HomeMy WebLinkAbout1984-06-11 84-234 ORDER84-234
Introduced by Councilor eraekel, aurae 11, 1984
w CITY OF BANGOR
(TITLE,) (Prbgr. Authorizing E tion o£ Agreement with _.
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the National Development Council
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By the City CovasU of He City of Banpor:
ORDERED,
THAT WHEREAS, it is n the best interest of the City of Bangor
to stabilize and improvethe economic vitality of downtown Bangor by
fostering the disposition of publicly owned development parcels for
approved uses and the encouragement of private investment in the
downtown area; and
WHEREAS, the achievement of such goals can be facilitated
by continuing the engagement of the s of the National Develop-
ment Council to provide assistance in connection with the implementation
of: (1) the City of Bangor Community Development Downtown Revitaliza-
tion Program, (2) facade rehabilitation program, and (3) a downtown
management organization; and
WHEREAS,- as a demonstration of private interest and support,
the private sector has made commitments to fund one quarter of the
Cost of said services: ,
NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE
CITY OF BANGOR THAT the City -Manager is hereby authorized, on behalf
of the City of Bangor, to execute the "Consulting Agreement Between
The City of Bangor, Maine, The Bangor Center Development Corporation,
and The National Development Council", a copy of which is on file in
the Office of the City Clerk. Provided, however, that said author-
ization isconditionedupon the receipt by the City of Bangor of
Three Thousand Dollars ($3,000) in private donations prior to the
execution of said Agreement and an additional Three Thousand Dollars
($3,000) in private donations within each of three successive three -
(3) month periods from the effective date of said Agreement. 1n the
ant that the City of Bangor does not receive the donations within
said periods, the City Manager is hereby authorized and directed to
terminate said Agreement.
In City Council June 11,19�
Amended and Passed
aaerdetl in let paragraph page 7
last sentence of contract
delete the words Thirty Six Tbousaz
Dollars and add the words
Forty Eight Thousand
a4-234
oRIIR
Title,
Authorising Execution of a Agreement with the
......................................
National Development Council
Introduced and filed by
- 6owncilman
rz..
BE IT FURTHER ORDERED BY THE CITY COUNCIL OF THE CITY
OF BANGOR THAT the City Manager is hereby authorized, on behalf of
the City of Bangor, to accept private donations and deposit the
same in the Reserve For Downtown Development Account (Account
No. 92-2239).
BE IT FURTHER ORDERED BY THE CITY COUNCIL OF THE CITY
OF BANGOR THAT the City Manager is hereby authorized to expend a
sum not to exceed Forty -Eight Thousand Dollars ($48,000) from said
Reserve Account for payment for services rendered by the National
Development Council pursuant to the terms of the Agreement.
04-234
CONSULTING AGREEMENT
BETWEEN
THE CITY OF BANGOR, MAINE
TWO BANGOR CENTER DEVELOPMENT CORPORATION
AND
THE NATIONAL DEVELOPMENT COUNCIL
THIS CONSULTING AGREEMENT ("Agreement") is made as of
1984, between the CITY OF BANGOR, MAINE
("City") and. the BANGOR CENTER DEVELOPMENT CORPORATION ("BCDC").,
(City and BCDC herein together referred to as "C1enN'1', and the
NATIONAL DEVELOPMENT COUNCIL, having its principal office at 1025
Connecticut Avenue, N.W., Suite 404, Washington, D. c. 20036
("NDC").
I. PRELIMINARY STATEMENT
The City and BCDC desire to engage NEC to render certain
technical assistance in connection with implementing the CITY OF
:BANGOR CONNUNITY DEVELOPMENT DOWNTOWN REVITALIZATION PROGRAM adopted
by the city Council of the City of Bangor on October 13, 1982 t0
include (1) project financing, (2) a facade rehabilitation program,
and (3) a downtown management organization. NDC is willing to render
such assistance upon the terms and conditions set forth in this
Agreement.
II. AGREEMENT OF THE PARTIES
Based on the above recited statement and in consideration of
the mutual understandings and agreements as hereinafter set forth,
the parties contractually agree to be bound in accordance with the
following items.
III. SCOPE OF
SERVICES
1. Financing/Development
a.
NDC will expand the business downtown developmental
effort by identifying and packaging financing for
small, medium-sized, and large investment projects
throughout the city. NBC will assist in aggressive
marketing of available below market rate financing,
tax incentives, and technical assistance, along with
skillful "packaging" of available private financing
to induce the expansion of businesses, rehabilitation
of properties, and recruitment of new businesses.
ADC's emphasis will be on assistance to existing
merchants and property owners and with priority
projects in the City such as the Freese building,
the Arcade Block, the Sears building, the Sunbury
Mall, the urban renewal parcels and others.
b.
NBC will provide assistance to local staff, businesses
and developers in the Bangor community for downtown
revitalization projects that can be assisted using
both private financing and government programs such
as WAG. CDBG interim financing, COW subordinate
financing, 503 or other SBA financing, tax exempt
R]
financing, tax shelter syndications, and other
sources of capital. In addition, NDC will offer
assistance on HERB, CDBG, tax shelter syndication
..and/or other financing assistance on "People
Generating Projects" to be planned and implemented
in downtown Bangor.
E. Client's representatives will be eligible for a
reduced rate at NEC's economic development financing
training programs including four 5 -day sessions on
Introduction to Economic Development Financing,
Business Credit Analysis, Real Estate Financing,
and Advanced Deal Structuring and include 3 -day
sessions on commercial revitalization and the SBA
Section 503 program.
d. NDC representatives will make regular visits to
Bangor for assistance with projects and will be
available as needed to provide assistance in the
Maine, New Hampshire, Boston, and Washington offices
of the relevant federal agencies.
e. NEC will coordinate with Client's representatives,
including the BCOC Finance Committee, city staff,
the Eastern Maine Development Corporation and others
between visits by mail and telephone to assure
timely assistance to projects as needed.
I. MDC representatives will assist Bangor staff in
the aggressive marketing of available financing
incentives throughout the Bangor community including,
meetings with bankers, brokers, lawyers, accountants,
Is
realtors, government officials, and others to
explain the available programs and encourage invest-
ment projects.
g. MC will assist the city in obtaining revenues from
special projects including WAG tees and repayments,
CDBG program income, and other sources. I£ requested,
it would be a goal of the technical assistance
program to assist the City with a CDBG interim loan
program to provide program income to the City in an
amount equal to or inexcess of the cost of the
Agreement.
2. Facade Rehabilitation Program
[PDC will assist Client in the implementation of a facade
rehabilitation program for the Downtown Revitalization
Project Area including:
a. implementation of the Bangor Center Revitalization
Area Ordinance;
b. implementation of a facade rehabilitation financial
assistance program;
C. provision of recommendations on architectural
assistance and financing assistance to merchants
and property owners,
d, implementation of a public information effort. NBC
will meet with property owners and other businesses
to explain the facade rehabilitation program; and
e. implementation of a design review and enforcement
process, building inspection procedures, building
cost estimate procedures, architectural and
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financial assistance program, and other aspects of
the facade rehabilitation program.
3. Downtown Management
NDC will assist in the planning and implementation of an
independently funded downtown management organization to
include:
a. NDC will provide background information on other
management organizations funded by assessment districts
including Lewiston and/or others in New England such
as Burlington, Vermont; Syracuse, New York; etc., with
summary descriptions, type of organization, local
ordinances, budget, staffing, and other information.
b. NDC will coordinate with the City, BCDC, Chamber -
representatives and others involved with the Bangor
Center project. Also, NDC will meet individually
with the financial institutions and other larger
property owners, City Council members and others to
explain downtown management needs and the merits of
special assessment districts.
C. NDC will prepare summary materials about downtown
assessment districts including projected budgets at
several potential annual funding levels - showing
revenues on a monthly and annual basis for selected
typical downtown buildings and potential budget out-
lays for staff, promotion, business development, etc.
d. NDC will assist in preparing a management program for
the first year of operation including special events,
promotions, business development, special management,
etc
4, Goals
a. Financing/Development - The goals under Section
III.l. above are the successful completion of 3 to
4 medium to large sized projects and 5 to 6 smaller
facade rehabilitation projects.
b. Facade Rehabilitation Program - The goals under
Section III.2. above are considerable understanding
and acceptance of the facade ordinance by those
affected in the Downtown Revitalization Project Area
and acceleration of compliance with the facade
rehabilitation effort.
C. Downtown Management - The goals under Section I1I.3.
.above are the completion of a downtown management
organization with a consensus developed amongst the
property owners, legislation approval, funding
provided, and a downtown management program underway.
IV. DEC WORK TEAM
The services provided under the terms of this Agreement will
be performed by members of the professional staff of MDC. John Sower,
NDC Senior Director, will be responsible for the services to be pro-
vided with support and assistance from other members of the NDC staff
specializing in organizing, project financing, commercial revitalization,
public relations, promotion, federal coordination and program research
to include Ralph Bodies, NDC's Maine Director, who would have day-to-
day responsibility for the financing of development projects. NDC's
other professional staff from the Boston and other offices would be
involved in specialty areas as needed.
7
V. 'CCOPENSATION
As compensation for the services to be performed by NDC
hereunder, the Client will pay to NDC the amount of Four Thousand '
Dollars ($4,000) per month in a formula of 25% ($12;000) from the
Bangor Center Development Corporation and 75% ($86,000) from the
City of Bangor which shall constitute full and complete compensation.
Such sum will be paid subject to receipt by the Client of a requisition
for payment from NDC specifying that NDC has performed the work under
this Agreement in conformance with the Agreement, and that NDC is
entitled t0 the amount requisitioned under the terms of this Agree-
ment. It is expressly agreed and understood that in no event will
the total compensation to NDC hereunder exceed the maximum sun of
'Forty-Ei0hf;Thousand Dollars ($48'000) for all of the services provided.
VI. TIME OF PERFORMANCE
Performance of the services described herein shall commence
as of the date of full execution and delivery by the parties of this
Agreement and shall continue for the following twelve (12) months
(herein "Term"). This Agreement may be terminated by any party for
any reason, upon written notice to the other parties hereto, effective
upon receipt unless otherwise specified. In the event of an early
termination, Client shall pay NDC for those sums due, on a pro rata
basis, through the date of termination.
VII. INDEMNIFICATION
NDC shall indemnify and hold the Clients and their designated
representatives and employees harmless from and against all costs,
'fees, expenses (including reasonable attorneys' fees and expenses),
U
obligations, damages, liabilities, claims, judgments and the like
arising out of the performance of the services contemplated hereunder,
other than in regard to NDC's professional judgments, analyses and
reports and except to the extent any of the foregoing arises out of
(i) an act or omission policy solely of the Clients or their designated
representatives or employees, (ii) an error in any information, data,
records, materials or similar items provided to NDC which is not
apparent in the exercise of reasonable judgment and review, or (iii)
an error in any public records obtained and relied on by.MC which
is not apparent in the exercise of reasonable judgment and review.
VIII. NON-DISCRIMINATION
NDC shall not discriminate against any person employed in
the performance of the services herein contemplated, or against any
applicant for such employment or in the manner in which the services
herein set forth are accomplished, because of race, religion, color,
sex, physical handicap, age or national origin. NDC shall insert a
similar non-discrimination provision in any agreement entered into
by it in connection with this Agreement. NDC further agrees to
comply with any and all equal employment opportunity and non-discrim-
ination or similar type laws, rules and regulations as in the Context
of this Agreement shall he applicable and may, during the Term of
this Agreement, be binding on Client.
IX. CONFIDENTIALITY
Except as is necessary for the staff of NDC to perform the
services contemplated herein, all reports and recommendations prepared
hereunder and all information, data, records, materials and similar
W
items provided to or obtained by NDC, other than matters of public
record, shall remain confidential and shall not be transmitted to
any person or entity other than the Client and its designated
representatives and agents. Upon such transmittal, NDC. shall have
no further responsibility or liability in respect to the dissemination
of the foregoing by Client and its agents and representatives, but
shall itself remain bound by this provision.
X. CONFLICT OF INTEREST
if any work or services currently being performed by NBC on
other projects, or any work or services to be performed by NBC on
future projects, conflicts, directly or indirectly, with any pro-
vision of this Agreement, NDC shall notify the Client of such
conflict immediately upon obtaining knowledge thereof. NBC shall
not be precluded from entering into independent consulting contracts
with third parties relative to redevelopment activities within
downtown Bangor provided that said contracts or the services to be
provided thereunder are not in conflict with the provisions of
services by NDC to the Client under the terms of this Agreement.
NBC shall give Client written notice of said contracts.
XI. NOTICES
Any notice which either party desires or is required to give
to the other in connection with this Agreement shall be in writing
and shall be sent postage prepaid, certified mail, return receipt
requested, as follows:
If to Client:
If to NDC:
Sohn W. Flynn, City Manager
City Hall
73 Harlow Street
Bangor, Maine 04401
Douglas H. Drown, President
Bangor Center Development Corporation
c/o Merle F. Goff
The Bangor Center Project
117 Broadway
Bangor, Maine 04401
The National Development Council
1025 Connecticut Avenue, N.W.
Suite 404
Washington, D. C. 20036
Attn: Sohn Sower, Director
W8
XII. MERGER, AMENDMENT AND ASSIGNABILITY
This Agreement represents the entire agreement of the parties
and supersedes all prior negotiations, representations or agreements,
written or oral, all of which are deemed merged herein.
This Agreement may not be amended except in writing signed
by the Client and DEC.
This Agreement may not be -assigned by either party without
the prior written consent of the other party.
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%III. GOVERNING LAW
This Agreement shall be construed in accordance with the Laws
of the State of Maine. Any disputes arising out of or in the course
of this Agreement which are not resolved by mutual agreement of the
parties hereto shall be resolved by litigation in the Maine Superior
Court for Penobscot County.
IN WITNESS WHEREOF, this Agreement has been executed and
delivered as of the day and year first above written.
WITNESS
THE CITY OF BANGOR, MAINE
BY
City Manager
WITNESS: THE BANGOR CENTER DEVELOPMENT
CORPORATION
By
President
ATTEST: PER NATIONAL DEVELOPMENT COUNCIL
By