HomeMy WebLinkAbout2013-12-09 14-040 ORDERCOUNCIL ACTION
Item No. 14-040
Date: December 9, 2013
Item/Subject: ORDER, Authorizing Execution of a Development Agreement with Bangor
Housing Development Corporation — Freese Building — Main Street
Responsible Department: Community and Economic Development
Commentary:
This Order will authorize the execution of a Development Agreement with Bangor Housing
Development Corporation for redevelopment of the city -owned portion of the Freese Building.
This redevelopment will create commercial space on the first floor and market rate rentals on
the second and third floors in what is now a vacant unit. Under the terms of the development
agreement, Bangor Housing will acquire the right to develop Condo Unit 1, consisting of 15,200
square feet on a portion of three floors, for $1.00. Further, Bangor Housing Development
Corporation will be required to invest a minimum of one million in construction costs including
site work, building improvements, interior fit up, purchase and installation of equipment,
furnishing and permits fees. Finally, Bangor Housing Development Corporation will agree to a
construction progress schedule, and other such terms and conditions that are reasonable and
appropriate. As these are market rate rentals and commercial space, the property will remain
subject to property taxes. This item was reviewed and recommended for approval by the BED.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
Department Head
CA -t -j ", (A 4 /.
City Manager
Page _of _ _
nce Director
Solicitor
14-040
DECEMBER 9, 2013
�. Assigned to Councilor Durgin
GI'T~Y OF BANGOR
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(TITLE.) ORDER, Authorizing Execution of a Development Agreement with Bangor Housing
Development Corporation — Freese Building — Main Street
WHEREAS, the City is the owner of real property located in the Freese Building on Main Street
in Bangor consisting of three floors; and
WHEREAS, Bangor Housing Development Corporation has proposed and is desirous of
developing commercial uses on the first floor and market -rate residential units on the second
and third floors; and
WHEREAS, the cost of the development is estimated to be at least $1 million; and
WHEREAS, it is in the best interest of the City of Bangor to enter into a Development
Agreement with Bangor Housing Development Corporation for the development of the City's
property in the Freese building as proposed by Bangor Housing Development Corporation.
By the City Council of the City of Bangor.
THAT Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor
to execute a Development Agreement with Bangor Housing Development Corporation for the
development of a portion of the Freese Building owned by the City of Bangor, known as Condo
Unit 1, consisting of 15,200 square feet on a portion of three floors providing for the sale of the
property for $1.00 to provide for the development of commercial space on the first floor and
residential space on the second and third floors; an investment in construction costs consisting
of site work, building improvements, interior fit up, purchase and installation of equipment,
furnishing and permits fees of not less than $1 million; 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
December 9, 2013
Motion made and seconded for Passage
Passed
- CITY CARR