HomeMy WebLinkAbout1990-10-10 90-346 ORDERIntroduced For
�^ Passage
❑ First Reading Pap _at_
❑ Referral
Data October 4, 1990
Item No. fO i YC
Item/Sublech Authorizing Option Agreement .with Baagnx Waterworks Associates
Bangor Waterworks Facility
Responsible Department:
Community & Economic Development
Commentary:
This Order is a result of the City Council workshop
w the subject held
as September 26, 1990 end the C®mmity and Economic Development Co®ittee
recommendations made at its meeting on October 2, 1990.
_
peprmi <xeet _. _
Maager's Commands:
Associated Information:
Budget Approval:
Ream's, non<
Legal Approval:
_
ly SWi<irur
Introduced For
�^ Passage
❑ First Reading Pap _at_
❑ Referral
Aeeignedio Cauncim 6ef4(A4P 90-346
CITY OF BANGOR
(TITLE.) Orlber; Aatllo 1 ipg Option Agreement with Ba or waterxorks
Asaoaiatea - Baagor Waterworks Facility
By Mz Cky Casual! of W C(ey ofDansw.
ORDERED,
THAT the City Manager is hereby authorized and directed, on
behalf of the City of Bangor, to execute an Option Agreement with
Bangor Waterwpnks Associates (-Developer") for the purchase and
redevelopment of the Bangor Waterworks Facility in a form or forms
approved by the City Solicitor and containing the following terms and
conditions:
REQUIREMENTS OF THE DEVELOPER:
I. Proposed Phase I Development
A. Proposed Develamentt
Complete 12 units of a 35 unit interval ownership
resort development; complete the reception and activity
building with pool and fitness center; complete all
public access areas; complete all exterior work on all
buildings an site, all in accordance with the Bangor
Waterworks Proposal dated September 21, 1990.
H. Oeveloament Coat, .
Construction coats, exclusive of financing, legal,
accounting, taxes, insurance, marketing, architectural,
engineering and other such non -construction coats, of
not less than Two Million Dollars ($2,000,000).
C. Purchase Price:
One Hundred Thousand Dollars ($100,000).
D. Qption Fee:
Five Thousand Dollars ($5,000) for the period ending
June 30, 1992. Five Hundred Dollars ($500) for each
month of any extension granted by the City.
E. Term of Option -
Initial term ending June 30, 1992.
F. Project Timetablet
The following actions be required of the Developer not
later than the dates indicated%
January 4, 1991 - Submission of final plane to the City
Council Community and Economic Development Committee
for Committee approval.
January 4, 1991 - Submission of complete applications
for all plan approvals required to include the Maine
Department of Environmental Protection, Corp of
Engineers, City of Bangor (for site plan and
subdivision approval), and Maine Department of Historic
Preservation.
March 31, 1991 - Receiveapproval of site plan,
subdivision and historic preservation approvals.
September 30, 1991 - Receive Department of
Environmental Protection and Corp of Engineer
Approvals.,
September 30, 1991 - Begin Marketing Project.
June 30, 1992 - Start construction on Phase I.
March 31, 1993 - Complete construction on Phase I.
II. Proposed Phase II Development
A. Proposed Development:
Completion of an additional 12 units; completion of
exterior and total interior of buildings containing
Units 0, 8, 15 thru 19 and 31 thru 35; completion of
tennis court, all in accordance with the Bangor
Waterworks Proposal dated September 21, 1990.
B. Develooment Coat:
Construction costs, exclusive of financing, legal,
accounting, taxes, insurance, marketing, architectural,
engineering add other such non -construction costs, of
not less than Six Hundred Thousand Dollars ($600,000).
C. Construction Start:
June 30, 1995
M
III. Proposed Phase III Develooment
Completion of remainder of the complex exterior and full
interior including Units 20 thru 30; completion of the
private outdoor recreation area, all in accordance with the
Bangor Waterworks Proposal dated September 21, 1990.
B. Development Cost:
Construction costs, exclusive of financing, legal,
accounting, taxes, insurance, marketing, architectural,
engineering and other such non -construction costa, of
not less than Four Hundred Thousand Dollars ($400,000).
C. Construction Schedule:
June 30, 1997
TERMS AGREED TO BY THE CITY:
I. The City Across that it will:
A. Apply the $100,000 purchase price towards improvements
to public areas on or adjacent to the Facility site to
be retained by the City to include the upper gate
house, construction of two bridges in the forebay area,
and construction of an island connection between the
two bridges, all of which are shown in the Bangor
Waterworks Proposal dated September 21, 1990.
B. Apply to the Maine Department of Transportation for
permission to construct, or cause to be constructed, a
public railroad crossing to provide public access to
the site.
C. Designate the Facility as a development district a
provided for In 30-M.R.S.A. Sec. 5251 - 5260 and to
designate all tax increment revenue permitted, for a
period not to exceed ten (10) years, up to a maximum of
Three Hundred Fifty Thousand Dollars ($350,000) to be
used to fund the following proposed public improvements
as set forth in the Bangor Waterworks proposal dated
September 21, 1990.
1. Improvements to the public areas of the Facility to
be retained by the City in an amount not to exceed
One Hundred Seventy Five Thousand Dollars
($175,000).
2. Construction of a public railroad crossing to
provide access to the site in an amount not to
exceed One Hundred Fifty Thousand Dollars
($150,000).
3. Construct any turning lanes on State Street
determined needed by the City in an amount not to
exceed Twenty Five Thousand Dollars ($25,000)..
4. Remove or cause to be removed all existing
hazardous material from the site.
5. Remove or cause to be removed all unused overhead
power lines owned by the City and located on the
Facility.
D. In the event that the permitting process causes delay
beyond the Developer's control in any of the time
frames required to be met, the City will grant
additional time as required provided the Developer has
been diligent In meeting its commitment in this
process.
ADDITIONAL TERNS TO BE AGREED TO BY THE DRVELOPBR:
A. The City intends to fund the improvements listed in the
above Section I.C. of TERMS AGREED TO BY THE CITY with
a ten year bond issue with the payments to be made from
the tax increment revenue generated by the proposed
project, to the extent such revenues are available.
Should such revenues be insufficient to make any
payment due, the Developer will be required to make
payment to the City for the difference between the
unguent of any bond payment due and the amount of tax
increment revenue available to make that payment. The
Developer will be required to pay to the City the
required amount thirty (30) days before the payment is
due. The Developer will receive credit for any such
payments if and when tax increment revenue received is
in excess of bond payments due.
B. The Developer, at the City's sole discretion, may be
required to undertake the construction of the
improvements proposed for the public areas to be
retained by the City. If the City exercises the
option, the City will reimburse the Developer for the
direct costa involved.
C. The Developer agrees to employ its Architect, NERC, to
perform all necessary design work and to prepare
specifications and bid documents for the proposed
improvements to be retained by the City at no cost to
the City.
D. The City will not pursue funding for agreed to
improvements nada possible by the formation of a tax
increment financing district under 30-M.A.S.A. Sec.
5254 until the Developer provides satisfactory evidence
that all funding necessary for the completion of Phase
I improvements has been secured.
E.
When the City constructs or causes to be constructed a
public railroad crossing as provided above, the
Developer agrees to pay one-half of the City's annual
maintenance coat for the crossing once constructed.
F.
Upon completion and sell-out of the 35th unit, the
Developer agrees it will pay to the City the sun of
$50,000.00.
G.
The Developer agrees to provide, at no cost to the
City, aeurity for the public access areae to be
retained by the City and to provide daily custodial
services for these areas.
90� 396 j
In City Coumil October 10,1990 0 R 0 E R
Suspension of the Rules PasaN
Cofer Passel 'Title,
Councilor eeldecci Abstained Authorizing Option Agreement with Bangor
Ifvote of Conrail ......................................
Waterworks ASSmietea Bangor Neterwo�ks
Councilor Sawyer no Conflict facility '
sy/vote of C�ooncil......................................
Y V' Aeripud to
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........................................
'" Councilman
*44-a)em
MEND
TO: ROSS McKenna, City Clerk
FR: Rod McKay, Community Development Director (,/Cj�f��
RE: Suspension of Rules for Council Order Authdri2ing
Option Agreement with Bangor Waterworks Associates
DATE: October 4, 1990
It is requested that the attached proposed Council Order
"Authorising option Agreement with Bangor Waterworks Associates -
Bangor Waterworks Facility" be introduced for consideration at the
City Council meeting scheduled for October 30, 1990.
The Subject of the Council order was considered by the
Council at a workshop on September 26th and by the. Community and
Economic Development Committee on October 2nd.
RWrp
Attachment: AS