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HomeMy WebLinkAbout2014-04-28 14-153 ORDERCOUNCIL ACTION Item No. 14-153 Date: April 28, 2014 Item/Subject: ORDER, Authorizing Execution of Documents to Amend Conditions in Deed From City of Bangor to Penobscot Community Health Care — Union Street Responsible Department: Legal Commentary: By deed dated June 16, 2009 the City conveyed to Penobscot Community Health Care (PCHC) approximately one-half acre of vacant land abutting its Bangor Medical Center complex on Union Street. A condition of the deed was that the land was to be used only for the purpose of meeting impervious surface ratio requirements of the City of Bangor Land Development Code to construct additional parking on its complex or to construct parking on the conveyed parcel or both and for no other purposes. The deed also included a condition that if it is not done within five years of the date of the deed the property reverts to the City in return for the purchase price. To date, PCHC has undertaken substantial planning for the development of an approximately 23,000 square foot expansion to its pediatric practice located at it Bangor Medical Center complex. However, the planning and implementation phase of this project is taking significantly longer than originally anticipated. Therefore, PCHC requested an amendment to the deed conditions to give them 2 years to either begin construction of the parking lot on the parcel or begin construction on the Union Street complex that results in their needing the land to meet the impervious surface ratio standard. In return PCHC has agreed to make a thirty percent (30%) payment in lieu of taxes (PILOT) on the parcel to the City. This Order, if approved will authorize the execution of documents necessary to extend time to comply with the deed conditions and for PCHC to pay the 30% PILOT. Department Head Manager's Comments: Associated Information: Budget Approval: Legal Approval: Introduced for Passage First Reading Referral Page _of_ City Manager Finance Director 14-153 APRIL 28, 2014 h� Assigned to Councilor Durgin b of ap�c s: .qqy `ry, CITY OF BANGOR 4L27 ED. / a�¢ (TITLE.) ORDER, Authorizing Execution of Documents to Amend Conditions in Deed From City of Bangor to Penobscot Community Health Care — Union Street WHEREAS, by deed dated June 16, 2009 the City of Bangor conveyed to Penobscot Community Health Care a parcel of vacant land abutting its Bangor Medical Complex on Union Street; and WHEREAS, said deed included a condition that within five years the land was to be used only for the purpose of meeting impervious surface ratio requirements or to construct additional parking, or both, to serve its Bangor Medical Complex; and WHEREAS, said deed included a provision that the property would revert back to the City and the City would return the purchase price if the condition was not met; and WHEREAS, to date Penobscot Community Health Care has undertaken substantial planning for the development of an approximately 23,000 square foot expansion to its pediatric practice at its Bangor Medical Complex; and WHEREAS, the development is taking longer than originally anticipated and Penobscot Community Health Care will not be able to comply with the deed conditions in the time required; and WHEREAS, Penobscot Community Health Care has asked for additional time to comply with the deed conditions; and WHEREAS, in consideration for an extension Penobscot Community Healthcare has agreed to make a thirty percent (30%) payment in lieu of taxes (PILOT) on the parcel to the City. By the Ory Counts/ of the City of Bangor. ORDERED, THAT Catherine M. Conlow, City Manager, is hereby authorized on behalf of the City of Bangor to execute any document necessary to extend the time that Penobscot Community Health Care has to comply with the conditions contained in the deed from the City of Bangor to Penobscot Community Health Care dated June 16, 2009 and for Penobscot Community Health Care to make a thirty percent (30%) payment in lieu of taxes to the City of Bangor for the parcel description in the deed. Said documents shall be in a final form as approved by the City Solicitor. IN CITY COUNCIL April 28, 2014 P CITY CLERK