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HomeMy WebLinkAbout2020-12-28 21-061 Order 12/28/202021-061 12/28/2020 21-061 Finance Order 030-058 Title, Order Authorizing the Sale and Development of 42 Winter Street to Apollo Properties LLC This Order would authorize the sale of 42 Winter Street to Apollo Properties, LLC. Council Order 20-338 authorized the City to take formal possession of 42 Winter Street for matured real estate tax and utility liens. In November, the city issued a request for proposals (RFP) to purchase and rehabilitate the property. The City received three offers and it is recommended that the city enter into a development agreement with Apollo Properties, LLC., the high bidder. In addition to being the high bidder, it was felt by staff that Apollo had the best proposal for the property. Jonathan and Greg Hughes, of Apollo Properties, LLC, submitted an offer to purchase the property for $35,001. If approved, the developers agree to expend a minimum of $73,000 to rehabilitate it as single family home, obtain permits by May 1, 2021, and complete the work within one year of obtaining the permits. In addition, the development agreement includes a reverter clause that returns the property to the city if they fail to complete as agreed and that the property will always pay property tax or a Payment in Lieu of Taxes. Apollo Properties, LLC has the experience necessary to complete the rehabilitation and has contractors available to work on the property. Apollo Properties, LLC intends to list the property on the housing market after the rehabilitation is complete. This order addresses the Council goal of improving quality and quantity of housing to meet demand for workforce housing, life cycle housing, and supportive housing within the community. Finance Committee 12/21/2020 Recommend for passage 50 Consent 12/28/202021-061 CITY OF BANGOR ORDER 12/28/2020 21-061 Nichols Authorizing the Sale and Development of 42 Winter Street to Apollo Properties LLC WHEREAS, the City owns the property located at 42 Winter Street through matured real estate tax and utility liens; and WHEREAS, the City is seeking to sell the property and have it rehabilitated for single family housing; and WHEREAS, a request for proposals was issued; and WHEREAS, a bid to purchase and rehabilitate the property was received from Apollo Properties, LLC, in the amount of $35,001 that would also require Apollo Properties, LLC to invest a minimum of $73,000 in the rehabilitation of the property: 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 those documents necessary for the transfer of the single family house located at 42 Winter Street (Map Lot 030-058) to Apollo Properties, LLC., for the development of said property by the same under the following conditions: 1. That the developer shall purchase the property for $35,001 and spend a minimum of $73,000 on the rehabilitation of the property, 2. That the property be rehabilitated as a single family home and brought into compliance with applicable building and life safety codes, 3. That permits for the construction be obtained by May 1, 2021 and that development be completed within one year of obtaining the permits, 4. That a reverter favoring the City and for the purpose enforcing the development conditions be contained in any deed to Apollo Properties, LLC, and 5. That taxes or a payment in lieu of taxes (PILOT) always be paid upon the property. The final agreement will be in a form approved by the City Solicitor's Office. IN CITY COUNCIL DECEMBER 28,2020 CO 21-061 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 r ' CIT CLERK