HomeMy WebLinkAbout1993-08-23 93-413 ORDERCOUNCIL ACTION 93-413
Item No.
Date August 23, 1993
Item/Subject: Authorizing City Manager to Execute Certain Documents
with Regard to the Reutilization of Fire Station 5
Responsible Department: Legal
This Order would authorize the City Manager to execute all
necessary documenta to allow Nose 5 Fire Museum Incorporated to
lease Fire Station 5 at 247 State Street for the purpose of
operating a firefighters or law enforcement museum. The lease
would be executed containing the Terme included in the Order but
the final executed documents -- lease, option agreement, payment in
lieu of taxes agreement, deed -- will be subject to future Council
ratification. The Municipal Operations Committee reviewed this
proposal on 0/17/93 and unanimously recozmended approval.
Manager's Comments:
Department Mead
Associated Information: Order, -Memorandum to City Council (w/o
enclosures) dated 8/13/93
Budget Approval:
Finance Director
Legal Approvals +/
Cit S i
Introduced For
A Passage
First Reading
Referral Pegs I of 5
93-413 l
9aaipodto Coonedor 511'ry August 23. 1993
it_gy�pp CITY OF BANGOR
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(TITLE.) 09ro ....._...-Authorizing--City -Manager to Execute -Certain -----
Documents with Regard to the Reutilization of Fire Station 5
BY IM City C%ml! of W CITY ofRamomt.
ORDERED,
TWT
the City Manager is hereby authorized to execute
documents necessary to allow the charitable non-profit group Hose 5
Fire Museum Incorporated to lease Fire Station 5 (247 State Street)
for the purpose of operating a firefighters or law enforcement
museum.
Said lease and other documents ars to be in a
form approved by the City Solicitor. The final executed documents
re to be ratified by future Council action. Said lease is to
contain substantially the following provisions,
(1) Term - 15 years from 9/1/93 through
8/31/2008.
(2) Rent - $5,000 per year, first year due
9/1/93 and $5,000 yearly thereafter due in
two payments of $2,500 each which will be
due on 9/1 and 3/1 during each year of the
lease. Total lease payments equal $75,000.
(3) Lessee responsible for all improvements,
maintenance, anow removal, utilities,
repair, trash removal, etc.
(4) City to retain box alarm and as sorted
reporting equipment at Station5, with
Lessee responsible for maintenance and
repair costs.
(5) Lessee to comply with all ordinances, laws
and regulations of City, State and Federal
goverment.
93-413
(6) Lasses to comply with Historic Praearvatfon
Ordinance and any other requirements of
Historic Place or Register should Station 5
be added.
(7) Use of premises only as firefighters or law
enforcement museum with Lessee to retain
admission and membership fees or dues.
(8) maintain proper insurance and indemnify City
from all claims.
(9) within first year of lease execute an
agreement to make payments in lieu of taxes
in the amount of 508 of assessed taxes at
the time title is transferred and
thereafter.
(10) Improvements to property vest in City on
default or surrender of the lease or if
lessee does not exercise its purchase
option. Property reverts to City on default
of lease .
(11) All City -owned equipment leaned or exhibited
in museum shall remain property of the City.
(12) Lessee to have purchase option for $1.00 at
expiration of lease term. Option must be
exercised by notice within 90 days prior to
lease term expiration. Option would be
conditioned on Lessee's maintenance of
charitable non-profit status and no uncured
default of any lease provision.
(13) Municipal Quitclaim Deed to be fussed is to
include language similar to "so long as the
property and building described herein is
used and operated as a firefighters or law
enforcement museum by a charitable nonprofit
corporation and so long as said property and
building are maintained in compliance with
Historic Preservation Ordinance of the City
and any other applicable historic
preservation requirements", to insure the
City's ability to take back property upon a
change in use from that which is originally
contemplated.
93-413
TO: eangoi City Co
FROM,. Bruce N. Shibl N et. City Solicitor
RR:
Station
5
Reutilisation
DATS:
August
13,
1993
As the Council may be aware, a group of current and past
Bangor firefighters is interested in establishing a firefighters
museum at the -old- Station 5 after the City takes occupancy, of the
'new" Station 5 on Hogan Road. At thispoint, the firefighters
have organised as a nonprofit corporation called Hoses Fire Museum
Incorporated and are eager to conclude negotiations with the City.
A copy of draft bylaws of the group which than used a different
name are enclosed for your reference. I understand that minor
changes, in addition to the name change, have been made to the
bylaws with regard to who may be a voting member.
After discussion among City staff, it is our recommendation
that the clearest way for the City to handle this transaction would
be to execute a lease for 15 years and grant an option to purchase
at the end of the lease term. In addition, it is our recommend-
ation that the deed by which the property is ultimately conveyed
pursuant to the purchase option should contain a restriction on the
property use thatwould result in title reverting to the City upon
breach of the restriction.
Because of some questions concerning the actual boundaries
of the property, including a possible encroachment by the Felix
Realty Trust neighbors, I have been unable to draft a complete set
of documents. I hope to have them available for the Municipal
Operations Committee meeting on August 19, 1993, and in any event
will have than available for the August 23rd Council meeting.
However, the following is the substance of the provisions our
office recommends for inclusion in the City's lease and option
documents:
1) Term - 15 years from 9/1/93 through 8/31/2008
2) Rent - $5,000 per year, 1st year due 9/1/93 and
$5,000 yearly thereafter due in two payments of
$2,500 each which will be due on 9/1 and 3/1 during
each year of the lease. $75,000 total payments (net
present value at 5 to fit return .ranges from $48,500
to $51,900 - sae Sohn 0 printout encloeed).
3) Lessee responsible for all Improvements, maintenance,
Snow removal, utilities,repair, trash removal, etc.
a) City to retain box alarm and assorted reporting
equipment at Station 5, with Lessee responsible
for maintenance and repair costs.
5) Lessee to comply with all ordinances, laws and
regulations of City; State and Federal government.
6) Lessee to comply with Historic Preservation
Ordinance and any other requirements of Historic
Place or Register should Station 5 be added.
y) Use of promisee only as firefighters or law
enforcement museum with Leasee to retain
admission and membership fees or dues.
E) Maintain proper insurance and indemnify City
from all claims.
9) Within first year of leave execute an agreement
to make payments in lieu of taxes in the amount
of 504 of assessed taxes at the time title in
transferred and thereafter. Assuming assessed value
equals at least $245,600 (" 94 valuation), assessed
taxes would be $5,403.20 for an annual payment of
$2,701.60 under the payment -in -lieu agreement.
30) Improvements to property vest in City on default
or surrender of the lease or if leasee does not
exercise its purchase option.
11) Lessee to have purchase option for $1.00 at
expiration of lease teas. Option must be exercised
by notice within 90 days prior to lease term
expiration. Option would be conditioned on
lessee's maintenance of charitable nonprofit status
and no uncured default of any lease provision.
12) .Municipal Quitclaim Used to issue with language
similar to -so long as the property and building
described herein is used for firefighters or law
enforcement museum by a charitable nonprofit
corporation and so long as said property and building
are maintained in compliance with Historic Preservation
Ordinance of the City and.any other applicable historic
preservation requirement.°
Members of the Hose 5 Fire Museum organization will be
available to discuss these issues with the Municipal Operations
Committee. A recommendation to the full Council is requested from
the Committee and all documents will be subject to approval by the
City Solicitor.
Enclosures
pc, Edward Barrett, City Manager
John Quartararo, Finance Director
Renee Wellman, Rome 5 Fire Museum Incorporated
John Foley, Fire Chief
IN CPTY COUNCIL
August 23, 1993
Passed
CI C18�
93-413
ORDER
Title,
Authorizing City Mavager to Execute,
..
Certain DOeumenta Kth Regard to the Reutilizetion
of Fire Station 5
............
Aml�.
Aeeiped to
U CounciLnan �