HomeMy WebLinkAbout2015-06-08 15-210 ORDERCOUNCIL ACTION
Item No.15-210
Date: June 8, 2015
Item/Subject ORDER, Authorizing Execution of 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: This Order will authorize the City Manager to execute documents necessary for a
Purchase Option and Development Agreement with John Karnes for land and buildings located at 22
Cleveland Street, Bangor, Maine. The Agreement provides that the property is to be redeveloped as
"extended stay suites" with the following terms and conditions: purchase price of $10,000 with the total
investment in the property not less than $900,000; all improvements shall comply with the City of
Bangor's Land Development Code with the building improvements and site development plans to be
approved by the Business & Economic Development Committee; the Developer will exercise the option no
later than June 30, 2015 with the sale of the property no later than September 30, 2015. the Developer
to provide evidence of a sufficient financing commitment for the project and site work and building
improvements to commence no later than October 1, 2015; site work and building construction to be
completed no later than March 31, 2016.
In addition, the terms specify that the City will utilize CDBG funds to repave Cleveland Street, install
street lights, and fund and fund $25,000 of handicap accessibility improvements to the building; and
other such terms and conditions as appropriate. The City agrees to accept Cleveland Street as a City
Street.
This item was reviewed and recommended for approval by the Business & Economic Development
Committee at its June 2, 2015 meeting.
s/ Tanya Emery
Department Head
Manager's Comments:
City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced for
X Passage
First Reading
Page _ of _
Referral
Assigned to Councilor Nealley
CITY OF BANGOR
15-210
JUNE 8, 2015
(TITLE.) ORDER, Authorizing Execution of 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 February 23, 2015 approved Council Order 15-098
designating John Karnes, RM Construction, Tentative Developer of 22 Cleveland
Street, the former Pine Tree Inn, until May 29, 2015; and
WHEREAS, the Bangor City Council on May 27, 2015 approved Council Order 15-189
extending John Karnes as Tentative Developer of 22 Cleveland Street, the former
Pine Tree Inn, until July 29, 2015; and
WHEREAS, John Karnes and City staff have been in discussions to prepare a Purchase
Option and Development Agreement:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
Catherine M. Conlow, City Manager, is hereby authorized to execute, on behalf of the City of
Bangor, documents necessary for a 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 include the following terms and conditions: purchase
price of $10,000; the period to exercise the option to end June 30, 2015; the closing on the
sale of the property to be completed by September 30, 2015; the property to be redeveloped
as "extended stay suites" at a total project cost of not less than $900,000; all improvements to
comply with the City of Bangor's Land Development Code; building improvements and site
development plans to be approved by the Business & Economic Development Committee of the
City Council; all necessary zoning, subdivision and environmental permits and approvals and
any other applicable permit or approval as may be necessary to be obtained by Developer with
assistance from the City; Developer to provide evidence of a sufficient financing commitment
for the project; site work and building improvements to commence no later than October 1,
2015; site work and building construction to be completed no later than March 31, 2016; City to
designate Cleveland Street as an official city street; City to provide funding from the CDBG
program to: repave Cleveland St., install 8 street lights along Cleveland Street; and fund
$25,000 of handicap accessibility improvements to the building; and other such terms and
conditions as appropriate. Said documents shall be in a final form as approved by the City
Solicitor or the Assistant. City Solicitor
IN CITY COUNCIL
JUNE 8, 2015
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CLE