HomeMy WebLinkAbout1990-05-30 90-203 ORDERFHilduunml Armon
reth
ate -5/30190 Item No. 90-203
Hildreth Street Development District
partmee: Community & Economic Development
f has been working with Grant's Dairy to establish a
onstruction of a milk processing facility adjacenth Street North. The proposed agreement includes "
the construction of Phase I of the facility and c nveyance.. -
of land by Grant's for a street extending east of Hildreth
Street. As part of the plan to encourage industrial develop-
ment in the areathe City of Bangor will construct roads,
water and sewer facilities. Tax Increment Financing is
contemplated for the funding.of the infrastructure.
The agreement also provides the City the first right of
refusal should the Grant's facility located on Union Street
be sold at a future time.
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MaimWrs Comment:
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AasocmiM lniormauon:
Budget AppmmI:
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Legal Approval:
cosoOrGer
Introduced For
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O First FwdinB
o Referral
90-303
Auipwed m Camtetr England, May 30, 1990
CITY OF BANGOR
(TITLE) Orber, Author y the city Manager to sign an agreement....
with Grant's
Byw Ctq CwW of W IXryrtWper:
ORDERED. .
TWT the City Manager hereby be authorized and directed to
sign an agreement with Grant's Dairy, Inc. and Ellen Grant Young
regarding the extension of public street, water and sewer
to a site located adjacent to Hildreth Street North and construction
of Phase I of a dairy facility at the proposed site.
90-203
IN CITY COUNCIL O R D E R
any 30,. 1990
Paee��ed�,,��,y� Title,
.moi _ authorizing the Ci.. Manager .. Si
CI1Y LERC....................................
Agreement with Grant's Dairy, Int.
....................................
A�
(Fveddw
........... s, s.c.lC.l^.8...............
l/' coaneilman
90-303
AGREEMENT
.THIS AGREEMENT is made this _ day of _ , 1990, by
and among the CITY OF BANGOR, a municipality located in the State
of Maine (••CITY"), GRANT'S MIRY, INC., a Maine corporation with
-
a place of business in Bangor, Maine (••GMNT'S"), and ELLEN GAANT
YOUNG of Holden, Maine ("YOUNG').
WHEREAS, Grant's is a licensed milk dealer with its
principal milk processing facility located in the City of Bangor
on land owned by Young;
WHEREAS, Grant's has an option to purchase a certain parcel
Of land off Hildreth Street in the City of Bangor, on which it
seeks to expand and eventually relocate its existing commercial
milk processing operations within the City of Bangor, said land
being shown as "Tract A° on the plan attached as Schedule A
hereto, which land is hereinafter referred to as the 'Hildreth
Street Site,,;
WHEREAS, it is anticipated that Grant's planned expansion
and relocation will require extension of public water, sewer,
road and other services to the Hildreth Street area; and,
WHEREAS, the City wishes to accommodate Grant's expansion
and relocation within the City of Bangor as a meansof-retaining
and enlarging job opportunities, enhancing the City's tax base,
and promoting �feture industrial development in the Hildreth
Street areazH,�
101
1
NOW, THEREFORE, in consideration of One Dollar ($1.00) and
the mutual covenants contained herein, the parties agree as -
follows$
1. Within ninety (901 days following the execution of this
Agreement, Grant's will undertake to secure all necessary
goverDJRanthl approvals for the construction of the initial phase
("Phase I") of a dairy facility on the Hildreth Street Site.
Phase I shall include the erection of a building with an area of
not less than twenty-five thousand (25,000) square feet
containing storage and cooler facilities. The construction coat
of Phase I shall not be less than One Million Five Hundred
Thousand Dollars ($1,500,000).
2.; Upon the completion of all necessary gover,anental
approvals for the construction of Phase I on terms acceptable to
Grant's (including approval to cross the pipeline located on the
Hildreth Street Site), and so long as Grant's can acquire good
clear recordandmarketable title from the Beller Of the Hildreth
Street Site, Grant's,shall exercise its option to purchase the
Hildreth Street Site. So long as all necessary govermsental
approvals f Oithe construction of Phase I on terms acceptable to
Grant's are completed by August 1, 1990, and Grant's purchases
the Hildreth Street Site, Grant's shall commence construction of
Phase I no later than November 1, 1990.- In the event that all
necessary governmental approvals for the construction of Phase I
on terms acceptable to Grant's are completed after August 1,
1990, and Grant's purchases the Hildreth Street Site, Grant's
2
shall commence construction of Phase I no later than two hundred
seventy (270) days after such approvals are finally completed.
Construction of Phase I shall be completed within eighteen (18)
months after �cc
.,,onetiuction is commenced. The construction of
Phase I, a(penations at the Hildreth Street Site after the
completion of construction, shall comply with every applicable
law, ordinance, rule or regulation of any appropriate
governmental authority and shall be at Grant's sole expense.
3. Concurrent with the construction of Phase I, and in
accordance with the schedule attached as Schedule B hereto, the
City shall extend the public street in accordance with the -
depiction on Schedule A and the Bangor Nater District shall
extend water services to the Hildreth Street Site in the
locations depicted on Schedule A. The street and one public.
water line extension shall be new construction along and within
an eighty (80) foot wide right of way to be conveyed by Grant's
to the City in fee. Public water lines shall be at least eight -
inch (8") lines. The City shall be responsible for the cost of
construction of the street and for the cost of construction of
the public water line extension, and Grant's shall be responsible
for the cost of the private water line connecting the public -
water line extension with the building being constructed on the
Hildreth Street Site. -
4. Concurrent with the construction of Phase I, Grant's
shall construct an eight -inch (8^) private sewer line from
Hildreth Street to the building being constructed on the Hildreth
3
Street Situoin accordance with the depiction On Schedule A. The
City will reimburse Grant's for the costs of construction of this
sewer line.
5. Grant's agrees that in conjunction with clearing ease
from the public, street extension described above, City snowplows.'
shall be permitted to turn around in Grant's driveway areas.
6. At the time Grant's conveys the eighty (80) foot wide
right of way described above, Grant's shall also release -to the
City whatever rights it may have in the area depicted as
on Schedule A.
]. So long as Young Owns the land and buildings described
in Schedule C hereto, Grant's and Young shall inform the City
Manager of the City (or hie/her designee) of any new use of said
land or buildings, whether by Grant's or by a third party, before
the commencement of such new use. This paragraph shall not be
construed as making the approval of the City Manager (or. his/her
designee) a condition precedent to any new use of said land and
buildings.
8. In the event Young elects to sell all or part of the
land and buildings (but not including equipment or fixtures in
thebuildings) described in Schedule C attached hereto, the City
shall have the right of first refusal to meet any bona fide offer
of sale (accepted by Young subject to this right of first -
refusal) on the same terms and conditions of such offer, which
terms and conditions shall preclude the future use of said land
and buildings as a dairy or milk distribution facility. Upon the
4
City's failure to meet such bona fide offer within thirty (30)
days after notice thereof from Young, Young shall be free to sell
all or part of the land and buildings to such third person in
accordance with the terms and conditions of the third person's
offer. -
9. Nothing in this Agreement shall be construed tooperate
as an abatement of any real or personal property taxes which may
be imposed by the City in its capacity as a municipal taxing
authority, as to Grant's present milk processing location or as
to the Hildreth Street Site or any improvemante to be constructed
thereon.
10. Grant's hereby represents that it has taken, and will
take, all necessary steps to ensure the validity of this
Agreement and the execution thereof under its corporate charter
and bylaws.
11. Any notice under this Agreement shall be sent by
registered or certified mail, return receipt regueeted, with
postage prepaid, addressed as follows:
If to the City%
City of Bangor
73 Harlow Street
Bangor, Maine 04401
Attn: Edward A. Barrett, City Manager
If to Grant's:
Grant's Unity, Inc.
562 Onion Street -
Bangor; Maine 04401
Attention% Benjamin E. Grant, president
5
If to Young: -
Ellen Grant Young
562 Union Street
Bangor, Maine 04401
Retiree may be sent as hereinabove described to such other
respective addresses as the parties may designate in writing to
each other from time to time. -
12. This Agreement contains the entire agreement between
the parties, and no changes or modifications to the terms hereof
shall be valid unless in writing and signed by the parties
hereto. There are no understandings or agreements of any kind
between the parties hereto, verbal or otherwise, other than as
set forth in this Agreement.
13._ This Agreement and all of the provisions hereof shall
be binding upon and inure to the benefit of the parties hereto,
and upon their heirs, personal representatives, successors and
permitted assigns. Neither this Agreement, nor the rights and
obligations under this Agreement, shall be assigned by any party.
without the written consent of the other parties.
IN WITNESS WHEREOF, the parties have hereunto set their
hands and seals as of the day and year first above written.
Attestz CITY OF BANGOR
By:
CA. Barrett
Cityity M Manager
0
HILDRETE STREET DEVELOPMENT DISTRICT
PROPOSED SCHEDULE
TIME
ACTION
May
Approval of agreement
City/Grant's
May
Pipeline crossing permit
Application submitted
City
May
Development District Plan
Prepared
City
June
Dev. District Plan approved
by City
City
June
Dec. District Plan submitted
City
to State
Jane
Site Plan Application submitted/
approved
'
(approval contingent upon r.o.w.
conveyance to City)
Grant's
early July
Grant closes on land
Grant's
early July
Grant conveys r.o.w. to City
Grant's
early July
State approves Dev. District
Plan
City
July
Building permit submitted/
approved
Grant's
late July/
early August
Road roughed in
City
August
Building construction begins
Grant's
Pall
Sewer/Mater lines/road cons-
City/Water
structed
District/Grant's
Spring, 1991
Phase I construction
Grant's
Spring, 1991
Road paving completed
City
5/29/90
Attesti �
Witnesei
DRAFT 5/17/90
GDTIF.NMR
7
GRANT'S DAIRY, INC.
By.
Benjamin B. Grant
President
ELLEN GRANT YOUNG
SCHEDULE B
[echeUule]
SCHEDULE C
[description of property onwhichthere iS first refusal]
PROPOSED HILDRETH STREET
DEVELOPMENT DISTRICT
Phase I - t 30,000 square feet
estimated cost of 2 million dollars
construction of cooler, warehouse facilities
Phase 11 - ± 18,000 square feet..
estimated cast of 3 million dollars
construction of processing facilities and
installation of equipment
Extension of water, sewer and street to
service the site
estimated cost ± $125,000
aDtees of financing - Tax Increment
Financing (T.I.F./Bond Issue)
TA% INCREMENT FIHAHCIHO SCENARIO
City's capital cost $ 125,000
Minimum Increase in Assessed Valuation
of phase I Duly$1,500,000'
Current Tax Revenue S 2,500
Estimated Future Tax Revenue S 29,100
Projected Tax Increment (Year 1) S 26,600
Based on this scenario, debt incurred by the City to fund the
up -front capital cost would be retired in approximately 5 to y
years by taxes generated solely by Phase I of the project.
BENEFITS TO THE CITYOF BANGOR FROM THE PROPOSED PROJECT
I Implement94base I of the Hildreth Street Development
District by D`xtending public infrastructure to anarea both
publicly and privately owned, which is zoned for industrial use.
2. Retains a Bangor business within the City.
3. Protects and enhances the local tax base by keeping a 5
million dollar facility in the City.
4. Assists in relocation of Grant's Dairy from an inappropriate
location to an area suited for a manufacturing use.
Page 2
OUTLINE OF PROPOSED AGREEMENT BETWEEN GRANT'S DAIRY AN
ant's Dairy Reaoon
1. Construction of Phase I of the proposed project at a
minimum. This portion of the agreement includes minimum value
of construction. The timing of Phase II construction is not
included in the agreement.
2. Completion of Phase I construction within a specified time
frame.
3. Grant's will consult with the City prior to taking action
resulting in reuse of the current building to a use more
intensive than the current C-2 zoning of the property.
4. Grant's provides City of Bangor first right of refusal or
sale of existing facility.
5. Grant's conveys to the City of Bangor the 80' right of way
located at north end of projectsite.
City of Bangor's Responsibilities,
1. The City shall be responsible for the costa of extending a
public street, water and sewer facilities to the site.
2. Timing of the public facility construction will coincide with
the construction of the private facilities.
5/22/90 „=4 _.