HomeMy WebLinkAbout2013-08-12 13-279 ORDERCOUNCIL ACTION
Item No. 13-279
Date: August 12, 2013
Item/Subject: ORDER, Authorizing the Execution of a Development Agreement with Eastern
Maine Healthcare Systems — Lot 8A Maine Business Enterprise Park
Responsible Department: Legal
Commentary: This Order will authorize the City Manager, to execute a Development
Agreement with Eastern Maine Healthcare Systems (EMHS) for the development of Lot 8A in the
Maine Business Enterprise Park. Under the terms of the agreement, EMHS will purchase 2.44
acres in the Maine Business Enterprise Park for $183,000 to construct a 30,000 square foot
medical office building for use as physician -patient offices and general office space. EMHS
further agrees to invest at least $5,250,000; make an annual payment in lieu of taxes on the
total value of the property of 30%; agree upon a construction progress schedule; and agree to
any other reasonable terms and conditions as may be required by the "Declaration of Covenants,
Conditions, and Restrictions — Maine Business Enterprise Park or the City of Bangor. The City
will agree to pay a brokerage fee of 8%. If approved, EMHS proposes to begin construction by
May 1, 2014 and complete construction by August 31, 2015.
This item was reviewed and recommended for approval by the Business & Economic
Development Committee at its August 5, 2013 meeting.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
Department Head
I r
City Manager
Page _ of _
nce Director
City Sblicitor
13-279
AUGUST 12, 2013
Assigned to Councilor Sprague
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CI`T'Y OF BANGOR
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(TITLE.) ORDER, Authorizing the Execution of a Development Agreement with Eastern
Maine Healthcare Systems — Lot 8A Maine Business Enterprise Park
WHEREAS, the City of Bangor is the owner of land in the Maine Business Enterprise Park; and
WHEREAS, the City has offered said land for purchase for development; and
WHEREAS, Eastern Maine Healthcare Systems (EMHS) has offered to purchase Lot 8A in the
Maine Business Enterprise Park; and
WHEREAS, EMHS wishes to construct a medical office building on Lot 8A in the City's Maine
Business Enterprise Park; and
WHEREAS, EMHS proposes to construct a 30,000 square foot building for use as physician -
patient offices and general office space with a construction cost of approximately $5,250,000;
and
WHEREAS, EMHS has agreed to make a payment in lieu of taxes of thirty percent (3096); and
WHEREAS, EMHS proposes to begin construction by May 1, 2014 and complete construction by
August 31, 2015.
By the City Couno'l of the Oty of Ban
ORDERED,
THAT Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor
to execute a Development Agreement with Eastern Maine Healthcare Systems for the
development of Lot 8A in the Maine Business Enterprise Park consisting of approximately 2.44
acres providing for the sale of the lot for $183,000.00; for the construction of a medical office
building consisting of 30,000 square feet; an investment of not less than $5,250,000; a
payment in lieu of taxes on the property of 30%; a payment by the City of a brokerage fee of
8%; an agreed upon construction progress schedule; terms as may be required by the
"Declaration of Covenants, Conditions, and Restrictions — Maine Business Enterprise Park"; and
such other temps and conditions as reasonable and appropriate. Said Development Agreement
shall be in final form as approved by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
August 12, 2013
Motion made and seconded for Passage
P sed
CITY CLERK