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HomeMy WebLinkAbout1996-12-23 97-66 ORDERCOINCIL ACTION Date: December 23 1996 Item No. 91-66 It®/Subject: Authorizing Execution of Development Agreement With Matthew S.Curtis and Cheryl D. Curtis -Cadillac Mountain Sports Responsible Department Community and Economic Development Commentary: This order authorizes an agreement with Matthew and Cheryl Curtis, owners of Cadillac Mountain Sports with stores currently in Bar Harbor and Ellsworth. This agreement would provide a loan to the Curtises for the acquisition of 6 Central Street, the former W.T. Grant building, for their location of aw Cadillac Mountain Sports flagship store in downtown Bangor. Funding for the 5350,000 loan would be through the City's Business Development Loan Program which receives its funding from federal Community Development Block Grant funds. The City's financing of the acquisition will allow the time ceded by the Curtises to arrange financing to merge the Bangor, Ellsworth and Bar Harbor operations and to establish the Bangor store. The City would hold a first mortgage on the property, and, if for sreason retail store specializing in the retail sale of sporting goodsisnot established by the Curtises by July 1, 1998, the City has the option to acquire the property from the Curtises for the amount of financing provided by the City. De tment Hea Manager's Comments: City Manager Associated Information: Budget Approval: Finance Director Legal Approval: City Solicitor Introduced For ® Passage O First Reading ❑ Referral Page—l_o£1_ ca -foam 9]-66 Anipred to Cowclw Woodcock Oeceaber 23, 1996 CITY OF BANGOR crinu Authorizing Execution of Development Agreanent With Matthew S. Curtis and Cheryl D. Curtis -Cadillac Mountain Sports By fhs aty council Of W ata Of Dualistic. ORDERED, TEAT WHEREAS, Matthew S. Curtis and Cheryl D. Curtis are desirous of acquiring an approximate 55,000 square foot privately owned building located at 6 Central Street in the City of Bangor for the purpose of establishing and operating a retail sales stare specializing in outdoor sporting equipment and clothing; and WHEREAS, the CITY has agreed to finance the purchase of the building by Matthew S. Curtis and Cheryl D. Curtis for such purposes; and WHEREAS, Matthew S. Count and Cheryl D. Curtis will invest approximately $210,000 in privately raised foods in building improvements and $120,000 for bounce, fixtures, equipment and frmish nits associated with the operation of a retail store; and WHEREAS, Matthew S. Curtis and Cheryl D. Curtis will create a significant public benefit by providing approximately 6 to 10 new permanent and 3 new seasonal job opportunities, furthering downtown revitalization and significantly enhancing lie tax base of the CITY; NOW, THEREFORE, BE ff ORDERED, THAT, the City Manager is hereby authorized, on behalf of the City of Bangor, to execute a Development Agreement, a copy of which is on file in the office of the City Clerk with Matthew S. Cards and Cheryl D. Curtis, providing for their purchase of 6 Central Street in Bangor and establishment of a retail sales operation specializing in sporting goods at that location. IN CITY COUNCIL December 23, 1996 Supporters of this project, including downtown merchants, urged passage of this Order. Passed Vote: 5 yes, 3 n Councilors voting yea: Aube, Dalaacci, Soucy, Tyler a Woodcock Councilors voting n Blanchette, Loss, Sullivan in CLM 9]-66 ORDER Title, Authorising Execution of Development Agreement With Matthew S. Curtis and Cheryl D. Curtis - Cadillac Mountain Sport$ ....... I ................... i ......... ............................. Assigned to 1 ,� ........... Councilman 9I-66 DEVELOPMENT AGREEMENT This Agreement, made and entered into as of December_, 1996 by and between the City of Bangor dremivafier'CITY" ), a municipal corporation located in Bangor, County of Penobscot, State of Maine, and Matthew S. Curtis and Cheryl D. Curtis, husband and wide, both of Bar Harbor, County of Hancock, State of Maim. WITNESSETH: WHEREAS, Matthew S. Curtis and Cheryl D. Curtis are desirous of acquiring an approximate 55,000 square foot privately owned building located a 6 Central Strect in the City of Bangor for the purpose of establishing and operating a retail sales store specializing in outdoor sporting equipment and clothing; and WHEREAS, the CITY has agreed to finance the purchase of the building by Mathew S. Cutis and Cheryl D. Curtis for such purposes; and WHEREAS, Mahhew S. Curtis and Cheryl D. Curtis will invest approximately $210,000 in privately raised funds in building improvements and $120,000 for furniture, futures, aryipmem and furnishings associated with the operation of a retail store; and WHEREAS, Matthew S. Curtis and Cheryl D. Curtis will create a significant public benefit by providing approximately 6 to 10 new permanent and 3 new seasonal job opportunities, furthering downtown revitalization and significantly enbarcing the tax base of the CITY; NOW, THEREFORE, IN CONSIDERATION of the mutual promises and coveneme contained in this Agrceicent, the CITY and Mathew S. Curtis and Cheryl D. Curtis agree as follows: 1.' Subject to the provisions of this Agreemem, CITY agrees to loan Matthew S. Curtis and Cheryl D. Curtis funds not exceeding $250,000 for the purchase of the property a 6 Central Street. Said feeds shall be loaned by the CITY to Matthew S. Curtis and Cheryl D. Curtis under the following terms and conditions: A. The loan shall have an annual interest ate of 8.25% simple interest pa year and a term of 20 yearn. B. CITY will allow principal and interest payments on the loan to be deferred to July 1, 1998. Interest on the outstanding balaace due shall 9]-66 aocme and be added m the owsmMing principal balance. The fast mmaldy payment on the outstanding principal balance shall be due on July 1, 1998, and monthly payments thereafter will be due on or before the fast day of each moth. The monthly payments due will be in the amoum necessary to sonnetize the full amount of the loan, including principal and interest over 240 months, with a level monthly payment. C. The loan shall be secured by a fust Mortgage on the real property erN fixtures located at 6 Central Street, Bangor, Maine. During the period of the loan, Matthew S. Carlos and Cheryl D. Curtis shall but allow any other debe or obligation to be secured by the property at 6 Central Street without the written permission of CITY, provided that Matthew S. Curtis and Cheryl D. Curtis may allow the creation of security interests in personal property and business inventory W be located on the premises. 2. Matthew S. Chris and Cheryl D. Curtis agree In establish, prior W July 1, 1998, a retail sales operation specializing in sporting goods at the 6 Central Street property and to occupy and operate the mean sales operation on not less Wan the first floor (Central Street level), and either one other floor or the mezzanine area of 6 Central Steel. Matthew S. Curtis and Cheryl D. Curtis agree W employ between 6 W 10 new personator and 3 new seasonal people at their retail sales operation at 6 Central Seem within 3 years of the date of this Agreement. 3. In the event Matthew S. Curtis and Cheryl D. Curtis fail to comply with patagrapR2 above, Matthew S. Curds and Cheryl D. Curtis shall be in default of Was Agreement. At the time they acquire tide W the property at 6 Central Street, Matthew S. Cutis she Cheryl D. Curtis shall provide the CITY with a written option, in recordable form, granting the CITY the right W purchase 6 Central Street from Matthew S. Curtis real Cheryl D. Curds in exchange for the discharge of all loan obligations due the CITY by Matthew S. Curtis anal Cheryl D. Curtis relating an the MY's Mortgage on the property, which shall he full consideration for the purchase. Said option shall provide that it shad be effective upon Matthew S. Curtis and Cheryl D. Curtis' failure W establish a retail sales operation at the 6 Central Street property as required in paragraph 2 above, Lc by July 1, 1998, and shall remain in effect for a period of ninety (90) days thereafter, nal sball furrhm provide that any failure by the CRY to exercise such option shall not in say, mamter be deemed W consulate a compromise, satisfaction or farebeamnce wide respect W Matthew S. Curtis and Cheryl D. Curtis' obligations uMer the Mortgage W be given W the CITY pursuant W this Development Agreement. 97-66 4. Subject to the provisions of paragraph 2 above, Matthew S. Curtis and Cheryl D. Curtis agree m use the property for uses permitted by the Laws and Onbravaces of the City of Bangor add for no udder purpose without the written permission of CITY. 5. Matthew S. Curtis add Cheryl D. Curtis agree to invest not less that $210,000 in building improvements at 6 Central Street prior to July 1, 1998, bsludiag such sums as are necessary to bring the property into compliance with all requirements of the City's Orctimvices, including the MY's 'Bangor Center Revitalization Area Ordinance", Chapter XIV of the Laws add Ordinarces of the City of Banger. 6. Matthew S. Curtis and Cheryl D. Curtis agree that all building improvemems undertaken by Matthew S. Curtis and Cheryl D. Curtis will be in accordance wit plans approved by CITY and shall be in accordance wild all applicable Federal, State, add City laws, ruddiness, and building codes. 7. Matthew S. Curtis and Cheryl D. Curds agree to invest rot less that $120,000 in furniture, futures and equipmem located at 6 Central Street prior to July 1, 1998, to support their operation of a retail sales facility. 8. Matthew S. Curtis and Cheryl D. Curtis hereby aclmowledge that the CITY, in agreeing to provide assistance to Mahhew S. Curtis add Cheryl D. Curtis, has relied in material part upon the assured establishment add operation of the remit sales operation by Matthew S. Curtis and Cheryl D. Curtis in Banger, Maine as provided in the parties' recitals and paragraph 2 hereof, and Matthew S. Curtis and Cheryl D. Curtis agree m use their best efforts to establish such operation no later than July 1, 1998. 9. M Matthew S. Curds and Cheryl D. Curtis' election, Matthew S. Curtis and Cheryl D. Curtis may temnnate this Agreement at arty time prior to July 1, 1998 add in such event Matthew S. Curtis and Cheryl D. Curtis, upon fail payn of of all amounts secured by the Mortgage to be given tu the CITY pursuant to this Agreenrm, shall he released from their obligations under this Agreemem. At the MY's discretion, any termination of this Agreement by Matthew S. Curtis and Cheryl D. Curtis, other than for breach of this Agreement by the CITY, shall operate as an acceleration of all sums secured by the Mortgage to be given to the CITY hereunder. 10. Matthew S. Curtis add Cheryl D. Curtis agree that any duly authorized representative of the CITY shall, at all reasonable times, have access to 6 Central Street. 97-66 11. 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 m CITY: City Manager City of Bangor 73 Harlow Street Bangor, Mahle 04401 If to Matthew S. Curtis and Cheryl D. Curtis: MaMew S. Curtis and Cheryl D. Curs c/o Cadillac Mountain Sports 26 College Sreet Bar Harbor, Maine 04609 Or m such other person and/or address as may be identified ha writing by the Parties. 12. This Agreement represents the entire Agreement of the parties hereto and supersedes all prior negotiations, representations, or agreements, written or oral, all of which are deemed merged herein. This Agreemem may not be amended except in writing signed by CITY and Matthew S. Curtis and Cheryl D. Curtis. 13. Matthew S. Clubs and Cheryl D. Curs shall not assign their rights under this Agreement without the prior written consent of CITY, which consent shall not be unreasonably withheld, delayed or conditioned. 14. Matthew S. Curs and Cheryl D. Curs agree for themselves and for their successors and assigns that with respect to the building at 6 Central Street, Matthew S. Curtis and Cheryl D. Curtis and their successors and assigns shall nes discriminate upon the basis of race, color, creed, national origin, sex or physical handicap or in any other manner prohibited by law in the sale, lease, ental, use or occupancy of the said 6 Cenral Sheet or any improvements thereon. This obligation shall be deemed to survive acquisition of the property at 6 Central Street by Matthew S. Curtis and Cheryl D. Curtis, and shall be included as a provision of the Mortgage to be given to the CITY hereunder. Any breach of this obligation by MaMew S. Curtis and Cheryl D. Curs shall be deemed a breach of this Agreement and shall be grounds for default and foreclosure of the Mortgage to be given to the CITY hereunder. 9]-66 15. It is intended by the parties that this Agreement shall operate as a construct under seal, in accormut a with 14 MRSA §]51. IN WITNESS WHEREOF this Agreement has been executed, sealed and delivered N duplicate counterparts as of the day and year first above written. Witness Witness Witress Approved as to form: Erik M. Stuar , City Solicitor City of Bangor Date: Matthew S. Curtis and Cheryl D. Curtis Matthew S. Curtis Cheryl D. Curtis CITY OF BANGOR By Edward A. Barrett Its City Manger STATE OF MAINE December_, loan Then personally appeared the above-named Matthew S. Curtis and Cheryl D. Curtis and acknowledged the foregoing instrument to be their free act and deed. Before note, primed Name: Notary Public/Adomey at "w My Commission Expires 9)-66 STATE OF MAINE Penobscot, as December _, 1996 Then personally appeared the above-named Edward A. Barren, in his capacity as the City Manager of the City of Bangor, and acknowledged the foregoing monument to be his free net and deed in such capacity arsl the free act and deed of the City of Bangor. Before me, PrintM Name: Notary Public/Attorney at Caw My Commission Expires C.WMTICMWPWJIAI-no�DATAW�IA�W In