HomeMy WebLinkAbout1993-10-18 93-474 ORDERData Oct. 18.E 1993 Ilam No. 93-474
Authorizing Disposition of City-owned
Item/Sufaims: Pushaw Road Property
Respomible Department Community 5 Economic Development
Commentary:
See attached Memorandum dated 10/4/93 and 10/5/93,
as well as Offer to purchase dated 9/22/93. The
Community and Economic Development Committee met
n 10/6/93 and recommended approval of this sale
subject to conditions recommended by Staff. if
the closing does not take place by the deadline,
then the offer will be considered rejected and the
City's current plans .are to raze the building.
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Manager's Comments: nn s L(A
Cary Mai
Asanclated Information: O , .OJ 0 GeO f
See above
Budget Approval
Pmnee Uirettor
Legal Approval:
city solicitor
Int cM For
Pauage
L Find Reading Page —of
❑ Referral
934)4
Aeeigrod[o CasreOu. Sullivan, October 18, 1993
CITY OF BANGOR
�p Authorizing Disposition of C ty owned Pushaw
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Road Property
By she Oity Cowal of 0trofBangor_
ORDERED,
THAT WHEREAS, the City of Bangor is the owner of property
located at 335 Pushaw Road designated as Lot 5-A on City Tax Map
R-30 which was formerly leased by the Bangor Area Snowmobile Club;
and
WHEREAS, the property is surplus to the City's needs
and the City has advertised for proposals for the sale of the
property; and
WHEREAS, one offer has been received:
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF
THE CITY OF BANGOR, THAT the City Manager is hereby -authorized to
execute the necessary documents to convey the property designated
as Lot 5-A on City of Bangor Tax Map R-30 to Bruce W. Brookings in
exchange for the sum of $2,800 subject to the following conditions:
1. That the closing take place no later than December
20, 1993,
2. That the conveyance be an 'as is" transaction,
3. That no guarantees or warrantiesconcerning the
property be made by the City of Bangor, and
4. That Mr. Brookings be responsible for obtaining all
necessary approvals at the State and local level
forsubsurface waste water disposal, as well a
any other necessary permits or approvals required
at the State and local level.
All said documents, including deeds, shall be in a
to= acceptable to the City Solicitor.
IN CITY COUNCIL
October 18, 1993
44�1Y CLEM
R3-474
0 R8ER
Title,
Autkori?fng MepoaiHon of City-Qmed
Puahaw Road Property
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Councilman
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Now or fOXmerby owned
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5A CITY (SNOWMOBILE CLUB_PSRCEL�
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Now or formerly owned by
Donna'6 Edwin Hamel _
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5CALE: 1m2
93-474
MEMORANDUM
TOS David Pellegrino, Purchasing Agent
FROM: Rodney G. McKay, Director of Community Development 04
DATE: October 4, 1993
SUBJECT: Snowmobile Club Building
Request for Proposals
I understand that the only Offer to Purchase received in
response to the Request for Proposals for the subject property was
from Bruce Brookings, and that one.of the several conditions of his
offer is that the City of Bangor guarantee financial assistance for
Mr. Brookings to renovate the property.
If the Committee considers his offer favorably, I advise that
(1) no guarantees or warranties be made to Mr. Brookings by the
City, (2) that he be given a limited amount of time (I suggest 60
days) to secure the determinations, variances,permits and
financing necessary for him to proceed, and (3) if Mr. Brookings is
successful, the staff be authorized to transfer title in exchange
for the amount offered or, if he is not successful within the 60
day period, to inform Mr. Brookings that his offer is rejected.
Mr. Brookings should be advised .that there are the following
issues that should bes solved before proceeding with an
application for financingunder the Community development
Residential Rehabilitation Loan Program:'
1. Can the present undersized, non -conforming lot.
accommodate an acceptable new septic system? (Acquiring
adjacent property for this purpose doesn't seem to be a
realistic option.)
2. Does the present well meet all requirements or, if not,
is a new one
Which would meet all requirements a
Possibility on the present lot?
3. will the property after rehabilitation, assuming it can
be rehabilitated to meet all code requirements with the
exception of minimum lot sizo, meet requirements for
private lender mortgage financing (if not, the City
shouldn't finance the rehabilitation).
Mr. Brookingsshould be responsible for securing the
professional surveys and testing necessary to answer the first two
concerns, and for securing a determination from a local lending
institution that the property, after rehabilitation, would meet the
requirements for mortgage financing.
snowolub.r6m Page 1 of 2 Pages
93-474
Mother major property related consideration is whether the
property can be acquired and rehabilitated for less than its after
rehabilitation value, and therefore sold without a loss. This will
require an after rehabilitation appraisal based on the
specifications for rehabilitation.
Ce Ken Gibb
T.J. Martsial
Stan Moses
enoe<lub.rga Page 2 of 2 Pages
93-474
TOm Community and economic Development Committee _
PROM: Rodney G. McKay, Director of Community Development
DATRm October 5, 1993
SUWECT: Disposition of Property Formerly Leased by Snowmobile Club
Proposals were requested for the sale of City property located
on the Pushaw Road approximately 700 feet from Broadway. The
property was formerly leased by the Bangor Area Snowmobile Club,
which returned the property to the City on December 1, 1992.
The property consists of a 15,000 square foot (1/3 acre) lot
with 100 feet of frontage on Pushaw Road and a one story 1,320
square foot woad frame building constructed for use as a school i
1940. The building is supported on wood and concrete piers and has
an attached 600 square foot addition. The plumbing and heating
systems require replacement due to freezing.
The site is not served by City water or sewer. The septic
system has failed and the parcel does not contain the space
required to support a replacement system that will meet current
code requirements without a variance. The well is located within
12 feet of the road and may be contaminated by road salt. Although
the lot size is grandfathered under the City Ordinances, it may be
inadequate for replacement of the septic system and installation of
a new well, if necessary.
The market potential of the property is restricted. Permitted
uses in the zone, Rural Residence and Agricultural, are primarily
restricted to agriculture and single family residence. City
minimum lot size in an RRSA District is 1.5 acre. when an on site
waste disposal system is required, City Ordinances require a
minimum 1 acre lot and Naine Statutes a minimum 20,000 square foot
lot. These restrictions would prohibit construction of a new
structure to replace the current structure.
The only Offer to Purchase received in response to the Request
for Proposals was from Bruce Brookings who offered $2,800 with the
intent to renovate the property into a single family dwelling. The
offer contained four conditions listed in the Offer to Purchase, a
copy of which is attached.
Recommendation: The Committee recommend to the City
Council that the amount offered and the proposed use be
accepted under the following conditions:
1. No guarantees or warranties be made to Mr. Brookings by
the City.
mnmwcl-l.rgm Page 1 of 2 Pages
93-4]4
2. Mr. Brookings be given 60 days to secure the
determinations, variances, permits and financing
necessary for him to proceed with his proposed
acquisition and renovations, and to pay the amount
offered and accept title to the property.
3. The staff beauthorizedto transfer title within the 60
day period in exchange for the amount offered pr,
4. If Mr. Brookings has not paid the offered amount and
accepted title prior to the end of the 60 day period, be
authorized to inform Mr. Brookings that his offer is
rejected.
Should the Committee -accept the above recommendation, Mr.
Brookings will be advised of the above conditions and that he will
be responsible for securing the necessary surveys, testing,
variances, permits, opinions and financing to address his proposed
conditions. Ha will also be advised to secure a determination from
local lending institution that the property, after
rehabilitation, would meet the requirements for mortgage financing.
C: David Pellegrino
Ken Gibb
T.S. Martzial
Stan Moses
evazol•l.rgm IPage 2 of 2 Pages
"' " 93-474
Pushaw
93-4)4
Considering the substantial cost;and time involved In bringing the
subject property into compliance with existing code regulations and
renovating the structure into a single-family three-bedroom dwelling
In conformity with the neighborhood; Bruce W. Brookings hereby offers
to purchase from the City of Bangor the property known as the Bangor
Area Snowmobile Club and numbered as 335 Pushaw Road for the total
purchase price of Two Thousand Eight Hundred Dollars (82.800.00).
To be paid as Follows: Two Hundred Eighty Dollars )8280.00) at
the time of the offer; with the remaining Two Thousand Five Hundred
Twenty Dollars (82.520.00) to be paid In cash at time of closing.
This offer ,to purchase and renovate is contingent upon the
following:
1. It must be determined that the property will support a
Workable septic system.
2. The City of Bangor must grant a replacement system variance
to permit the installation of said septic system.
3. The City of Bangor must guarantee that it will make financial
assistance available to Mr. Brookings to assist in the
renovations of said property. if Mr. Brookings desires to use
such assistance.
6. The attorney for Mr. Brookings must determine that title to
property is free and clear of all liens or other title
detects.
93-474
J
In the event that this offer to purchase and proposal to renovate
isr accepted by the City ofBangor, Mr. Brookings proposes to have all
renovations and improvements completed one year from the date of
closing or from the receipt of financial assistance funds from the
City of Bangor, whichever comes later. Mr. Brookings shall take
possession of the property and enjoy all rights of ownership from the
date of closing.
93-4)4
Disclosure of Representative '
Be it known that I, Robert L. Holey, of Holiday Land, Inc., have
been hired by Bruce W. Brookings, and am working as an agent for the
Buyer, Bruce W. Brookings, and not as an agent for the Seller, City
of Bangor. _
IN WITNESS WHEREOF, we have hereunto set out hands and seals this
day of September, 1993.
Witness Bu s w. Bro i gs,�wr�
W P ZJ �3
Witness Set Hol L. 8u , Inc.f1.1r
of Agent
for
Land, Inc.
Agent for 8uyei
I
This proposal to purchase and renovate submitted for Bruce W.
Brookings is hereby accepted by the City of Bangor, this day
of . 1993.
CITY OF BANGOR
Witness