HomeMy WebLinkAbout1985-04-08 85-155 ORDER85-155
Introduced by Councilor Vrankel, April 8, 1985
_ CITY OF BANGOR
(TIRE.) (orbTrp Author mg Exe t n of Opti Agreement with
Houlton Band of Maliseet Indians Development Corporation --
Parcel B-11
............... .........- ......._...... ............. ...... ................
BY City CowMtofthe Oft ofBanmw.
ORDERED,
THAT the City Manager is hefeby authorized and directed,
on behalf of the City of Bangor, to execute an Option Agreement,
copy of which is on file in the office of the City Clerk, with
the Houlton Band of Maliseet Indiana Development Corporation for
the .purchase and redevelopment of the former Urban Renewal
"" Authority Parcel B-11.
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refered to c eennity levelsent F ( 9
mmittee consider Tit e,
next meeting
Autj�o{?ijy, exeryHOn Of, option, pyre, ment
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With Houlton band Meliseet Indians Development
........................
QiClerk Corporation - Parcel A -11
/�Introduced and filed by
In City Council April P],1Y85[M{ - .........
passed as amended amendments Councilmen
attached
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Bangor: the center of Maine—the Gateway to Maine's North Woods and Seashore Rusrts
ROBERT L MILLER 73 MEN. SEEMS
CHI SEMEN, aw," am. SABO
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THOMAS
AHERNE, CHyARENA, (94 of Pangor, Paine
LeaAA DET.er....T
April 19, 1985
MEMORANDUM
TO: City Council
FROM: Robert E. Miller, City Solicitor
RE: Parcel E-11 - Option Agreement with Maliseet Indians
At a meeting of the Community Development Committee
conducted on Friday, April 19, 1905, representatives of
the Moulton Band of Maliseet Indians Development
Corporation requested certain modifications be made in
the draft of the Option Agreement which is presently
before the Council. A summary of those proposed changes
are as follows:
1. section A(l), first sentence to be amended to read as
follows: The City grants and the developer accepts
an exclusive option to purchase said premises for
development of a mixed-use complex containing
approximately 71,250 sq. ft. of retail and/or office
space, a 9,000 sq. ft. multi-purpose arena, 15
residential condominium units of approximately 1,350
sq. ft. each, and a parking lot or structure
containing 113 parking spaces at a total estimated
cost of at least $6,600,000 in accordance with the
terms and conditions of this Option Agreement.
The effect of this change would be to give than
greater flexibility in the amount of retail and
office space for the premises. It would also
eliminate the proposed ice rink .and would reduce the
number of parking spaces from 116 to 113.
2.
Section A(1), second sentence. The following changes
e proposed to the second sentence: The purchase
price for said promises shall be $60,000, (to be paid
to the City in cash or by Certified or Bank check at
the time of closing on the sale of said premises,
less any amounts paid by the Developer to the City
pursuant to this Option Agreement).
The effect of this change is to reduce the purchase
price for the lot from $180,000 to $60,000.
3.
Section A(2). The first sentence to be amended by
establishing a term to expire on August 30, 1985.
4.
Section B(1)(e) This section is to be amended to
reduce the parking requirement from 116 spaces to 113
spaces.
5.
Section B(1), fourth paragraph: The two blank dates
fox this paragraph are to be April 22, 1985 and May
4, 1985.
6.
Section AM, fifth paragraph: The dates for this
paragraph are to be July 26, 1985 and August 2, 1985.
).
Section B(5). The first sentence in this paragraph
to be amended to read as follows: "The Developer
shall provide the City with a certificate executed by
the Developer and its construction manager for
construction of the total development certifying to
the existence of such a contract for development in
accordance with the provisions of paragraphs 1, 2,
and 3, of Section B hereof."
The effect of this change is to require the certifi-
cate contemplated to be made by the construction
manager rather than the general contractor. The
developer does not propose to have a general
contractor, but plans to handle the construction on a
phase basis with each phase to be bid out on
staggered basis. A similar change would be made in
paragrah 6 which requires the establishment of a
perfoxmance bond.
The staff has certain reservations concerning the
lack of a general contractor for the project. We
ant to ensure that we do everything we can to see
that the project iscompleted once construction
begins. We expect to be in a position to give you
further comment on this issue by the time of the -
Council meeting.
R.E.M.
REM/rp
MEM)RANDUM
April 22, 1985
TO: Bangor City Council
FROM: Robert E. Miller, City Solicitor
RE: Proposed Agreement with Houlton Band
of Maliseet Indians Development Corporation
I have previously distributed to the Council a fist of _
proposed amendments to the draft agreement between the City and
the Moulton Band of Maliseet Indians Development Corporation.
The staff has no major objection to them.
I also previously indicated that the staff needed to take
a look at the language for Paragraphs 5 and 6 of the contract.
The following are my thoughts on the matter.
If the City Council is willing to accept the Development
Corporation's proposal to proceed without a general contractor
and to do the project o a phase -by -phase basis, I suggest that
m
the contract be s ended�to provide for a direct guarantee of the
completion of theconstruction by the financing institutions and
to require the Developer to post the bonds required in Paragraph
6 of the Agreement. Proposed amendments to accomplish such changes
are as follows:
9. Evidence of Financing. The DEVELOPER shall
provide the CITY with written, legally binding
commitments, in a form satisfactory to the
and long-term financing of
lopment as it is detailed
5. Construction Contract. (Deleted)
6. Performance Hond. The DEVELOPER shall require
its-gertere3-eenlreeter-le-eDteta-a post with the
City both a performance bond and a labor and material
payment bond issued by a corporate surety licensed
to do business in the State of Maine, each in a
Penal sum equal to the total estimated coat of the
total proposed development, to secure performance
of the obligations contained in Paragraphs 1, 2
and 3 of Section B hereof. DEVELOPER shall submit
to the CITY a copy of the bonds and written evidence
of payment of the required premiums. The bonds must
remain in effect until the CITY'S issuance of the -
Certificate of Completion under Paragraph 12 of
Section C hereof.
Also, to clarify the City's rights to continue to u6
the property for parking purposes during the Option period, l
suggest the following paragraph be added to Section A, Paragraph
2:
During the term of this Option, the CITY shall
have the continuing right to operate the premises
as a public parking lot.
R.E.M.
to
cc: Sohn Flynn
Rod McKay