HomeMy WebLinkAbout1976-06-28 272 AD RESOLVE272 AD
jT Rrodviced by councilor Gass, June 28, 1976
CITY OF BANGOR
(TITLE.) gewbiEe Approving _scvposeA Goats t f Sale......t,bans in._the
Ke4duakeag,$tr9aN Urban_ReAaWnl PFRdectMei R -7a ParGets Gp ,I_& GB -2
By the City Ceunnt of the City Of Sense.
RESOLVED, THAT, WHEREAS, the Urban Renewal Authority of the
City of Bangor proposes to enter into a contract for sale of
parcels numbered GB -1 & GB -2 in the Kenduskeag Stream Urban Renewal
.project with James A. Rapaport; and
WHEREAS, the said James A. Rapaport has offered to pay
the sum of Thirty-nine Thousand Dollars ($39,000.00) for said
parcels, said price being the minimum approved price for said
parcels as established by the Urban Renewal Authority and approved
by the Department of Housing and Urban Development; and
WHEREAS, under the provisions of Chapter 168 of the
Private and Special Laws Of Maine, 1957, as amended, City Council
approval of all contracts for the sale of land within the project
area is required; and
WHEREAS, the Urban Renewal Authority has filed a
copy of the proposed contract with James A. Rapaport in the office
of the City Clerk;
NOW, THEREFORE, BE IT RESOLVED:
THAT, the proposed contract on file with the City
Clerk be and is hereby approved.
IN CIV COUNCIL
Pame 28, 19]6
ssed
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272 AN
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RECEIVED
pprwinq used contract for CITY OF OANOOR
Sale of Land in the %enduskeag Stream_
Nelsen renewal Project Me. a -x, CITY CLERK'S OFFICE
-
Parcels GP -1 < m-2. =76 JON 24 Ph 3 V
U.S. Department of Housing and Urban Development
Urban Renewal Program
PART I OF STANDARD FORM OF CONTRACT
FOR SALE OF LAND FOR PRIVATE REDEVELOPMENT
Part I
of
CONTRACT FOR
SALE. OF LAND FOR PRIVATE REDEVELOPMENT
Ey and Between
BANGOR URBAN RENEWAL AUTHORITY
and
CONTRACT FOR
SALE OF BARD. FOR PRIVATE REDEVELOPMENT
AGREEMENT, consisting of this Part I and Part II (Form HUD -
6209B, 9-69) annexed hereto and made a part hereof (which Part I and
Part II are together hereinafter called "Agreement"), made on or as
of the 21st day of MAY 19 76 ,
by and between the Urban Renewal. Authority of the City of Bangor a
public body corporate (which, together with any successor public
body or officer hereafter designated by or pursuant to law, is here-
inafter called "Agency"), established pursuant to Private and
Special laws of the State of Maine, Chapter 168, (1957) hereinafter
called "Urban Renewal Act") and having its office at City Hall,
73 Harlow Street in the City of Bangor (hereinafter called "City"),
State of Maine, and James Rapaport (hereinafter called "Redeveloper")
and having an office for the transaction of business at 32 Oak Street
in the City of Bangor, County of Penobscot,, and State of Maine,
WITNESSETH:
WHEREAS, in furtherance of the objectives of the Urban Renewal
Act, the Agency has undertaken a program for the clearance and re-
construction or rehabilitation of also and blighted areas in the
City, and in this connection is engaged in carrying out an urban
renewal project known as the "Renduskeag Stream Project" (here-
inafter called "Project") in an area (hereinafter called "Project
Area") located in the City; and
WHEREAS, as of the date of the Agreement there has been pre-
pared and approved by the Agency an urban renewal plan for the
Project, consisting of the .Urban Renewal Plan, dated May 20,
1964, and approved by the City council of the city on Tune 22,-
1964 by Order No. 79-R, as amended, (which plan, as so amended,
and as it may hereafter be further amended from time to time
pursuant to law, and as so constituted from time to time, s, un-
less otherwise indicated by the context, hereinafter called
"Urban Renewal Plan"): and
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WHEREAS, a copy of the Urban Renewal Plan as constituted on
the date of the Agreement has been filed in the office of the
Clerk of the city located at City Hall in the City; and
WHEREAS, in order to enable the Agency to achieve the ob-
jectives of the Urban Renewal Plan and particularly to make the land
in the Project Area available for redevelopment by private enterprise
for redevelopment for and in accordance with the uses specified in
the Urban Renewal Plan, both the Federal Government and the City
have undertaken to provide and have provided substantial aid and
assistance to the Agency through a Contract for Loan and Capital
Grant dated December 23, 1964, in the case of the Federal Government
and a cooperation Agreement, dated July 14, 1964, in the case of
the City; and
wEEREAS, the Agency has offered to sell and the Redeveloper is
willing to purchase certain real property located in the Project Area
and more particularly described in Schedule A annexed hereto and made
a part hereof (which property as so described is hereinafter called
"Property") and to redevelop the property for and in accordance with
the uses specified in the Urban Renewal Plan and in accordance with
the Agreement; and
wHEREAS, the Agency believes that the redevelopment of the
Property pursuant the Agreement, and the fulfillment generally of
the Agreement, are in the vital and best interests of the City and
the health, safety, morals and welfare of its residents, and in
accord with the public purposes and provisions of the applicable
Federal, State and local laws and requirements under which the
Project has been undertaken and is being assisted.
NGw, THEREFORE, in consideration of the. premises and the
mutual obligations of the parties hereto, each of them does hereby
covenant and agree with the other as follows:
SEC. 1. SALE: PURCHASE PRICE. _
Subject to all the terms, covenants and conditions of the
Agreement, the Agency will sell the Property to the Redeveloper for.
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and the Redeveloper will purchase .the Property from the Agency
and pay therefor, the amount of Thirty Nine Thousand Dollars
($39,000.00), hereinafter called "Purchase Price", to be paid in
cash or by certified check simultaneously with the delivery of the
deed conveying the Property to the Redeveloper. The purchase price
shall be apportioned as follows:
Parcel GB -1 ----- $30,000.00
Parcel GB -2 ----- $ 9,000,00
Total $39,000.00
Sec. 2. CONVEYANCE OF PROPERTY.
(a) Form of Deed. The Agency shall convey to the Redeveloper
title to the Property by Warranty Deed (hereinafter called "Deed"),
Such conveyance and title shall, in addition to the condition subse-
quent provided for in Section 704 hereof, and to all other conditions,
covenants and restrictions set forth or referred to elsewhere in the
Agreement, be subject to:
(1)Declaration of Restrictions far Renduskeag Stream Project, -
recorded in Penobscot Registry Of Deeds, Vol. 2457, Page 225,
as it may be amended prior to closing.
(b) T' d Place for Delivery of Deed. The Agency Shall
deliver the Deed and possession of the Property to the Redeveloper
on Juve 21, , 1976 or on such earlier date as the
parties hereto may mutually agree in writing. Conveyance shall be
made at the principal office of the Agency and the Redeveloper
shall accept such conveyance and pay the Purchase Price to the
Agency at such time and place.
(c) App,t nment of Current Taxes. The portion of the current
taxes, if any, on the Property which are a lien. on the date of delivery
of the Deed to the Redeveloper allocable to buildings and other im-
provements which have been demolished or removed from the Property
by the Agency shall be borne by the Agency, and the portion of such
current taxes allocable to the land shall be apportioned between the
Agency and the Redeveloper as of the date of the delivery of the
Deed. If the amount of the current taxes on the Property is not
ascertainable on such date, the apportionment between the Agency
and the Redeveloper shall be on the basis of the amount of the most
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recently ascertainable taxes on the Property, but such apportionment
shall he subject to final adjustment within (30) days after the date
the actual amount of such current taxes is ascertained..
(d) Recordation o£ Deed. The Redeveloper shall promptly file the
Deed for recordation among the land records of the place in which the
Property is situated. The Redeveloper shall pay all coats (including
the cost of the State documentary stamp tax, if any, on the Deed, for
which stamps in the proper amount shall be affixed to the Deed by the
Redeveloper) for so recording the Deed.
Sec. 3. GOOD FAITH DEPOSIT.
(a) Amount. The Redeveloper has, prior to or simultaneously with
the execution of the Agreement by the Agency, delivered to the Agency
a good faith deposit of cash or a certified check satisfactory to -
the Agency in the amount of one Thousand, Nine Hundred Fifty Dollars
($1,950.00), hereinafter called "Deposit", as security for the
performance of the obligations of the Redeveloper to be performed
prior to the return of the Deposit to the Redeveloper, or its re-
tention by the Agency as liquidated damages, or its application o
account of the Purchase Price, as the case may be, in accordance with
the Agreement. The Deposit, if cash or certified check, shall be
deposited in an account of the Agency in a bank or trust company
selected by it.
(b) Interest. The Agency shall be under no obligation to pay
or earn interest on the Deposit, but if interest is payable thereon
such interest when received by the Agency shall be Promptly paid to
the Redeveloper.
(c) Application to Purchase Price. In the event the Redeveloper
s otherwise entitled to return of the Deposit pursuant to paragraph
(e) of this Section, upon written request of the Redeveloper the
amount of the Deposit if paid in cash or by certified check shall
be applied on account of the Purchase Price at the time payment of
the Purchase Price is made.
(d) Retention by Agency. Upon termination of the Agreement as
provided in Sections 703 and 704 hereof, the Deposit or the proceeds
of the Deposit, if not theretofore returned to the Redeveloper
pursuant to paragraph (e) of this Section, including all interest
payable on such Deposit Or the proceeds thereof after such termination,
shall be retained by the Agency as provided in Sections 703 and 704
hereof.
(e) Return to Redeveloper. Upon termination of the Agreement
as provided in Section 702 hereof, the Deposit, shall be returned to
the Redeveloper by the Agency as provided in Section 702 hereof. If
the Agreement shall not have been theretofore terminated and if no
cause for termination then exists, the Agency shall return the
Deposit to the Redeveloper upon receipt by the Agency of the
following:
(f) A copy of the commitment or commitments obtained by the
Redeveloper for the mortgage loan or loans to assist in
financing the constructions of the Improvements (as de-
fined in Section 301 hereof), Certified by the RedevelopeY
to be a true and correct copy Or copies thereof;
(ii) Evidence satisfactory to the Agency that the interim mort-
gage loan to assist in financing construction of the Im-
provements has been initially closed;
(iii) A copy of the contract between the Redeveloper and the
general contractor for the construction of the Improve-
ments, certified by the Redeveloper to be a true and
correct copy thereof; and
(iv) A copy of the contract bond provided by the general con-
tractor in connection with the aforesaid construction con-
tract which bond shall be in a penal sum equal to not less
than ten percent (10%) of the contract price under said
construction contract, certified by the Redeveloper to be
a true and Correct Copy thereof.
SEC. 4. TIME FOR COM4ENCEMENT AND COMPLETION OF IMPROVEMENTS.
Inc construction of the improvements referred to in Section 301
hereof shall be commenced in any event within six (6) months after the
date of the Deed, and, except as otherwise provided in the Agreement,
shall be completed within twelve (12) months after such date.
Provided, That if a mortgage securing money loaned to finance the
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Improvements, or any part thereof,. is insured by the Secretary of
Housing and Urban Development, then the aforesaid completion time
shall not apply, but instead the construction of the Improvements,
or any part thereof, shall be completed within the time specified in
the applicable Building Loan Ageeement approved by the Secretary of
Housing and Urban Development.
SEC. 5. T11AE FOR CERTAIN OTHER ACTIONS.
(a) Time for Submission of Construction Plana. The time within
which the Redeveloper shall submit its "Construction Plans" (as de-
fined in Section 301 hereof) to the Agency in any event, pursuant to
Section 301 hereof, shall be not later than ninety (90) days from
the date of the Agreement.
(b) Time for Submission of Corrected Construction Plans. Except
as provided in Paragraph (c) of this Section 5, the time within which
the Redeveloper shall submit any new or corrected Construction Plans
as provided for in Section 301 hereof shall be not later than thirty
(30) days after the date the Redeveloper receives written notice from
the Agency of the Agency's rejection Of the Construction Plans re-
ferred to in the latest such notice.
(c) Maximum Time for Arproved construction Plans. In any event,
the time within which the Redeveloper shall submit construction Plana
which conform to the requirements of Section 301 hereof and are
approved by the Agency shall be not Later than one hundred eighty
(180) days after the date the Redeveloper receives written notice
from the Agency of the Agency's first rejection of the original
Construction Plans submitted to it by the Redeveloper.
(d) Time for q cy Action Change in Construction Plans. The
time within which the Agency may reject any change in the Construction
Plans, as provided in Section 302 hereof, shall be thirty (30) days
after the date of the Agency's receipt of notice of such change.
(e) Time for S snission of E 'd f EanitV Capi tel and
Mortgage. Financing.
The time within which the Redeveloper shall submit to the Agency, in
any event, evidence as to equity capital and any commitment neces-
sary for mortgage financing, as provided in Section 303 hereof, shall
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be not later than thirty (30) days after the date of written notice
to the Redeveloper of the approval of the Construction Plana by the
Agency, or, if the Construction Plansshall be deemed to have been
approved as provided in Section 301 hereof, after the expiration of
thirty (30) days following receipt by the Agency of the Construction
plans so deemedapproved.
SEC. 6.- PERIOD OF DURATION OF COVENANT ON USE.
The covenant pertaining to the use Of the Property, set forth in
Section 401 hereof, shall remain in effect from the date of the Deed
until June 22, 1984, the period specified or referred to in the urban
Renewal Plan, or until such date thereafter to which it may be ex-
tended by proper amendment of the Urban Renewal Plan, on which date,
as the case may be, such covenant shall terminate.
SEC. ]. NOTICES AND DEMANDS.
A notice, demand, or other communication under the Agreement by
either party to the other shall be sufficiently given or delivered
if it is dispatched by registered or certified mail, postage prepaid,
return receipt requested, or delivered personally, and
(i) in the case of the Redeveloper,as addressed to or delivered
personally to the Redeveloper at 32 Oak Street, Bangor, Maine;
and
(ii) in the case of the Agency, is addressed to or delivered
Personally to the Agency at City Hall, 73 Harlow. Street,
Bangor, Maine,
or at such other address with respect to either such party as that
party may, from time to time, designate in writing and forward to the
other as provided in this Section. -
SEC. S. SPECIAL PROVISIONS.
(a) As further consideration for this contract the Redeveloper
agrees to convey to the Agency a certain lot or parcel of land de-
scribed in Exhibit B, attached, and also agrees to convey a wooden
structure, formerly used as a warehouse, and located On Parcel 18-2
as delineated in the Urban Renewal Plan for the Kenduskeag Stream
Project, all or more fully set out in a purchase and sales agreement
of even date herewith.
(b) Tha Redeveloper agrees that the Agency may at any time change
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the Urban Renewal Plan and the Declaration of Restrictions, in any
way, so long as said changes do not adversely affect the use and
enjoyment of the premises of the Redeveloper.
(c) In consideration of this Agreement and for other valuable
considerations, the Redeveloper grants to the Agency a first refusal
. to repurchase the aforesaid parcels GB -1 and GB -2 if the same are
offered for sale by the Redeveloper at any time up to midnight on
June 22, 1984.
Tne repurchase price for both parcels will be the sum of
5391000.00 plus the fair market value of any improvements made to
said parcels by the redeveloper to the extent that said improvements
add to the increased value of said parcels.
The value Of said improvements shall be determined by an appraisal
of the same made by two independent appraisers, one of whom shall be
selected by the Agency and one by the Redeveloper. If the two
appraisers so selected are, unable to agree upon the fair market
value of said improvements, than the two appraisers shall select a
third appraiser and the opinion of a majority of the three appraisers
so selected shall be determinative Of the fair market value of said
improvements. The fees of the appraisers so selected shall be equally
borne by the Agency and the Redeveloper..
The first refusal hereby granted to the Agency shall be put in
operation by the Redeveloper giving written notice of its receipt of
an offer to purchase parcels GB -1 and GB -2 signed by a bona fide
purchaser, said notice to be mailed to the Agency at its address at
the Bangor City Hall, 73 Barlow Street, Bangor, Maine, and the Agency
shall have 30 days from the receipt of said notice to accept or re-
ject its right to purchase under this first refusal, said acceptance to
be in writing and mailed to the Redeveloper at his address at 32 Oak
Street, Bangor, Maine.
In the event that the Agency does not elect to accept its.
right to, purchase, then all further rights of the Agency to purchase
parcels GB -1 and GB -2 shall cease and terminate.
In the event that the Agency elects to accept its right to
purchase as hereinbefore sat forth, and the Redeveloper makes no
f
claim for an increase in the repurchase price due to the value o
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improvements placed upon said parcels, it shall pay to the Rede-
veloper the said eum of $39,000.00 against delivery to it Of a
Warranty Deed conveying good and merchantable title to said
premises.
I£, however, the Redeveloper claims an increase in the re-
purchase price due to the value of the improvements placed upon
said parcels as hereinbefore mentioned, then both parties agree to
proceed with diligence to have the appraisers selected as herein-
before set forth and the Agency will then pay to the Redeveloper
.the purchase price as indicated and the value of said improvements
as determined by said appraisers upon delivery to it of a Warranty
Deed conveying good and merchantable title to said parcels.
In any event real estate taxes will be pro -rated between the
parties as of the date conveyance is made to the Agency.
(d) in the event that the Agency shall cease to exist during
the term of the aforesaid right of first refusal, the city of
Bangor shall succeed to its rights and obligations thereunder.
(e) In the event that Redeveloper wishes to convey parcels
GB -1 and GB -2 to a corporation in which Redeveloper holds at least
50% of the outstanding stock, then the option to purchase under
paragraph (8)c shall not be exercisable. Said corporation shall
however take title subject to the rights and obligations contained
in said paragraph (S)c. if parcels GB -1 and GB -2 are conveyed to
such corporation, then the Agency shall have the right to exercise its
option pursuantto paragraph (e)c at such time as Redeve Loper
transfers or proposes to transfer such number of shares of said
corporation as will leave Redeveloper with ownership of Leas than
50% of the outstanding shares of said corporation. This option
shall likewise terminate at midnight June 22, 1984.
SEC. 9. MODIFICATIONS OF PART II
The following amendments and modifications are hereby made in
the terms, covenants, and conditions forming Part II hereof:
Delete Section 404 (added by former LPA Letter No. 318,
Supplement No. 21).
Insert after subsection 401 (b) the following subsection:
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(c) All advertising (including signs) for sale and/or rental
of the whole or any part of the Property shall include the legend,
"An Open occupancy Building" in type or lettering of easily legible
size and design. The word "Project" or "Development" may be substi.
tuted for the word "Building" where circumstances require such
substitution.
SEC. 10. COUNTERPARTS.
The Agreement is executed in three (3) counterparts, each of
which shall constitute one and the sure instrument.
IN WITNESS WHEREOF, the Agency has caused the Agreement to be duly
executed in its name and behalf by its
and its seal to be hereunto duly affixed and attested by its
and the Redeveloper has signed and sealed
this Agreement on or as of the day -first above written.
BANGOR URBAN RENEWAL AUTHORITY
Attest:
Attest:
%%y -
SCMDULE A
Lots entitled GB -1 and GB -2 on a Plan of Land
entitled "Land Use Plan, Map 2, Exhibit Bq'-
contained
q"contained in the aforementioned Urban Renewal Plan,
as said description may be later refined or changed
by mutual agreement of the parties.
SCHED= B
A certain let or parcel of land located at Bangor, county of
Penobscot, State of Maine,bounded and described as follows,
Beginning at the intersection of the northerly right-of-way
Line of Washington Street with the westerly right-of-way
line of Oak Street at Coordinates North 352,444.83, East
430,772.08, based on the Maine State coordinate System,
East Zone; thence South 710 44' 34" West along the northerly
line of Washington Street for a distance of 62.48 feet; thence
North
North 71Of
chance
° 44' 34" East for a distance f 62.48 feet to the
westerly right-of-way line of Oak Street; thence South -
18" 25' 31" East along said westerly line of Oak Street for a
distance of 50.00 feet to the point of beginning. The above
described parcel contains 3,124 square feet, and is a portion
of the premises conveyed to the Grantor by Deed of Jack
Rapaport dated September 2, 1952 and recorded in Penobscot
Registry of Deeds in Book 1388, Page 45.
Grantor also conveys all the right, title and interest of the
Grantor of every name and nature, however acquired, in and to
all land or interests in land lying within the bounds of
former French Street discontinued by the Bangor City Council
by Order No. 2577 -AA, passed September 24, 1973 including, but
not limited to, the portion of said street lying within the
bounds of Parcel H-1 as shown on a Plat entitled "Plat Of
Disposition Parcels P-1, H-1 & GB -2, Bangor urban Renewal
duskea
Authority, City of Bangor, Penobscot County, Maine, g
Stream Project, Me. R-7," a copy of which is on file in said
Registry of Deeds. -