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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 cxxr cIe 272 AN EE so LY@ b33 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 -1- 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. .2_ 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 -3- 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 -5- 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 -6- 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 -7- 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 -8- 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: -9- (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. -