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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 .er.`"� 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)