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