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HomeMy WebLinkAbout1997-06-09 97-273 ORDERCOUNCIL ACTION Date: June 9. 1997 Iease No. 97-273 Itam/Subject: Authorizing Contract for Sale of Real Estate - BanAir Industrial Park - Carper Properties, Inc. Responsible Department: Community and Economic Development Commentary: This Order would authorize the sale of 6.8 acres in the Banair Industrial Park on outer Hammond Street in Bangor to Centex Properties, Inc. This will allow Pederal Express to significantly expand its facilities in Bangor with the construction of s new 60,859 square foot "city station° facility. The new building will serve a package sort and ground distribution facility, with a customer service area, vehicle maintenance hay, offices and warehouse area. The purchase price is $193,200, (See attached Memorandum) BanAir Corporation and the Community and Economic Development Committee will each review the terms of the proposed contract at separate meetings on June 4. Dep3p ent Head Manager•& Comment: * n R� ^C . City Manager Associated Information D,yw,�� d jpQl 1 Budget Approval: Finance Director Legal Approval: n City Solicitor Introduced For passage ❑ First Reading ❑ Referral eage�ofi 97-279 Assigned to Councilor Leen lune 9, 1997 Ijv _; CITY OF BANGOR (TITLE) p1)rl}ECL....... Amhurizixrg-conreaccfacSalenfxenlRsea7e.-.BvrAinIndustrial-Park ..... __ Cargex Properties, Inc ......__.- ... _._ ... .. _.. __ ........ Bro the IXey Cavnnl o(tM OitFKeanuor: ORDERED, THAT WHEREAS, Corridor properties, bar. has comracted w develop a package sort and ground distribution facility for the Federal Express corporation; and WHEREAS, Cargex Properties, Inc. proposes wwnswct the facility in the BaMir Industrial Park located on outer Hammand Street in Banpr; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGORTHAT the City Manager is hereby authorined and directed, on behalf of the City of Burger, to execuw a Contract for Sale of Real handle with Cordes Properties, Inc. for the sale aapproximately 6.9 acres of land in the BanAlr Industrial Park, a copy of witich is on file in the office of the City Clerk, in a form approved by the City Solicitor. - ... IN CITY COBNCIL June. 9, 1997 Passed 9PR 97-373 O RUER Title, anthoririog Contract for Sale of Real Estate - Bankir Industries Park - Cargez Properties, Inc. ...................................... ...��.../A........^..................... Ami AeriBmd to - Coanc'lman. 9I -2I3 CONTRACT FOR SALE OF REAL ESTATE The undersigned Cargex Properties, Inc (BUYER) of Msncheaer, New Hampshire hereby offers to purchase from the City of Bangor (SELLER) the reel estate with all improvements thereon, located at HmAjr Industrial Park, City of Bangor, County of Penobscot, State of Maine, and generally described as follows: EXIT®IT "A" ATTACHED PURCHASE PRICE is $193,200.00. $6,000 is the DEPOSIT in U.S. Dollars paid herewith and is to be applied to the purchase price at dosing. The deposit shall be invested in an interest- bearing account and all interest earned on the deposit shall follow the deposit. The balance of the Purchase price is to be paid in full at closing as follows: CASH AT CLOSING. THE DEPOSIT IS RECEIVED AND HELD EXPRESSLY SUBJECT TO THE FOLLOWING CONDITIONS: 1. SETTLEMENT/I'FILE: It is agreed that this transaction shall be closed and the Buyers) shall pay the balance due and execute all papers necessary for the completion of the purchase on or before 4:30 P.M. July 15 1997, unless otherwise agreed to, in writing, by both panics. A quitclaim deed conveying good and merchantable tide, free and clew of all encumbrances, except anal public utilities, building and zoning restrictions of record, and restrictive covenants of record shall be delivered to the Buyer or nonmese at closing. Buyer may purchase the Property either in its own name or in the name of its designee. Buyer reserves the right to form a new legal emity or entities for such purpose. If the Seller shall be unable to convey or deliver possession in accordance with the provisions of this Contract, or make the premises conform with the provisions herewder, then the Seller shall have a reasonable time period, not to exceed 30 days to cue any title defect, unless otherwise agreed by both parties in writing. The Sella hereby agrees to use diligent efforts to care any such title defect during such period or make the premises conform, whichever applies. 2. SETTLEMENT COSTS. Seller shall pay fu the preparation of the deed, declaration of value and continuation of any existing abstract of title or provide a title insurance binder, together with the preparation and recording fees for the removal of any encumbrances against the property. All other expenses and carts of document preparation, title examination, tide opinions, and the title insurance shall be borne by the Buyer The State of Maine Transfer Tax shall be paid by both the Buyer and Seller, as provided by law. The following items shall be prorated as of the date of closing: NONE Security deposits, if any, shall be transferred to the Buyer at closing. 3. POSSESSION: Seller shall deliver to Buyer possession of said premises immediately upon transfer or O days after closing, free of all tenants and occupants, and without incurring rent or fees. The premises shall be then in substantially the same condition as at present. Buyer shall have the option to inspect the property prior to closing. The risk of loss or damage to said premises until dosing is upon the Seller. 9]-3)3 4. DEFAULT: If the Buyerf'Is to make any payments or to perform any of the agreements on his part made or entered into, this Contract shall, at the option of the Seller be terminated, and the Buyer shall forfeit said earnest money deposit as liquidated damages or Seller may enforce all legal and equitable remedies. 5. ACCESS: Upon." motion of this contract, the Buyer and its agents, representatives lender(s), architect(e), engin ter(s) and employces shall have access to the Property at my time and from time to time for the purposes of determining whether the property is suitable for the Buyer's intended use and development, and to perform such topographical and engineering surveys, and other tests, surveys and studies, as the Buyer may deem necessary or appropriate. 6. BUYER'S CONDITIONS: Following are conditions to the Buyer's obligation to acquire the Property: a. The Buyer shall review and be satisfied with all zoning, land use and environmental laws, codes, ordinances and regulations affecting the Property and shall obtain all zoning, subdivision and environmental permits and approvals and any other applicable permit or approval as pay be necessary for the Buyer's proposed use and development of the Property. b. The Buyer shall obtain a current environmental site assessment for the Property, satisfactory to the Buyer in its sole discretion. a There shall not be any moratorium or any other restrictive measures in effect which prevent or be a detriment to the Buyer's intended use and development of the Property. I _ Upon azecution offhia contract, the Seller will Amish to the Buyer for the Buyer'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 Seller or the Seller's representatives, as the Buyer may reasonably request, including without limhation (but only for informational purposes and without warranties or representations of any kind regarding accuracy), any available plans and suvays, legal opinions regarding zoning or environmental matters affecting the Property, engineering reports, environmental site, and title policies or abstracts. Buyer will hold in stnct confidence all documents, data and information obtained from the Seller, and if the closing does not occur, will return the same to the Seller If any of the foregoing conditions is not safisfled poor to the Closing, or if the Buyer, in its sole discretion, is dissmisfiad with the results of my tests or inspections, or with the content of any of the documents, data or information obtained from the Seller, the Buyer may terminate this contract by written notice to the Seller on or before the closing date. In such case the deposit shall be refunded, and neither party shall thereafter have any Abler obligations or liabilities under this contract. 0. OTDERCONDITIONS: a. Site work and building construction shall commence within one (1) year. b. Site work and building construction shall be completed within two (2) years. c. The building shall have a gross floor area of not less than 60,000 aq. ft. • Building would be a steel frame, 60,859 sq. ft., building with masonry walls and a "Dryvit" facade. • Funcbon would be a package sort and ground distribution facility with a customer service area, vehicle maintenance bay, offices and a 52,000 sq. ft. warehouse / sod area with interior parking for up to 60 vans. • Location in SanAir Industrial Park allows link to passible air cargo operation. • New facility will employ 55 to 60 people upon completion. After first year of operation expect to employ 65 to 70. • Existing facility employs 48 people in a 15,000 sq. ft. building. • Will expand to 60 vehicles registered in Bangor. Currently 31 are registered. • Total investment $3.6 million. • Occupancy expected in December, 1997. • Project will require extension of 1,500 LF. of BanAir Rd. and installation of utilities at a cost to the City of $150,000 to $200,000. The Board of Directors of the BanAir Corporation will consider this offer and the following development conditions prior to the meeting of the City Council. Their recommendation will be presented to the City Council at the Council meeting. 1. Site and building construction shall commence within one (1) year. 2. Site and building construction shall be completed within two (2) years. 3. The building shall have a gross floor area of not less than 60,000 sq. ft. 4. The area within the front setback must be landscaped and planted with trees and shrubs consisting of the following plant units per 100': one (1) shrub, one (1) evergreen tree, and one (1) deciduous tree. Sufficient evidence of proceeding with site work and building construction is an approved Land Development Permit, issuance of a Building Construction Permit and initiation of construction of the building. Page 3 of 3 97-273 d. The area within the front setback must be landscaped and planted with frees and shrubs as follows. plant units per 100 R.: one (1) shrub, one (1) evergreen tree, and one (1) deciduous tree. Sufficient evidence ofproceeding with site work and building construction is an approved Land Developmem Permit, issuance ofa Building Consuuction Permit and initiation of construction ofthe building. B. AUTHORITY: The Buyer and the Seller each warrant and represent that the undersigned has full power and authority to execute and deliver this contract and to perform the obligations. THIS CONTRACT is binding upon the parties hereto, and their respective heirs, personal representatives, successors and assigns. If this CONTRACT is not fully understood, parties should consult an ATTORNEY. This Contract constitutes the entire agreement between the parties hereto, there are no promises or verbal understandings not clearly specified in it The use of the singular includes the plural and the use of any gender includes the other. BY TItEIR SIGNATURES HERETO RECEIPT OF A COPY OF THIS CONTRACT IS ACKNOWLEDGED BY ALL PARTIES. Buyer, having inspected the property and its appurtenances, hereby offers and agrees to purchase the property at the price and upon the terms and conditions set forth. Dated this day of dune, 1997 at , Maine. CARGEX PROPERTIES, INC. Witness By Andrew L. Ala Its: President CITY OF BANGOR Witness By: Edward A Barren Its: City Manager 97 273 BAIVAtRCORPORATION - THE GROWING on. a,a.ser ADVANTAGE Fartlgn trade Lme 58 Memorandum To: Members of the City Council From: Stephen A. Bolduc, ExecutTutive Manager Date: June 9, 1997 ,SQ -3 Subject: Sale of 6.8 acres in the BanAir Industrial Park to Cargex Properties, Inc. issue Cargex Properties, Inc. has offered to purchase 6.8 acres in the BanAir Industrial Park for $193,200 to develop a package sort and ground distribution facility for the Federal Express Corporation. Background Cargex Properties, Inc. proposes to construct a 60,000 sq. 8. "city station" facility for the Federal Express Corporation on 6.8 acres in the SanAlr Industrial Park. The project would be developed and owned by Cargex Properties, Inc., an affiliate of The Dead River Company, Bangor. Carl Properties, Inc. is a developer and manager of air cargo facilities at airports such as, Manchester (N.H.) Airport, Rickenbacker International Airport (Columbus, Ohm), Portland (ME.) International Jetport, Orlando (FL.) International Airport, and Richmond (Va.) International Airport. They have also. developed ground transportation facilities for Federal Express in Rochester, N.Y., - Brooklyn, N.Y., and Londonderry, N.H. Cargex Properties, Inc. has offered $183,200 for the parcel. PROJECT SUMMARY • Project represents a significant investment by a Fortune 500 company and an increased commitment by Federal Express to Bangor. nxAer.ow siassr eANccAmnws wcsr Page 2 M3 - rpir%74W M9 7FAX