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HomeMy WebLinkAbout2020-12-14 21-045 Order 12/14/202021-045 12/14/2020 21-045 Legal Order 025-101 Title, Order Authorizing the Execution of a Development Agreement and a Municipal Quitclaim Deed for 50 Sidney Street and Rescinding Council Order 20-346 This Order would rescind Council Order 20-346 and authorize the City Manager to execute a Development Agreement and a Municipal Quitclaim Deed for 50 Sidney Street. Several tax liens matured on the property at 50 Sidney Street. After multiple Finance Committee meetings, the Council considered taking possession of the property at its October 14, 2020 meeting. At that meeting, the Council passed Order 20-346, which directs the City Manager to take such possession. At a pre-council meeting on October 26, 2020, the City Council agreed to allow the prior property owner, James Gallant, additional time to sell any interest that he had in the property but no formal council action was taken. If approved, this Order would formalize the Council's direction by rescinding Order 20-346 and authorizing the City to release its interest to the buyer of the property, Kongsuriya Investments, LLC, once a development agreement is in place. The development agreement and municipal quitclaim deed shall be in a final form approved by the City Solicitor or Assistant City Solicitor and shall contain at least the following conditions: - That full payment of all amounts due to the City be received, - That the property be developed into a multifamily dwelling consisting of at least four units, - That the developer invest at least $200,000 into the property, - That permits for the construction be obtained by May 1, 2021 and that development be completed within one year of pulling the permits, and - That taxes or a payment in lieu of taxes (PILOT) always be paid upon the property. Recommend for passage New Business 12/14/202021-045 CITY OF BANGOR ORDER 12/14/2020 21-045 Schaefer Authorizing the Execution of a Development Agreement and a Municipal Quitclaim Deed for 50 Sidney Street and Rescinding Council Order 20-346 WHEREAS, the City has matured tax liens on the property located at 50 Sidney Street, WHEREAS, by Order 20-346, the City Council directed the City Manager to take possession of the property located at 50 Sidney Street, WHEREAS, the prior owner, James Gallant, wishes to sell any interest that he may have to Kongsuriya Investments, LLC, and WHEREAS, Kongsuriya Investments, LLC is willing to develop the property and create multiple housing units, Be it Ordered by the City Council of the City of Bangor that, Council Order 20-346, which directed the City Manager to take possession of the 50 Sidney Street property, is hereby rescinded. Be it further Ordered that the City Manager is hereby authorized to execute a Development Agreement with Kongsuriya Investments, LLC for the development of the 50 Sidney Street property as multifamily housing containing at least four units. Said Development Agreement shall contain at least the following conditions: that full payment of all amounts due to the City be received, that the developer invest at least $200,000 into the property, that permits for the construction be obtained by May 1, 2021, that development be completed within one year of pulling the permits, and that taxes or a payment in lieu of taxes (PILOT) always be paid upon the property. The Development Agreement shall also contain a reverter provision for the enforcement of the development conditions. The City Manager is further authorized to execute a Municipal Quitclaim Deed for the property releasing the City's Interest to Kongsuriya Investments, LLC. Said Deed shall contain a reverter provision as discussed above. Said Development Agreement and Deed shall be in a final form approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL DECEMBER 14,2020 CO 21-045 Motion made and seconded for Passage Vote: 9—0 Councilors Voting Yes: Davitt,Dubay,Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague,Tremble Councilors Voting No: None Passed CITY CLERK