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HomeMy WebLinkAbout1995-05-22 95-240 ORDERDate: 5_22-95 Item No. 95-240 Item/Subject: ORDER, Granting Tentative Developer Status to the Northern Conservatory of Music for a Portion of the Freese's Building Responsible Department: City Manager The City Council has discussed on numerous occasions the proposal of the Northern Conservatory of Music to develop a portion of the Freese's Building for the Maine School for the Arte. Now that the City has seemed ownership of the building, we are in a position to take action on this proposal. The attached Order would grant the Northern Conservatory Tentative Developer statue for this project. A draft of the agreement is also attached. Prior to Monday's meeting we will be reviewing this draft one more time with representatives of the Conservatory. This review may result in some changes, clarifications, and/or additions to this Agreement which, if they occur, we will make available to you as quickly as possible. The Agreement will be put in final form by the City Solicitor and will be Guided by the draft which is attached. Department.Head City Manager Associated Information: Order, Agreement Budget Approvalt - Finance Director Legal Approval:. _ ... City Soli *ffV IntrOdated For S Passage First Reading Pageof Referral 95-240 A gnedloCwnctilor Frankel May 22, 1995 CITY OF BANGOR (TITLE,) otlrbtr,........ ........ Granting Tentative beve,Loper Statue to the Northern Conservatory of Music for a Portion of the Freeze's Building - By W CMP CmmmM of t6 Cam of 3a .. THAT the Northern Conservatory of Music, doing business as the Maine School for the Arta, is hereby granted Tentative Developer Status for a portion of the Frnese's Building in accordance with the terms and conditions of the attached agreement. The City Manager is hereby authorized to execute this agreement in a form acceptable to the City Solicitor and upon ratification of the final agreement by the City Council. IN CITY COUNCIL May 22, 1995 Passed as Anended by Substitution of Tentative De pex v�9,t C LLEHK 95-240 O R ER Title, Granting Tentative Developer Status to the. Northern Conservatory of Music for a Portion of the Freese's Building .........../.... Amm4med to .&W'V......... Councilmen SUBSTITUTE COPY 95-240 interoffice M E M O R A N D U M M: Honorable Couna Chair and Members ofihe City Council from: Edward A BaneR, City Manager sugect Revised TernaivelleveloperAgrremern ma: May 22, 1995 Attached please find a revised draft tentative developer agreement between the City and the Northern Conservatory. Changes have been made in paragraphs 6, 8, and 9 and a new paragraph 10 has been added. These changes are summarized below. Paragraph 6 authorises the City to be reimbursed by up to $15,000 from the sale to Realty Resources for out of pocket expenses associated with clearing our title to the building. This recognizes on-going discussions between Erik Stumpfel and Slovin's local attorney as to purchase of Slavic's mortgage rights. Paragraph 8 calls for estimates of costs associated with the Conservatory's requirements to physically improve the building to be inserted in the deed restrictions of the title once they have been developed through the engienering analysis. Paragraph 9 changes 28 of the taxes whichwould be due to 28 of the gross receipts of the school. This should increase the amount avialable for scholarships. Paragraph 10 calls for the Conservatory to invest an amount equal to the amount received from the City into physical improvements to the Freeze's Building within three years of the transfer of the title to the Conservatory. while the funds provided by the City would support the Conservatory's fundraising efforts, the Conservatory would be required to spend or to provide to the City an equal amount from their capital campaign for physical improvements. As noted in the agenda item, this is a draft agreement which must be put into appropriate language by our legal Department. Should the Council approve it tonight, this language would be drafted and returned to the Council for its final ratification. Edward l A Barrett/ City Ma- SUBSTITUTE COPY 95-340 1. The City agrees to designate the Northern Conservatory of Music tentative developer status for approximately 2/3rds of the Structure. This is the portion of the Freese Building fronting on Main Street and which is not required for the Realty Resources project. - 2. Term. Tentative developer status shall be granted for an approximate six month period ending November 30, 1995. The term shall automatically be extended for an additional three months if the sale of the remaining portion of the building to Realty Resources does not occur on or before August 31, 1995. 3. During this period, the City of Bangor will undertake a good faith effort to clear the title of the building from any encumbrances which would restrict its ability to transfer the building to new ownership. The City will also work to the extent possible with Realty Resources to support their proposal to reutilize a portion of the building for housing purposes. - 4. The City will undertake the necessary short-term steps to secure and protect the building. 5. During the initial term of this Agreement, the Northern Conservatory will undertake, a. A fundraising plan outlining how funds will be raised for their project including an overall strategy and the general sources from which funding will. be sought. b. A business plan for the school which will include a marketing plan, estimate of student population, tuition rates, staffing and other costs, and an overall operating proforma. C. An identification of key barriers or Contingencies to the accomplishment of their project. This information must be completed and provided to the City on or before November 1, 1995. 6. Proceeds of Sale to Realty Resources. Should the City succeed in selling a portion of the building to Realty Resources, the proceeds of the sale will be held and separately used for purposes directly relating to the Freese's Building. Up to 168 of the sale proceeds shall be used for necessary building repairs. Up to 188 of the proceeds shall be used for an engineering analysis of the building. The City shall consult with the Northern Conservatory in regard to the building repairs to be undertaken. In addition, the Northern Conservatory shall be invited to participate in the selection process for the firm which will undertake the structural analysis and to provide that firm with information regarding its proposed uses and plans for the building. In addition, should the City incur any di rect out-of-pocket exoenses title s Buildln an aadltional assount not to exceed S15,000 from the sale pmz;egdg abAll be retained by the City as a reimbuEgemant for these sameness. 7. Subject to the sale of a portion of the building to Realty Resources and the completion of the required items outlined in paragraph 5 above and the engineering analysis of the building to be performed by the City, and at the expiration of the term of this agreement and any automatic extension thereof and in no instance later than February 28, 1996, the City and the Conservatory will mutually have the option to proceed with the transfer of the remainder of the Freese Building to the Conservatory for the purpose of establishing the Maine School for the Arte. This decision will be made based upon a review of the structural analysis of the building, cost estimates, and the fundraising and business plans developed for the School. I£ a decision is made to proceed, the City will transfer the remainder of the Freese Building to the Conservatory along with the remaining proceeds from the sale to Realty Resources. The Conservatory agrees to use these proceeds for the sole purpose of meeting fundraising and building or project related expensesassociatedwith the Maine School for the Arts. The Conservatory/Music School for the Arta shall maintain adequate records of such expenses and make them available to the City at any time upon request. B. The transfer of the building to the Northern Conservatory will be subject to deed restrictions with the following requirements: a. The Conservatory shall undertake roof repairs and any immediately required structural stabilization of the building with 120 days of the date of transfer to the extent such repairs have not been performed by the City. b. The Conservatory shall correct all violations of the City's "Bangor Center Revitalization Area Ordinance" (Chapter Fly, Bangor City Ordinances, including violations cited in Dock No. 90 -LU -013,) within one year from the date of transfer; and c. The Conservatory shall complete exterior renovations including roof replacement and permanent repairs to the Water Street wall, substantial rehabilitation of the first and second floors of the Building in accordance with all City of Bangor code requirements so as to permit issuance of a Certificate of Occupancy for such space for use or us permitted under current zoning restrictions, and renovation and or rehabilitation of electrical, plumbing, and mechanical systems to the level necessary to support the eventual rehabilitation of the remaining floor area of the structure.- Such renovations and rehabilitation shall be completed within three years of the date of transfer. Estimates o das an element of the enninearina City. Once this analysis is completed, these amounts shall be used as an additional criteria Conservatorv'sthese requirements. Should the Conservatory fail to conform to these restrictions, title to the property shall revert to the City. 9, in addition, the Conservatory/Maine School for the Arta agrees to enter into an in -lieu of tax agreement with the City where a minimum of 28 of the arosints of the School shall be set aside and devoted to scholarships to be used for deserving City of Bangar residents. 10. 11 If, for any reason, the City is unable to clear title on or before August 31, or a partial sale of the property to Realty Resources has not been completed on or before November 30, 1995, City and Conservatory agree to renegotiate the term of this agreement as outlined in 2. above. 9s-uo TIVF DEW AGREEMENT 1. The City agrees to designate the Northern Conservatory of Music tentative developer status for approximately 2/3rds of the structure. This is the portion of the Freese Building fronting on Main Street and which is not required for the Realty Resources project. 2. Term. Tentative developer status shall be granted for an approximate six month period ending November 30, 1995. The term shall automatically be extended for an additional three months if the sale of the remaining portion of the building to Realty Resources does not occur on or before August 31, 1995. 3. During this period, the City of Bangor will undertake a good faith effort to clear the title of the building from any encumbrances which would restrict its ability to transfer the building to new ownership. The City will also work to the extent possible with Realty Resources to support their proposal to reutilize a portion of the building for housing purposes. 4. The City will undertake the necessary short-term steps to secure and protect the building. 5. During the initial term of this Agreement, the Northern Conservatory will undertake: a. A fundraising plan outlining how funds will be raised for their project including an overall strategy and the general sources from which funding will be sought. b. A business plan for the school which will include a marketing plan, estimate of student population, tuition rates, staffing and other costs, and an overall operating proforma. _ C. An identification of key barriers or contingencies to the accomplishment of their project. This information moat be completed and provided to the City on or before November 1, 1995. 6. Proceeds of Sale to Realty Resources. Should the City succeed in selling a portion of the building to Realty Resources, the proceeds of the sale will be held and separately used for purposes directly relating to the Freese's Building. Up to 166 of the sale proceeds shall be used for necessary building repairs. Up to 10% of the 95-240 proceeds shall be used for an engineering analysis of the building. The City shall consult with the Northern Conservatory in regard to the building repairs to be undertaken. In addition, the Northern Conservatory shall be invited to participate in the selection process for the firm which will undertake the structural analysis and to provide that firm with information regarding its proposed uses and plans for the building. 7. Subject to the sale of a portion of the building to Realty Resources and the completion of the required items outlined n paragraph 5 above and the engineering analysis of the building to be performed by the City, and at the expiration of the term of this agreement and any automatic extension thereof and in no instance later than February 28, 1996, the City and the Conservatory will mutually have the option to proceed with the transfer of the remainder of the Freese Building to the Conservatory for the purpose of establishing the Maine School for the Arts. This decision will be made based upon a review of the structural analysis of the building, cost estimates, and the fundraising and business plans developed for the School. If a decision is made to proceed, the City will transfer the remainder of the Freese Building to the Conservatory along with the remaining proceeds from the sale to Realty Resources. The Conservatory agrees to use these proceeds for the sole purpose of meeting fundraising and building or project related expenses associated with the Maine School for the Arts. The Conservatory/Music School for the Arts shall maintain adequate records of such expenses and make them available to the City at any time upon request. S. The transfer of the building to the Northern Conservatory will be subject to dead restrictions with the following requirements: a. The Conservatory shall undertake roof repairs and any Immediately required structural stabilization of the building with 120 days of the date of transfer to the extent such repairs have rot been performed by the City. b. The Conservatory shall correct all violations of the City's 'Bangor Center Revitalisation Area Ordinance - (Chapter }3v, Bangor City Ordinances, including violations cited in Dock No. 90 -LU -013,) within one year from the date of transfer; and C. The Conservatory shall complete exterior renovations including roof replacement and permanent repairs to the Water Street wall, substantial rehabilitation of the 95-240 first and second floors of the Building in accordance with all City of Bangor code requirements so as to permit issuance of a Certificate of Occupancy for such space for use or us permitted under current zoning restrictions, and renovation and or rehabilitation of electrical, plumbing, and mechanical systema to the level necessary to support the eventual rehabilitation of the remaining floor area of the structure. Such renovations and rehabilitation shall be completed within three years of the date of transfer. Should the Conservatory fail to conform to these restrictions, title to the property shall revert to the City. 9. In addition, the Convervatory/Maine School for the Arte agrees to enter into an in -lieu of tax agreement with the City where a minimum of 2% of the taxes which would be due if the property was subject to property taxes shall be set aside and devoted to scholarships to be used for deserving City of Bangor residents. 30. If, for any reason, the City is unable to clear title on or before August 31, 1995, or a partial sale of the property to Realty Resources has not been completed on or before November 30, 1995, City and Conservatory agree to renegotiate the term of this agreement as outlined in 2. above.