HomeMy WebLinkAbout1993-06-28 93-341 ORDERCODBCIL ACTION
Dater June 28, 1993 Item No. 93-341^_
Item/Bubjectx Authorizing Extension of Option Agreement for Purchase of
Bangor Waterworks Facilities
Responsible Department: Community and Economic Development
Commentary:, Bangor Waterworks Associates has an option to purchase and
develop the former Bangor Waterworks Facilities. The Option, which expires
June 30, 1993, requires construction to commence no later than July 30, 1993
on the restoration and rehabilitation of no facility resulting in completion
of a 37 unit interval ownership (time share) resort, a reception and activity
building with a pool and fitness center, and public access areas in
accordance with the September 21, 1990 proposal submitted to the City.
Bangor Waterworks Associates has requested a 30 day extension to the
term of the option for the reasons stated in the attached June 15, 1993
letter from Robert Baldacci representing MA. The Community and Economic
Development Committee considered BWA's request at its meeting on June 16th
and voted to recommend that the request for the 30 day extension be granted
by the City Council. The intent of the extension is to allow BWA time to
present a revised development plan for consideration by the Committee at its
meeting on July 21st and by the City Council at its meeting on July 26th.
rtmentment
D�ad
Naaager's C®mms:
City Manager ,
Associated Informationio
Budget Approval:
Legal Approval:
Finance Director
City Solicitor
X Passage
_ First Reading page 1 of 2
_ Referral
caf-bvs
93-341
Assigned CowNw Sullivan, June 28, 1993
CITY OF BANGOR
(nIlEJ (®rDBr. Author sing Extension of Option Agreement for ._._._ .......... __. _.._ ..............
Purchase of Bangor waterworks Facilities
By He! City Casatil Of W City ofBarpar:
THAT WHEREAS, the Option Agreement £or Purchase of Bangor
Waterworks Facilities by and between the City of Bangor and Bangor
Waterworks Associates dated March 6, 1991, as amended July 1, 1992,
expires June 30, 1993; and
WHEREAS, Bangor Waterworks Associates has requested a
thirty (30) day extension to provide time to finalise an Agreement
with a new developer, present a revised redevelopment plan
proposing a commercial development, and to negotiate any changes to
the Option Agreement that may be needed:
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF
THE CITY OF BANGOR, THAT the City Manager is hereby authorised to
extend the term of the Option Agreement by and between the City of
Bangor and Bangor waterworks Associates dated March 6, 1991, as
amended July 1, 1992, to July 30, 1993;
AND BE IT FURTHER ORDERED THAT the option fees required
in. Section A, Paragraph 5 of said Option Agreement for the term of
the extension are hereby waived.
In City Council June 38, 1993
Passed
Ci y Clerk
93-341
ORDER
Title,
Aythoricing exteveion of option
agreement for purchase sof Bangor
Waterworks Facilities
..................//...^../..................
�
Assigned to
Councilmen
93-341 -
BALDACCI _
June 15, 1993 A 5 5 0 -1 A I E S
t®xwaow smsr 7a]nm
MAINE dWl
237-1474M (FAX)
Mr. Ken Gibb
Director, Planning and
Community Development
City Hall
Harlow Street
Bangor, Maine 04401
Re: Bangor Waterworks Associates
Dear Ken,
This letter follows our meeting of today regarding the
status of our plans to develop the waterworks. The letter I
sent to Ed Barrett (6/1/93) provides an accurate outline of
where we are with the project and,where we want to go.
As I explained,norder for us to proceed forward with
the interval ownership (timeshare) project we will need the
council to consider further delays until such time as the
market improves. Given the significant investment we have
made to date, approximately $75,000, we want to do all ve
Can to insure that the Waterworks property can be
successfully developed.
To that end, we began an effort to meet with
prospective investors, developers, businesses, and others
regarding the property. We are currently negotiating with
pother developer who is intersted in aD mmercial mixed-use
development including; restaurant and innfacilities. It is
our intent to utilize the exisiting corporation; Bangor
Waterworks Associates. John Robson and I will continue
to work with the new developer as necessary to insure that
proper permit revisions and other changes are resolved.
We in no way wish to prolong the option longer than
necessary. Accordingly. wewould propose to extend the option an
additional 30 days ending on July 31, 1993. During that
time, we hope to finalize oragreement with the new
developer, present a revised development plan proposing a
commercial development and negotiate any necessary Changes
that need to be made to the option agreement. In the event
we are unable to structure an agreement we will notify the
City promptly and terminate our option agreement.
I look forward to meeting with the Community
Development committee on Wednesday. Thanks again for your
assts nce and cooperation.
S n erely,
Rv.4 Eslnm UVvmtmMe I AND AfAwacmtmvr