HomeMy WebLinkAbout1998-12-16 99-35 ORDERCOUNCIL ACTION
Date: December 16 1996
Item No. 99-35
item/subject: Andumizing Agreement with Partnerships for EhhUy Communities-Former
Freme's Building
Responsible Department: Community & Economic Development
Commentary:
This Order would authorize an Agreement with Partnerships for Healthy
Conumnities whereby the City agrees to enter an agreement with Realty
Resources Chartered to lease the space needed for the children's museum
from the time improvements are completed until December 31, 2000. This
would give the children's museum the 24 months it needs to raise the $3.6
million in funds. The City would also have a assignable option to purchase
the children's museum space until December 31, 2000. If the children's
museum meets its fund raising benchmarks, the City would either exercise
its option to purchase the space and donate it to the children's museum, o
would assign its option to purchase to the children's museum and forgive
that part of the City loan to Realty Resources attributable to the apace
involved.
D� artmen[ sad
manager's Comments: /D
Q' , `F
City manager
Associated Informeticn
Budget Approval:
Finance Da ctor
Legal Approval:
City Solicitor
Introduced For XPascagm 0 First Reading ❑ Referral
Page__I__ofy
99-35
Aseigned to Councilor 3a later December 16, 1998
CITY OF BANGOR
(TITLE.)(OrDEXa............AUthmUdng-AgxeruerdwiWFaraensldps.forHealthy-Communities.—.......
Former Freese's Building
By be Cry Coaual of Ne Oft dBaaw.;
ORDERED,
TUT WHEREAS, the City is the owner of the Main Street portion of the former
Frcese's building located 9 7496 Main Street; and
WHEREAS, Realty Resources Chartered has an option from the City to acquire
and renovate the space on floors 4, 5 and 6 into apartments providing assisted residential living
and floors 1, 2 and 3 into "white box" condition prior to December 31,1999; and
WHEREAS, tenants have not been seemed for the space on floors 1, 2 and 3 said
Partnerships for Healthy Communities has submitted a proposal to the City to establish a
children's museum in appmumately 22,000 square feet of the space available; and
WHEREAS, Partnerships for Healthy Communities proposes to secure
$3,600,000 in private and other funding through a fundraising capital campaign to establish the
clvldren's museum in addition to the requested donation of the space by the City; and
WHEREAS, twenty-four months is needed to raise the $3,600,000 necessary to
establish a children's museum; and
WHEREAS, completion of the Museum will provide a significant public benefit
by attmcfing visitors that will enhance the economic viability of the community and downtown
area, by occupying long vacant and unutilized building space in the Bangor Downtown
Revitalization Area, and by providing educational opportunities to area children; and
WHEREAS, the high cost of the children's museum realuires assistance from the
City to ensure establishment of the children's museum in the Downtown Revitalization Area;
NOW, THEREFORE, BY THE CITY COUNCIL OF THE CITY OF BANGOR, BE IT
ORDERED THAT, the City Manager is bereby authorized to enter an ageement with
Partnerships for Healthy Communities whereby space would be provided in the former Freese's
building to establish a children's museum, under terms and conditions substantially similar to
those contained in the "Agreement" attached hereto, and in a Boal form approved by the City
Solicitor or Assistant City Subway.
IN CITY COUNCIL
December 16. 1998 99_35
Motion to Amend by Substitution
of the attached Agreement O R D E R
Notion Seconded
Passed As Amended by Substitution Title, Authorizing Agreement with Partner -
of attached Agemen t ships for Healthy Communities - Former
a
Freese'Building
CITY �� .....................',� "(j ......
Ae®4 ed
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AGREEMENT
This Agreement is made erM entered into as of December _,1999 by and between the City of
Bangor (hereinafter "City"), a municipal corporation located in Bangor, County of Penobscot,
State of Maine, and Partnerships for Healthy Communities (hereinafler'PaMership"), a Maine
non-profit corporation duly organized and existing under the laws of the State of Maine, with a
place of business in Bangor, County of Penobscot, State of Maine.
WITNESSETH
WHEREAS, the City is the owner of the Main Street portion of the former Freese's
building located at 74-96 Main Street in Bangor, Maine (hereinafter "Main Street Block"); arM
WHEREAS, Really Resources Chartered, a Maine corporation having a place of business
in Rockport, Maine, has an option from the City to acquire and renovate the Main Street Black
now owned by the City; and
WHEREAS, Really Resources Chartered intends to acquire and renovate floors 4, 5 and 6
of the Main Street Block into apartments providing assisted residential living and
WHEREAS, Realty Resources Chartered intends to acquire and renovate floors 1, 2 and 3
of the Main Street Block roan so called `white box" condition at an estimated mar of $1,934,300;
and
WHEREAS, City has agreed to provide Realty Resources Chartered $1,934,300 is
financing needed to renowne floors 1, 2 and 3 of the Main Street Block into "white box"
condition; and
WHEREAS, Realty Resources Chartered intends to complete renovation of Room 1, 2
and 3 of the Main Street Block into"obile box" condition prior to December 31, 1999; and
WHEREAS, Realty Resources Chimered has not secured renants for floors 1, 2 mW 3 of
the Main Street Block; and
WHEREAS, the Partnership is desirous of esmblishiug a children's museum in a portion
of floors 1, 2 and 3 of the Main Street Block encompassing approximately 22,000 square feet of
Floor mea; and
WHEREAS, the estimated amount needed to establish a children's museum in a portion
of floors 1, 2 and 3 of the Main Street Block, exclusive of obtaining the space needed in'wld[e
box" condition, is $3,600,000, which includes amounts for exhibits, a multipurpose room,
teammate, gift shop, lobby and cloakroom, offices, meeting room, exhibit workshop, exhibit
storage, circidation, utilities, equipmenS signage, furnishings, first year working capital and
operating support, arrimechnnl fees and services, nourishing expenses, endowment,
miscellaneous and contingency, all as listed as Proposed Campaign Objectives in the Feasibility
99-J5
Study form Eastern Maine Children's Museum dated August 1998 prepared for the partnership
by Gary Friedman and Associates; and
WHEREAS, Partnership will secure not less than $3,600,000 in private and other funding
sources for the Museum through a fundraising capital campaign, which amount does not include
funds or assets Proposed to be Provided to the Partnership by the City; and
WHEREAS, twenty-four months is needed to raise the $3,600,00) necessary to establish
a children's museum; and
WHEREAS, completion of the Museum will create a significant public benefit by serving
as a visitor attraction, particularly to the Bangor Downtown Revitalization Area, by occupying
vacant and unutilized building Two in the Downtown Revitalization Area, and by providing
educational opportunities to area children; and
WHEREAS, the high cost of creation of Children's Museum requires assistance horn
the City to ensure the public benefit of location of the children's museum in the Downtown
Revitalizaaw Area;
NOW, THEREFORE, IN CONSIDERATION of the around promises road covenants
contained in this Agreement, the City and Partnership agree as follows:
1. Subject to the provisions of this Agreement, the Partnership agrees to conduct a fundraising
capital campaign to raise $3,600,000 nacessary to establish achildren's museum in fioms 1,
2 and 3 of the Main Street Block.
2. Partnership agrees to provide City evidence, not later than December 31, 1999 that it bas
raised not less thin $1,000,000 in cash or pledges as part of its capital campaign.
3. Partnership agrees to provide City evidence not later than Juce 31, 2000 that it has raised not
less than an additional $1,000,000 in cash or pledges as part of its capital campaign.
4. Partnership agrees that not later than June 1, 2000 renovations for the Project shall be under
contract with an exhibit designer and/or engineering archiucoual fimu and that renovations
for the purpose of creating the children's museum will have commencN with a minimum of
18,000 square feet, including a minimum of 8,000 square feet ofeshibit space.
S. Partnersbip agreesthat not laid than December 31, 2000 the children's museum will be in
condition such that it will be open to the public.
6. Partnership agrees thin development of the children's moment shall he in accordance with all
applicable Federal, Srffie, and City laws, ordinances, and building codes.
7. Partnership agrees the snipe of the work shall conform in all material respects to plans
approved by the City.
S. Partnership agnesthat it shall keep and maintain books, records and other documents
relating directly to the receipt and disbursement of the capital funds raised and expended, and
agrees that any duty authorized representative of the City shall, at all reasonable times, have
access to and the right to inspect copy, audit, and examine all such books, records and other
documents of Partnership marl completion ofthe children's museum, upon prior wriden
notice. Partnership shall ensure that similar provisions are included in all contracts or
subcontracts entered ion in connection with the children's museum.
9. Partnership agrees that my duly authorized representative of the City shall, at all reasonable
times, have access to any portion ofthe children's museum until its completion and a
permanent Occupancy Permit for the Project has been issued by (he City.
10. Partnership shall not assign its rights ander this Agreement.
11. City shall enter an agreement with Realty Resources Chartered providing for the lease, =fit
December 31, 2000, with an assignable option to purchase until December 31, 2000, of
approximately 22,000 square feet of space in the Main Street Block designated as "P.H.C.—
Children's Museum" on Exhibit A attached hereto; and
12. City shall reserve the approximate 22,000 square feet leased from Realty Resources
Charterer, with the assignable option to purchase, for the exclusive rose of the Partnership to
establish a children's museum, so long as Partnership shall me r: the objecfives and
obligations listed in Sections 1 through 10 above; and
13. Upon Parmuship mcedng all objectives and obligations above, City shall exercise its option
10 acquire the approximate 22,000 square feet from Realty Resources Chartered and either, at
the option of Partnership:
A. Donate the space acquired from Realty Resources Chartered to the Partnership, or
other legal entity established to operate the children's museum approved by the City,
with a provision that if ever the space is not operated as a children's museum open to
the public, ownership shall coven to the City; or
B. Lease the space acquired from Realty Resources Chartered to the Partnership, or other
legal entity established to operate the children's museum approved by the City, m no
cost to the children's museum for the space leased, for a period of twenty years, or so
long "it is operated as a children's museum open to the public.
14. Under either option in above Section 13, the children's museum would be responsible for all
costs of operating the children's museum and all costs associated with the space leased from
the City. City shall be under an obligation to fuller assist the children's museum, to provide
funds for operating costs, heat, utilities, insurance, or any other cost associated with operation
of the children's museum or the space occupied by the children's museum.
Any notice which either party dishes or is required M give to the other in connection with this
Agreement shall be in writing and shall be sent postage prepaid, certified mail, whom receipt
requested, as follows:
If City:
Edward A. Barrett, City Manager
City of Bangor
73 Harlow Street
Banger, Maine M401
If to Partnership:
Partnerships for Healthy Communities
Burger, Maine 04401
Attention: Sean Faucloth
Or to such other person and/or address as maybe identified in writing by the
IN WITNESS WHEREOF this Agreement has been executed, sealed and delivered in
duplicate counterparts as of the day end year first above written.
PARTNERSHIPS FOR HEALTHY
COMMUNITIES
CITY OF BANGOR
Witness Edward A. Barren
Its City Manager
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SOBSTIlMit COPY
AGREEMENT
This Agreement is made and entered into as of December _,1998 by and between the City of
Bangor (hereinafter "City"), a municipal corporation located in Bangor, County of Penobscot,
State of Maine, and Parmersbips for Healthy Communities (hereinafter"Paaoer.AuB'7-yS"), a
Maine non-profit mryormtion duly orgami and existing under the laws of the State of Maine,
with a place of business in Bangor, County of Penobscot, State of Maine.
WITNESSETH
WHEREAS, the City is the owner of the Main Street portion of the former Fresse's
building located at 74-96 Main Street in Bangor, Maine (hereinafter "Main Street Block'); and
WHEREAS, Realty Resources Chartered, a Maine corporation having a place of business
in Rockport, Maine, has an option from the City to acquire and renovate the Main Street Block
now owned by the City; and
WHEREAS, Realty Resources Chartered intends to acquire and renovate floors 4, 5 and 6
of the Main Street Block into apartments providing assisted residential living; and
WHEREAS, Realty Resources Chartered bag formed TMC Partners. TIC aMafn
limited 1'ab'I'ty cora ry imigilw acquire and renovate floors 1, 2 and 3 of the Main Steel
Block into so called "white box" condition at an estimated cost of $1,934,300; and
WHEREAS, City has agreed to provide Realty Resources Chartered /JMC Partnera LLC
-$1,934,300 in financing needed to renovate floors 1, 2 and 3 of the Main Street Block into
"White box"condition in accordof
Pen San, Bui dwaTre
on or be£nre December 21 1096; and
WHEREAS, Realty Resources Chartered / JMC Partners. LLC intends to complete
renovation of floors 1, 2 and 3 of the Main Street Block into "white box" condition prior to
December 31, 1999; and
WHEREAS, Realty Resources Chartered / NC Partnere 11 C has not seemed tenants
for floors 1, 2 and 3 of the Main Street Block; and
W 9 I
for 1 Pur a f. v S u'I 't
seeking alcinam orteamag for thorns and f e Main StreetBiock and
WHEREAS, partnership is desirous ofesaalifishim, PHC snbmiued a prorrosal indicating
its desire to establish a children's museum in a portion of Floors 1, 2 and 3 of the Main Street
Block encompassing approximately 22,000 square feet of floor mea and storawcand workshoo
sBwt in the basement area below, and
WHEREAS, the estimated amount needed to establish a children's museum in a portion
of Floors 1, 2 and 3 of the Main Street Block, exclusive of obtaining the space needed in "white
box" condition, is extorted to be between $3,600,000 to $3.96000(1, which includes amounts
for exhibits, a multipurpose room, restrooms, gift shop, lobby and cloakroom, offices, meeting
room, exhibit workshop, exhibit smrage, circulation, utilities, equipment, signage, furnishings,
first year working capital and operating support, architectural fees and services, fundraising
expenses, andowmeut, miscellaneous and contingency, all as listed as Proposed Campaign
Objectives in the Feasibility Study for an Eamn Maine Children's Museum dated August 1998
prepared for =`.�-EHC'_by Gary Friedman and Associates; and
WHEREAS,secure wo4e%�-htv erl$3,600,OOO9ad
$3,990,000 in private and other binding sources for the Museum though a fundraising capital
campaign, which amount does not include funds or assets proposed to be provided to the
paeana sh'ip. PHC M1v the City; and
WHEREAS, twenty-four months is needed to raise the $3,600,000 to s3 900 Onn
necessary to establish a children's museum; and
WHEREAS, completion of the Museum will create a significant public benefit by serving
as a visitor amaction, particularly in the Bangor Downtown Revitalisation Area, by occupying
vacant and unutilized building space in the Downtown Revitalization Area, and by providing
educational opportunities to area children; and
WHEREAS, the high cost of creation of children's museum requires assistance from the
City to ensure the public benefit of location of the children's museum in the Downtown
Revitalisation Area;
NOW, THEREFORE, IN CONSIDERATION of the mutant promises and covenants
contained in this Agreement, the City and; ip PHCogme as follows:
I. Subject to the provisions of this Agreement,"-.^-geerahif.J$C_agrees to conduct
fundraising capital campaign to mise betw.reo $3,600,000 and $3900 000 necessaryto
establish a children's museum in floors 1, 2 and 3 of the Main Street Block.
2. page A>;ppys_agrees to provide City evidence, not later than December 31, 1999 that it
has raised not less Nan $1,000,000 in cash or pledges as part of its capital campaign.
3.Parwerskip P}�a�ces to provide City evidence not later than lune 31, 2000 that it has
mired not less than an additional $1,000,000 in cash or pledges as part of its capital
campaign.
4. Rarwersl+ipgt3C_agrees that not later Nan' Italy 1, 2000 renovations for the Project
shall be under contract with anexhibit designer and/or engineering architectural firm and that
renovations for the purpose of creating the children's museum will have commenced w*it
:..:.r;,,:.a:,9-000- at heanouedz+... nnnsquare feet, including a minimum of 8,000 square
feet of exhibit space.
5. ReaaerspigpgQagms that not later than December 31, 2000 the children's museum will be
in a condition such that it will be open to the public.
6. AwAership-EUC_agrees that development of the children's museum shall bs in accordance
with all applicable Federal, State, and City laws, ordirances, and building codes.
]. PaAReFs"P-EHk-agrees the scope of the work shall conform in all material respects to plans
approved by the City under the nmvisii s of the Pity of Ban"nr Codr.
8. PapaeWegp-EHC_agmes that it shall kap and maintain books, records and other documents
relating directly to the receipt and disbursement of the capital funds mixed and expended, and
agrees that any duly authorized representative of the City shall, at all reasonable times, have
access to and the right to impact copy, audit, and examine all such books, records and other
documents ofPai ewhiPp}ICuntil completion of the children's museum, upon prior
wrinen notice. R;ff evA, pkiC_shall ensure that similar provisions are included in all
contacts or subcontracts entered into in cormection with the children's museum.
9. Pa� PHCagrees that any duly authorized representative of the City shall, at all
reasonable times, have access to any portion of the children's museum until its completion
and a permanent Occupancy Permit for the Project has been issued by the City.
10. RepaershipPEEshall not assign its rights under this Agreement
11. City shall enter an agreement with Realty Resources Chartered// 1M�4C
providing for the lease, until December 31, 2000, with an assignable option to purcbase until
December 31, 2000, of approximately 22,000 square feet of space in the Main Street Block
designated as"PAC.—Children's Museum" on Exhibit A attached hereto and the
basement area below that srece; and
12. City shall reserve the approximate 22,000 square fen leased from Realty Resources
Chartered /1MC�s,LLC, with the assignable option to purchase, for the exclusive use
of'.".e^- dPj'EiC_to establish a children's museum, sa long as n.affnePsmf y}LC_Srd1
meet the objectives and obligations listed in Sections I through 10 show; and
13. Upon Paewershi -EHsm sting all objectives and obligations above, City shall exercise its
option to acquire the approximate 22,000 square Stat from Realty Resources Chartered 1
IMC P otters LIC and either, at the option ofPww rshiBj$C:
A. Donate the space acquired from Realty Resources Chartered / JMC Pannem. LLC C to
-a:a.assh;QJ}7�, or other legal entity established w operate the children's
museum approved by the City, with a provision that if ever the space is not operated
as a children's museum open to the public, ownership shall reven to the City; or
B. Lease the space acquired from Realty Resources Chartered 11MC2xWsaaJJLC to
4i&�JJS, or other legal entity established to operate the children's
museum approved by the City, at no con to the children's museum for the space
leased, for a period of twenty years, or so long as it is operated as a children's
museum open to the public.
14. _
. IIm
n13 above,PHC or its
qucgeoors shaoccumme
ybe responsible fi�rall cost$ aasgcimgd ivilb umrglinna gflhe children'
relatedat "Im se%Nsr and electrical utilities
Fire incl cytialiv insurance And all s.\a the itvt
of 1 se echild m u
Any notice which either party desires or is required to give to the other in connection with this
Agreement shall be in writing and shall be sent postage prepaid, certified mail, return receipt
requested, as follows:
If City:
Edward A. Bartell, City Manager
City of Bangor
73 Harlow Street
Bangor, Maine 04401
Ifto-paturr:shm-E c:
Partnerships for Healthy Communities
Bangor, Maine 04401
Attention: Sean Fahcloth
Or to such other person and/or address as may be identified in writing by the
parties.
IN WITNESS WHEREOF this Agreement has been emecuted, sealed and delivered in
duplicate coumerpans as of the day and year first above written.
witness
PARTNERSHIPS FOR HEALTHY
COMMUNITIES
pm
CITY OF BANGOR
Witness Edward A. Barren
Its City Manager