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HomeMy WebLinkAbout1991-07-22 91-291 ORDERCOUNCIL ACTION 91-291 It® No. Date July 17. 1991 Item/Subject: Burgundy Realty Realty Trust Agreement Responsible Department: Community and economic Development The major rehabilitation project undertaken by Burgundy Realty Trust on the waterfront is nearing completion. AS described in the attached memorandum, Staff has been working with Chris and Chip Hutchins to update and formalise the 1989 Council Order which set forth responsibilities of the City and Burgundy Realty Trust. The Community a Economic Development Committee reviewed the proposed agreement and unanimously recommended approval (see attached information). rtment- Head ,11 1 .WINm..,vl Associated Infornation:©,A1I7 C.O. V-3HCm nwwnb Legal Approval: Finance Director City Solicitor s Paeeage First Reading Page 1 of 6 Referral 91-291 Mepedto Councdor Sosnaud, July 22, 1991 CITY OF BANGOR (TITLE.) Mrurr-._.._JUthorizing City Manager to Execute Agreement -- Burgundy Realty Trust By am City CMnW Of W oft e(Baxy .- ORDERED, TBAT WHEREAS, the City of Bangor is the owner of certain property in the area of Railroad, pleasant and Front Streets, and is c=ently negotiating acquisition of additional property in this area; and WHEREAS, Burgundy Realty Trust is the owner of certain property located in proximity to the City's property; and WHEREAS, by an 'Agreement and Grant of Basements", dated March 19, 1990, between the parties, Burgundy Realty Trust is engaged in a continuing project torehabilitateand develop its said property; and WHEREAS, the parties wish to undertake certain additional obligations with respect to Burgundy Realty Trust's development project, NOW, THEREFORE, By the City Council of the City of Bangor be it: ORDERED, . THAT the City Manager is hereby authorized and directed', on behalf of the City of Bangor, to execute an Agreement, a copy of which is attached hereto and on file in the office of .the City Clerk, which is supplemental to the Agreement and Grant of Easements, dated March 19, 1990. In City Council July 22,1991 Passed 6Yw Clerk CityClerk 91-291 ORDER Title, Authorizing City Manager to Execute ...................................... Agreement Burgundy Realty Trust ..........�y...'.......................... �~4o- Ayi�d o �� Cowcflman AGREEMENT THIS AGREEMENT dated this day of July, 1991 by and between the CITY OF BANGOR, a municipal corporation organized and existing under the laws of the State of Maine (hereinafter "BANGOR") and CHRISTOPHER HUTCHINS, as Trustee of 'BURGUNDY REALTY TRUST under a Declaration of Trust dated July 1, 1988 and recorded in volume 4286, Page 209, Penobscot Registry of Deeds (hereinafter "BURGUNDY"). W I T N E S S E T H• Whereas, BANGOR is the owner of certain real property in the area of Railroad, Pleasant and Front Streets in the City of Bangor, identified on City of Bangor Tax Map 43 as Lots 20, 21 and 32 (copy attached); and Whereas, BANGOR is currently negotiating acquisition of additional property in the area identified on said Map 43 as Lot 22; and Whereas, BURGUNDY is the owner of certain real property in the City of Bangor identified on said Map 43 as Lots 29, 31 and 33A; Lots 31 and 31A formerly belonging to W.C. Weatherbee & Sons, Inc. and Auto Paint Supply, Inc. respectively; and Whereas, BURGUNDY is engaged in aontinuing project to rehabilitate and develop its said property; and Whereas, by a "Agreement and Grant of Easements" dated March 19, 1990, BANGOR and BURGUNDY have undertaken certain obligations with respect to BURGUNDY's development project, NOW, THEREFORE, in consideration of the premises, the parties hereby mutually agree as follows: A. This Agreement is supplementary to the parties' prior Agreement dated March 19, 1990 and reflects additional undertakings by BANGOR and BURGUNDY with respect to BURGUNDY's development project. To the extent that the two Agreements may be inconsistent, the provisions of the present Agreement shall be deemed to control. B. BURGUNDY hereby agrees to 1. Complete rehabilitation of its existing building on Lot 29, and complete a thorough cleanup and landscaping of Lots 31 and 31A, to include the discontinued portion of South Street lying between Lots 29 and 33A, in accordance with BURGUNDY's attached site plan. The Cleanup and landscaping shall be completed by August 1, 1992. -2- 2. Lease from BANGOR a minimum of 29 spaces at a parking lot to be constructed by BANGOR on all or portions Of Lots 20, 21 S 22, once acquired. The lease shall be for a minimum term of five (5) years from the date of completion of the parking lot by BANGOR, and shall be at an initial rate of $30.00 per space per month (_ $10,450.00/year). The monthly rental rate shall be subject to adjustment annually and the adjusted rate shall be equal to the then -current City of Bangor monthly lease rate for downtown municipal surface parking lots. BURGUNDY agrees to execute awritten Lease with BANGOR reflecting the above terms. 3. Construct a pedestrian access bridge across the existing line of the Maine Central Railroad on Front Street from Lot 31 or 31A to the Bangor waterfront (City of Bangor Tax Map 43, Lots 30 6 36), in accordance with BURGUNDY'S attached site plan. Said bridge shall have an estimated cost of $100,000.00, which shall be borne by BURGUNDY at its sole expense. Unless waived or extended by BANGOR, BURGUNDY shall complete construction of the bridge not later than December 31, 1994. 4. Grant to BANGOR, for the benefit of the general public, a 20 foot access easement extending from the existing center line of Pleasant Street to and across said pedestrian bridge, said easement to be limited to pedestrian and bicycle access only. 5. Following a contemplated discontinuance of Pleasant Street between South Street and Railroad Street, release by deed to BANGOR adequate land within the Pleasant Street right-of-way to permit construction of a municipal parking lot and sidewalk as shown on the attached site plan. BURGUNDY further agrees that in constructing the pedestrian bridge and in completing its planned cleanup and land- scaping, it shall obtain all necessary permits and comply in every respect with the applicable laws and ordinances of the City of Bangor, State of Maine, and the United States. C. BANGOR hereby agrees to, 1. Construct a municipal parking lot with improvements as generally described by the attached site plan. Such parking lot shall contain a minimum of 29 parking spaces and shall be referred to as the Pleasant Street Parking Lot. Such spaces shall be paved by December 1, 1991 and all improvements shall be completed by August 1, 1992. -3- 2. Lease to BURGUNDY a minimum of 29 parking spaces at the Pleasant Street Parking Lot at an initial rate of $30.00 per space per month fora minimum of five (5) Years. This lease rate shall be adjusted annually in accordance with the permit rate for municipal surface parking lots in downtown Bangor. BURGUNDY shall have exclusive use of the leased spaces between 0 a.m. and 5 p.m. weekdays exclusive of holidays. At all other times, the leased spaces shall be available to the general public, in accordance with BANGOR's municipal parking regulations. 3. Following acquisition of Lot 22, BANGOR shall discontinue Pleasant Street between South Street and Railroad Street. 4. Grant an easement for theoverhang of the building located at 20 South Street which encroaches onto the Pleasant Street right-of-way and for the proposed gas tanks and building signage at locations generally depicted on the attached site plan. 5. Provide all maintenance and snow removal services for the Pleasant Street Parking Lot. 6. Secure all necessary State of Maine approvals for location of the pedestrian crossing bridge across Maine Central Railroad's Front Street line. D. Other Terms. Upon completion of the pedestrian crossing bridge and prior to its opening for use by the general public, BANGOR and BURGUNDY hereby mutually agree that they shall enter into a written agreement allocating maintenance responsibilities and costs, and providing for such indemnifications and insurance coverage as the parties may deem necessary. Any time limits contained in this Agreement shall be reasonably extended asnecessary o cunt of delays i any per- mitting process, acts ofGod, or other circumstances constituting force may. By the respective signatures below, the parties hereby mutually represent that they have taken all steps necessary to approve execution of this Agreement by their City Manager and Trustee, respectively. WITNESS the following hands and seals the day and year first written above. CITY OF BANGOR By Edward A. Barrett Its City Manager BURGUNDY REALTY TRUST By Witness Christopher Hutchins Its Trustee STATE OF MAINE Penobscot, as. July , 1991 Then personally appeared the above-named EDWARD A. BARNETT, in his capacity as City Manager, and acknowledged the foregoing instrument to be his free act and deed in his said capacity, and the free act and deed of said body corporate. Before me, Notary Public/Attorney-at-Lew Printed Name: My Commission Expires: STATE OF MAINE Penobscot, as. July , 1991 Then personally appeared the above-named CHRISTOPHER HUTCHINS, in his capacity as Trustee of Burgundy Realty Treat under a Declaration of Trust dated July 1, 1988 and recorded in volume 4206, Page 209, Penobscot Registry of Deeds, and acknowledged the foregoing instrument to be his free act and deed in his said capacity, and the free act and deed of said Trust. Before me, Notary Public/Attorney-at-Law Printed Name: My Commission Expires: 89-340 Mored to Councgor Soanaud. August 14, 1989 CITY OF BANGOR OrbrIs..._APprovxlt9. the.. Framclwrh.. of.� on Agreement„oe twang.the „City of Bangor and Burgundy Realty Trust regarding. the Redevelop - of dw City of8anpor: MAT the Department of Community and Economic Development staff City Solicitor's office work with Burgundy Realty Trust to develop ment that reflects the following responsibilities in the pment of 46 Pleasant Street: Realty Trust will rehabilitate building at an estimated cost of $1,500,000 (Phase 1); build a pedestrian bridge across the Maine Central Railroad to the waterfront area at an estimated cost of $100,000. The bridge shall be built within two years and shall be subject to design and location review by the City of Bangor; lease at market rate a minimum of 30 parking spaces at central parkng facilities (Pleasant/South/Railroad Street area) or the Front Street area or on=street permit spaces for a 5 -year .period; maintain landscape in South Street r.o.w. if landscape, easement is granted. of Bangor - 1. grant 201 building easement and 50' landscape easement in the undeveloped South Street r - 2. initiate acquisition negotiations for land in the Pleasant/South/Railroad Street areas; 3. provide central parking in the area or provide 30 spaces in the Front Street area or provide 30 on -street permit parking spaces within 500' of the redevelopment site for a period of 5 years. Paased August 14,198 'M C1ERk5 ormCt RAW 9 AUG 141989:: % ]Ruf h..... n asl �..a✓a'Ou1�Mc� qry clB4! MEMO T0: Edward Barrett, City Manager City Councilors FROM: Kenneth R. Gibb, Director Community b Economic Development RE: Burgundy Realty Trust' DATE: July 3, 1991 As you know the major rehabilitation project undertaken by Burgundy Realty Trust on the waterfront is nearing completion. bamen working orkwith bagree remCChip rovedR nsta-. _— nt update the original August, 1989. Attached for your review is a copy of the 1989 Council Order. To date Burgundy has increased the scope of rehabilitation project significantly beyond the 1.5 million originally visioned. In addition, Burgundy has purchased land to the south of the building and will be removing dilapidated buildings and undertaking a major landscaping project on the site. The City has also taken major steps. We have purchased the switching tower and are close to completing acquisition of all the property necessary to build a municipal parking lot near Pleasant Street.we have also discontinued that portion of South Street between Front and Pleasant Streets. I have also attached a proposed agreement which will update the original. Should the Committee approve, we will prepare a formal agreement for Council consideration in late July. The proposed agreement describes responsibilities of both Burgundy Realty Trust and the City. we are now prepared to finalize plans for the parking lot which will be funded by Community Development Block Grant funds. Burgundy Realty Trust will agree to lease a minimum of 29 spaces at the market rate for a period of 5 years. These spaces will also be available to the public after business hours and during holidays and weekends. - Staff will be prepared to review the proposed agreement with the Committee on Monday afternoon, - PROPOSED AGREEMENT BETWEEN THE CITY OF BANGOR GUNDY REALTY TRUST The following items shall be the major components of an agreement between Burgundy Realty Trust and the City of Bangor regarding the redevelopment of an office building located at 20 South Street - Burgundy Realty Trust agrees to 11 Complete the building rehabilitation and undertake major cleanup and landscaping of property located between 20 South Street, Front Street, Pleasant Street and Railroad Street, such landscaping shall be completed ._.. __ by August 1, 1992. 2. Lease a minimum of 29 parking spaces at the pleasant Street parking lot for a minimum period of five years. The lease rate shall initially be $30 per month and shall be adjusted according to changes in downtown municipal surface lot rates. 3. Construct a pedestrian bridge across the Maine Central Railroad to the waterfront at n estimated cost of $100,000. The bridge shall be built by December 31, 1994 unless this requirement is waived or the time schedule is extended by the City of Bangor. 4. Grant a 20 foot public access easement extending from the Pleasant Street parking lot to the pedestrian bridge. S. Following the discontinuance of Pleasant Street between South Street and Railroad Street, release by deed to the City of Bangor adequate land (approximately 20-25 feet) for the purpose of constructing the municipal parking lot and sidewalk as shown on the attached site plan. The City of Bangor agrees to: 1. Construct a municipal parking Sot with improvements as generally described by the attached site plan. Such parking lot shall contain a minimum of 29 parking spaces and shall be referred to as the Pleasant Street Parking Lot. Such spaces shall be paved by December 1, 1991 and all improvements shall be completed by August 1, 1992. Page 2 2. Lease to Burgundy Realty Trust, a minimum of 29 parking spaces at the Pleasant Street Lot at an initial rate of $30 per month per space for a mininual of five years. This lease rate shall be adjusted in accordance with the permit rate for municipal surface parking lots in downtown Bangor. Burgundy Realty Trust shall have exclusive use of such spaces between B a.m. and 5 p.m. week- days exclusive of holidays. 3. Following acquisition of all abutting property to the west of Pleasant Street, the City of Bangor shall discontinue Pleasant Street between South Street and - _-- Railroad Street. ' 4. Grant an easement for the overhang of the building located at 20 South Street which encroaches onto the Pleasant Street right- of-way and the proposed gas tanks and building signage at locations generally depicted on the attached site plan. 5. Provide all maintenance and snow removal services for the Pleasant Street Parking Lot.