HomeMy WebLinkAbout2019-01-28 19-084 ORDER
01/28/201919-084
01/28/2019
19-084
Community & Economic Development
R41-038
Authorizing Execution of Amendment of Development Agreement with Penquis
On March 03, 2017, the Bangor City Council authorized the execution of a Development Agreement with
Penquis CAP, Inc., now known as Penquis, for a senior housing project on a parcel of land abutting Grandview
Avenue that is owned by the City.
Penquis has been awarded all necessary funding and are proceeding with the $7.6 million project. They have
requested an extension to the development agreement before taking ownership of the property because of
significant paperwork with Maine State Housing Authority and, because of the utilization of HUD funding,
there is additional environmental due diligence that has to be done on the site. They are requesting to extend
the date to exercise the option to purchase by twelve months to January 31, 2020.
This order will amend the Development Agreement between the City of Bangor and Penquis dated August 03,
2017 to extend the purchase option date from January 31, 2019 to January 31, 2020 and to adjust any other
dates, including commencement and completion of construction as necessary to accommodate the new option
term. There will be a $1,500 option fee for the twelve-month extension.
This items was reviewed and approved by the Business and Economic Development Committee on January
08, 2019.
Business & Economic Development Committee
01/08/2019
Recommend for passage
Consent
01/28/201919-084
01/28/2019
19-084
Tremble
Authorizing Execution of Amendment of Development Agreement with Penquis
WHEREAS, by Council Order 17- 120 dated March 27, 2017, the Bangor City Council authorized the execution
of a Development Agreement with Penquis for a senior housing project on a parcel of land abutting Grandview
Avenue that is owned by the City; and
WHEREAS, Penquis has been awarded all necessary funding and are proceeding with the $7.6 million project
but have requested a twelve-month extension to exercise the option to purchase because of additional work
that needs to be done prior to acquisition; and
WHEREAS, there will be an option fee of $1,500 for the twelve-month extension.
Catherin M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor, to execute an
amendment to the Development Agreement between the City of Bangor and Penquis dated August 03, 2017
to extend the option to purchase one year to January 31, 2020 and to adjust other deadlines accordingly.
There will be an option fee of $1,500 for twelve-month extension. Said amendment shall be in a form as
approved by the City Solicitor.
IN CITY COUNCIL
JANUARY 28, 2019
CO 19-084
PASSED
COUNCILOR TREMBLE STATED THAT /T HAD PREVIOUSLY BEEN DETERMINED
THAT HE HAD A CONFLICT OF INTEREST. COUNCILOR TREMBLE LEFT THE ROOM.
COUNCILOR TREMBLE RETURNED TO THE MEETING
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CITY CLERK