HomeMy WebLinkAbout1996-06-24 96-296 ORDERCOUNCIL ACTION
Date: June PA. 19% Item NO. 96-296
Item/Subject: Sale of Lois 6 and 5 in the Barth Industrial Park to Jolty D. Limsban, Jr.
Responsible Deparhnent: Community and Economic Development
Commentary:
See anacbed Memo.
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Manager's Comments:-'li -&4 ta�&WA � 6^-,,.,„(,
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Budget Approval:
Legal Approval:
Introduced For
Passage
_ Mrst Reading
Referral
FSrmnce Director
CitySolicuor��
Paga_oL
a-fom
Assigned to Councilor Tyler June 24, 1996
as _pp CITY OF BANGOR
W
(TITLE.) CDM Athoz�ngtbe City Mamagerto Execute a Purchase and Sale Agreement
with John D.
By the My CouruA of Bu PW o/Banoor
OEDEEEDe
TEAT the City Meager is hereby audwrized and directed, on behalfofdie City of
Bangor, to execute a "Contract for Sale of Real Estate" with Jahn D. Lirmehan, Jr. for Lots 4 and
5 in the BaMir Industrial Padc, subject to the following conditions:
a. parchase price shall be $130,000.
b. Site work and building construction shall commence wiNur one (1) year.
c. Site work and building construction shall be completed with two (2) yews,
d. The building shell have a gross floor area of not less than 3,500 N. fl.
C. If the building fronts on Hammond Street, the area within the front setback
must be landscaped and planted with trees and shrubs as follows: plant
units per 100 If.: one (1) shrub, one (1) evergreen free, end one (I)
deciduous tree.
f - If the parking lot fronts on Hammond St., Chy ordinance requirements
shall establish the landscaping requirements.
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IN CITY COUNCIL 96-296
June 24, 1996 O R D E R
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'Title, AutTocizin the City Manages to
CITY :Execute a PUrcheae and Sale 9gieemen[1
2- with.Jahn.0..Linehan,.Jr.
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Memorandum
To: Members of the City Council
From: Stephen A. Bolduc, Executive Manager
Date: June 24, 1996 J0J
Subject: Sale of Lots 4 and 5 in the Ban Industrial Park to John D. Linnehan, Jr.
Issue
John D. Linnehan, Jr., president, Linnehan's Ellsworth Ford Sales, has made an
offer to purchase Lots 4 and 5 totaling 3.14 acres in the BanAir Industrial Park for
$130,000. Mr. Linnehan proposes to develop a facility for the sale of used automobiles.
Background
Mr. Linnehan purchases, inspects, services, sells and finances "quality" used
cars at prices from $4,000 to $5,000. He currently operates at six locations: Ellsworth,
Calais, Presque Isle, Lincoln, Brewer and Bangor. He has been operating in Bangor
since January, 1996 at the former Darling's Nissan site on the Gruen Rd.
The lots in the BanAir Industrial Park would be developed with a 3,500 sq, It
building, and the remaining developable portion of the lots would be paved.
Mr. Linnehan estimates that the proposed operation would employ 6 -10 people
initially, and when the business is fully established it would result in about 34 jobs, both
directly at the car lot and indirectly with local subcontractors. Future development plans
include establishment of a leasing company which would employ 6 people.
Lot 4 is 1.32 acres (57,490 sq. fl) and Lot 5 is 1.82 acres (79,440 sq. ft.) totaling
3.14 acres (136,930 sq. ft.) with 745' of frontage on Outer Hammond St. The asking
price for Lot 4 is $55,400 and $76,600 for Lot 5, for a total asking price of $132,000.
The current assessed value of the lots is $131,300.
Lot 4 has an area of A 186 acre (5,166 sq. ft.) which has been identified as a
wetland. Lot 5 has an area of .3249 acre (14,153 sq. ft.) which has been identified as a
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96-296
wetland. Total identified wetlands are 14% of the total land area of the two lots.
Mr. Linnehan is represented by Glen Jackson, Glen Jackson Realty in this
matter. The City of Bangor is not represented by a real estate agent.
Decision Making Factors
1. The offer is 99% of the asking price of the lots.
2. The developer has estimated that the project would result in about 34 new jobs,
both with the company and with related subcontractors. Although the number
of new lobs may be overstated, there will be additional jobs created which will
generate related economic benefits.
3. The project would increase the City's tax base. The estimated assessed value
atter development would be $424,500 generating $9,827 in property taxes.
4. The proposed 3,500 sq. ft. building would not be a significant development for
the sae of the lots. The building would only be 6% of the maximum possible
building footprint on the lots (54,772 sq. ft.) and only 16% of the targeted
minimum lot development (21,900 sq. ft.).
5. The proposed use undemtilaes the potential tax revenue to be generated from
the lots. If the lots were minimally developed (22,000 sq. ft. building) the
estimated assessed value would be $861,700 generating $19,950 in property
taxes. If the lots were fully developed (55,000 sq. ft. building), they would be
assessed at $2,043,600 generating $47,300 in property taxes.
6. The use is not a commercial activity which will add to Bangor's basic economic
infrastructure such as: manufacturing, distribution and certain service
businesses, which create higher paying, higher benefit jobs and stimulate
multiple economic effects through the local economy.
Recommendation
The Board of Directors of the BanAir Corporation recommends acceptance of the
offer with the following terms and conditions:
a. Site and building construction shall commence within one (1) year.
b. Site and building construction shall be completed within two (2) years.
c. The building shall have a gross floor area of not less than 3,500 sq. ft.
d. If the building fronts on Hammond Street, the area within the front setback
must be landscaped and planted with trees and shrubs as follows: plant units
per 100 ft.: one (1) shrub, one (1) evergreen time, and one (1) deciduous tree.
(If a parking lot fronts on Hammond St, City ordinance requirements shall
establish the landscaping requirements.)
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