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HomeMy WebLinkAbout2008-03-24 08-131 ORDERItem Ro. 08 131 Date: March 29, 2008 Item/Subject: ORDER, Authorizing the City Manager to Execute Amendments to the Development Agreement and Lease with Eastern Maine Healthcare Systems and AfFlllated Healthcare Management Responsible Department: Community & Economic Development Commentary: On February 19, 2005, by Council Older 05-82, the City Council authorized the exewdonof a Development Agreement and Lease with Eastern Maine Healthcare Systems (Developer) for the former Army Reserve Center at 931 Union Street. Council Order 07-091, passed on February 12, 2007, authorized the City Managerto executeAmendmentsto this Development Agreement and Lease. The Amendments provided that (1) Eastern Maine Healthcare Systems not be required to build more than what has been constructed to date on the former Army Reserve Center property provided it either construct a warehouse -distribution center or acquire and renovate an existing building such that the combined total buildout and Developer cost of this project and Nat already constructed on the toner fumy Reserve Center property meets or exceeds the total buildout and Developer cost required by the original 2005 Development Agreement, (2) the construction of the warehouse - distribution center, or acquisition and mnwa0on of an existing building, begin on or before April 1, 2008 and be completed within two years of commencement of construction or renovation, and (3) it be located In the City of Bangor. The Developer is acquiring and renovating an existing building and has requested a 30 day extension of the April 1, 2008 date established by Council Order 07-091. This Order would extend the date to April 30, 2008. Department Head Manager's Comments: City Mang er Associated Information: Budget Approval: UiRnAnt Director Legal Approval: C licitor X Passage _ First Reading Page la - Referral MAR 2 q 2008 Assigned m CouvcilmrD'Errico OB 131 CITY OF BANGOR a (TITLE.) ORDER, Authorizing the City Manager to Execute Amendments to the Development Agreement and Lease with Eastern Maine Healthcare Systems and Affiliated Healthcare Management WHEREAS, on February 14, 2005, by CM.Mdl Order No. 05-82, the City Council authorized the execution of a Development Agreement and Lease with Eastern Maine Healthcare Systems (the Developer) for the former Army Reserve Center at 931 Union Street; and WHEREAS, said Development Agreement provided that the property would consist of a Front Lot and Back Lot and that the Developer was required to build a building of a certain minimum square footage at a set minimum direct Developer Cost on the Front Lot and a total buildout on the combined parcels of a certain minimum square footage at a certain WWI minimum direct Developer cost; and WHEREAS, Developer, through Affillated Materiel Services, a subsidiary of Affiliated Healthcare Systems, proposed to acquire and renovate and existing building Or build a new building of approximately 56,000 square feet as a warehouse- disimbution center within the City of Bangor if the City would release the remaining buildout conditions, both square footage and dollar value, contained in the Development Agreement and Lease for the former Army Reserve Center property; and WHEREAS, Council Order 07-091, passed on February 12, 2007, authorized the City Manager to execute Amendments to the Development Agreement and Lease of 931 Union Street, said Amendments to provide that Eastern Maine Healthcare Systems not be required to build more than what has been constructed to data on ffie former Army Reserve Center property provided that (1) Developer constructs a warehouse -distribution center or acquires and renovates an existing building such that the combined total buildout and Developer cost of this project and that already constructed on the former Army Reserve Center property meets or exceeds the total buildout and Developer we required by the Development Agreement approved by the City Council in Council Order 05-82, (2) the construction of said warehcuse istnbution center, or acquisition and renovation of an existing building, to begin on or before April 1, 2008 and be completed within two years of commencement of construction or renovation, and (3) be located in the City of Sargon; and MAR 24 2808 08 131 WHEREAS, the Developer intends to meet the requirements of Council Order 07-091 by acquiring an existing building on Hildreth Street in Bangor and renovating it for its warehouse -distribution use but requests that the April 1, 2008 date by which said acquisition and renovation is required to begin be e#ended 30 days; NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is authorized to execute Amendments to the Development Agreement and Lease of 931 Union Street by and between the City of Bangor and Eastern Maine Healthcare Systems to extend the begin on or before date 30 days to April 30, 2008, said Amendments to be In a final form as approved by the City Solicitor or Assistant City Solicits. IN CITY MUCIL March 24, 2000 Motion (lade and Seconded for Passage Miles Theeman commended the City Council on its' hard Peed i v CITY CLERK # 08-131 ORDER (Tirux.1 Authorizing the City Manager to Execute Amendments [ :,the Development Agreement: and Lease ith Eastern Maine Healthcare gvetems Ld Affiliated Healthcare Managemeuti. Asaped a Cuumc mr