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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 IadSa k iidl' Pekk"""""""' . """' ...................................... Via. Aedgned to . ................ co��ct� n iRANAIRCORPORATION Gismo Namur FOMgnrmhanem 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 B GOv MPWEM Pap - raa)w2.aeax (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. Pape 4