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HomeMy WebLinkAbout2009-05-11 09-166 ORDERCOUNCIL ACTION Item No. 09-166 Date: May 11, 2009 Item/Subject: ORDER, Authorizing Development Agreement with Penobscot Community Health Care — Sale and Reuse of 103 and 113 Maine Ave. Responsible Department: Community & Economic Development Commentary: Penobscot Community Health Care (PCHC), a non-profit federally qualified health center, has submitted a proposal to purchase the remaining two buildings of the former University of Maine System's complex, Auburn Hall at 103 Maine Avenue and the adjacent Building 26 at 113 Maine Avenue. PCHC also proposes acquisition of approximately a half acre of City property between Bangor Radiator and Union Street for parking or open space use. PCHC wishes to move its administrative offices from its current location on Union St. to Maine Ave. to enable clinical expansions on Union Street. PCHC plans to renovate the two buildings and construct about 70 additional parking spaces. This Order would authorize a Development Agreement with PCHC where the City would sell the Maine Avenue property for $1.5 million and finance the sale at 4% interest for a 40 year term, the same terms PCHC could receive from US Department of Agriculture if the project were not located in Bangor. PCHC would invest an estimated $600,000 to $800,000 improving the property, and the sale would take place within 3 months. This project will add new, well -paying jobs to PCHC's clinical dental staff including five dental residents and two pediatric dentists; the City would avoid the cost of maintaining the vacant buildings estimated to be $20,000 over the next year; and PCHC's use of the properties is consistent with the other tenants in the Maine Business Enterprise Park and the Park's original design. Future use of the property would be limited to those uses listed in the Council Order. This Order would also authorize the sale of a half acre between Bangor Radiator and Union Street for $10,000 for use to expand parking, either through the construction of new spaces on this property or by using this property to meet the impervious surface ratio required to add spaces elsewhere on adjacent property, for PCHC's Union Street facilities. PCHC would be required to pay the purchase price at the time the necessary approvals are granted for parking expansion. If such additional parking is not constructed within a five year period, ownership of the property would revert to the City. Finally, the City will agree to work in good faith with PCHC to address any additional parking needs they may have once those needs have been fully analyzed and quantified. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Department Head Page _ of _ City Manager Finance Director City Solicitor Assigned to Councilor Nealley 09-166 (As Amended) May 11, 2009 CITY OF BANGOR (TITLE.) ORDER, Authorizing Development Agreement with Penobscot Community Health Care - Sale and Reuse of 103 and 113 Maine Avenue WHEREAS, the City of Bangor owns land and two buildings formerly part of the University of Maine System's Office Complex at 103 Maine Ave. and 113 Maine Ave.; and WHEREAS, Penobscot Community Health Care has submitted a proposal to the City to acquire the land and buildings at 103 and 113 Maine Avenue for $1,500,000; and WHEREAS, Penobscot Community Health Care will be adding well -paying jobs to its staff to include five dental residents and two pediatric dentists; and WHEREAS, Penobscot Community Health Care's use of the properties is consistent and compatible with the other tenants in the Maine Business Enterprise Park: NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR That the City Manager is hereby authorized to execute, on behalf of the City of Bangor, a Development Agreement with Penobscot Community Health Care (PCHC), in a final form approved by the City Solicitor or Assistant City Solicitor, with the following general terms: the purchase price for the land and buildings located at 103 and 113 Maine Avenue shall be $1.5 million to be financed by the City at 4% interest amortized over 40 years with the first payment due one year from the date of conveyance of the property; no interest accrue or be due for one year after conveyance; the sale be completed within three months; the Business and Economic Development Committee approve of any site and exterior building improvements to be undertaken during a period of one year after conveyance; the City have a right of first refusal to purchase the property at fair market value should PCHC offer the property for sale in the future; PCHC shall have an option to purchase the City property between Bangor Radiator and Union Street for $10,000 for purposes related to providing additional parking, either through the constrcution of new parking for its Union Street facilities on that property or by using the property to meet the impervious surface ratio required to add additional parking spaces elsewhere on adjacent property provided that PCHC will be required to pay the purchase price at the time necessary approvals are granted for parking expansion and that, if the new parking is not constructed within five years, the property shall revert to the ownership of the City. The City will agree to work in good faith with PCHC to address any additional parking needs of PCHC once those needs have been fully analyzed and quantified. The deed would restrict use of the property to the following as permitted uses: A) Facilities operated by public agencies or private non-profit organizations limited to health, education, social welfare, and cultural uses. B) Group day-care or nursery school. C) Day-care center. D) Clinic, medical or dental. E) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses. F) Permitted uses allowed in the Technology and Service District or other such as may be adopted in succession to the Technology and Service District. G) Prohibited uses: Any use not specifically permitted. Assigned to Councilor CITY OF BANGOR 9 .. 6 :J .i MAY 1 1 2009 (TITLE.) ORDER, Authorizing Development Agreement with Penobscot Community Health Center - Sale and Reuse of 103 and 113 Maine Avenue WHEREAS, the City of Bangor owns land and two buildings formerly part of the University of Maine System Chancellor's Office Complex at 103 Maine Ave. and 113 Maine Ave., Bangor; and WHEREAS, Penobscot Community Health Center has submitted a proposal to the City to acquire the land and buildings at 103 and 113 Maine Avenue for $1,500,000; and WHEREAS, the Penobscot Community Health Center will be adding well -paying jobs to their staff to include adding five dental residents and two pediatric dentists; and WHEREAS, Penobscot Community Health Center's use of the properties is consistent and compatible with the other tenants in the Maine Business Enterprise Park: BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The City Manager is hereby authorized to execute, on behalf of the City of Bangor, a Development Agreement with Penobscot Community Health Center, in a final form approved by the City Solicitor or Assistant City Solicitor, with the following general terms: the purchase price be $1.5 million; the City finance the purchase at 4% interest amortized over 40 years with the first payment due one year from conveyance of the property; that no interest accrue or be due for one year after conveyance; that the sale be completed within three months; that the Business and Economic Development Committee approve of any site and exterior building improvements for a period of one year after conveyance; that the City have a right of first refusal to purchase the property at fair market value should PCHC offer the property for sale; that PCHC have an option to purchase the City property between Bangor Radiator and Union Street for $10,000, financed by the City under the same terms as the Maine Avenue Property, to provide additional parking for its Union Street campus provided that PCHC receives Planning Board approval for such purpose prior to December 31, 2009; and that for a period of 12 months PCHC have an option to have access to and lease additional land on existing impervious surface west of the drainage way behind PCHC's Union Street campus for its employees use for a period of ten years for an annual lease rate of $10,000, provided that PCHC receives all necessary permits and approvals for such use, and the cost of any improvements required for such use be the responsibility of PCHC. The deed would restrict use of the property to the following as permitted uses: �9 X66 A) Facilities operated by public agencies or private non-profit organizations limited to health, education; social welfare, and cultural uses. B) Group day-care or nursery school. C) Day-care center. D) Clinic, medical or dental. E) Accessory uses on the same lot and customarily incidental to and subordinate to the above uses. F) Permitted uses allowed in the Technology and Service District or other such as may be adopted in succession to the Technology and Service District. G) Prohibited uses: Any use not specifically permitted. IN CITY COUNCIL May 11, 2009 Motion Made and Seconded for Passage Motion Made and Seconded to Amend by Substitution Passed Motion Mae and Seocnded for Yassage As Amended Pagmged As Amended CITY CLERK -- 09-166 O R D E R (TrrLEAuthorizing Development Agreement with Penobscot Community Health Center - Sale and Reuse of 103 and 113 Maine Avenue Assigned to Coum