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HomeMy WebLinkAbout2025-02-24 25-083 OrderCITY COUNCIL ACTION Council Meeting Date: 02/24/2025 Item No: 25-083 Responsible Dept: Legal Requested Action: Order Title, Order Map/Lot: R25-017 Authorizing the Execution of a Consent to Sublease the Shelter Space at Hope House Health and Living Center, an Amendment to Lease with Penobscot Community Health Center, and Related Documents Summary This Order would authorize the City Manager to consent to the sublease of the shelter space at the Hope House Health and Living Center, and to execute an amendment to the City's lease with Penobscot Community Health Center (PCHC) and related documents. The City owns land at 179-181 Corporate Drive which is currently leased to PCHC, which operates a health clinic, transitional housing, and a low barrier emergency shelter, known as the Hope House Health and Living Center. PCHC desires to sublease the shelter space only to Preble Street, who will continue to operate it as a low -barrier homeless shelter. The term of the sublease will be the same as the term of the current lease the City has with PCHC, which expires in April of 2044. This Order would also authorize the City Manager to execute an amendment to the City's lease with PCHC to: extend the lot lines to the property to allow PCHC to construct an addition to the shelter space, to increase the number of emergency shelter beds from 66 to 70, and to remove certain provisions in the original 2014 ground lease that are inconsistent with Maine State Housing's 2024 amendments to its funding rules. Without the continued critical funding through the Maine State Housing Association (MSHA), the Hope House would be forced to close, and the proposed amendment to the ground lease will allow for MSHA's funding to continue. The additional land provided by the adjustment to the lot lines allows PCHC/Preble Street to meet the dimensional requirements in the Government and Institutional Service District, including lot coverage, impervious cover, and setbacks. This item was reviewed and recommended for passage by the Business and Economic Development Committee at its meeting on February 19, 2025. Committee Action Committee: Business & Economic Development Committee Meeting Date: 02/19/2025 Action: Recommended for passage For: Against: Staff Comments & Approvals Staff recommends passage. City Manager Introduced for: New Business City Solicitor Finance Director CITY OF BANGOR ORDER Date: 02/24/2025 Item No: 25-083 Assigned to Councilor: Hawes Authorizing the Execution of a Consent to Sublease the Shelter Space at Hope House Health and Living Center, an Amendment to Lease with Penobscot Community Health Center, and Related Documents WHEREAS, the City owns the parcel located at Map R25, Lot 017; WHEREAS, PCHC currently leases the property and operates a health clinic, transitional housing, and a low -barrier homeless shelter known as the Hope House Health and Living Center; WHEREAS, the Hope House provides low barrier emergency shelter, transitional housing, and a health clinic for people who are experiencing homelessness; WHEREAS, PCHC desires to sublease the low -barrier homeless shelter to Preble Street to allow Preble Street to operate it; WHEREAS, Preble Street is a nonprofit corporation that operates several homeless shelters in Maine and has demonstrated its capacity to provide quality services that break cycles of harm and helps people achieve permanent housing; WHEREAS, PCHC's lease with the City requires the City's consent to any subleasing of the facility by PCHC; WHEREAS, PCHC has requested an amendment to its lease with the City to extend the lot lines to the property to allow PCHC to construct an addition to the building, to allow for an increase in the number of beds in the emergency shelter from 66 to 70, and to remove and amend certain provisions in the original 2014 ground lease that are inconsistent with Maine State Housing's 2024 amendments to its funding rules. NOW, THEREFORE, 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 (1) a consent to a sublease to Preble Street to assume the operation of the low barrier emergency shelter located at 179-181 Corporate Drive; (2) a First Amendment to the City's Lease with PCHC to extend the lot lines to the property to allow PCHC to construct an addition to the building, to increase the number of beds in the emergency shelter from 66 to 70, and to remove and amend certain provisions in the original 2014 ground lease that are inconsistent with Maine State Housing's 2024 amendments to its funding rules; and (3) related documentation. The final form of the above documents are to be approved by the City's Legal Department. IN CITY COUNCIL FEBRUARY 25, 2025 CO 25-083 It was previsouly determined that Council Beck has a conflict of interest. Council Beck left the room. Motion made and seconded for Passage Passed Council Beck returned to the meeting. �����:,w�,��° '" .�� ��°,„�,��"���,°��*°.������ �� CITY CLERK