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HomeMy WebLinkAbout2013-07-22 13-255 ORDERCOUNCIL ACTION Item No. 13= 255 'i Date: July 22, 2013 Item/Subject: ORDER, Designating Bangor Housing Authority Tentative Developer of Park Woods Apartments — Union Street and Griffin Road Responsible Department: Health and Community Services Commentary: This Order would designate Bangor Housing Authority or any of its affiliates (BHA) as the "tentative developer" of the Park Woods apartment complex. The City of Bangor owns 60 apartment units in Bangor commonly referred to as Park Woods. Over the past several years, it has become apparent that the City's model for delivering transitional housing has become unsustainable, both financially and programmatically. If approved, this Order would allow the City to negotiate a development agreement with BHA, setting forth the proposed terms and conditions under which the proposed development would be allowed to move forward. In a companion Council Order, the Council would authorize the City to take action to abrogate certain remaining deed conditions from the federal government regarding the City's ownership of Park Woods. Once these deed conditions are extinguished, the City is free to sell the property to another entity, recouping the cost of abrogating the deed conditions and some of the other funds the City has put into Park Woods over the years. This item was reviewed by the Council in Executive Session on June 24, 2013. Department Head Manager's Comments: City Manager Associated Information: Budget Approval: Finance Director Legal Approval: zz" City for Introduced for x Passage First Reading Referral 13-255 JULY 229 2013 S/oF ea',yr` Assigned to Councilor Blanchette 00 T CI'T"Y OF BANGOR .qpy y_ try S - 0 47EDf� (TITLE.) Order, Designating Bangor Housing Authority Tentative Developer of Park Woods Apartments — Union Street and Griffin Road WHEREAS, the City of Bangor is the owner of 60 apartment units known collectively as Park Woods near the comer of Union Street and Griffin Road; WHEREAS, the federal Department of Health and Human Services included within its deed to the City for Park Woods certain terms and conditions; WHEREAS, the City wishes to abrogate the terms and conditions of the deed and sell the apartment complex; WHEREAS, the City has granted "tentative developer" status to potential developers on various City -owned development sites in the past, thereby providing the developer and the City time to prepare a development agreement for the City Council's consideration and during which time the City agrees to deal exclusively with the designated tentative developer for the purpose for which tentative developer status was granted; and WHEREAS, it is in the best interest of the City to designate Bangor Housing Authority or any of its affiliates as "tentative developer" of the Park Woods apartment complex in order to allow time for the parties to negotiate a development agreement for consideration by the City Council. NOW, THEREFORE, BE IT ORDERED BY THE CIT1f COUNCIL OF THE CITY OF BANGOR THAT, Bangor Housing Authority or any of its affiliates is hereby designated the tentative developer of the Park Woods apartment complex near the comer of Union Street and Griffin Road in Bangor. This designation shall be in effect until December 15, 2013. During the period of designation, the City agrees to deal exclusively with Bangor Housing Authority and its affiliates for the purpose for the development of the Park Woods apartment complex and City staff is authorized to negotiate a development agreement with Bangor Housing Authority or any of its affiliates for the City Council's consideration setting forth the proposed terms and conditions under which the proposed development would be allowed to move forward. IN CITY COUNCIL July 22, 2013 Motion made and Seconded for Passage Passed 'CITY CIARK