HomeMy WebLinkAbout1996-03-25 96-162 ORDERDate: March15 T996 MarItem No. 96-162
Item/Subject: Extending Dates in Option Agreement for Purchase of a Portion of the
Former Freese's Building between me City of Bangor and Realty
Resources Chartered
Responsible Department: Community and Economic Development
The attached Order will extend the carte of the Option to lune 30, 1996, the timetable
for submittals required in the Option, and for completion of coostruction of the project. Realty
Resources Chartered has been malting steady and substantial progress. Financing by the Maine
State Housing Authonty is currently fir the final stages ofreview. Theeolensionofthe Option
to June 30, 1996 is provided for in the Option and the date changes included in the attached
Cound Order reflect a realistic timetable for the implementation and completion of the project.
Approval is recommended.
Manager's Comments: n q , /1
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Deparbnens Head
Associated Information: @ -
Budget Approval:
Finerms Director
Legal Approval:
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96-162
Aeeippedto Cianchm Popper March 25, 1996
CITY OF BANGOR
(TITLE.) (®rber, .,.. Extending Dates in Option Agreement for Purchase, of, a Portion, of the
Former Fresse's Building between the City of Bangor and Realty Resources
Chartered
By the MY Cwxeit of Ge MY OfHP --'
ORDERED,
TAT WHEREAS,the City ofBaugor and Realty Resources Chartered executed an Option
Agreement on May 26, 1995 that granted Realty Resources Chartered the option to purchase a
portion of the former Frecse's Building; and
WHEREAS, said Option was amended by Amendment, dated January 9, 19%, as
provided for by passage of Council Order 96-54 on December 11, 1995 extending dates for the
timetable of the project, and
WHEREAS, Realty Resources Chartered has been making substantial progress in
accomplishing the goal ofrebabilitation ofthis property into 34 units ofaffordable housing; and
WHEREAS, the Option Agreement, as amended, establishes certain dates for
progress or undertaking the project; and
WHEREAS, there is a need for these dates to be extended an that the Option
Agreement is consistent with the current timetable of the Project; -
NOW THEREFORE, BE IT ORDERED THAT the City Manager is hereby
authorized m execute an amendment W the OPTION AGREEMENT FOR PURCHASE OF A
PORTION OF THE FORMER FREESE'S BUILDING by and between the City of Bangor and
Realty Resources Chartered establishing a new timetable as follows:
Extend the term of me Option to June 30,19%
Submittal of any revisions m preliminary plans by April 15, 19%
Submittal of applications to State Historic Preservation Commission (if necessary) by
April 15, 1996
Target date for application approvals by April 30,19%
Provide evidence of financing by April 30, 1996
Submittal of final plans by April 30,1996
Submittal of any revisions to final plans by May 15, 1996
,IN`ClIT. COUNCIL 96-162
March 25, l 6 0 R D E R
Reased
"Title, Extending Dates in Option
ITY LERE `
Agreement for a Portion f the Intent
Pr E ildi & between the CJSX qe...
9angor and Aealcy R es Cha d.
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�Awig,ed to
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96-162
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REALTY alA
RESOURCES ? ��
CH ARTERED
March 15,1996
Rodney G. McKay
CRyofBangor
93 Harlow Strew
Bangor, ME 04401
RE: The Freese Building
Cur development agreement with the City sees forth a [actable for the rehabilitation of The
Freese Budding. Weare progressing well according to thin schedule. The MachlSthdaewas
sato update the whom ofprojece financing. We bawbeen meeting continuously with both the
Maine State Housing Authority and the Maine Housing lsresment Fund new parties represent
the balance of the funding sources forthe project The Mane State Housing Authority has
issued both Conditional Reservation of Barrel Loan Program Subsidy Pool funds for 8400,000
on September 13, 1995 and a Conditional Reservation of vv -Income Housing Tax Crus for
5231,000 oftax credits on August 21, 1995. We have approached the Maine Housing Investment
Fund to become the investor in this development through the purchase ofthese not: credits. Their
imesterewwosddbe51,565,250. The Maine Housmg Investment Fund hes reviewed this
investment opportunity and responded by aslavgfor additional information and clarification with
respect to the adjacent structure; prolong and Property not issues. We wig respond accordingly
in anticipation that the Fund will convene again the firs week of April.
We our that this information sufficiently addresses the timetable previously established. Ifthere
are any questions or additional information is needed, do not hesitate to owner us.
MAIN13 FICE: Z17Comnaa9Sc,Rmkpmt,NMNM6 W :(207)D W2 Fax:(M)23&WW O
239 South Uni® Sneq, Burlington, W 05401 Powe (902) 86&9330 Fax: (802) 865-8329