HomeMy WebLinkAbout2011-04-25 16-153 RESOLVECOUNCIL ACTION
Item No. 16-153
Date: April 25, 2011
Item/Subject: RESOLVE, Ratifying Action by the City Manager to Obtain a Discharge of Obligations of
the City to the Maine State Housing Authority Under a 1995 Grant Agreement and
Declaration of Covenants – Park Woods
Responsible Department: Community and Economic Development
Commentary:
In 1995 the City received a Grant from the Maine State Housing Authority for the operation of Park
Woods transitional housing program. The Grant required that the City operate the program for thirty
years. In 2015 the City sold the property to the Bangor Housing Authority
After the sale, the parties discovered the outstanding obligation to the Maine State Housing Authority.
The Maine State Housing Authority has agreed to discharge the City of any further obligations under the
terms of the Grant in return for the City repaying a prorated portion of the Grant. This encumbrance on
the property needed to be removed as soon as possible in order for the Bangor Housing Authority to
proceed with its financing to do its project at Park Woods. Therefore, after consultation with the City
Council the City paid the Maine State Housing Authority $85,500 and taken other action necessary to
obtain a discharge its obligations under Grant.
This Resolve, if approved, will ratify the City Manager's action of submit the payment to the Maine State
Housing Authority in the amount of $88,500 and to obtain a discharge of the City's obligations under the
1995 Grant.
This item was previously reviewed in with the City Council Executive Session.
/s/ Tanya L. Emery
Department Head
Manager's Comments:
City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced for
X_ Passage
First Reading
Referral
Page 1 of —1—
Assigned to Councilor Graham
CITY OF BANGOR
16-153
APRIL 11, 2016
(TITLE.) RESOLVE, Ratifying Action by the City Manager to Obtain a Discharge of Obligations
of the City to the Maine State Housing Authority Under a 1995 Grant
Agreement and Declaration of Covenants — Park Woods
WHEREAS, the City of Bangor, Maine was formerly the owner of the Park Woods
housing complex in Bangor, County of Penobscot, State of Maine; and
WHEREAS, the City of Bangor sold the complex to Bangor Housing Authority in 2015;
and
WHEREAS, in 1995 the City received a Grant from the Maine State housing Authority for
the operation of Park Woods.
WHEREAS, the Memorandum of Grant Agreement and Declaration of Covenants
between the Maine State Housing Authority and the City of Bangor required the City to operate
Park Woods for a period of thirty years; and
WHEREAS, the Maine State Housing Authority has agreed to discharge the City's
obligations under the Grant Agreement and Declaration of Covenants in return for the City's
repayment of a prorated portion of the grant funds; and
WHEREAS, because the City had conveyed the property to the Bangor Housing Authority
prior to either party becoming aware of the outstanding agreement with the Maine State
Housing Authority and because this encumbrance on the property needed to be removed as
soon as possible in order for the Bangor Housing Authority to proceed with its financing for its
project on the Park Woods property the City has paid the prorated amount and received a
discharge of its obligations under the Grant.
NOW, THEREFORE, BE IT RESOLVED,
That the actions of the City Manager to pay the Maine State Housing Authority the sum of
$88,500 representing a prorated portion of a 1995 grant from the Maine State Housing
Authority for Park Woods and actions of staff to secure the release of all obligations of the City
under the 1995 Grant between the City of Bangor and Maine State Housing Authority are
hereby ratified.
IN CITY COUNCIL
APRIL 11, 2016
MOTION MADE AND SECONDED FOR PASSAGE
P SED
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CITY CLERK