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Home My WebLink About1991-09-11 91-351 ORDERri Date yvv9-11-91 Rustic. X51_ Item/Subject: Accepting Offer by Robert J. Preble -- Hammond Street Property Responsible Departmenc Legal Commentary: I have placed this item on the Council's agenda so that I may give Mr. Preble a final response to his latest Offer to sell his interest in this particular property. The property affected con- sists of the tax -acquired portions of lots nos. 1 and 2 in BanAir Industrial Park. The total lot area s 34,151 sq.ft., fronting 400 feet on Hammond Street. See sketch attached. Mr. Preble Was a one- third record owner of this property at the time the City acquired tax title in 1972. However, the City did not make service of the notice of impending foreclosure required by statute at that time, so we did not perfect our title as against Mr. Preble. We have recently given the required notice, and Mr. Preble's share of the original past -due taxes ha9C been paid. in July, I obtained an offer from Mr. Preble to sell his one-third interest in this property to the city for $11,000.00. An item authorizing the acquisition was placed on the Council agenda for Jeelly 22, 1991. Shortly before the Council's meeting, however, Mr. Preble withdrew his offer. He has s submitted an offer to sell his interest to the City for $15,300.00, a figure based on the Assessors' current assessed value of the property. I believe that the Assessors' valuation figure for this particular lot is high, due to a rounding upward of the loCT a d i view of the fact that Mr.. Preble's interest i UVLE, basically unmarketable except to the City. neyo.un„r reed Manager's Comments: 04 ,.,y A Ab� �0a 6uep� . l�r�.r Cily Mannger Associated Information: Order, Letter,Sketch Budget Approval: '� Legal Council r Based on the above comments, e I recosmn t Counc it reject Mr. Preble's latest offer. jJ„({u VtJ ✓ Acting it soti.,mr Intro iced For Passage ❑ First Reading Page _ of Referral BUBBTIMI COPY 91-351 A Bpad to Cooncllo. Bragg CITY OF BANGOR (TITLE) (DED¢ra Accepting Offer by Robert _.J,._, Stable -- Hammond street Property By Ow City Councl of Ste City ofDammmo ORDERED, THAT an offer by Roberti. Preble, in a letter dated October 1, 1991, to sell his one-third interest in portions of Lot Nos. 1 and 2 in Ne Ranair Industrial Park for the sum of $13,800.00 is hereby accepted! and be it further ORDERED, THAT the Acting City Solicitor is hereby authorized and directed, on behalf of the City of Bangor, to take whatever action is deemed necessary to complete acquisition of the property. 91-351 Aeeigied to CounaJor Bragg, September 11, 1991 CITY OF BANGOR (RTLEJ by Aubert J. P eble H,ammona By 1M My CmemU Ods CUR WDSwimea ORDERED, TEAT an offer by Robert J. Preble, in a letter dated July 22, 1991 and attached hereto, to sell his one-third interest in portions Of Lot Nos. 1 and 2 in the BanAir Industrial Park for the sum of $15,300.00 is hereby accepted; and be it further ORDERED, THAT the City Manager is hereby authorized and directed, on behalf of said City of Bangor, to take whatever action is deemed necessary to complete acquisition of the property. `� , jj� 91-351 ORDER IN CITY CGUMCIL September 11, 1991 Title, Tabled until Settlement. Accepting Offer by Robert J. Preble .......................... Ha®roM Street Property. CITY CLERK IN CITY COUNCIL ............/........�.....�.....p..�....... October 16, 1991 Amended by Substitution and Passed. Aedred to Councilman 91-351 Re: Robert J. Preble - Hammond Street Property Dear Erik: I have been authorized by my client to make the following offer to the City with regard to his one-third interest in the above referenced parcel: 1. Total price of $15,300.00 with $5,000.00 to be distributed at the time of closing. The remaining $10,300.00 to be paid by the City at such time as: a) Lot No. 1 in the BanAir Industrial Park is sold or leased by the City; or b) two years from the date of closing between Mr. Preble and the City, whichever occurs first. 2. On the date of closing, the City will execute a promissory note in favor of Mr. Preble in the amount of $10,300.00 to be paid at such time as: a) Lot No. i in the can it Industrial nark .is sold or leased by the City; or b) two years from the date of closing between Mr. Prable and the City, whichever occurs first. This promissory note is to be secured by a mortgage against Lot No. 1 in the Ba Mir Industrial Park. Interest shall accrue on the $10,300.00 at a rate of lo& per anum. The $15,300.00 figure is based on the City's determination of Mr. Preble's interest per the City Council's agenda for the July 22, 1991 meeting. I believe the City's figure was reached by multiplying the lot's square footage (38,332.6 sq. ft.) by Mr. Preble's assessed value per square foot ($0.40 per sq. ft.). The rationale for the two year limit is to insure that Mr. Preble will eventually receive full compensation for his interest. In the event the City never sells or leases the parcel, he would a%ld &o OLom,N�caL p p qy p'„y„ fi O& O ! 6' db L:.. /dSJ/DJB J JSE m, ✓� (� �� A(6 SOl66lPS6/ B%�+� � SO166161D0 ;. July 22, 1991 File NO. 15,163 ' Erik M. Stumpfel, Assistant City Solicitor City Of Bangor 73 Harlow Street Bangor, Maine 04401 Re: Robert J. Preble - Hammond Street Property Dear Erik: I have been authorized by my client to make the following offer to the City with regard to his one-third interest in the above referenced parcel: 1. Total price of $15,300.00 with $5,000.00 to be distributed at the time of closing. The remaining $10,300.00 to be paid by the City at such time as: a) Lot No. 1 in the BanAir Industrial Park is sold or leased by the City; or b) two years from the date of closing between Mr. Preble and the City, whichever occurs first. 2. On the date of closing, the City will execute a promissory note in favor of Mr. Preble in the amount of $10,300.00 to be paid at such time as: a) Lot No. i in the can it Industrial nark .is sold or leased by the City; or b) two years from the date of closing between Mr. Prable and the City, whichever occurs first. This promissory note is to be secured by a mortgage against Lot No. 1 in the Ba Mir Industrial Park. Interest shall accrue on the $10,300.00 at a rate of lo& per anum. The $15,300.00 figure is based on the City's determination of Mr. Preble's interest per the City Council's agenda for the July 22, 1991 meeting. I believe the City's figure was reached by multiplying the lot's square footage (38,332.6 sq. ft.) by Mr. Preble's assessed value per square foot ($0.40 per sq. ft.). The rationale for the two year limit is to insure that Mr. Preble will eventually receive full compensation for his interest. In the event the City never sells or leases the parcel, he would Erik Stumpfel, Asst. City Solicitor Page 2 July 22, 1991 not receive full compensation. i believe two years is sufficient time for the City to find a buyer, or in the alternative, to budget for the $10,300.00. 1 realize this offer is different from what the City Council's community and Economic Development Committee has authorized and re -approval by the Committee will be required prior to approval by the City Council. Please contact me if you have any questions or comments very truly yours, Patrick 0. Larson PCL:p cc. Robert J. Preble JUL 2 S 1991 LEGAL DEPARTMENT PREBLE HOMES JACK PRESLE Ue ROUTE 01 P.0.8=190 HANCOCK. MNNE 04640 (207) 422-9N6 October 1, 1991 Erik M. Stumpfel, ASet. City Solicitor 73 Harlow Street Bangor, Maine 04401 Dear Erik: In your recent letter, you did net mention a rebate on Taxes paid which we had talked about, over the difference in lot sive. AS for the $135800.00 figure, paid in full, I will accept it. Sinc ely, Robert 3 able OCT 3 1999 LEGAL DEPARTMENT