall maintain other
thanregulmbusinesshours. Any such inspectionsshell be conducted inamaumerwhichdoes tot
interfere with the privacy or confidentiality of the Lessee or its customers.
ARTICLE V - HAZARDOUS WASTE
Lessee hereby covenants and agrees that it shall not, during the term of this lease, including cavy
extension or renewal hereof, permmrently place, cause to be placed, deposit or discharge any
hazardous waste upon the demised premises, and further expressly agrees that it shall indemnify
Lessor from any and all costs, expense or liability, of whatever land or nature, incurred by the
Lessor in detecting, maluatin& removing, treating, disposing of or otherwise responding to any
hazardous waste placed or deposited by Lessee in violation of this Article.
Lessee hereby covenants and agrees that it shall not, during the term of this lease, including any
extension or renewal hereof violate any local, state or Federal regulation, ordinance or statme
pertaining to hazardous waste or hazardous mmerial and fuller expressly agrees that it shall
indemnify Lessor from any all all costa, expense or liability, of whatever kind or nature, ineured
"a Lessor for any such violation by Lessee. Such costs shall he domed to include, without
limitmion, Lessor's costs of defending any suit filed by any person, entity, agency, or
governmental authority; paying any fines imposed in correction with such suit paying any
judgments or otherwise sending any damage claims; complying with any order by a court of
comp gemprisdiction directing the Lessor to take remedial action with respect to such waste;
and of ell associated attorneys fees and costs.
For the purposes ofthis Article, the term "hazardous waste" shall be deemed to include every
substance now or hereafter designated as a hazardous waste under any provision of State or
Federal law. Lessa's obligations under this Article shall be deemed to survive the expiration or
termination of this Lease, but shall be limited to acts or occurrences by Lessee, its agents,
employees and assigns, during the term, or any, extension or renewal thereof, of this lease.
ARTICLE VI - DAMAGE BY FIRE OR OTHER CASDALTY
In the every of the destruction or damage of the demised premise by fire or other casualty,
Lessor shell have the right, but not the obligation, to rebuild and repair the demised premises for
ocwpnny. If Lessor dais not to rebuild and repair, it shall so notify Lessee within thirty (30)
days or more expeditiously if possible of its decision. In the event the damages are ofthe extent
as to reasonably prevent Lessee from operating within the demised premise, then the Lessee shall
have the right to terminate ads Lease and shall notify Lessor within the aforementioned lime
period, and Lessee's obligation to pay rem as herein provided shall terminate upon receipt of such
notice by the Lessor and surrender of the demised premises by the Lessee.
ARTICLE VI[ - TAXES
The Lessee agrees to pay, when due, arty and all taxa arW/or assessments, fees or charges ofamy
kind whatsoever, as may be imposed during the term hereof, or arty emersion of the tam of this
lease, by any governmeeral authority upon the demised premise, including Lessee's leasehold
interest therein, any Amounts, or improvements thereon, or any personal property located
therein.
ARTICLE VII[- NONDISCRAIINATION
Lessee for itself, its personal representatives, successors in interest and assigru, and as pan of the
considerations hereof does hereby covenant and agree as a covenant turning with the land that
(1) no person or group of persons shall be excluded on the grounds of race, color, or national
origin from participation in, denied the benefits of, or be otherwise subjected to discrimination in
the use or occupancy of said demised premises; (2) in the construction of all improvements,
buildings, structures, on, over or under such land and the furnishing of services thereon, no person
or group of persons shall be excluded on the grounds of race, color, or national origin from
participation in, denied the benefits of or be otherwise subjected to unlawful discrimination; and
(3) Lesser shall use the premise in compliance with ell other requirements as may be imposed by
or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtile A,
Office of the Secretary, Pan 21, Nondiscrimination in Federally Asvated Programs of the
Department of Transportation Effecmation of Tide VI of the Civil Rights Act of 1964, and as
said regulations may be amended. In the event of breach of any of the above nondiaomination
covenants, the Lessor shat have the right, after failure of Losses to ronify such breach whhin
thirty(30) days after receipt ofnotice from Lessor, to terminate this Agreement Provided,
however, that Lessor shall not have the right to initiate termination of the Lease under this Article
with respect to any complaint of discrimination which is pending final resolution or adjudication
before any agency or court of the State of Maine or the United States.
ARTICLE IX- COVENANTS OF QUIET ENJOYWNT
The Lessee, subject to the terms and provisions of this Lease on payment of the ren, and
observing keeping and performing all the terms and provisions of the Lease on its part on be
observed, kept and performed, shall lawfully, peaceably and quietly hava hold, occupy and enjoy
the demists premises during the term hereof without hinderance or rejection by the Lessor or any
other persons.
ARTICLE X LIENS
The Lessor and the Lessee agree that each will promptly discharge (either by payment or by filing
of the necessary bond or otherwise) any mechanics, astonishment or other liens against the
demised punned, any buildings, structures or improvements thereon, which hens may arise out of
any payment due for labor, services, materials, supplies or cauil murt which may have been
furnished to or for the Lessor or the Lessee, respectively.
ARTICLE M -REMOVAL OF PROPERTY
Upon the immodest or final expiration of this Lease, the improvements and other personal
property erected or located upon the demised premises by the Lessee shall remain the property of
the Lessee, and the Lessee shall have the right to remove the same from the demised premises
within sixty (60) days from the date of nomination or final expiration of this Lease. Any such
property not an removed within said sixty (60) days shall become the property ofthe Lessor to be
disposed of in such way as the Lessor may deem fit. in the event the Lessee slats to remove add
improvements and other persond property, the buildings and land appurtenant therdo shall be
returned to as our as possible its condition as at the commencement of the Lease, ordinary wear
and tear excepted.
In the event Lessee shall fail to remove arty moveable personal property within sixty (60) days
more the daze of termination or final expiration of this Lease Lessor shall be entitled to recover
Rom the Lessee Lessor's reasonable costs inwrred in removing or disposing of such personal
property. In such event, there shall be deducted from Lessor's was the fair value to the Lessor
actually realized Rom sale, use or other disposition of the personal property concerned.
ARTICLE XII -SURRENDER OF POSSESSION
Subject to the provisions contained in Article M, the Lesace shall, upon the nomination of this
Lease, surrender the quid and peaceable possession of the demised promisee.
99-34
ARTICLE MU - TERMINATION
It is covenanted and agreed that:
(1) If the Lessee shall neglect or fail in pay the real or other charges payable
hereunder and such default shall continue for a period of thirty (3 0) days after written notice
thersofby Lessor; or
(2) If Lessee shall neglect or fail to perform or observe any of the other covenants,
tams, provisions, or conditions on its part to be performed, or observed, and such neglect or
failure shall continue for a period of thirty (30) days after written notice thereof by Lessor, or if
such covenants, lama provisions or conditions cannot be performed or observed within said
thirty (30) day period ifLessce fails to diligently prosecute the coring of auch neglect or failure,
or
(3) If the estate hereby created shall betaken on execution or by other process of law;
or
(0) If the Lessee shall be declared bankrupt or insolvent according to law; or
(5) If any, assignment shall be made of the property of the Lessee for the benefit of
creditors; or
(6) If a receiver, guardian conservator, or tinewe in banlanptey or other similar officer
shall be appointed to take charge of all or any substantial part of the Lessee's property by a Court
of competent jurisdiction; or
(7) If a petition shall be filed for a reorganization of the Lessee under provisions of the
Bankruptcy Act now or hereafter enacted; or
(8) Nine Lessee shall file a petition for such reorganization or for armnganenis under
arty provision ofthe Bankruptcy Act now or hereafter enacted;
Than, in any of the and cases (nohvithstanding any, license of any forma breach of common or
waiver ofthe benefit hereof or consent in a former it stance), the Lessee may be considered in
default hereunder, and the Lessor lawfully may, immediately or at may time Hereafter and without
demand or notice, enter into and upon the said premises or any pan thereof, in the name of the
whole and repossess the same as of the "mots former estate, and expel the Lessm and those
dairning through or under it and remove its or their effects (forcibly if necessary) without being
deemed guilty In any manner of trespass, and without prejudice to any remedies which might
otherwise be used for arrears ofrem or Intraday breach ofcoveneM. Uponsuchentry,this
Lease shall terminate, and the Lessee shall be liable to pay as ren, amounts reserved as would
have become due under this Lease if this Lease had not been terminated or if the Lessor had not
Lessor hereby represents and warrants that it has taken all necessary procedural and legal steps as
required under all state, local and federal laws and regulations, and all necessary corporate action
m authorize the exeention of this Lease by its undersigned corporate officers and that upon such
execution this Lease is a valid and binding document on the part of the Lessee and is fully
enforceable in all of its terms and conditions by the City of Bangor.
ARTICLE XVIII - WAIVER
Failure on she pan of the Lessor to complain of my action or non -action on the part of the Lessee
no matter how long the same may continue, shall never be deemed to be a waiver by the Lessor of
my of Lessors rights bereunder. Further, it is covenanted and agreed that no waiver at airy time
of my of the provisions her mfby Lessor, shall be construed as a waiver of any other provisions
hereunder, and that a waiver m any time of arty of the provisions herself shall not be consumed at
arty subsequent time as a waiver of the same provisions. The approval of Lessor or of my action
by the Lessee requiring the Lessors consent or approval shall not be deemed to waive or render
unnecessary the Lessors consent or approval of my subsequent similar act by the Lessee.
ARTICLE XIX- NOTICES
Notices to the Lessee provided for in this Lease shall be sufficient if sem by registered or certified
mail, return receipt requested, postage prepaid to City Manager, City of Bangor, Chy Hall, 73
Harlow Street Bangor, Maine, 04401; and notices to Lessee, are to be seat by registered or
certified and, return receipt requested, postage prepaid, addressed toTresident, Realty Resources
Chartered, 247 Commercial Street, Rockport, Maine 04856, or to such other respective
addressees as the parties may designate to each other in writing from time to time.
ARTICLE XX -INVALIDITY OF PARTICULAR PROVISIONS
If my term or provision of this Leine or the application thereof to my person or circmnstarrce is
hereafter determined to be to any extent, invalid or unenforceable, the remainder of this Lease or
the application of such terms and provisions to persons or circumstances other then those to
which it is held invalid or unenforceable shall not be affected hereby and such term and provision
of this Leese shall be valid and be enforceable to day fullest eaent permitted by law.
ARTICLE XXI - CONSTRUCTION
The headings appearing in the Lease are intended for convenience and reference only, and not to
be considered in worming this Lease.
ARTICLE JOUI - NO PARTNERSHIP OR JOINT VENTURE CREATED
Nothing contained herein shall be deemed or construed as creating the relationship of principal
and agent or of partnership or of joint venture between the parties hereto, it being understood and
agreed that neither the method of computation of rent nor any other provision contained herein or
entered or reentered as aforesaid. Notwithstanding the foregoing, Lassce's liability shell not
exceed the difference, if any, between the rental which would have been due had there been an
such temdnation, and the amount being received by Lessor as rent from any new termat or
occupant of said premises. In order to mitigate Lessee's damage hereunder, Lessor agrees to
make every reasonable effort to secure subsequent tenants, at a rental equal to the than prevailing
local rate for the demised promises.
ARTICLE XIV - ATTORNEY'S FEES
The Lessee shall pay to the Lessor a reasonable attorney fee in the event the Lessor employs an
attorney to collect any rents due hereunder and secures ajudgment in connection with collection
of said rend, or legal process is levied upon the interest of the Lesser in this Lease or in said
premises, or in the event Lessee violates any of the terms, conditions or covenants on the part of
the Lasses herein contained, provided that Lessee fails m promptly correct the violation of saw
terry condition or covenant after receipt of notice that it is in violation thereof
ARTICLE XV - ASSIGNMENT, SALE AND SUBLETTING
The Lessee shall not m any time assign, sell, convey or transfer this Lease or any interest therein,
or sublease or sublet or rent the premises, an any part thereof, without the prior written consent of
the Lessor which consent shall not be unreasonably withheld, delayed, or conditioned. In the
event of an approved sublease all provisions shall extend to, bind and inure to the benefit of not
only the Lessor and Lessee but also than saccenomm and assigns.
Lasses shall have the right to assign this Lease to any cooperation with which it may have became
merged, consolidated or otherwise a9cor�ted, or mry corporation or holding company having the
controlling interest in the Lessee, or to may corporation which may be a subsidiary of the Losses.
In no evern, however, shall the Lessee named herein be relieved from any obligation under this
Lease by virtue of any, assignment or subletting.
ARTICLE XVI - OPTION TO PURCHASE
Lease sball have the right to purchase the demised premises m any time during the term of
this Lease, pursunat to the terms and conditions of the Purchase Option Agreement attached
hereto as Exhibit B.
ARTICLE XVII- AUTHORITY TO ENTER INTO AGREEMENT
The Lessee hereby represents and warrants that it has taken all necessary procedural and legal
steps as required by federal, state and local laws and regulations for the purpose of authorizing the
execution of this Lease and that execution of this Lease by the City Manager renders this Lease a
valid and binding document on the part of the Lasser and the same is fully enforceable in all of its
terns and conditions by the Lessee.
any ads of the parties hereto shall be deemed to create any relationship between the parties other
than the relationship of landlord and tenant.
ARTICLE-GOVERNPIG LAW
This Lease shall be governed exdusively by the provisions hereof and by the laws of the State of
Maine as the same may from time to time exist.
ARTICLE =V -MEMORANDUM OF LEASE
Upon execution of this Lease, the parties may, upon request of either, prepare and execute a
Memorandum of Lease in a form suitable for recording at the Penobscot County Registry of
Dads, as evidence of Lassoes interest in the premises demised herein.
ARTICLEX - AMENDMENT TO LEASE
This Lease contains all the terms and conditions between the parties hereto and no alteration,
amendment or addition hereto shell be valid unless in writing and signed by both parties hereto.
IN WITNESS Wf3EREOF, the parties burro have set their hands and seals the day and year
written above.
CITY OF BANGOR
Edward A. Barrett
Its: City Manager
REALTY RESOURCES CHARTERED
Witness
Title:
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99-34
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10[BIBIT B 99-34
REALTY RESOURCES CHARTERED, a corporation, duty organized and
existing under the laws of the State of Maine having a place of business at 247
Commercial Street, Rockport, Maine 04856 (hereinafter OPTIONOR), for consideration
paid and other monies referred to below and to be paid at the dosing of the purchase and
sale of the premises described in Paragraph I below, hereby grants to the CITY OF
BANGOR, a municipal corporation, duty organized and existing under the laws of the
State of Maine having a place of business at 73 Harlow Street, Bangor, Maim 04401
(hereinafter OPTIONEE), an option to purchase, upon the terms and conditions see forth
below, the premises described in Paragraph I below.
TERMS'. This option is granted subject to the following terms and conditions'.
1. Premises Subject to Ontion:
Exhibit A. (hereinafter the Property)
2. Oofion Period. This option shall tun from the date heomfumil December 31,
2000, or until web later date as the parties may agree.
3. Exercise of Option. The OPTIONEE, may exercise this option and acquire the
subject property giving written notice of its intent to do so to the OPTIONOR at ally time
duringthsoptionperiod. Such notice shall be effective if delivered to the OPTIONORS
office 9 the OPTIONOR's address stated above. Thereafter, the parties shall schedule a
closing at a mutually convedent date, which may be after the expiration of the option
period. If date for dosing can not be annually agreed upon, a dosing shall take place no
later than sixty (60) days from the date of delivery of OPTIONEE's notice to
OPTIONOR or the first business day ager such date.
4. Purchase Price. The purchase price for the property subject to this Option
Agreement shall be the cost of OPTIONOR to improve the demised premises.
5. Tvpe ear Convevaxe. Conveyance shall be by Quitclaim Deed with Covenant to
OPTIONEE from OPTIONOR OPTIONOR shall prepare the necessary Deed, subject to
approval by OPTIONEE's attorney. OPTIONOR shall convey title under tNs paragraph
to OPTIONEE free and over of all encumbrances except customary public utility
easemema serving the premises and shall be subject to applicable zoning and land use laws
and regulations.
6. Taxes. OPTIONEE shall be responsible for all property taxes assessed against
the subject premises following the closing.
99-34
]. OPTIONOR N t C E b Title. During the term ofthe option
period, OPTIONOR shall not voluntarily convey, mortgage or otherwise encumber the
option property or any portion thereof, without OPTIONEE's prior written consent.
& OPTIONEE's Conditions Notwithstanding OPTIONEE's exercise of its
option, OPTIONE'E shall have no obligation to enquire the property unless the following
conditions are meS to OPTIONEE's satisfaction:
Upon execution of this Agreement, the OPTIONOR wgl furnish to the
OPTIONEE for the OPTIONEE's review complete and accurate copies of all
information, records and documentation concerning the ownership and condition
of the Property in the possession of the OPTIONOR or the OPTIONOR's
representatives, as the OPTIONEE may reasonably request, including, without
limitation (but only for informational purposes and without warranties or
representations of any kind regarding accuracy), any available plans and surveys,
legal opinions regarding zoning or environmental matters affecting the Property,
engineering reports, environmental site, and title policies or abstracts. OPTIONEE
will hold in strict confidence all documents, data and information obtained from the
OPTIONOR, and if the closing does not occur, will return the same to the
OPTIONOR.
9. Andamanant OPTIONEE may assign its rights under this Purchase Option
Agreement rt any time during its tend.
10. Option Binding on OPTIONOR's Successors. The Option granted shall be
binding upon the OPTIONOR, its successors and assigns, and shall inure to the beirefit of
OPTIONEE and, as provided in Section 9 above, OPTIONEE's successors add assigns.
Dated: CITY OF BANGOR
Witness Edward A. Herten
City hdanager
REALTY RESOURCES
CHARTERED
Witness Name'
Title:
msofim/wircrorNWMuseum doe