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HomeMy WebLinkAbout2009-09-30 09-305 ORDERCOUNCIL ACTION Item No. 09-305 Date: Sept. 30, 2009 Item/Subject: ORDER, Authorizing Purchase Option Agreement with Bangor Gas Co. for Sale and Development of Property at the Intersection of Maine Avenue and Florida Avenue for use as a New Bangor Natural Gas Complex Responsible Department: Community and Economic Development Commentary: Bangor Gas Co. would like to purchase City property at the intersection of Maine Avenue and Florida Avenue for development and use as a Bangor Natural Gas service center. The property consists of a building, site improvements, and approximately 2.53 acres of land. Bangor Gas proposes to demolish and clear the existing building and construct a building of at least 12,000 square feet which it would use as office, appliance sales, and vehicle storage. The remainder of the lot would be used as a lay down yard to store materials used in the installation of gas lines and the conduct of its business. This Order would authorize a Purchase Option Agreement with Bangor Gas Co. whereby the City would sell the property to Bangor Gas Co. for $140,000; Bangor Gas would construct a building of at least 12,000 sq. ft. at a minimum construction cost of $1.5 million for building and site improvements; all building and site improvements, including parking, screening and vehicular access plans, would require the approval of the Business and Economic Development Committee; Bangor Gas must commence construction by May 1, 2010 and complete construction by March 30, 2011; the property would be subject to property taxes, and the deed would require Bangor Gas and successors in ownership to waive any right of exemption from municipal taxation; allowed uses of the site would be restricted to those permitted and conditional uses listed in the City's Land Development Code; and the City would be responsible for any required amendment to the City's Subdivision Plan and Site Location of Development Act (SLODA) permit. Department Head Manager's Comments: This has been reviewed and is recommended by the Business and Economic Development Committee. Associated Information: Map Budget Approval: Legal Approval: Introduced for X Passage First Reading Referral Page _ of _ City Manager Finance Director City Solicitor Assigned to Councilor HAwEs CITY OF BANGOR 09-305 SEPTEMBER 30, 2009 (TITLE.) ORDER, Authorizing Purchase Option Agreement with Bangor Gas Co. for Sale and Development of Property at the Intersection of Maine Avenue and Florida Avenue for use as a New Bangor Natural Gas Complex. BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The City Manager is hereby authorized, on behalf of the City of Bangor, to execute a Purchase Option Agreement and any other related documents with Bangor Gas Co. for property at the Intersection of Maine Avenue and Florida Avenue in a form approved by the City Solicitor or Assistant City Solicitor and containing the following terms and conditions: 1) Sale of 2.53 acres and building as shown on Exhibit A. 2) Agreement Conditions: A) The purchase price shall be $140,000 for the land and building with Bangor Gas Co. responsible for demolition and clearance of the existing building. B) The Option expires December 28, 2009, except that the option period may be extended up to March 22, 2010 with the approval of the Business and Economic Development Committee. C) The option fee be $1,500. D) Bangor Gas Co. will construct a building of at least 12,000 sq. ft. at a minimum construction cost investment of $1.5 million. E) Plans for the building and site improvements, including parking, screening and vehicular access, require the approval of the Business and Economic Development Committee prior to the transfer of ownership of the property (not later than December 28, 2009). F) Bangor Gas Co. will develop and occupy the premises in compliance with municipal, state, and federal laws and regulations. G) Bangor Gas Co. will review and be satisfied with all zoning, land use, and environmental laws, codes, ordinances, and regulations affecting the property. H) Bangor Gas Co. shall obtain all zoning, land use, subdivision, and environmental permits and approvals and any other applicable permit or approval as may be necessary for their 09-305 SEPTEMBER 30, 2009 proposed use and development of the property prior to the transfer of ownership of the property (not later than December 28, 2009). I) Bangor Gas Co. will commence construction prior to May 1, 2010 and complete construction by March 30, 2011. ]) The property will be subject to property taxes, and Bangor Gas Co. and successors will waive the right of exemption from municipal taxation. K) The price for any land area sold in addition to the 2.53 acres be $71,146 an acre, prorated. L) The City has the right of first refusal if Bangor Gas Co. decides to sell the property. M) Use of the property would be restricted to Permitted Uses in the Airport Development District in the City's Land Development Code. IN CITY COUNCIL SEPTEMBER 30, 2009 CO 09-305 MOTION MADE AND SECONDED TO REFER TO BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE REFERRED