HomeMy WebLinkAbout1986-04-14 86-158 ORDER86-358
Introduced by Councilor Brown, April 14, 1986
_ CITY OF BANGOR
(TITLE.) Mrhr. .sac a Am namene o£ optron., Agreement fo PDrchase
Of Urban Renewal Parcel B-11 - Houlton Band of
Maliseet Indiana Development Corporation
Hv a aro caux<a of BAR, aro of B .
ORDERED, ..
THAT the City Manager is hereby authorized and directed, on
behalf of the City of Bangor, to execute an amendment to the Option
Agreement for the Purchase of Urban Renewal Parcel B-11 by and
between the City of Bangor and the Houlton Band of Maliseet Indians
Development Corporation dated July 16, 1985 as follows:
SECTION A. GRANT OF OPTION
1. Grant oftion. The CITY grants and the DEVELOPER
accepts an exclusive option to purchase Said Premises for develop-
ment of a mixed-use complex containing aDDCOximatelV 9}.B Sg-68tleee
al} 220 parking spaces at a total estimated cost of at least
$6�6Dg�Dgg.gB $7,458,000.00 in accordance with the terms and con-
ditions Agre-
ditiOns of this ement. The purchase price for Said
Premises shall be $60,000.00, (to be paid to CITY in cash or by
Certified or Bank Check at the time of closing on the sale of Said
Premises, leas any Amounts paid by the DEVELOPER to CITY pursuant to
this option Agreement).
2. Price and Length of Option. This Option Agreement shall
eY-fect from the date hereof until d6ae-3P,-}dgg December
31,x1986.1 The non-refundable option fee for said six month peri 3
s ane Thousand TWO Hundred Dollars ($1,200.00), which shall De paid
to CITY in cash or by Certified or Bank Check at the time this
Option Agreement is executed but in no event later than June 30,
1986.1'Me-9ptdea-Ageeemeat-s�aq-&e-eeEer�aea-xpon-prier-e�@reva}_q�
Cii;+-Easeei}-o€-{#o-EitY-of-Bengar-£er-eep-eddi{}one}-period-of-
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IN CSTY COUNCIL
Apr1110, 1956
Paean by the follow -re yea L
and n 'votes. Councilors
voting Yea: Brawn, Pcankel,,:
MLCartby, Sullivan, Tilley, i
waeeler and Willey. Councilb:
in9 no: Cos. Councilor
absent: Lebowitz.
M 4 acv
C TY CLERK
85-158
ORDER
Title,
Second. Amendment of tion A regiment far
... °P...... 9........
Purchase of llrban Renewed. Parcel 8-11
C
8oniton Band of Nausea[ Ind tans Development
-
P
Corporation.
AKA
Introduced and filed by
-_
o
....
N
Ulme44
Councin
SECTION B. CONDITIONS PRECEDENT TO SALE OF SAID PREMISES
Prior tO the sale Of Said Premises the DEVELOPER shall complete
the following:
1. Submission of Plans. The development §hd use of Said
Premises a6 InCOrpOrated into the DEVELOPER'S final plan Shall be in
substantial conformance with the scope of development described in
Section A, Paragraph 1 above and the DEVELOPER'S presentation to
CITY'S Design Review and Site Plan Review Committee (hereinafter
"Commiittee") on W4r r4 April 9, 1986 and the plans entitled
"Maliseet Gardens, Bangor, Maine", prepared by Webster-Baldwin-Day-
Rohman, Architects, dated Aprd3 ;r3985 -April 9, 1986, copies of
which plans are on file in the office of the Department of Planning
and CommunityDevelopment, City Ball, 73 Harlow Street, Bangor,
Maine.
Any development and use of Said Premises shall comply
with the following development standards:
a. Minimum Lot Coverage: 7O%
b. Minimum Building Height: 2 stories above street
grades.
C. Maximum Development Permitted: Floor Area Ratio
of 1.6.
d. Minimum Development Permitted: Floor Area Ratio
of 1.0.
e. Off -Street Parking: Developer shall provide such
off-street parking as the Comumittee may deem
necessary for the proposed development; Provided,
however, that i event shall such parking be..
less than Ila- 220 spaces.
All terms used in this paragraph shall be defined in accordance with
the provisions of the Zoning Ordinance of the City of Bangor and any
applicable amendments thereto or replacements thereof.
By no later than APc 22r11i86 AAuu oat t 1, 19861986, the
DEVELOPER shall meet with the Committee and submit for its approval
preliminary plans as specified in Section C, Paragraph 1 of City
Council Order NO. 83-123, a copy of which is attached hereto a
Exhibit B and incorporated herein by reference. if revisions to the
preliminary plans are deemed necessary o appropriate by the Commit-
tee, the plans must be so revised and submitted to the Committee for
its approval by no later than -A JusF�4 September 12, 1986.
By no later than Aa 41v -2986 -October 15, 1986, the
DEVELOPER shall meet with the Committee and submit ¢ts approval
final plans and related drawings, specifications, and documents in
the form specified in Section C, Paragraph 2 of said Council Order
No. 83-123. If revisions to the final plans are deemed necessary o
appropriate by the Committee, the plans must be srevised
a sedand sub-
mitted to the Committee for its approval by no laterthan Apr44-40�
1986 November 28, 1986.
SECTION C. CONDITIONS SUBSEDUENT TO SALE OF SAID PREMISES
]. Approval of Transfer Prior to Completion. The 'DEVELOPER
cognizes that the quslrf 4ca[rons and identTo�e DEVELOPER,
and its principals or any successors in interest, are of particular
concern to the CITY. The DEVELOPER further recognizes that it is
because of such qualifications and identity that the CITY is
entering into this Option Agreement and is willing to accept and
rely on the obligations of the DEVELOPER for the faithful perfor-
mance of all undertakings and covenants to be performed by it.
Therefore, the DEVELOPER represents and agrees for itself, its
successors and assigns that, axcept only by way Of security for the
purpose of obtaining financing necessary to enable the DEVELOPER or
any approved successor in interest to Said Premises to perform his
obligations with respect to making the improvements under Section B
hereof, the DEVELOPER has not made or created, and that it will not
prior to the CITY'S issuance of the Certificate of Completion under
Paragraph 12 of Section C hereof, make or create, or suffer to be
made o created, any total or partial sale, assignment, conveyance
r lease,oe any trust or power, or transfer in any other mode o
form of, or with respect to this Option Agreement for Said Premises,
or any part thereof, orinterest therein, o any contract or
agreement to do any of the same without prior written approval of
the CITY.
Non-bindin ondominium r vacion a Icements, condomin-
ium p�rchase ane sa a agreements, anaBBe s a not a sem to
_1P_ ter re ons of t rs Paragraphai if the on[ain the
£o Any and sit rhte under th s reserVat on
agreement (orvpurchase and sale agreement, of ease, as t e case may
be) are expressly cont ngant upon t e Ccty s issuance o the
Ceztif-
icate a ion to t e !Developer, n
a provided for in the Opti
Agreement a cu [ed by t e City and theDeveloper and in rhe Deed
executed ortobe executed by the City. In ,tnet event gait tFie Crcy
tissue the Cart,
ica[Te[ion, c is agreement shall
be null and void.
13. Notice. Any notice under this Option Agreement by either
party to the oto shall be sufficiently given or delivered if it is
dispatched by registered or certified mail, postage prepaid, return
receipt requested, or delivered personally, and
a. in the case of the DEVELOPER, is addressed to 0
delivered personally to the. DEVELOPEA�-P+-P.-bac-dB4br-eas:5ar-,
Meine--9d 493-A«entiam--demes-£4-EYarkaon- Pamela D. Chute,
Esq., Mitchell S Stearns, One Merchants Plaza, Bangor, Maine
0440 .
STATEMENT OF FACT: Additions are underlined
and deletions are 54YN�CR-OFIP.
q it 11, 1986
Ceaz W. Flg ,
Please find enclosed a resolution which was requested £xws the Soli ito_r'
Mun the sxg g of tt Nmndment to the option fox B-11 was signed. ....
WENDY SPBA s
PR&SIOBMP, M.D.C.
WfHtEAB, the B lton Band of P iseet Indians Developv Nrporat
is an n -profit Cozporat organized and existing :miler
has laws of the stabs of Maine;:and
19BERFAS, bh I Iban Band of I isaat Indians Oevelo t Ossporation
wishes t extend fret De either 31, 1985 t ,Tus 30, 1986 the
peri«] of ity'opticm agrevnent with the City of Bangor, t
Purchase urban 1+asusl Parcel I ted B-11,
tpW, THF�tlBE BB BT"BF9JOVF0-THST�� Pte9ident W y �battis roil Board
P1eRber'vand Tribal Chai Clair Sabattis are authorized to
e_Yecute the First Nrendsant t the Option Agreeirent for
purchase of UaWn Penewal PaxceI B-11 on behalf of the
Houltan Bard of Maliseet L:d",ana Develolue t Wrpora .
CFRPIFIGTION
NO, the undersigrea Boand'Of �Dieb_ s do hereby -tify that the
maliseat mevelop ent:CoipcTation Board of Directors is caposed
Of Bevan (&)ma:bers and do hereby attest by affixirq our si�."-
tares below that'L s'resolution is hereby xrept d and auth-
orized.
OAT®: APBIL 3, 1986
Community Development Committee
Wednesday, April 9, 1986
4:45 P.M.
City Manager's Office
Minutes
PRESENT: Councilor Willey, Chairman
Councilor Wheeler
Councilor Sullivan
OTHERS
PRESENT: Councilor Frankel, Council Chairman
Councilor Cox
John Flynn, City Manager
Rod McKay, Director of Planning b Community Development
Robert Miller, City Solicitor -
Dr. Burns, Maliseet Development Corp.
Mr. Sabattis, Maliseet Development Corp.
Mrs. Sabattis, Maliseet Development Corp.
Pamela Chute, Esq., representing Maliseet Develop. Corp.
Alan Baldwin, Architect
Consideration of Amendments to the Darien Aareement for the
Purchase of Urban Renewal Parcel B -11 -by t e Mal seer Deve opment
Corporation.
Mr. McKay referred to Assistant City Solicitor Arthur Hosford's
letter to Pam Chute regarding the changes requested by the Maliseet
Development Corporation to be made in the 8-11 Option Agreement
relative to the scope of development and contact person for the
developer.
Br. Burns explained that his role relative to this project was
temporary until a qualified development team was assembled.
Councilor Willey suggested that Pam Chute, attorney for the
developer, be listed as the contact. Or. Burns said that would be
considered.
Mr. McKay continued with the requested option changes including
the increase of on-site parking spaces from 113 to 220, extension of
the submission deadline for the preliminary and final plans and
revisions thereto, and the itemization of what planswill be available
by June 30th.
C.D. Committee Minutes
April 9, 1986
Councilor Willey reiterated that he was totally comfortable with
the "fast tract" construction management procedure and felt that that
s
methodology was consistent with aiding the developer to proceed with-
out roadblocks. He said that was his position and it was admin-
istration's function to work out the details of language for inclusion
in the Option Agreement. Councilor Sullivan agreed.
Dr. Burns respectfully requested that the Committee go into
executive session so that a matter of delicacy and confidentiality
could be discussed. A 5 minute recess was declared so that the
legalities of such a session could be determined. Mr. Miller,
Chairman Willey and Dr. Burns conferred as to the nature of the
confidential matters and their applicability under the freedom of
information statutes.
After the recess, the meeting reconvened and Chairman Willey
asked if, with the recent change in thedevelopment consultant for the
project, the developer was realizing real difficulties in meeting the
deadlines set by the Option Agreement. Dr. Burns acknowledged that
the developer was further along in the retail space marketing process
than is the case. He added that several items for the premarketing
package are in preparation to enable the developer to obtain lease
commitments from retailers who have expressed an interest in locating
n the project. He frankly stated that an additional six months was
believed to be necessary to be added to the option period to obtain
those leases. Mr. Baldwin added that six months would be much better
than four weeks.
Councilor Willey said that he would hate to see the project go
because of some silly deadline in the document.
Mr. Miller said that his understanding, from a brief discussion
with Dr. Burns, was that the developer was asking for anew option
Agreement or extension to allow a additional six months to step back
to revise their project plans.. He advised that, if a six month
extension was approved, the City should know what to expect.
Councilor Willey said that let's understand that if the extension
is granted it will be the final option and, if something happens that
the project can't go out, then the parcel opens up again and Ballarat
Development Corporation may be one of another group of interested
developers with which it most compete to start over again with the
project.
Councilor Frankel suggested that as the situation is the same
that existed at the beginning of the option period, perhaps the same
parameters be used now as were used than. Councilor Willey felt that
the current document could be amended to clarify those terms.
Councilor Sullivan agreed that we don't have to go back to block one.
C.D. Committee Minutes
April 9, 1986
Councilor Wheeler asked if the developer was proceeding with the
project out of a sense of obligation to the City rather than a con-
viction that the project is as viable as originally believed. Dr.
Burns responded that the developer was proceeding with what it still
perceived as an existing and viable project. That it will help
provide the Moulton Band of Maliseet Indians with a better way of life
and that the commitment to the project has not diminished as evidenced
by the additional money being now c mitted over and above the con-
siderable sums and time already invested in the project. He added
that the developer believed that this project as designed by Mr.
Baldwin will be anew
and exciting centerpiece to downtown which
hasn't seen anything like it for a long while.
In response to Councilor Wheeler, Dr. Burns verified that finn-
ing mechanisms were still available but needed to be put together and
the marketing program needs vto be put in place and to go ahead. The
developer has a valid loan guarantee from the Bureau of Indian Affairs
for the permanent financing, so a construction financing commitment is
needed from the bank which, in turn, needs a commitment from the
retailers. He added that contact with the BIA in the last two days by
the tribal leaders has verified the BIA's interest in assisting this
project is very high.
Councilor Wheeler said that his confidence is heightened by this
new information and that he favored giving the developer every assis-
tance in seeing the project through.
Councilor Sullivan moved approval of 3 sections a.l., b.l., b.,
. and e.l. in the outlined letter. Councilor Wheeler seconded, and
the Committee unanimously approved the motion.
Councilor Wheeler moved approval of a 6 month extension of the
option period. Councilor Sullivan seconded the motion.
Mr. McKay asked if the Committee wanted to amend the current
Option Agreement to accomplish the extension. Councilor Willey said
that they, the Committee, had moved to modify the Agreement to affect
the extension.
Mr. Miller said that he felt that the extension would need
Council approval. Councilor Willey agreed and asked that it be put on
the Agenda for Monday's Council meeting )April 14th).
Councilor Willey asked Mr. Baldwin if the plan submission dates
should also be extended for six months. Be responded in the af£ivme-
tive. Mr. McKay said that we don't want final plans seven days prior
to the expiration of the Option Agreement. Mr. Baldwin suggested that
a percentage of the plans be reviewed with the Committee as completed.
C.B. committee Minutes
April 9, 1986
Councilor Willey suggested that the Option Amendment include a
six month extension of all dates. Mr. Flynn suggested the dates for
final plans to be submitted be earlier than seven days prior to the
expiration of the Option Agreement and suggested that Mr. McKay and
Mr. Baldwin work out a new plan submission schedule. Councilor Willey
asked that those dates be contained in the Council order to amend the
option and that the Councilors have that amendment available tomorrow
for consideration on Monday night.
The motion to extend the Option Agreement six months was then
voted and passed.
Councilor Willey and Or. Burns confirmed the understanding that
this would be the last extension of the Maliseet Development Corpor-
ation's option to purchase urban Renewal Parcel B-11.
Mr. McKay asked Ms. Chute if she had any other concerns about the
Option Agreement. She requested to have an opportunity to review the
Option Amendment before it is acted upon.
Dr. Burns repeated the developer's previous request that the City
make a commitment to provide for the project's parking needs which can
not be provided on site. Councilor Willey responded that at 5:30 p.m.
this day there would be a City Council public hearing held at the
Civic Center on the subject of proposed changes to the downtown
parking system and the developer was
invited to attend. He also
summarized recent committee and staff preliminary discussions concern-
ing development and parking on the other side of the stream and,
specifically a covered pedestrian connection across the pedestrian
bridge over the Kenduskeag Stream.
Mr. McKay said that the parking consultant had been asked if a
parking structure on the west side of the stream would be feasible
without the Maliseet Development Corporation project and he said that
such a structure would not be feasible. Mr. Burns said that the extra
parking was necessary for the project's customers and that a parking
deck behind Freeses would be considered as long as the pedestrian
bridge was covered and customers would not have to brave traffic.
The meeting adjourned at 5:25 p.m.
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