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HomeMy WebLinkAbout2006-05-08 06-179 ORDER]tem No. 06 179 Date: May 8, 2006 Item/Bubi ORDER Designating Paul and Liz Leonard Tentative Developers of Former Trustees Building -107 Maine Ave. - Maine Business Enterprise Park Responsible Department: Community& Economic Development Paul and Liz Leonard have requested the City grant them tentative developer status for development of a proposed 10,000 square Foot daycare center in the former University of Maine System Trustee' Buildirsi at 107 Maine Avenue in the Maine Business Enterprise Park. This Order would grant Paul and Liz Leonard exclusive status as developers of the site until June 26, 2006, and, until then, the Gty would deal exclusively with Paul and Uz LennaN for development of me property. During this period, Paul and Uz Leonard and City staff would have an opportunity m submit for the City Coundl's consideration a proposed Development Agreement containing the terms and conditions under which the Leonards could purchase the property and make property Improvements far Its use as a dayrare center and to provide Information sufficient in detail to attire the general scope of the improvements proposed and convey to me City suffident information to determine the level of investment and character of the work m be performed Department Head Manager's Commands: This has been reviewed by the Business and Economic Development Committee, which recommends your approval. G City Manager Budget Approval: Legal Approval: Finance Director City Solicitor X Passage _ First Reading Page—of— Referral age_of_Referral 06 .179 A9sipWlo Cuwcllur Haves Nay 9, 20M M' CITY OF BANGOR (TRLE.) ORDER Designating Paul and Uz Leonard Tentative Developers of Fortner Trustees Building —107 Maine Ave. — Maine Business Enterprise Park WHEREAS, Uz and Paul Leonard have submitted a revised proposal to the City for the purchase of the former Trustees Building at 107 Maine Avenue for development of a daycare center facility; and WHEREAS, the Leonards have requested tentathm developer status on the property to enable Mem to proceed with arranging financing fon their proposed project; and WHEREAS, the City has granted "tentative developer" status to potential clevelopers on various City owned development sites in the past, thereby providing the developer and City staff time to prepare a Development Agreement for the City Council's consideration and during which time the City agrees to deal exclusively with the designated tentative developer far the purpose for which tenmbrwe developer slaws was granted; NOW, THEREFORE, BE IT ORDERED BY ME CRY COUNCIL OF THE CRY OF BANGOR THAT Uz and Paul Leonard are hereby designated the tentative developers of the City owned former UM Trustees Building and lantl not to awned! 1.8 acres at 107 Maine Avenue, the enact boundaries of which to be negotiated in the Development Agreement, and that such designation is in effect until lune 26, 2006. W anti Paul Leonard shall have until that rime to negotiate the terns and conditions of a Development Agreement with the City and to prepere and submit in wdbng to fire City's Director of Community and Economic Development a definitive proposal for development of the site and to arrage for legally binding financing commitments to carry out their daycare faGAy, project as proposed. During the period of designation the City agrees to deal exclusively with Uz and Paul Leonard for the purpose far which tentative developer status was granted, and Qty Staff Is auMIXIRd to negotiate a Development Agreement with to ant Paul Leenard for the Qty Council's consideration setting ford Me proposed terms and conditions under which the proposed development would be allowed te mow: forward. The Development Agreement, R approved by the City Council, would ensure that the development would conform t0 building plans and uses approved by the Business and Economic Development Committee, and that Uz and Paul Leonard demonstrate that they Mere the financial capacity and ability to cart' out Me development proposed before receiving the approvals needed from the City to proceed. The proposal submitted for the ORA consideration shall be sufficient In detail W outline the scope and quality of development and convey supdent information for the City to determine the level of invastment proposed and character of the work to M performed. The proposal a to include a preliminary site plan showing the foutpdnt of the building and site Impovements in relationship to the site and 179 surrounding improvements; suitable chms-sections and elevations of the proposed building improvements showing the relationship of III to surrounding grades and indicting the exterior building materials proposed to be used to enable the City to determine the compatibility of the proposed building improvements to the development site; and preliminary floor plans showhg proposed general roam layouts and proposed use, including entrances and wits and overall floor area for each Boor. The proposal should also provide separately such financial information as may be requested to provide assurances to the City that the "tentative developer has the ability and financial capacity to carry out the development proposed. The City will treat any information provided relating to the tentative developer's personal or business finandal assets confidentially te the extent Demanded! by State Statute. BE R FUMM ORDERED THAT the Development Agreement proposed for City Council consideration shall include the following terms and conditions: I. Tie former Trustees Building and land be used to establish and operate a daycare center as proposed by Lh and Paul Leonard in their proposal submlitend to the Ory on March 22, 2006, at a cost of not less than $1,046,000, approximately, $900,000 of which Will be for acquisition and real estate improvement costs. 2. The purchase price of the fanner Trustees Building and land not to exceed 1.8 acres shall be $915,000. 3. The Leonards shall invest not less than $426,000 in building improvement approved by the City Council Business and Economic Development Committee. 4. Conveyance of the propend to the l eonards shall be conditioned on approval of the City Council Business and Economic Development Committee of all building and property improvement plans and the Leonards providing evidence in a form satisfactory to the City Solkiter or Assistant City Solicitor, and Director of Community and Economic Development, of (a) legally binding financing commitments acceptable to the City and equity investment a not less than $1,165,000, of which riot less than $89,000 shall be equity, to carry out their proposed daycare anter project; (b) all approvals for War proposed' project required by the City of Bangor Land Development Code; (c) any and all licensing approvals required by the Sate of Maine for the operation of an accredited daycare center; and (d) a binding contract or contracts for carrying out the real estate improvements. 5. Not 1¢s than $467,000 in Improvements to the real estate shall commence no later than July 1, 2006 and be completed no later than December 31, 2006. 6. Priority for dayare center clients shall be first to persors employed in the Otys Maine Business Enterprise Park and BJA Commercial Industrial Party second to madams of the City of Bangor or to others employed in Bangor, and third to all others. 1. City shall reserve any needed easements for public utilities and vehicular and pedestrian access as determined by the City in its sale discretion. 8. Such other terms and conditions as the City Council Business and Economic Development Committee, City Solicitor, or Director of Community and Economic Development deem appropriate to protect the City's interests. m CIW MUCIL May 8, 2006 Natasa Brae and secoaaea eTor s saqge . a cin um q N oe-v9 -�eoDesignatingotnarTlnEt3p Ttietee Nufag - 107 NivAveaue f maa ae nusness evttrpi se rarx