HomeMy WebLinkAbout2019-08-26 19-333 Order
08/26/201919-333
08/26/2019
19-333
Community & Economic Development
Order
101-008
Title, Order
Authorizing Sale of Land Located at 395 Griffin Road to C&L Aviation
This order authorizes the sale of city owned land at 395 Griffin Road to C&L Aviation. Jane and
Stephen Arey currently lease a parcel (map-lot 101-008) of city owned land at 395 Griffin Road upon
which the building formerly known as Spectacular Event Center is located. In early 2019 the Areys
closed the business and put the building up for sale. C&L Aviation now seeks to buy the building
from the Areys to expand their operations, proximate to their main operation at the airport. C&L also
seeks to purchase the land under the building from the City.
The City's guidelines for the leasing and disposition of land set forth that leased land can be
purchased in certain situations. To meet these guidelines, C&L Aviation will pay $265,000 for the
land, fair market value for the land according to a 2018 commercial appraisal and will create 25 net
new jobs within 24 months or pay a penalty. Additionally, C&L Aviation may invest in the property
with an expansion project that will commence within 24 months. In that case, the City will rebate
75% of the net new taxes on the property after expansion for a period of five (5) years. The
purchase is subject to approval by the Federal Aviation Administration.
This item was reviewed and approved by the Business & Economic Development Committee at its
meeting on August 20, 2019.
Business & Economic Development Committee
08/20/2019
Recommend for passage
This was discussed in executive session at the BED meeting of August 20, 2019.
New Business
08/26/201919-333
CITY OF BANGOR ORDER
08/26/2019
19-333
Graham
Authorizing Sale of Land Located at 395 Griffin Road to C&L Aviation
WHEREAS, the City of Bangor owns a piece of land at 395 Griffin Road (map-lot 101-008) upon which the
building formerly known as Spectacular Event Center is located and the land is leased by the owners of that
business; and
WHEREAS, C&L Aviation now seeks to buy the building and land to expand their business; and
WHEREAS, the City's guidelines for the leasing and disposition of land sets forth that leased land can be
purchased in certain situations; and
WHEREAS, C&L Aviation agrees to meet the guidelines; and
WHEREAS, C&L Aviation may seek to expand to the building within 24 months of purchase; and
WHEREAS, assistance necessary to complete the potential expansion can be provided through a credit
enhancement agreement with C&L Aviation to provide for the return of a portion of new property taxes paid
the City on the property by C&L Aviation for a period of five years:
Be it Ordered by the City Council of the City of Bangor that,
The City Manager is hereby authorized to enter into a purchase and sale agreement with C&L Aviation for the
land at 395 Griffin Road (map-lot 101-008) for a purchase price of $265,000. In addition, the City agrees that
if C&L invests in a significant expansion/addition to the building within 24 months of acquisition, the City will
return to C&L Aviation 75% of the new tax increment revenues paid on the project for a period of five (5)
years. Further, C&L agrees to create 25 net new jobs within 24 months. Should C&L fail to create 25 new
jobs, the agreement stipulates that they pay the existing lease rate for one year. The agreement shall be in a
final form as approved by the City Solicitor or Assistant City Solicitor and the sale is subject to approval by the
Federal Aviation Administration.
IN CITY COUNCIL
AUGUST 26,2019
CO 19-333
COUNCILOR WESTON INDICDATED HE HAD A CONFLICT OF INTEREST DUE TO A BUSINESS RELATIONSHIP
WITH THE RECIPIENT.
MOTION MADE AND SECONDED THAT COUNCILOR WESTON HAD A CONFLICT OF INTEREST.
COUNCILOR WESTON LEFT THE MEETING.
MOTION MADE AND SECONDED FOR PASSAGE
PASSAGE
COUNCILOR WESTON RETURNED TO THE MEETING.
CITY CLERK