HomeMy WebLinkAbout2013-02-25 13-096 ORDERCOUNCIL ACTION
Item No. 13-096
Date: February 25, 2013
Item/Subject: ORDER, Authorizing Execution of Documents by and Between the City of Bangor and
Bangor Savings Bank for the Purchase of Property Leased by Bangor Savings Bangor Bank and for
the Purchase of Lot 3 in the Maine Business Enterprise Park
Responsible Department: Legal
Commentary: Currently, the City of Bangor leases property located at 19 Maine Avenue and 203
Maine Avenue, in the Maine Business Enterprise Park, to Bangor Savings Bank. The City also owns a
vacant lot abutting 19 Maine Avenue, known as Lot 3, in the Maine Business Enterprise Park. Bangor
Savings Bank has expressed interest in acquiring all leased property located at 19 and 203 Maine Avenue
as well as the vacant property also known as Lot 3.
This Order will authorize the City Manager to execute all documents necessary to give Bangor Savings
Bank the option to purchase the aforementioned properties. Conditions of the purchase are as follows:
• A three year option to purchase the properties with an option to extend for an additional three
years;
• The purchase prices within the first three years will be $453,000 for 19 Maine Avenue, $240,000
for 203 Maine Avenue and $263,000 for Lot 3; If the option to purchase is extended for an
additional three years the purchase prices shall be determined by new appraisals.
• An option fee of $5,000 per year for Lot 3;
• A requirement to construct a new building of not less than 20,000 square feet in exchange for the
purchase of Lot 3;
• If purchased separately, Bangor Savings agrees to create an additional $1.0 million in new
taxable value for 203 Maine Avenue and $1.5 million in new taxable value for 19 Maine Avenue
for a combined taxable value of $2.5 million utilizing off-site improvements or improvements
made on Lot 3;
• In exchange, the City of Bangor agrees to provide a credit of $82,000 in new taxable assessed
value toward the purchase of $2.5 million;
• Should the option be extended, the new requirement for total improvements increases from $2.5
million to $3.8 million.
Department Head
Manager's Comments: This has been discussed in Executive Sessions on January 28, 2013 and
February 11, 2013.
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
City Manager
Finance Director
Page _of_
City Solicitor
AS AMENDED
13-096
FEBRUARY 25, 2013
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(TITLE.) ORDER, Authorizing Execution of Documents by and Between the City of Bangor
and Bangor Savings Bank for the Purchase of Property Leased by Bangor Savings Bank
and for the Purchase of Lot 3 in the Maine Business Enterprise Park
WHEREAS, the City of Bangor leases property in the Maine Business Enterprise Park to Bangor
Savings Bank at 19 Maine Avenue and 203 Maine Avenue; and
WHEREAS, the City of Bangor is the owner of a vacant lot, known as Lot 3, in the Maine
Business Enterprise Park abutting the property leased to Bangor Savings Bank at 19 Maine
Avenue; and
WHEREAS, Bangor Savings Bank wishes to have the opportunity to purchase the leased
property and Lot 3 of the Maine Business Enterprise Park from the City of Bangor; and
WHEREAS, it is in the best interest of the City of Bangor to have an agreement with Bangor
Savings Bank for the purchase of the property and creation of increased taxable value in the
City of Bangor.
By the Oty Counts/ of the Oty of Banqw.
ORDERED,
That Catherine M. Conlow, City Manager, is hereby authorized, on behalf of the City of Bangor
to execute amendments to leases, a Development Agreement, and any. other documents
necessary to provide Bangor Savings Bank with the right, under certain terms and conditions to
purchase, the property leased at 19 Maine Avenue, and/or the property leased at 203 Maine
Avenue and Lot 3 of the Maine Business Enterprise Park. Said documents shall include the
terms and condition of the rights to purchase the property including, but not limited to: A three
year option to purchase the properties with an option to extend the option to purchase for an
additional three years; an option fee of $5,000 per year for Lot 3; a requirement to construct a
new building of not less than 20,000 square feet on the combined lots of 203 Maine Avenue
and Lot 3 if Lot 3 is purchase with an increase of at least $1.5 million in new taxable value on
the combined lots; an increase in new taxable value: $1.0 million if 19 Maine Avenue is
purchased; an increase in new taxable value: $1.5 million if 203 Maine Avenue is purchased;
the increase in taxable value may be anywhere within the City limits of the City of Bangor; a
credit of $82,000 toward the new value representing the taxable value of newly constructed
parking lot at 203 Maine Avenue; a requirement of a net increase of $3.8 million if the option to
purchase is extended for an additional three years; purchase prices within the first three years
will be $453,000 for 203 Maine Avenue, $240,000 for 19 Maine Avenue and $263,000 for Lot 3;
if the original option terms is extended the purchase prices shall be determined by new
appraisals. Said documents shall be in a final form as approved by the City Solicitor or
Assistant City Solicitor.
IN CITY COUNCIL
February 25, 2013
Motion made and seconded for Passage
Motion made and seconded to Amend Order
13-096 by Substitution
Passed
Motion made and secondedforPassage as Amended
ed
CITY CLERK
13-096
FEBRUARY 25, 2013
Assigned to Councilor Sprague
CI`T'Y OF BANGOR
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ED.
(TITLE.) ORDER, Authorizing Execution of Documents by and Between the City of Bangor
and Bangor Savings Bank for the Purchase of Property Leased by Bangor Savings Bank
and for the Purchase of Lot 3 in the Maine Business Enterprise Park
WHEREAS, the City of Bangor leases property in the Maine Business Enterprise Park to Bangor
Savings Bank at 19 Maine Avenue and 203 Maine Avenue; and
WHEREAS, the City of Bangor is the owner of a vacant lot, known as Lot 3, in the Maine
Business Enterprise Park abutting the property leased to Bangor Savings Bank at 203 Maine
Avenue; and
WHEREAS, Bangor Savings Bank wishes to have the opportunity to purchase the leased
property and Lot 3 of the Maine Business Enterprise Park from the City of Bangor; and
WHEREAS, it is in the best interest of the City of Bangor to have an agreement with Bangor
Savings Bank for the purchase of the property and creation of increased taxable value in the
City of Bangor.
By the Oty Coundl of the City of Bangw.
ORDERED,
That Catherine M. Conlow, City Manager, is hereby authorized, on behalf of the City of Bangor
to execute amendments to leases, a Development Agreement, and any other documents
necessary to provide Bangor Savings Bank with the right, under certain terms and conditions to
purchase, the property leased at 19 Maine Avenue, and/or the property leased at 203 Maine
Avenue and Lot 3 of the Maine Business Enterprise Park. Said documents shall include the
terms and condition of the rights to purchase the property including, but not limited to: A three
year option to purchase the properties with an option to extend the option to purchase for an
additional three years; an option fee of $5,000 per year for Lot 3; a requirement to construct a
new building of not less than 20,000 square feet on the combined lots of 203 Maine Avenue
and Lot 3 if Lot 3 is purchase with an increase of at least $1.5 million in new taxable value on
the combined lots; an increase in new taxable value: $1.0 million if 19 Maine Avenue is
purchased; an increase in new taxable value: $1.5 million if 203 Maine Avenue is purchased;
the increase in taxable value may be anywhere within the City limits of the City of Bangor; a
credit of $82,000 toward the new value representing the taxable value of newly constructed
parking lot at 203 Maine Avenue; a requirement of a net increase of $3.8 million if the option to
purchase is extended for an additional three years; purchase prices within the first three years
will be $453,000 for 203 Maine Avenue, $240,000 for 19 Maine Avenue and $263,000 for Lot 3;
if the original option temps is extended the purchase prices shall be determined by new
appraisals. Said documents shall be in a final form as approved by the City Solicitor or
Assistant City Solicitor.