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Home My WebLink About1987-03-23 87-114 ORDERAmended Copy 67-114 introduced by councilor Sullivan, March 23, 1907 CITY OF BANGOR (TITLE.) Mrbtr,._._. APthorizing.. San cu tion.. of...Wption.Agreement With H ulton Band of Maliseet Indians Development Corporati on -- Parcel B-11 BY the QTY Cmanol of the Cite ofBaapar ' ORDERED, THAT the City Manager is hereby authorized and directed, on behalf of the City of Bangor, to execute an Option Agreement with the Moulton Band of Maliseet Indians Development Corporation ("Developer") for the purchase and redevelopment of the former Urban Renewal Authority Parcel B-11 in a form or forms approved by the City Solicitor and containing the following requirements of the developer: I. Proposed Phase I Development y A. Proposed Development: 1. Two (2) story commercial rcial building located at the corner of Exchange and York Streets contain- ing at least 25,000. square feet of retail and/or office space; and 2. A four (C) story residential building, located at the corner of Oak and York Streets .containing 30 units of congregate housing and support facilities with at least 35,000 .square feet of total floor area; and 3.- A parking area, lot or structure. containing at least 110 parking spaces. B. Development Cost At least $3.8. million. C. Purchase Area Approximately one half (1/2)of Parcel B-11 divided approximately mid -point between York and Hancock Streets. 1� D. Purchase Price _ S3BrBB0 ee�'e e9 E. Option,Pee faaP $30B Per month ' F. Term "> An initial term of three months with one three month extentiou on approve_ by the City Council provided that a preliminary commitment for financing by a private lender and the Bureau of Indian Affairs is secured by the Developer Prior to the expiration of the initial three month period and an additional v *. swo w&' w"t,a six-month extention on approval by the City Council provided that a legally binding commitment for financing by a private lender and the Bureau of Indian Aftairs is secured by the Developer prior to the expiration of the initial six (b) month period. G. Project Timetable 1. Bureau of 'Indian Affairs June 30, 1987 approval of Maliseet Development Corporation and Baldacci Partnership Agreement, Project Concept and Project Financing (90 days) 2. Submission of Preliminary July 30, 1981 Design Plans (120Days)_ 3. Submission of Final Design Nov. 21, 1987 - - Plans 1240 Days) 4. Construction Tuan Closing Jan. 26, 1900 (300 Days) - 5. Construction Start Date - Feb. 25, 1988 - (330 Days) 6. Construction Completion - Aug. 18, 1989 Date (540 Days/18 months from .construction start date) If. Proposed Phase 11 Development A. orOnOsed Develnnment (In additinn to I above) - 1. A three (3) story commercial building .located at the Corner of Sxchange and Hancock Streets Containing at least 25,000 square feet of retail and/or office space; and 2. A two (2) story commercial building con- wining at least 8,000 square feet of. floor area; and 3. A residential building containing thirty (30) :units of congregate housing with at least 25,000 square feet of total floor area. - B. Development Cost $5.2 million. C. Purchase Area Remainder of Parcel 0-11 from I.C.-above. R A D. PUrCbase Price N.Dation fee J,zoo 194" per month. P. Teem Three years commencing at construction loan closing and transfer of property from City [o Developer for Phase 1 development Janupxfmately 3 years and 10 months or until a Y 25, 1991). G. ProjectTimetable None 87-114 Introduced by Councilor Sullivan, Much 23, 1987 _ CITY OF BANGOR QITEE.) @aer,.........AuLbDrizin8-Execu[inn...o£...4piion...Ag=eemeat_Wi[h............. Houlton Band of Maliseet Ind s Development :............ ........ ............. ....... .. ..._.... dorpora[ion -- Parcel B-11 By Dw City CounaU of Hm CUY ofBampor: ORDERED, THAT the City Manager is hereby authorized and directed, o behalf of the City of Bangor, to execute an Option Agreement with the Boulton Band of Maliseet Indians Development Corporation (-Developer") for the 'purchase and redevelopment of the former Urban Renewal Authority Parcel B-11 in a form or forms approved by the City Solicitor and containing the following requirements of the 'developer: I. Proposed Phase I Development A. Proposed Development: 1. Two (2) story commercial building located at the corner of exchange and York Streets contain- ing at least 25,000 square feet of retail and/or. office space; and 2. A four (4) story residential building located at the corner of Oak and York Streets containing 30 units of congregate housing and support facilities with at least 35,000 square feet of total floor area; and 3. A parking eyes, lot or structure containing at least 110 parking spaces. B. Development Cost At least $3.8 million. C. Purchase Area Approximately one half (1/2) of Parcel B-11 divided approximately mid -point between York and Hancock Streets. D. Purchase Price $30,000 B. option Fee $100 per month F. Term Six months, with al - onth extention o approval by the CityCouncil provided that a legally binding commitment for financing by a private lender and the Bureau of Indian Affairs is secured by the Developer prior to the expiration of the initial six (6) month period. G. Project Timetable 1. Bureau of Indian Affairs June 30, 1987 approval of Maliseet Development Corporation and Baldacci Partnership Agreement, Project Concept and Project Financing (90 days) 2. Submission of Preliminary July 30, 1987 Design Plans (120 Days) 3. Submission of Final Design Nov. 27, 1987 Plans (240 Days) 4. Construction Loan Closing Jan. 26, 1988 (300 Days) 5. Construction Start Date Feb. 25, 1988 (330 Days) 6. Construction Completion Au6.'18, 1989 Date (540 Days/18 months from construction start -date) II. Proposed Phase II Development A. Proposed Development (In addition to I above) 1. A three (3) story commercial building located at the corner of exchange and Hancock Streets containing at least 25,000 square feet of retail and/or office space; and 2. A two (2) story commercial building con- taining at least 8,000 square feet of floor area; and 3. A residential building containing thirty (30) units of congregate housing with at least 25,000 square feet of total floor area. B. Development Cost $5.2 million. C. Purchase Area Remainder of Parcel B-11 from I.C. above. D. Purchase Price $30,000. E. Option Pee $100 per month. P. Term Three years commencing at Construction loan closing and transfer of property from City to Developer for Phase I development (approximately 3 years and 10 months or until January 25, 1991). G. Prosect Timetable None In City Couneil Mari vote to amend ameok under I 0 from $601( to $480,000 Faaiabill�ee�dd� Vote 2 Yea 6 vowng yeses Brown,Cox voting No Frankel,L 87-114 0R➢ER Title, Authorising Execution of Option Agreement ........ I .............................. with Houlton Band of Maliseet Indiana Sawyer,siwbert,su111ven, Development corporation Parcel 8-11 Tilley Abstaining Willey, Introduced d filed by sots to amend by substitntiotf :zz. Passed Vote 'lyes AFF.• ;... Councilman No 1 Abstained voting Yes Frenkel,Hroxn lebowit¢,Shubert,Stllivan, Tilley , Sawyer - Voting No'..Rox Abstaining Willey„£ Vote for passage as vn5nlvd by substitution Pass941gd Vote 5Yes 3m1 abs wined voting Yes Frankel,lebowlta, voting No Brown,C Abstaining Willey Clerk THE BANGOR CENTER DEVELOPMENT 117 Broadway ✓ Bangor, Maine 04401 r "A Consensus PowlePubhv Effort to Make The Hard of the Cry an Serums Noce to Be" March 18. 1987 Laurence Willey, Mayor Bangor City Council 120 M. Main Street Brewer, Maine 04412 Dear Mayor Willey (207) 9459031 This week the Bangor Center Development Corporation held a special meeting to reassess its position on the new Maliseet proposal for u of Parcel B-11. There have been reserva- tions about this project within this organization even years ago because of the proposed use of the land. However, at that time, both City staff and several ral council persons made compelling arguments that the project was a suitable use of the site and within the framework of the revitalization plan. There was m for debate even then, but today time and events have made a considerable change in the downtown situation. The most obvious is that B-11 is the largest, most exposed and best rmining Parcel in the revitalization project area. When many cities are pursuing a policy of "land banking" to achieve community goals, is there any urgency to sell Parcel B-11 unless and until there is a proposal which has unquestioned beneficial impact on downtown and on Bangor? The land pricing of $.50/sq. ft. was questionable 2r years ago,but new with the decreasing number of available parcels and the increasing pressure for cleared development space in down- town,thefigure cannot be justified. Adjacent cleared parcels were sold 12 years ago for nearly four times this figure and land is certainly no less valuable today. The American City Corporation recommended a concept of a ,mi,mixed-use" downtown as offering the best prospect for re- vitalization. This approach has been more or less accepted and followed, up to this point. The new developer for the Maliseets in recent weeks has been expounding a philosophy relative to the downtown market which suggests that only housing is feasible for downtown. He has made public pronouncements to this effect. A place for Music, Theme, anmp, Shopmng. evens, SpecmBy Starter, Gmremnent. This is a position not consistent with the goals of the project as we understand them. it should be borne in mind that this e fixed a concept includes housing and for asignificant amount of upper floor space in existing buildings downtown, housing is the only reasonable use. If quality cleared land suitable for sial activity is used for this purpose, however, this view of the market becomes a self-fulfilling prophecy and would severely limit future opportunities for various commercial developments. At the se time, this organization feels that any future development on this site should be either significant enough, or ypique enough to constitute a compliment o "draw" for other a activities in the downtown a We cannot afford in downtown the further dissipation of the "critical mass" which occurs as a result of the support o "neighborhood' retail development designed into this project The City staff recently pointed out in a memorandum to the Design and Site Plan Review Committee a aeries of considerations, particularly some relating to the parking issue, which had led the staff to advise against the project. The board felt that the presentations of the staff had considerable merit and deserve the Council's careful analysis. Another issue about which the Board felt rather strongly was raised by the developer himself. We have strong disagreement that "congregate housing" can be compared with such projects a the Schoolhouse Project or the Adams -Pickering Building relative to the impact on downtown. While the nature of this project, by itself, inanother location, has merit, it does not house a work- force, it provides only a limited market and it certainly is not the "highest and best" use for the most valuable piece of cleared real estate in the downtown area. Finally, the Directors of the Corporation felt that the Maliseets in one way or another have had control over this parcel for 2y years to the exclusion of any other possible interests. This should have been sufficient time to resolve any conditions required by the Bureau of Indian Affairs. Instead, over this period the project, in opinion, has been contin- uously scaled down and changed to the point where it is clearly not a suitable project for this site. The current proposal which includes another 12 -month option in our opinion, not in the best long term interests of the City. Sincerely, v Doug Brown, President Bangor Center Development Corporation