HomeMy WebLinkAbout1997-04-28 97-201B ORDER9]-201B
Aeaigredb Council« Baldacci April 28, 1997
CITY OF BANGOR
(TITLE.) VIYrINer. _Autmo mg Appreciation of Termer m of Cont for Purchase and Sale of
Real Estate - Jahn D. Chinaman, Jr.-BanAir Industrial Park
By one City Coined of Ne City ofBmgor:
ORDERBDB
THAT
WHEREAS, the City entered into a Contract for Purchase and Sale of Real Estate with
John D. Limremao, Jr. dated lily 9,1996 providing for the purchase and
development of Lots 4 and 5 in BarAir Industrial Park; and
WHEREAS, the Contract for Purchase arsd Sde of Red Estate provides that a closing take
place prior to November 6,1996;
NOW THEREFORE HE IT ORDERED BY THE CITY COUNCIL OF TILE CITY OF
BANGOR, THAT the City Manager is hereby authorized, on behalf of the City of Bangor,
to notify John D. Lismehon, Jr., in a form approved by the City Solicitor, that the Coated
for Purchase and Sale of Real Estate with John D. Chamber, Jr. dead July 9, 1996 has
expired; And
BE IT FURTHER ORDERED, THAT the City Manager is hereby au borisd to repair the
deposit of Ten Thousand Dollars ($10,000) made by John D. Lirmeban, Jr.
IN CITY COUNCIL
April 28, 1997 97-2018
Indefinitely Postponed O R D E R
Title, Authorizing Afflrmntlon of Terms of
yygR Contract for Purchase and Sale of Real
Estate - John O. Linnehan, Sr. - BanAir
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iRANAIRCORPORATION
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To: Members of Me City Council
From: Stephen A. Bolduc, EFecutwe Manager
Date: April 28, 1997
THE GROWING
ADVANTAGE
Subject: Extension of the CONTRACT FOR PURCHASE AND SALE OF REAL
ESTATE with John D. Linnehan, Jr., for Lots 4 and 5 in the BanAir Industrial Park.
Issue
John D. Linnehan, Jr., president, Un ehan's Ellsworth Ford Sales has requested
an extension to the closing date of a CONTRACT FOR PURCHASE AND SALE OF
REAL ESTATE for Lots 4 and 5 in the BanAir Industrial Park to purchase and sell used
automobiles. Mr. Linnehan contends that, based on the contract, he is entitled to an
automatic extension. The City Solicitor feels that the contract extension is not
automatic, and that the City Council has an option whether or not to extend the
contract. -
Background
The CONTRACT FOR PURCHASE AND SALE OF REAL ESTATE dated July 9,
1995 between the City of Bangor and John D. Linnehan, president, Linnehan's
Ellsworth Ford Sales for the purchase of Lots 4 and 5 in the BanAir Industrial Park
had a closing date of November 5, 1995. The CONTRACT also states, however, that
the closing date could be"automatically extended for a reasonable enwum of time in
the event that the BUYER is delayed in obtaining the necessary approvals ...., and is
making a diligent effort to obtain the same."
It is Mr. Unnehan's Wmenfion that he has been delayed in obtaining the
necessary approvals because he has appealed a decision of the Zoning Board of
Appeals to Superior Court, and therefore the contract should be automatically
extended
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(ID 94H90 FP%
97-201a
On September 3, 1996 the project for a used car sales operation on Lots 4 8 5 in
the BanAir Industrial Park received Site Development Plan Approval from the Bangor
Planning Board. The Site Plan was designed in conformance with a ruling of the Code
Enforcement Officer that the developments vehicle display areas on Hammond St.
must meet the setback and landscaping requirements of a parking lot. The Land
Development Code requires that parking lots in an Urban Industry District be set back
from the property line a minimum of (10) feet and be screened with a "B" bufferyard.
Mr. Linnehan appealed that decision to the Zoning Board of Appeals contending
that the proposed paved area along Hammond St. is a vehicle display area, and there
is no setback or bufferyaN required. The Zoning Board of Appeals upheld the decision
of the Code Enforcement Officer, and Mr. Linnehan subsequently appealed that
decision to Superior Court where it is currently Pending.
It is Mr. Linnehan's position that the closing date of the contract has been
automatically extended under the provision that he has been delayed in obtaining the
necessary approvals and is diligently pursuing those approvals. The City Solicitor feels
that because Mr. Linnehan has received Site Development Plan approval and
approvals from the U.S. Army Corp of Engineers and the Maine Department of
Environmental Protection, the provisions of Me contract have been met, and there
should not have been any delay in the closing.
If the contract is extended Mr. Linnehan will have the option to complete the
purchase or to avoid the agreement and have the deposit returned immediately. If the
contract is extended to December 31, 1997 the property will have been unavailable for
sale for eighteen (18) months.
Recommendation
The Board of Directors of the BanAir Corporation and the Community and
Economic Development Committee considered the following options before making a
recommendation to the City Council:
Option 1 - Extend the contract to allow Mr. Linnehan to pursue the appeal in
Superior Court
Option 2 - Affirm that the contract has expired and retain the deposit of $10,000
as liquidated damages as set forth in Me contract (Paragraph 8 - Default of
the contract).
Option 3 -Affirm that the contract has expired, and authorize staff to return the
deposit of $10,000 to Mr. Linnehan.
Page 3
The Board of Directors of the BanAir Corporation recommended that the contract
be extended to a time within thirty (30) days of the rendering of the judgment of the
Superior Court or by December 31, 1997, whichever is sooner.
The Community and Economic Development Committee considered this matter
on Aprtl 9 and voted We in favor and one opposed to recommend that the contract be
extended to a date within sixty (00) days of a rendering of a judgment of Superior Court
or December 31, 1997, whichever occurs first.
Councilor Baldacci, the dissenting vote of the Committee, requested a second
Council Order be prepared which authorizes the City Manager to notify Mr. Linnehan
that the contract has expired and to return the deposit of $10,000 to Mr. Linehan.
Two separate Council Orders have been prepared for the Council's
consideration. The first conforms to the recommendation of the BaMir Board of
Directors and the majority of the Community and Economic Development Committee
and the second to Councilor Baldamfs request.
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