Loading...
HomeMy WebLinkAbout1994-12-28 95-55 ORDERIt® No95-55 Date 11-30-94 Ifeo/Subject: �: Autlio[izl t1s Gty Hawgex to Enter Into NegotIatfoae with the Mutlem Conservatory of Mucic arcl/or tte a Sctnol for the Tits as well as P lty ¢cps• Ltd. for the Iadatalopmeat of the nose 9dldtng Fespnaible Dspartlnent: Citi' tlsna9ar/IaAl Daryl Wedge of the Nmttcm C.me¢vatory of Music has tueen fa correct wlth variwa smEas of the Cfty's areff as cell as appeared bafoxe the Firmke C ttea of the Canefl to disaas xaguested actions from the City in Support of hfe ate ffoxand tle effm7s of Irzalty Maumee, Ltd. to rel boildl Wonretion regarding tllese requests Is attached. 51roa then, ezistin9 tax 11me on the property have nmtured and the City 1s now the property ouaer alttregh we have not, as yet, tart possession. 'this bas potentially dremnattca ly charged the aitoatirn, =olving the I1 'e Wildi . At the Flnerce C ttea mill the C tttee raaafust sopperttw of tte xedel efforts. At tha some tine, tte Camittee generally appassed to feel that the City al net act pxecipitataly to give ap its ow:exshfp fntexest ard that attual transfer of title ulould le t to a SchaMle std varteus deuelopoent tom..-wm..ra, Tle attached ender would autterice City staff to enter: L .og� teuani an agmenent which would Support .e.evelcgrar efferte while . ^; the Cfty'c lartesest od standing in the property. /O1i 1111 11 w Fivatta Uixector 1 / I�WY:r l ..I 95-55 Amignedlo Counedor Soucy December 28. 1994 CITY OF BANGOR (TITLE.) (®rbu, _..._... �...tba aty Mone9=T to mRer Door fiagotiatiom with Hie l4orthern Caearvatory of Music arcUor the Maim £clnol for tle Arts as well m Fealty Besources, Iid. for He ma,.elcpaer,.t of the Fceme By tde City Couneit othI4 ase ofBaup r: ORDERED, THAT t9�tenS, the City of ]lvrpr, by vtrtm of a salnigi tax lien. is rcnr He lepl serer of tle Frseee's Property in hsstan avigvc: arca Fa®tcaS, the Matloern conservatory of Music is inremsced in the vee and potential aaecship of thin property for a •sueic & l for the. Alta;' and Ah L td® j Realty FeeoaxrrEs; i.imltodo in coupe etbn with the City and/a.' the ibxHem Cweeemtmy of Music (Nave Rcbool for He Arts) has exPrsssed an vvacast in utilizing a portion of the site for elderly ]cueing: aerl 4FIEP6n.5, it is in the interests Of the City of Sergor that this property be redeveloped; MYl4], 'M l Be 1T o w THEE CTM CU M CPM ➢AT: ate City ttma9er is hereby autborimas th arc arc mgotinty l with tle its as m Caieetvatery Of Music an Ltd. time Maim Sdeol for ttevel Arts as well as Realty lding. es, Ltd. for Ue redevelopment of He Freese >uilding. The purpose of there negotiations is to develop an agreement or agreements; supportive of the eventual redevelcgneslt of the Posese's property while imsu ring tlut the City's interests both as property oener and as a send ipality are prztatad. In city Council December 28, 1994 Motion to refer to a Council Workshop Passed Citf Cletk IN CITY COUNCIL January 23, 1995 Passed CITY CLERK 95-55 ORDER Title, Authorizing the City Manager to Enter into Negotiationswith the. Northern Oonservecory of Music and / or the Maine School for the ........................... ..... ` Arte 8 11 �p/¢ for the Re a [ % lding "Igued to ..... �Counnflman Fa MEMORANDUM e4t 6ano 95-55 December 9, 1994 TO: Finance Committee FROM: Erik Stue's Buil, City Solicitor st Ra: Workouts Building -- Request for Tax DEC 091994 Workout Agreement by Northern Conservatory of Music CITY PW,WAGER'S OFFICE I' As the Committee is aware from recent press reports, the City of Bangor became the owner of record of the Freese's building yesterday, by automatic foreclosure of two tax liens recorded at the Penobscot Registry Of Deeds securing payment of the City's FY 1993 property tax and downtown tax assessments. As of 12/8/94, a total of $21,107.03 in delinquent taxes, lien charges and interest was owed to theCityon the 1993 liens. As of the same date the total delinquent balance for all taxes and assessments owed to the City on the Wreeses building, including the two 1993 liens, was $50,590.72. In addition, second half real estate taxes for FY 1995 in the amount of $9,137.02 will become delinquent if not paid by March 1,1995. An account printout listing the delinquent taxes and assessments is attached to this meno. See Attachment 1. Daryl W. Rhodes has submitted a request, on behalf of the Northern Conservatory of Music, for a tax workout agreement with the City to address the outstanding 1993-1995 taxes and assessments. See Attachment 2. Mr. Rhodes essentially proposes to Pay current interest as it accrues, plus a $60,000+ balloon payment to liquidate the principal balance in June, 1999. Mr. Rhodes estimates the actual interest figure at $5,000. The actual figure, based on the current tax balances and includinginterest on the second -half taxes for FY 1995, would be about $5,580.00 (= 108 simple interest per year on the original tax lien balances). For your reference, I have attached a copy of Council order 92-157 passed on March 10, 1992, adopting a City Of Bangor Tax Collections Policy. See Attachment 3. Under the current policy, the City normally requires payment in full of all outstanding taxes and other obligations before we allow redemption of property on which a tax lien has been permitted to mature. However, the City Council has also authorised the City Finance Director to enter into workout agreements for delinquent taxes Owed on tax -foreclosed properties, upon payment of 108 of the total delinquent balance and execution of an agreement by the taxpayer to liquidate the remaining account balance by regular monthly payments over a six- month period. A copy of our standard workout agreementisattached s Attachment 4. Under the standard workout agreement, the City normally retains title until final payment is made. 95-55• J at. -E- Nr. Rhodes' workout proposal is not consistent with the terms of our standard workout agreement, and therefore requires Council approval. On past occasions where the Council has authorized execution of a non-standard workout agreement, the agreement concerned usually required regular monthly payments in a fixed amount, rather than a 54 month balloon. If the Council approves Nr. Modes' request so as to facilitate the Northern Conservatory's plans to redevelop the preeses building, x would recommend that the City follow its usual practice and not release title until the balloon payment is made; and would further recommend that the City's obligation to release title at that time be contingent on prior completion of the proposed redevelopment project. Such anarrangement in effect would convert the approximately $60,000 in 1993-1995 taxes, assessments and interest currently owed into a City revitalization loan, with the City holding a fully vested first mortgage position. EMS/tc Attachments pc: Edward A. Barrett, City Manager Kenneth R. Gibb, Director, Community and Economic Development Department Kenneth L. Jordan, Jr., Esq. 95-55 'Q. N RE 23630 FITZGERALD CHARLES - AS OF 12/07/94 09:50 ORIGINAL AMT 25,973.18 RE93 (00 ABATEMENT 03/25/93 9,007.26 RE93 , 11 1 BALANCE .00 RE93 * �l 14 J6106 � to :GINAL AMT 17,441.60 RE94 LIEN TRANSFER 06/29/94 17,441.60 RE94 BALANCE .00 RE94 * 1�� 1 ugyFl ORIGINAL AMT 18,274.04 .RE95 �S BALANCE -1- 9,137.02 RE95 INT= 207.77 PER DIEM= 2.50 -2- 9,137.02 RE95 * INT= .00 TOTAL DUE 18,481.81 ORIGINAL ANT 13,420.36 TL92 PAYMENT 12/27/93 13,420.36 TL92 BALANCE .00 TL92 * GINAL ANT 17,653.84 M93 BALANCE -1- .00 M93 INT- -.00 PER DIM- 4.83 -2- 17,653.84 TL93 * INT= 2,645.63 TOTAL DUE 20,299.47 ORIGINAL AMT 18,405.30 TL94 ** MORE * N RE 23630 FITZGERALD CHARLESAS OF 12/07/94 09:50 BALANCE -1- .00 TL94 INT= .00 PER DIEM= 5.04 -2- 18,405.30 TL94 * INT= 811.84 TOTAL DUE 19,217.14 ORIGINAL AMT 21,133.15 RE90 - PAYMENT 11/03/89 10,566.58 NE90 LIEN TRANSFER 05/18/90 10,566.57 RE90 BALANCE .00 RE90 * y,Ia ORIGINAL AMT 22,938.93 RE91 rj1 ICD ISI LIEN TRANSFER 05/20/91 22,938.93 RE91I 0 BALANCE .00 RE91 * ORIGINAL AMT 25,851.81 RE92 f Joe PAYMENT 10/30/91 12,925.91 RE92 D 1J LIEN TRANSFER 06/19/92 12,925.90 RE92 II BALANCE .00 RE92 * - yi �r e C .GINAL ANT 10,969.07 TL90 �OM PAYMENT 06/04/90 10,968.07 TL90 BALANCE .00 M90 * ORIGINAL AMT 24,499.59 M91 **-MORE * N FITZGERALD CHARLESAS OF PAYMENT 10/30/91 24,499.59 TL91 BALANCE .00 TL91 9TMCMMi NT 1 95-55 IV N RE 61067 PITZGERALD CHARLES AS OP 12/07/94 09:51 ORIGINAL AMT DOWNTOWN 618.99 RE93 LIEN TRANSFER 06/08/93 618.99 RE93 BALANCE .00 RE93 * 0 iINAL AMT DOWNTOWN 420.18 RE94 LIEN TRANSFER 06/29/94 420.18 RE94 BALANCE .00 RE94 * ORIGINAL ANT DOWNTOWN 420.18 RE95 BALANCE -1- 420.18 RE95 INT- 9.55 PER DIEM= .11 -2- .00 RE95 * INT= .00 TOTAL DUE 429.73 ORIGINAL ANT. 697.95 M93 BALANCE -1- .00 M93 INT- .00 PER DIEM- .19 -2- 697.95 M93 * INT= 104.59 TOTAL DUE 802.54 O. dINAL AMT 464.06 M94 BALANCE -1- .00 M94 INT= .00 PER DIM- .12 -2- 464.06 TL94 * INT= 20.46 TOTAL DUE 484.52 ORIGINAL ANT DOWNTOWN 1,488.25 RE90 ** MORE N RE 61067 FITZGERALD CHARLES AS OF 12/07/94 09:51 PAYMENT 11/03/89 1,488.25 RE90 BALANCE _ .00 RE90 * 7i ORIGIN� ANT 947.66 RE91 LIEN TRANSFER 0 //9 05/204111 947.66 RE91 BALANCE .00 RE91 * �DLp� j,0@' ORIGINAL AMT DOWNTOWN 1,201.56 RE92 1 4 �J( • PM ' PAYMENT 10/30/91 1,201.56 RE92 EALANCE .00 RE92 * ORIGINAL AMT 1,036.38 TL91 PAYMENT 10/30/91 1,036.38 TL91 BALANCE .00 TL91 * ENTER NEW ACCT TO CONTINUE - E TO END ** ***** _ me BelPAR Kai all&IIF-,I a A Na Frvfh Corpatum 96 Florins' Sues (Amo 9, Bid Poor), 0m9or, Mme 04401 (207) 9474171 12/]/94 Bangor City Council Bangor City Hall Bangor,Me. 04401 Hear City Council Members: As the how owners of the Freese building we wish to announce that the MOrthern Conservatory of Music willaccept full respe sibil- 1ty,(pending your approval),for payment of back taxes need to the city of Banger by Charles Fitzgerald which we have been told amounts to about $60,000 in pr44ipa1 am interest. We also request however that the city, in its interest in seeing both the 'Paine School for the Agree and the elderly housing units new being developed by BEalty Fesources of kockport,become a reality, allow the Conservatory to retire the debt accordingly: 1. In a "balloon" payment, the entire amount owed asof 12/28/94, of about $60.000. (includes principal and interest) by no later than goes ISth,1999. 2.IN yearly payments, payable each year by no later than ]Una 5th. beginning 1995, the total of interest seemed on the amount owed which should be about $5.000 per year. 3. In addition, the Conservatory would reserve the right to pay off the original amount of $60,000 in pa¢ or In full, at see time prior to done 15th,1999. HE therefore respectfully request your approval and acceptance of our plan at no later than the next scheduled council meeting on DEC. 28th,1994. It is imperative that ve close on the Property by no later than DEc.31st. I remain grateful for your kind consideration. S nn'cee1rely, // n HAryl (i/1/khodes,B.M.M. secretary -treasurer MRECt.:5ek nrrn�eME�r a y for 10 years. iman said the Police .5 wit know, what types m nazmvs uwy nwr :punter when they do resimvd to an aluan. ith hung jury "Smith was Derives's alibi s �rpiled [tat BM1ewm ac vsad. Bmith rout ..Mud say: •Be couldn't have done It. b th 45 David Gray, g arguments that his client Frpr ese's Building to house Moine School for. the Arts ey Suaen Young "rt resat on mUaek,'1 said Inc N"Young Rhodes, who has b#nrry4,pig tabgah a visual end performing BAN R — A New York and" mus school fn Bangor for mora gage er agreed Wednesday to t6av seven Years. ,...- Blease„ Freese'% Ba Id met uilding so Rbodes av�eitzGers to work Ne a osmd department lore Wednesdayws tWman canbe� iwted to the Mmanschart out a purchase tl sale for the Arts. agreement. To satisfy the private rrw Wgage Because more than $sp,aoo in .e o back taxes are owed the city di n Wednesday, a real hero;' he said of [saes, hot b unable to make a W. lmvpsum payment. He said he �aM, anentrepreneur and wdp ask He City council to allow the school m make Interest pay_ Inspire to hold .: ther a man or woman aria coating Information not more than $2. For Ip support group or reservetiors, call Kathy Willey )XCROFT — Pine at 50-6401, est. k51. will h[aarr Maeawho 1'ittsYield Garden Club saonce at g.M pm 12, at the Commune decorates public library gdivg, Thayer Park- PIRrsf 1Gn H — The PittSiald oetTorkab11 Garden Clubcantekecredafardes tpm9 holder decorators at the Poll- Reld Pubec Ubmary. The elubbald a demustrO011 workshop on hob ;conal Hospital with the�b'Mary es [the beneBeniery to hold party-, of the end product. 'OXCROFT — The The BIW is scheduled to meet for ml Hospital Seniority its annual Christmas potluck lun- g hold a Christmas ahoonatll a.m. Saturday,Dec. la, tubers Irani 1 in 4 Pm. al the home of member Mitzi or