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