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HomeMy WebLinkAbout2018-10-10 18-369 Order 10/10/201818-369 10/10/2018 18-369 Community & Economic Development Order 045-009-D Title, Order Rescinding Council Order 18-349 and Authorizing the Execution of a Development Agreement with John Karnes - 472 Essex (Map/Lot 045-009-D) This order will rescind Council Order 18-349 and authorize the execution of a development agreement with John Karnes for the sale and renovation of property located at 472 Essex Street (Map/Lot 045-009-D) for the purchase price of $4,120. In August 2017 the City took possession of the property by virtue of matured tax liens. After acquisition, the City investigated options for the reuse of the property or demolition. John Karnes will rehabilitate the structure as a 4-unit building, benefiting the City by returning the property to the tax rolls and creating needed housing units in the community. John Karnes expects to convey the property to Community Housing of Maine (CHOM). If the transfer/sale occurs within one year after the conveyance from the City, CHOM will execute an agreement with the City for a payment in lieu of taxes (PILOT) for 30% of the real estate taxes. If the property is conveyed after one year to a tax exempt entity, a PILOT for 100% of the taxes will be required. The City Council had previously authorized the execution of a development agreement with John Karnes by Council Order 18-349 without the provision for a sale to Community Housing of Maine. This Order will rescind Council Order 18-349. Business & Economic Development Committee Recommend for passage Discussed in Executive Session on September 24, 2018 Consent 10/10/201818-369 CITY OF BANGOR ORDER 10/10/2018 18-369 Tremble Rescinding Council Order 18-349 and Authorizing the Execution of a Development Agreement with John Karnes - 472 Essex (Map/Lot 045-009-D) WHEREAS, the City of Bangor owns a parcel of land at 472 Essex Street (Map/Lot 045-009-D) acquired by the City by virtue of matured tax liens; and WHEREAS, the City of Bangor wishes to dispose of this property; and WHEREAS, John Karnes wishes to purchase the property to rehabilitate it as a four-unit property; WHEREAS, John Karnes agrees that if the property is conveyed to CHOM within a year of the sale, CHOM will pay the City a 30% PILOT. Any sale after one year is subject to property taxes and/or a 100% PILOT. Be it Ordered by the City Council of the City of Bangor that, Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute a Development Agreement with John Karnes for the sale and renovation of property located at 472 Essex Street. The terms of the agreement shall include a purchase price of $4,120, a minimum investment by the developer of $320,000, that the renovations be substantially completed by September 28, 2019, and that the property remain taxable or if the property should become exempt from property taxes for any reason that payment of the taxes shall be accomplished by an agreement for a 100% payment in lieu of taxes; provided, however, that if the property is conveyed to Community Housing of Maine within one year of the conveyance to John Karnes the payment in lieu of taxes shall be for 30% of the taxes. Be it Further Ordered that Council Order 18-349 is hereby rescinded. IN CITY COUNCIL OCTOBER 10, 2018 CO 18-369 PASSED 4.,1/4„ g CITY CLERK