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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 6) .0-71,..G.�-� CITY CLERK