HomeMy WebLinkAbout2011-04-25 11-132 ORDERACTION
Item No. U2
Date: April 25, 2011
Item/Subject: ORDER, Authoddng the City Manager to Enter into Agreements with David
Brown Regarding the Rehabilitation of and Possession of the Property at 34
Holland Sheet
Responsible Department: legal
Commentary;
In May of 2010 the City Counal condemned the building located at 34 Holland Street, ordehng
the owner, David Brown, to remove the structure. In December of 2010 the owner allowed
property tax liens on Me property to mature, along with property taxes on his house at 36 Larkin
Street. At the Council meeting on April 11, 2011, the Counal directed staff to draft an agreement
providing a final opportunity for the owner to rehabilitate Me property.
This Order would allow Me owner to rehabilitate Me property at 34 Holland Street if a number of
conditions are met. These conditions Include:
- Paying taxes on the owner's property at 36larkin Street;
- Putting Me proposed cost of Me rehabilitation, along with taxes for 34 Holland, in escrow;
- Completing the rehabilitation of 34 Holland by August 27, 2011; and
- Executing a mortgage for certain fines owed to the Oty, with a lesser amount to be paid if
Me owner successfully completes rehabilitation of the property.
Should the owner fall to rehabilitate the property in accordance with an agreement including
these mnditlons, staff will return to the Council with an order directing staff to take possession
of the property.
Depamment Head
Manager. Commoon�t{{,, 4y'� jj
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Budget
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Budget Approval: A^
Finance Director
Legal APProval:
Introduced for
Passage
_ First Reading
Referral
32
Assigned to Councilor _ Lwgu April 25, 2011
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CFTY OF BANGOR
(TITLE.) ORDER, Authorizing the City Manager to Enter into Agreements with David Brown
Regarding the Rehabilitation of and Possession of the property at 34 Holland Street
WHEREAS, the City has acquired title to properties located at 34 Holland streep Bangor,
Maine and 36 Larkin Street, Bangor, Maine due to matured real estate tax liens;
WHEREAS, on May 24, 2010 by Council Order 10-204, the City Council of the City of Bangor
ordered the condemnation of the structure located at 34 Holland Streep Bangor, Maine;
WHEREAS, the real extend taxes for 34 Holland Street and 36 Larkin Street were not paid,
liens were recorded by Me Cty against both properties, and on December 15, 2010 the
liens matured, thereby vesting fide to the properties in the Ory of Bangor, and
WHEREAS, David Brown has requested that the City allow him to rehalulitai a the structure at
34 Holland Street, accept payment of past due taxes and release its interest in the
properties to him.
By the dty Counol of the Qly ofBangon
ORDERED,
THAT the City Manager is authorized to enter into an agreement with David Brown regarding
the rehabilitation of Me building located! at N Holland Street (the "Rehabilitation Agreement',
said agreement including the following provl�ons and in a final form acceptable to the City
Solicitor or Assistant City Solicitor:
Larkin Street:
I) At Me tune of the signing of Me Rehabilitation Agreement, the taxes Men due on the
property at 36 Larkin Street shall be poll in full.
2) After receiving the full amount of the taxes owed on 36 Laddn Street, the Cry shall
convey the property at 36 Larkin Street to Mr. Brown.
Escrow:
3) At the time of the signing of the Rehabilitation Agreement, Mr. Brown shall deposit
into an Escrow Account with the City an amount equal to the taxes then owed by him
for 34 Holland Street, plus $25,000.00.
4) Mr. Brown shall be allowed to draw money from the Escrow Account in order M pay
invoices for the rehabilitation work done on the building a[ 34 Holland Street. The any
shall allow said withdraw of money in the form of checks made out to Mr. Brown and
the invoicing parry.
5) Should Mr. Brown fail to meet any tern a MIs Rehabilitation Agreement, the City may
wititlrew all money from the Escrow Account for payment of any amounts owed ro
the City, including but not limited to fees and court -issued fines.
Rehabilitation Inmeline:
6) A request for a building permit for 34 Holland Street must be submitted by Mr. Brown
by April 27 based on a scope of work acceptable to the Code Enforcement Officer;
7) Foundation repairs and the exterior of the building (roof, siding, windows, doors, trim)
must be completed by June 27;
B) The rough -in of electrical, heating and plumbing systems must be completed by June
27;
9) Insulation, interior ceilings, and wall sheathing must be completed by July 27;
10) The building must meet all requirements for the issuance a a Certificate of Occupancy
by August 27; and
11) Upon issuance of a Certificate of Occupancy and payment of all taxes and fees, and
execution of a mortgage agreement as referenced below, the City shall convey the
property at 34 Holland Street M Mr. Brown.
Mortgage;
12) Mr. Broom shall not encumber either the property at 34 Holland Street or the property
at 36 Iarin Street during the term of the Rehabilitation Agreement except as
provided in said agreement.
13) At the time of signing of the Rehabilitation Agreement, Mr. Brown shall enter into a
Mortgage Agreement with the City of Bangor for $14,270.00 plus interest calculated at
a rate of 6.3%to be paid over a period of 20 years, MIS being the amount owed in
court fines as of April 25, 2011. Mr. Brown shall execute a promissory note for that
amount with the first payment due September 1, 2011. Said mortgage shall be
secured by the property located at 36 Oa n Street.
14) Should Mr. Brown meet all farms of the Rehabilitation Agreement, the City shall
discharge Mr. Brown a Ms obligations under the above-mentioned Mortgage
Agreement and the accompanying promissory note. Mr. Brown shall then enter into a
Mortgage Agreement with the City for $5,850.00 plus Interest calculated at a rate of
6.3% to be paid over a period of 6 years, this being the amount owed in court fines
between June 2, 2007 and January 6, 2009. Said mortgage shall be severed by the
property located! at 36 Larkin Street and the property located at 34 Holland Street.
IB CITY COOMCn # •• '�I .
April 25. Zan _ ORDER
Motion Made sad Setotdad for Passage
No. Judy Juak ss. sister of'' the property
eked the Cassell toiremove the (TITLEJ Alltbalzingthe City Manager ICO
Larkin Street property froo Ar[3de
13&16 and to wive the flues. Enter into Agreements with Davide Brown
Mllaabeth Craodoason, 29 Hollavd
Street, stated that efforts its Regarding the Rehabilitation of and I - -
comply have been dubloos. and asked
the council CO put an end to this possession of the property at 36 Sal�avd
sltuatfon. Dale Roup. 28 Roblavd S[ceeC -
street, urged the conch to not
pp1
aoort this proposal. palter
Cassock, 3R Rolland Street, said Aviptd,bT saihr „
that this situation has Some
too long and further said that
the huliding Is dangerou.
Motion Duetted
Vote: o -s 1
Councilors Voting .Yee: Rone l
commulors Voting No: Basseterre, Bronson.
mortis. fango. Hawes. eealley. Palmer & 1
Weston I
Councilors Absent: Gravvlck
Failed
CITY C DdJy�%y/ I