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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