HomeMy WebLinkAbout2010-06-28 10-247 ORDERCOUNCIL ACTION
Item No. 1 U (; 4 7
Date: June 28, 2010
Item/Subject: ORDER, Authorizing a Real Estate Purchase Contract with Bangor Natural
Gas for Land and Building at 498 Maine Ave.
Responsible Department: Community and Economic Development
Commentary:
Following discussions with the City Council, Staff has continued working with Bangor Natural Gas
(BNG) regarding the terms and conditions of the sale of a parcel of land and a building at 498 Maine
Ave. for the construction of a new "service center" for the company. BNG's proposal is to demolish
the existing building, a military era, 4,800 square foot, single story, masonry building, and develop a
new 12,000 square foot building for its use. About 4,000 SF of the front of the building would be for
office / showroom use and about 8,000 SF would be warehouse space. The area outside the building
would be used as a lay down area for materials and parking. We believe we have resolved the issues
which concerned staff and committee members. Staff has negotiated a Real Estate Purchase
Contract that is ready for the Council's approval. Following are the principal terms and conditions of
the Real Estate Purchase Contract.
1) Sale of 3 acres and building.
2) Purchase price - $173,439 for the land and building with BNG responsible for demolition and
clearance of the existing building.
3) The City will provide BNG: an ALTA survey of the premises, a Phase 1 Environmental Site
Assessment, a Phase 2 Environmental Site Assessment and an asbestos report on the building.
4) BNG, and any successors, will be responsible for property taxes on the property.
5) The City will not be responsible for brokerage fees on the property.
6) BNG will have a "due diligence" period of 120 days to inspect the property and perform analysis
and investigations.
7) BNG will construct a building of at least 12,000 sq. ft. The construction cost of the building will be
approximately $720,000.
8) Plans for the building and site improvements, including parking, screening and vehicular access
will be approved by the Business and Economic Development Committee during the due diligence
period
9) BNG will submit an application for site plan approval and an amendment to the Site Location of
Development permit within 75 days after BNG receives the property survey.
10) BNG shall obtain all zoning, land use, subdivision and environmental permits and approvals and
any other applicable permit or approval as may be necessary for their proposed use and
development of the property.
11) BNG will complete construction within 18 months of the closing.
12) The City will have the right of first refusal if BNG decides to sell the property at a price submitted
by any "bona fide" offer.
13) The property will be allowed all uses in the Airport Development District (ADD) with the exception
of: hotels, motels, communication towers, cellular towers and transmission towers.
14)The property will revert to the City if BNG breaches any terms of the contract.
Department Head
Manager's Comments:
Interim City Manager
Associated Information:
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Budget Approval:
Finance Director
Legal Approval:
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City Solicitor
Introduced for
Passage
First Reading Page _ of _
Referral
110 7
Assignee! to Councilor — Gratwick June 28, 2010
CITY OF BANGOR
(TITLE.) ORDER, Authorizing a Real Estate Purchase Contract with Bangor Natural Gas
for Land and Building at 498 Maine Ave.
WHEREAS, Bangor Natural Gas has presented an offer to purchase land and a building at
498 Maine Ave.; and
WHEREAS, Bangor Natural Gas wishes to consolidate its operations by developing a Bangor
Natural Gas service center; and
WHEREAS, the Bangor City Council finds that it is in the interests of the City to sell the land
and building at 498 Maine Ave. to Bangor Natural Gas:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
The Interim City Manager is hereby authorized, on behalf of the City of Bangor, to execute a
Real Estate Purchase Contract and any other related documents with Bangor Natural Gas for
the land and a building at 498 Maine Ave. in a form approved by the City Solicitor or Assistant
City Solicitor and containing the following terms and conditions:
1) The selling price will be $173,439.
2) Bangor Natural Gas will construct a building with a gross floor area of at least 12,000 sq.
ft.
3) Bangor Natural Gas, and any successors, will be responsible for property taxes on the
property.
4) Bangor Natural Gas will complete construction within 18 months of the closing.
5) The City will have the right of first refusal if Bangor Natural Gas decides to sell the
property.
6) The property will revert to the City if Bangor Natural Gas breaches any terms of the
contract.
IN CITY COUNCIL
June 28, 2010
Motion Made and Seconded for Passage
Passed
(TITLE,) Authorizing a Real Estate Purchase
Contract with Bangor Natural Gas for Land
and Building at 498 Maine Avenue.
Assigned to Councilor le