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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. w tNro6 MaimWrs Comment: try Ma g AasocmiM lniormauon: Budget AppmmI: Pm wnm Legal Approval: cosoOrGer Introduced For oPaeaW 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 _.