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HomeMy WebLinkAbout2013-07-08 13-242 ORDERCOUNCIL ACTION Item No. 13-242 Date: July 8, 2013 Item/Subject: ORDER, Authorizing Execution of a Development Agreement with Ocean Properties, Ltd. — 76 Dutton Street Responsible Department: Community and Economic Development Commentary: The City owns real property located on Dutton Street in Bass Park. Ocean Properties, Ltd has proposed to develop a hotel consisting of approximately 130 guest rooms and ancillary facilities on the property. The estimated cost of development of the hotel and ancillary facilities, installation of equipment and furnishings is estimated to be at least $18 million. This Order, if approved, will authorize'the execution of a Development Agreement with Ocean Properties for the development of a parcel of land on Dutton Street consisting of approximately 3.13 acres (Tax Map 26, Lot 45) that provides for the sale of the lot for $565,000.00; for the construction of a hotel project that shall have a footprint of not less than 20,000 square feet and a gross floor area of not less than 120,000 square feet; an option fee of $100,000.00; an investment in construction costs consisting of site work, building construction, building improvements, interior fit up, purchase and installation of equipment, furnishing and permits fees of not less than $16 million; the relocation of storm water lines; an agreed upon construction progress schedule, and such other terms and conditions as reasonable and appropriate. . Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introlluced for r Passage First Reading Referral Department Head t7 City Manager Page _ of _ ance Director citor y^ 13-242 JULY 812013 Assigned to Councilor Sprague CITY OF BANGOR 0R4T`TE g. �EU.Fi �- (TITLE.) ORDER, Authorizing Execution of a Development Agreement with Ocean Properties, Ltd. — 76 Dutton Street WHEREAS, the City is the owner of real property located on Dutton Street in Bass Park; and WHEREAS, Ocean Properties, Ltd has proposed and is desirous of initially developing a hotel consisting of approximately 130 guest rooms and ancillary facilities on the property; and WHEREAS, the estimated cost of development of the hotel and ancillary facilities, installation of equipment and furnishings is estimated to be at least $18 million; and WHEREAS, it is in the best interest of the City of Bangor to enter into a Development Agreement with Ocean Properties, Ltd for the development of the lot on Dutton Street as proposed by Ocean Properties, Ltd. By the Ofy Counal of the City of Bangor. ORDERED, THAT Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute a Development Agreement with Ocean Properties, Ltd for the development of a parcel of land on Dutton Street consisting of approximately 3.13 acres (Tax Map 26, Lot 45) providing for the sale of the lot for $565,000.00 for the construction of a hotel project that shall have a footprint of not less than 20,000 square feet; a gross floor area of not less than 120,000 square feet; an option fee of $100,000.00; an investment in construction costs consisting of site work, building construction, building improvements, interior fit up, purchase and installation of equipment, furnishing and permits fees of not less than $16 million; the relocation of stone water lines; an agreed upon construction progress schedule, and such other terms 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 July 8, 2013 Motion made and seconded for Passage as d CITY ERR