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Home My WebLink About2007-05-14 07-181 ORDERNem No, 07 181 Oats: May 14. ]00] Item/Subject ORDER, Authorlbng Development Agreement—Penobscot Theabe Ca Wp — 131 Main Street Responsible DepaitmenC Community R Economic Development: Commentary: The Penobscot Theatre Company wishes to renovate Its theater building at 131 Main Street in Bangor at an estimated cost of $498,360. City assistance through the federally funded Community Development Nods Grant Program In the amount of $285,240 has been requested to fund Improvements that will improve accessibility for the elderly and disabled and correct related life safety code issues at the theater facility. This Agreement would approve a Community Development loan of $285,240 to Penobscot Theatre Company for ImpWng handicapped access by comecting an outstanding Ilfe safety code Issue Involving the spdnWer system; replacing doors that yell permit accessibility by the elderly and handicapped; clean, re -point and replace masonry, on the facade of the building; carted life/srfety code Issues Including sealing penatra0ons between floors; fire rated stairs; Installing additional exit signs; installing proper fire doors; upgrading a bathroom to ADA standards; and ether code violations identified by the Chi inspectors. Department Head Amciatetl Infmmation: ' Legal Approval: I City Solidmr Induced for Passage _ Firat Reading Page _ of _ Referral 07 181 r u�'-�,r A56ignai to Cwvcilm Yalm[ May l6. 2007 CITY OF BANGOR (TIRE.) ORDER, Authorizing Development Agreement— Penobscot Theatre Company -131 Main Street WHEREAS, Me Penobscot Theater Company(hereinafter"PTC")desiresWmre aWRs theater buBding at 131 Main Street In Bangor; and WHEREAS, the estimated cost of improvements associated with the planned Improvements (hereinafter "Project") is enma[ed to be $498,360; and WHEREAS, compledon of the Project will create a significant public bereft: by providing improvements which will make the FfC facilities accessible W the elderly and handicapped and will ensure confining employment opportunifies and theabical productions a Une PTC Opera :louse laabon; and WHEREAS, providing assistance W FTC to bring Its facilities into compliance with the Amemoms with Disabilities AR and Bangors adopted Building Cocle is an eligible activity under the federal Community Development Block Grant Program; NOW, THEREFORE, BE IT ORDERED BY THE CITY COINCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized to execute a Development Agreement Win Penobscot Theatre Company providing for the rencovatbn of Its facilides at 131 Main Street by providing a Community Development ban not to exceed $285,290 for handicapped access impronm rds and conKGon of code violations and under the berms and conditions substandally as set forth in the Development Agreement attached hen4o and in a final form approved by the City Solicitor or Assistant CM Solicitor. IN CIW cooecic May 16. 2W7 Mot n Mase and S co ea Powbsc ater n o n St Peuo6aco[aSheateo Cmpauy- 131 Main Scree[ A,v18ned to Councilor P114o, 07 181 DEVELOPMENT AGREEMENT This Agreement is made and entered into as of May_, 2067, by and between the City of hangar (hereinafter the "City"), a municipal corporation located in Bangor, County ofPenobamt, State ofNbuae, and Penobscot Theatre Company (hereumfter "Penobscot Thmtre"). WITNESSEfll WHEREAS, Penobscot Theatre is destrous of mating certain improvements to its building located at 131 Main Street m Bangor, and WHEREAS, the emimated wsl ofthese improvemmce (heranaRa the'Project") is estimated b be $498,360 fen which $285,240 has been senesced of the City; and WHEREAS, completion of the Project will create a significant public benefit by pr hhvg improvem®ts which will make Penobscot Theatre's facilities more accessible w the eldmly mrd handicapped, will help ensure continuing employment for a minimum of individuals, and n+ll help sure tho continued nae of Penobscot TheatrEs facilities as u venue for the performing sults open to the ficket9aymg pblic; mid WHEREAS, providing assistance to Paobacot Theatre to bring its lawlitiw into complimace with the Americans with Disebilifies Act is an eligible activity under the federal Cmumunity Development Block Grant Program; NOW, THEREFORE W CONSIDERATION of the mutual promises and covenants wvtathed m this Agrcment. rhe City and Penobswt Theatre agree as follows: 1. Subject to the provisions of this Agreement,Penobscot Theatre agrees to undertake and c phte improvements to Penobscot Theatre's Gcilities at 131 Maio Street lo Bmgm at an estimated rest of $285,240, cwsimnt wish Peatobswt Theme's Application frr Financing the City of Bangor under its Community Development Program dated May 1, 2007. 2. Penobscot Theatre agrees to provide the City with evidence of a binding construction contract (or contracts) providing for site work and buildiag construction cons for the Proj eca of not more than $285,240. In the event that Penobscot Theme is unable to secure swA a construction coMact(or contracts). Penobscot Theatre may temdaate this Agreement without liability to the City. 3. The City agrees m provide Penobscot Theatre a loan order its Co®unity Development Block Grant Program in the mmount of the cost of the Pmjwt, but not exceed $285,240, for they ose off ting the ADA compliance porton of the Project (including installation and activation of a fire suppression sprinkler syat® compliant with applicable modes and lawsh on the following twins and conditions: e. The City'e lo® shall be swmedbya momgege on IJP Maio Street. b. The loan shallhave a term oftwenty (W) years,with MO of the loan principal payable each year, and an arcual interest rate of 3% ter the outstanding principal balmcs, G. Pwrbswt Theace§ payments to the City of loan principal and interest shall be forgiven in my year in which Pembecut neatrtls property at 131 Maw Street remains open, provide a comment number of thater productwna open to the tickdyaying public, and employs 5 car none individuals in Bangor in rapport of its 131 Maw Sheen locatim. d. Pembsmt Theatre shall execute am deliver to the City such loan documents as the City deems necessary or appropriate w evidmco the loan hereunder and to provide adegmm mcudty for the same. The foral and substance: of exurb documents shall be atlafacwry to the Gly§ City Solicitor. a Upon my ale or ember of the mortgaged promises, the City Community Development loan shall become due and payable, as of the date of said sale or transfer, in tint, together with all aw exi interest therem, hall the City, in its sole discretion, elects m permit the transferee to assume the loan. f The City shall have the right of fust rewsal should Penobscot Theatre offs b sell or otherwise bmafm ownership of the mortgaged prmius. g Penobscot noun sball comply with Federal regulations requiring that all laborers and mechmtics employed by contractors or subcontractors an the construction work fnmvcN by the City ofBangm under be Commonly Development Progreso shall be paid wages a rates not bas dem those prevailing on similar construction in the locality m detamwed by the Semewry of labor in accordance with the DaviaBmon Act, as amended (40 U. S.C. 27m -276a-5) and the Cwtrmt Work Hours that Safety Standards Act (40 U.S.C. 327 ot seq.) as supplemented by Department of Lamar regulations. 4. PenobscotThwtre ag2es that it shall kap and mainmiv books, records and other don uaents relating dually m the Project and agars that my holy authaiaM reprawmtiw of the City shall, at all renewable times, have access to and the right to inspect, copy, audit and examine all such books, records and other documents of Pmubsaot Theatreor ucomPlotionl combProieat. Penobscot Themd into i warmth ith pros jertnaareincludalinell contracts or subwntrmm entered intoinwmemipn with the Project. 5. Penobscot Theme agrees that my duly authorvsd representative of the City shall, at all reasonable times, haw access to my portion of the ProSM until its conploboa and a pemmvmt Occupancy Par mt fm the Project bee ban isamd by the City. 6. Penobscot Marme agrees flat development of &a Project shall be inawordanco with all applicable Community Development Black Gant regulations, Federal, Sante, and City laws, ordinances and building codes. 7. Penobscot Theatre hereby aclaowlNgesthat the City, an agreeing w provide fimacial msismnam Pmobswt Theatre fen the Projwt, her relied w materiel partuponthe aamW completim of to Project, and Penobscot "Theme agrees ro use its bat aHons to aubaWtiallY compWethe Project no Uta been Sepmmber 30, 2007. 8. acept as pmvidel to We Agreement, until substantial completion ofthe Pmject, Penobscot Theatre shall not assign its rights under this Agreement wiWmn the lstim written consent athe City, which mount shall not be unreasonably withheld, d IyW or condilmed. The Citys obligations baeander are contingent upon Penobscot Pheetras wnapliavce with the tams mdbr conditions set forth in this Agrennent. 9. It is Intanded by the peones that this Agmmmt shall operate as a contract under seal, io amoMance with 14 MRSA Sa.751. Any notice which either party desires or is recleaned b give to the other m connection with this Agreement shall be w writing and shall be seat postage prepaid, cettifid mail, rearm exempt requested, as follows: If to the City: P.dward A. Bartel, City Mauaga CityofBangm 73 Harlow Street Bangor,Maine04401 Ifni Panabsmt Theatre: Penobscot Theatre Company, 131 Main Street Bart ar,Maine04401 Or each older Peasant and/or mdtesa as nay be identlfied m writing by the parties. IN WITNESS WHEREOF this Agreement has been uecat�, sealed and delivered N duplicate mnntapens as of the day and year first above written. Its ClITOPBANGOR By Edward A. Bartell Its CityManaga