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HomeMy WebLinkAbout2007-02-12 07-091 ORDERcOUNCILAMON eynot Rem Na. Date: Februa" 12. HAI) Item/Subject: ORDER, Authorizing the City Manager to Execute an Amendment to a Development Agreement and Lease with Eastern Maine Healthcare Systems and Affiliated Healthcare Management Responsible Department: Legal Cpnmadary: On February 14, 2005, by Council Order No. 05-82, the City Council authorized the execution of a Development Agreement and Lease with Eastern Maine Healthcare Systems (Developer) for the former Army Reserve Center at 931 Union Street. The Development Agreement provided that the property would consist of a Front Lo[ and Back Lot and that Developer was required to build on the Front Lot a building d a certain minimum square footage at a set minimum direct Developer rust and a total buildout on the combined parcels da certain minimum square footage and a certain total minimum direct Developer cast. On the Front Lot Developer constructed a Wilding d approximately 28,000 square fed, at a direct Developer cost exceeding $3,000,000. The property was, with the wnsent of the City, sublet to Affiliated Healthcare Systems for healthcare related or other professional o0be uses, Including Me operation of an ambulance service. Developer, through Affiliated Materiel Services, a subsidiary of Affiliated Healthcare Systems, plans to build an approximately 56,000 square foot warehousing -distribution center for hospital supplies by either constructing a new facility or acquiring and recovering an etlsting building. Developer has proposed to build the warehouse -distribution cancer, or acquire and renovate an existing building, within the City of Bargor If the Cary will release the remaining buildout conditions, bon square footage and dollar value, contained in the Development Agreement and Lease, for the former Afmy Reserve Center property. The combined total Will and Developer cost of this project and Mat already wnsbucted an Me farmer Amry Reserve Center properly will be requiretl to meet or exceed the total Will and Developer wA required "a Development Agreement approved by Me City Council In Council Order 05-82 and Me construction of said warehouse-distrlbution center, or acquisition and renovation of an existing building, M begin on or before April 1, 2008 and be completed within two years of commencement of mmhuction or renovation and W be located in the City of Bangor. Manager's Comments: Department Head Clry Manager Associated Information: Budget Approval: Finance Director City Solidtor _ Mat Reading ral Page }_of_ _Referral 02/12/2007 n i�d oco a m 07 091 CITY OF BANGOR C (MILE.) ORDER, Authorizing the City Manager to Execute an Amendment to a Development Agreement with Eastern Maine Healthcare Systems and Affiliated Healthcare Management By Me City Council of the Pty of Bangor:. ORDERED, WHEREAS, on February 14, 2005, by Council Order No. 05-82, the Qty Council authorized the execution of a Development Agreement and tease with Eastern Maine Healthcare Systems (the Developer) for the former Army Reserve Center M 931 Union Street; and WHEREAS, said Development Agreement provided Nat the property would consist of a Front Cot and Back Lot and that the Developer was required to build on the Front Lot a building of a certain minimum square footage at a set minimum direct Developer cost and a total buildout on the combined parcels of a certain minimum square footage and a certain total minimum direct Developer add; and WHEREAS, Developer has, on the Front Lot, constructed a building of approximately 28,0010 square feet, at a direct Developer cost exceeding $3,000,000 and WHEREAS, Developer, with the consent of the City, sublet the property to R wholly owned subsidiary Affiliated Healthcare Systems for healthcare related or other professional office urs, Including the operation of an ambulance service; and WHEREAS, Developer, through Affiliated Materiel Services, a subslGlary of Affiliated Healthcare Systems, plans to build an appradmately 56,000 square foot warehousing-distribudon center for hospital supplies and the Cost of either a new facility or the acquisition and renovation of an existing building will require a significant Investment, and WHEREAS, Developer has proposed to build the warehouse-clstributan center, or acquire and renovate an exisitng building, within the City of Bangor If the CM will 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. 07 091 NOW, THEREFORE, be it ORDERED, THAT the City Manager is authorized, on behalf of the City of Bangor, to execute Amendments to the Agreement for I.ease and Development of 931 Union Street and Lease by and between the City of Bangor and Eastern Maine Healthcare Systems. Said Amendments shall provide that Eastern Maine Healthcare Systems shall not be required to build more than what has been constructed to date on the farmer Army Reserve Center property provided that 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 Any Reserve Center property meets or exceeds the total buildout and Developer cost required by the Developerment Agreement approved by the Qty Council In Council Order 05-82, Me construction of said warehouse -distribution center, or acquisition and renovation of an existing building, W begin on or before April 1, 2008 and be completed within two years of commencement of construction or renovation ant be located In the City of Bangor. Said Amendments shall be in a final form as approved by Me City Solicitor or Assistant City Solicitor. IN CITY COUNCIL February 12, 2007 Mo u Made and Seconded for Passage P sed CITY CLERK #07-091 ORDER Q7TLEJ authorizing the city manager t0 Execute an Amendment t0 a Development Agreement with Eastern Maine Healthcare. Systema and Affiliated Healthcare Management Assigned 10 CouncRar f