HomeMy WebLinkAbout2020-07-13 20-212 Order
07/13/202020-212
07/13/2020
20-212
Legal
Order
045-009-D
Title, Order
Authorizing Amendments To a Development Agreement and Deed with John Karnes for property located at
472 Essex Street
This order will authorize an amendment to a Development Agreement and deed with John Karnes
for property located at 472 Essex Street. In September of 2018 the City Council authorized a
development agreement with John Karnes for the rehabilitation of 472 Essex Street. In the
development agreement, a timeline was agreed upon which included completion of the rehabilitation
and obtaining a certificate of occupancy within one year. In September of 2019, Mr. Karnes
requested and received an extension of six months. Since that time Mr. Karnes has continued to
make progress rehabilitating the building and has invested nearly $200,000 so far. Due to some of
the requirements of Maine Housing, Mr. Karnes has asked for an amendment to the development
agreement and deed to remove the reverter clause, extend the 30% payment in lieu of taxes
provision if the property is conveyed to Community Housing of Maine, and extend the project
completion deadline to July 1, 2021.
This matter was discussed and recommended for passage at the July 6, 2020 meeting of the
Business and Economic Development Committee.
Business & Economic Development Committee
07/06/2020
Recommend for passage
50
Consent
07/13/202020-212
CITY OF BANGOR ORDER
07/13/2020
20-212
Nichols
Authorizing Amendments To a Development Agreement and Deed with John Karnes for property located at
472 Essex Street
WHEREAS, on August 14, 2017, the City Council, by Order 17-295, authorized the City Manager to take
possession of the property located at 472 Essex Street and demolish the buildings thereon;
WHEREAS, after that time John Karnes approached the City with a plan to redevelop the property;
WHEREAS, on October 10, 2018, the City Council passed Order 18-369 which authorized the sale of 472
Essex Street to and the execution of a development agreement with Mr. Karnes;
WHEREAS, 472 Essex Street was in fact sold to Mr. Karnes and a development agreement was executed in
conjunction with the sale;
WHEREAS, the deed and development agreement required that the work on 472 Essex Street be completed
by September 28, 2019 and that property taxes be forever paid on the parcel with the option for a 30%
payment in lieu of taxes agreement if the property was sold to Community Housing of Maine ("CHOM") within
one year,
WHEREAS, the deed to 472 Essex Street contained a reverter clause in favor of the City of Bangor that they
City could exercise if the development was not completed in a timely manner;
WHEREAS, the City Council, by Order 19-391, granted Mr. Karnes an extension of the development
agreement that required completion of the project by April of 2020;
WHEREAS, Mr. Karnes has completed substantial work on 472 Essex Street and invested nearly $200,000 in it;
WHEREAS, to complete the project, Mr. Karnes needs to work with the Maine Housing Authority to obtain
financing; and
WHEREAS, to finance the project, Maine Housing is requiring that the reverter clause in the deed be
removed;
Be it Ordered by the City Council of the City of Bangor that, the City Manager is hereby authorized to both (1)
enter into an agreement with John Karnes extending the deadline for the development of 472 Essex Street to
July 1, 2021, and (2) execute a deed to John Karnes removing the reverter provisions, extending the timeline
for completion of the project to July 1, 2021, and extending the provision allowing for a 30% payment in lieu
of taxes, if the property is conveyed to CHOM, to July 1, 2021. Said agreement and deed shall be in a final
form approved by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
JULY 13,2020
CO 20-212
Motion made and seconded for Passage of Consent Agenda
Vote: 9—0
Councilors Voting Yes: Fournier, Hawes,Nichols, Okafor, Schaefer, Sprague, Supica,Tremble,Davitt
Councilors Voting No: None
Passed
CITY CLERK