HomeMy WebLinkAbout2012-06-25 12-225 ORDERCOUNCIL ACTION
Item No. 12-225
Date: June 25 2012
Item/Subject: Order, Authorizing Execution of Development Agreement with Penobscot
Community Health Care — Hope House
Responsible Department: Legal
Commentary:
Penobscot Community Health Care is the owner and operator of the Hope House Health and
Living Center ('Hope House's on Indiana Avenue in Bangor. They have a long-term land lease
with the City of Bangor and they own the buildings. In late 2011 Penobscot Community Health
Care received a grant to expand their services at Hope House and construct an addition onto the
buildings. In Order to do so, Penobscot Community Health Care has requested that the City
terminate its existing leases with them and sell them the leased land and additional land.
This Order, if approved, will authorize the execution of a Development Agreement that will
impose certain terms and conditions upon Penobscot Community Health Care in order for it to
acquire the City property and move forward with its plans. The Development Agreement will
include provisions that Penobscot Community Health Care complete permitting and construction
on a certain timeline; that existing leases with the City be terminated; that the land be conveyed
for One Dollar ($1.00) with a provision that if the land is ever sold the City of Bangor will receive
the value of the land at the time of the conveyance to Penobscot Community Health Care; that
the conveyance of the land require a payment in lieu of taxes equal to a tax on thirty percent
(30%) of the taxable value of the land and buildings; and that the deed of conveyance will
include a reverter provision in the event the current use of the property ceases.
Department Head
Manager's Comments: ea� City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval: 41)V2
ty Solicitor
Introduced for
Passage
First Reading Page _ of
Referral
12-225
JUNE 25, 2012
�._ Assigned to Councilor Durgin
+oI A 3r
46' CITY OF BANGOR
FED
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44 E
(TITLE.) ORDER, Authorizing Execution of Development Agreement with Penobscot
Community Health Care — Hope House
WHEREAS, Penobscot Community Health Care is the owner and operator of the Hope House
Health and Living Center ("Hope House); and
WHEREAS, Penobscot Community Health Care currently has a long-term land lease with the
City of Bangor for the Hope House on Indiana Avenue in Bangor, Maine; and
WHEREAS, Penobscot Community Health Care has received a grant to expand its services at
Hope House and construct an addition onto the buildings that it owns on the land leased from
the City of Bangor; and
WHEREAS, in order to do so Penobscot Community Health Care has requested that the City
terminate its existing leases with them and sell them the leased land and additional land; and
WHEREAS, there are certain requirements that must be met by Penobscot Community Health
Care in order to move forward with the proposed expansion; and
WHEREAS, a Development Agreement between the City of Bangor and Penobscot Community
Health Care will ensure that requirements be met before the termination of leases and
conveyance of land.
By the City Council of the City of Bangor.
ORDERED,
That Catherine Conlow, City Manager, is hereby authorized, on behalf of the City of Bangor, to
execute a Development Agreement with Penobscot Community Health Care. Said Agreement
shall include the following provisions: a timeline for Penobscot Community Health Care to meet
its requirements; for the termination of the existing leases for Hope House; for the conveyance
of the land for One Dollar ($1.00) with a provision that if the land is ever sold, the City of
Bangor receives that value of the land at the time of the conveyance to Penobscot Community
Health Care; that the conveyance be subject to a payment in lieu of taxes (PILOT) representing
thirty percent (30%) of the taxable value of the land and buildings; that the deed of
conveyance include a reverter provision in the event the current use of the property ceases;
and such other terms and conditions as may be appropriate. The Development Agreement
shall be in a final form as approved by the City Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
June 25, 2012
Motion made and seconded to Postpone to July 9, 2012
Pe2qd
CITY
IN CITY COUNCIL
JULY 9, 2012
MOTION MADE AND SECONDED TO POSTPONE
a'+UNTIL THE FIRST CITY COUNCIL MEETING
IN SEPTEMBER
PASSED
4;C./ �74z�
CITY CLERK
IN CITY COUNCIL
September 10, 2012
Motion made and seconded that Councilor
Weston had a conflict of interest
Passed
Motion made and seconded to indefinitely postpone
Order 12-225 aoiiouno3 o} pau6issd
Passed
54 cilo ,teis position as chair
CITY CLERK
(`3-I11JL)