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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 ($1,200.00), which shall De paid to CITY in cash or by Certified or Bank Check at the time this Option Agreement is executed but in no event later than June 30, 1986.1'Me-9ptdea-Ageeemeat-s�aq-&e-eeEer�aea-xpon-prier-e�@reva}_q� Cii;+-Easeei}-o€-{#o-EitY-of-Bengar-£er-eep-eddi{}one}-period-of- t4me_eaf-{e-exeeed-ea-addi{ienei-six-{5i-meat#o-a{-t#o-se{o-e{-4'ao- HiMdsed-t�e3-lase-{Sz 1B:OB1-pox-monL#� wlrie#-c#a33-$o-psyab3rin-.. eaeeaea, 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. SCM/rp