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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 t Assigned to Councilor Sprague /DF BAH.f r. 9VY f ={ CITY OF BANGOR o . y.y y_ ry 4��0r 7 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 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 o. •9qr ..- 1h 1 4 ED. 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.