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HomeMy WebLinkAbout2015-06-22 15-233 ORDERCOUNCIL ACTION Item No_s -15-233 Date: June 22, 2015 Item/Subject ORDER, Authorizing Abrogation and Transfer of Park Woods Apartments to Bangor Housing Authority — (Map 068, Lots 001, 001- G, 002) Responsible Department: Community & Economic Development Commentary: This order would authorize the City Manager to execute all documents related to the sale of the Park Woods Apartments to Bangor Housing Authority or any of its affiliates and to complete the abrogation of the property from the US Department of Health and Human Services. The City of Bangor is the owner of 60 apartment units known collectively as Park Woods located on the corner of Union Street and Griffin Road. In late 2014 the City received authorization from the US Department of Housing and Urban Development to proceed with abrogation and to sell the apartment complex to the Bangor Housing Authority. Terms and conditions will include: sale price of the property of $1.3 million; if the property is determined to be tax exempt by the Assessor, Bangor Housing Authority agrees to make annual payment in Lieu of Taxes of 30%; and the City will write off all amounts owed the general fund. The final agreement will be in a form satisfactory to the City Solicitor or Assistant City Solicitor. This item was reviewed and recommended for approval by the Business & Economic Development Committee at its June 16, 2015 meeting. s/ Tanya Emery Department Head Manager's Comments: ((^^ ^^ rvl. City Manager Associated Information: Budget Approval: ?� Finance Director Legal Approval: Cityfictor Introduced for X Passage First Reading Page _ of Referral 15-233 June 22, 2015 ✓,. Assigned to Councilor Baldacci �iOF f14y� CITY OF BANGOR A4iE0.fE Order, Authorizing Abrogation and Transfer of Park Woods Apartments to Bangor Housing Authority — (Map 068, Lots 001, 001-G, 002) WHEREAS, the City of Bangor is the owner of 60 apartment units known collectively as Park Woods near the corner of Union Street and Griffin Road; and WHEREAS, the US Department of Health and Human Services included within its deed to the City for Park Woods certain terms and conditions; and WHEREAS, the City received initial approval in 2013 to proceed with abrogation of the terms and conditions of said deed; and WHEREAS, the City in 2013 granted tentative developer to Bangor Housing Authority or any of its affiliates; and WHEREAS, the City has reached final terms and conditions for a sale of the Park Woods Apartments to Bangor Housing Authority or any of its affiliates; and WHEREAS, in order to complete the sale, the City of Bangor will need to forgive certain funds which have been paid out of the general fund for maintenance of the Park Woods Apartments while being operated by the City; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT, The City Manager is authorized to execute all documents related to the sale of the Park Woods Apartments to Bangor Housing Authority or any of its affiliates, to complete the abrogation of the terms and conditions of the deed from the US Department of Health and Human Services to the City, and to forgive any funds presently due to the general fund from expenditures related to Park Woods. Terms and conditions of the sale to Bangor Housing Authority will include: sale price of the property of $1.3 million; if the property is determined by the City Assessor to be property tax exempt, Bangor Housing Authority agrees to make an annual Payment in Lieu of Taxes of 30% of the value of the property; and the city agrees to write off all amounts owed the general fund. All documents will be in a form satisfactory to the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL JUNE 22, 2015 MOTION MADE AND SECONDED FOR PASSAGE PASSED DEPUTY CITY CLERK