HomeMy WebLinkAbout2021-05-24 21-192 Order
05/24/202121-192
05/24/2021
21-192
Legal
Order
R25-026
Title, Order
Authorizing the Termination of a Master Transaction Agreement, the Release of a Reverter Clause and an
Agreement with Covenant Health and Bangor Nursing and Rehabilitation Center
This Order would authorize the City Manager to release a reverter clause for the property located at
103 Texas Avenue in exchange for Bangor Nursing and Rehabilitation Center ("BNRC") agreeing to
continue its operations for six more years and to invest at least $300,000 into the facility. This
authorization is contingent upon a private transaction occurring between BNRC and Covenant Health.
In 2001, the City deeded property located at 103 Texas Avenue to BNRC. As part of that
transaction, the City retained a reverter clause on the property and entered into a "Master
Transaction Agreement" with BNRC. The reverter clause provided that the property would always be
used for as a nursing and rehabilitation facility or else title would revert back to the City. The Master
Transaction Agreement contained the reverter clause and provided a means by which the City could
assist BNRC if BNRC ever needed it.
BNRC is now contemplating a private transaction with Covenant Health, and the reverter clause that
would hinder or prevent that transaction. Further, the Master Transaction Agreement, in its entirety,
would be moot if that private transaction goes through. In exchange for removing the reverter
provision and voiding the Master Transaction Agreement, BNRC and Covenant Health will enter into
an agreement with the City to continue the BNRC operation for at least six years and to invest at
least $300,000 into the property.
Recommend for passage
Consent
05/24/202121-192
CITY OF BANGOR ORDER
05/24/2021
21-192
Schaefer
Authorizing the Termination of a Master Transaction Agreement, the Release of a Reverter Clause and an
Agreement with Covenant Health and Bangor Nursing and Rehabilitation Center
WHEREAS, Bangor Nursing and Rehabilitation Center ("BNRC") currently operates at 103 Texas Avenue;
WHEREAS, in December of 2000, BNRC and the City entered into a "Master Transaction Agreement" that
included a reverter clause and other provisions;
WHEREAS, the reverter clause, which is also contained in a deed to BNRC, requires the property located at
103 Texas Avenue to always be operated as a nursing and rehabilitation center;
WHEREAS, BNRC is considering a private transaction with Covenant Health that is hindered by the reverter
clause;
WHEREAS, BNRC and Covenant Health are willing to enter into an agreement with the City that BNRC and
Covenant will continue the BNRC operation for at least six years and will invest at least $300,000 into the 103
Texas Avenue property if the City releases its reverter clause;
Now therefore, be it Ordered by the City Council of the City of Bangor that, provided that a private transaction
involving the sale or association of BNRC with Covenant Health occurs, the City Manager is authorized to
execute all documentation necessary to release the City's reverter clause for the 103 Texas Avenue property
and terminate the related Master Transaction Agreement in exchange for BNRC and Covenant Health agreeing
to operate the nursing and rehabilitation center for at least six more years and investing at least $300,000 in
the property.
IN CITY COUNCIL
MAY 24,2021
CO 21-192
Motion made and seconded for Passage of Consent Agenda
Councilors Voting Yes: Davitt,Dubay, Fournier,Hawes,Nichols, Schaefer, Sprague, Tremble
Councilors Voting No: None
Passed
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CITY C I&