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HomeMy WebLinkAbout2016-01-25 16-069 ORDERCOUNCIL ACTION Item No. 16-069 Date: January 25, 2016 Item/Subject: ORDER, Authorizing Execution of an Amendment of the Purchase Option and Development Agreement with John Karnes for Development of Former Pine Tree Inn — 22 Cleveland Street (Tax Map 001-017) Responsible Department: Community & Economic Development Commentary: On June 8, 2015, Council Order 15-210 authorized the execution of a Purchase Option and Development Agreement with John Karnes for the redevelopment of property located at 22 Cleveland Street. The approved Purchase Option and Development Agreement included requirements that certain timelines be met. John Karnes has carefully pursued completion of all requirements of the Purchase Option and Development Agreement. Nonetheless, he has requested an amendment to extend the time line as he completes his due diligence. This type of request is not uncommon for projects of this size and scope. If approved, this order will amend the Purchase Option and Development Agreement with John Karnes, to extend the closing on the sale of the property to April 30, 2016; site work and building improvements to commence no later than May 16, 2016; and site work and building construction to be completed no later than October 31, 2016. This item was reviewed and recommended for approval by the Business & Economic Development Committee at its January 19, 2016 meeting. Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral s/ Tanya Emery Department Head Finance Director Page _of_ licitor Assigned to Councilor Durgin CITY OF BANGOR 16-069 JANUARY 25, 2016 (TITLE.) ORDER, Authorizing Execution of an Amendment of the Purchase Option and Development Agreement with John Karnes for Development of Former Pine Tree Inn — 22 Cleveland Street (Tax Map 001-017) WHEREAS, the Bangor City Council on June 8, 2015, by Council Order 15-210, authorized the execution of a Purchase Option and Development Agreement with John Karnes for the development of 22 Cleveland Street, the former Pine Tree Inn; and WHEREAS, the Purchase Option and Development Agreement includes requirements that certain timelines be met; and WHEREAS, John Karnes has diligently pursued completion of all requirements of the Purchase Option and Development Agreement; and WHEREAS, John Karnes has requested an amendment to the Purchase Option and Development Agreement to receive additional time to meet some of the requirements of the agreement. BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Catherine M. Conlow, City Manager of the City of Bangor, is hereby authorized to execute, on behalf of the City of Bangor, documents necessary for an amendment of the Purchase Option and Development Agreement with John Karnes for land and buildings located at 22 Cleveland Street, Bangor, Maine. Said Purchase Option and Development Agreement shall be amended such that the closing on the sale of the property is to be completed by April 30, 2016; site work and building improvements are to commence no later than May 16, 2016; and site work and building construction to be completed no later than October 31, 2016. Said documents shall be in a final form as approved by the City Solicitor or the Assistant City Solicitor IN CITY COUNCIL JANUARY 25, 2016 PASSED CITY CLEITK