HomeMy WebLinkAbout1994-03-28 94-146 ORDERCOUNCIL ACTION
Item No. 94-146
Date March 28. 1994
Item/Subject: Directing the City Solicitor to Record Escrow Deed to
Lot 3, Gilman Plaza Subdivision, Tax Map R55, Lot 15-C
Responsible Department: Legal
Co:aaentary:
In November, 1989, the City Planning Board and City Council gave
final approval to the 'Jac -Co -Sac Subdivision', a four -lot
conumercial subdivision located on a new street (Gilman Plaza) off
of Gilman Road. The Planning Board's approval was subject to a
requirement that public improvements as shown in the approved
subdivision plan be completed no later than November 13, 1991. As
security for completion of the required public improvements, the
City of Bangor received an escrow deed to lots 3 and 4 in the
subdivision.
The principals of the Jac -Co -Sac corporation subsequently
dissolved the corporation and divided the corporation's real estate
ong its former principals. As a result, public improvements in
the subdivision were not completed in accordance with the November
13, 1991 deadline.
cont'd on next page
Department Head°✓"
Manager's Comments:
Associated Information: Order, Nap -
Budget Approval:
Finance Director
City Solicitor
Intr For
Passage
First Reading
Referral Page 1 of 5
94-146
During the summer of 1992, City staff worked extensively with
Carl Snow, Jr., record owner of lots 3 and 4 following dissolution
of the Tac -Co -Sac corporation, in connection with a proposed
development project and sale of lot no. 4 in the subdivision. That
sale would have resulted In completion of the required
improvements. To facilitate the proposed sale, the City released
its escrow deed to lot no. 4, in return for a $15,000 personal
performance bond posted by Lou Silver, Inc., a prospective project
contractor. A subdivision improvement guarantee agreement, signed
by Mr. Snow, was recorded at the same time, specifying acompletion
date for the remaining public improvements of October 31,1992.
Mr. Snow's sale did not close, however, and the improvements
remained incomplete. Subsequently, in August, 1993, the City gave
notice of default to Mr. Snow and declared a forfeiture of Lou
Silver, Inc.'s $15,000 performance bond.
In the fall of 1993, Mr. Snow arranged a transaction with Barney
Silver Of Lou Silver, Inc., involving are -lotting of Mr. Silver's
approved residential subdivision property at the corner of Pinson
and Davis Roads. As contemplated by the parties, that transaction
would have involved an exchange of part of the Finson-Davis
subdivision by Mr. Silver for Mr. Snow's interest in lots 3 and 4
n Gilman Plaza, with Mr. Silver completing the public improvements
n the Jac -Co -Sac subdivision. Again, however, the exchange of
properties did not close and the improvements remain incomplete.
The City of Bangor also holds matured tax liens on lots 3 and 4
in this subdivision (112 and 114 Gilman Road).
The attached Council Order would authorize the City Solicitor to
record the City's escrow deed to lot no. 3 in the subdivision, and
would further authorize the City Manager to sell lot no. 3 at a
private sale. Sale terms would require completion of road and
other improvements currently remaining incomplete in the
subdivision. we have received one purchase offer to this effect
from Mr. Silver, and unless a better private offer is received,
City staff anticipate accepting Mr. Silver's offer. Upon
completion of the required public improvements to the satisfaction
of the City Engineer, Mr. Silver would receive the City's title to
lot no. 3. Lou Silver, Inc. would receive a refund of the $15,000
previously forfeited to the City under its performance bond. Mr.
Snow would retain ownership of lot no. 4 in the then -complete
subdivision, subject to the City of Bangor's tax liens.
Your approval is recommended in order to complete the required
public improvements and to eliminate future erosion problems
presented by the currently half -built road.
94-146
Ao6 ned to faundor Sullivan March 28, 1994
CITY OF BANGOR
(TITLE.) MrUrf...
........_ Directing the City soli it r to Reoora Escrow
Deed to Lot 3, Gilman Plaza Subdivision, Tax Map R55, Lot 15-C
By tya City Coaxdl of W aft gBawn
ORDERED,
TWT
WHEREAS,
Carl H. Snow Jr. and the City of Bangor are parties to
"Subdivision Improvement Guarantee Agreement" dated
August 13, 1992 and recorded in Rook 5142, Page 141,
Penobscot Registry of Deeds; and
WHEREAS,
under said agreement, Carl H. Snow Sr. executed and
delivered to the City of Bangor a deed to Lot Number 3
n the Gilman Plaza subdivision, as partial security
urity
for completion of required public improvementsin that
subdivision; and
wHEREhs,
said public improvements were to have been completed
to the satisfaction of the City Engineer by October 1,
1992, but have not been completed despite timely
notice from the City of Bangor as provides in said
agreement; and
WHEREAS,
efforts by the City staff to arrange for completion of
the required public improvements by Mr. Snow or his
successors in interest have failed to result in
completion of the required improvements.
NOW, THEREFORE, by the City Council of the City of Bangor be it
ORDERED, TRAT the City Solicitor is hereby directed to record
the City's escrow deed to Lot Number 3 in the Gilman
Plaza subdivision at the Penobscot Registry of Deeds;
94-146
And be it further,
ORDERED, that the City Solicitor shall record with said deed an
attested copy of this Order as evidence of Mr. Snows
default under the subdivision Improvement Guarantee
Agreement recorded in Book 5142, Page 141, Penobscot
County Registry of Deeds, and as evidence of the
vesting of title to said not Number 3 in the City of
Bangor;
And be it further
ORDERED, that the City Purchasing Officer is hereby directed to
negotiate, upon terms and conditions approved by the
City Manger, a sale of Lot No. 3 to such private
Parties as shall offer the best price for said lot,
said purchase price to include a requirement for
completion of the public improvements in the Gilman
Plaza subdivision currently remaining incomplete;
And be it further
ORDERED, that the City Manager is hereby authorized and
directed to execute and deliver, to the successful
purchaser, a municipal quitclaim deed, in a form
approved by the City Solicitor, conveying title to
said Lot Number 3.
IN CITY WINCIL 94-146
March 28, 1994 0 R D E R
Passed
(M1tL Title,
IT CLERK
' _ Dixec[i� [he E1t� Bolid[or [o Reco[d
Escrow Deed [O Lot 3, Gilman Plaza
a
Subdivision, Tax Map R 55, Lot 19-C.
�~
Councilman
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