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HomeMy WebLinkAbout2006-06-12 06-235 ORDERItem No, Date: 6-12-06 06 235 Item/Subject Order, Authorizing the City Manager to Execute an Amended and Restated Indenture of Final tease with Bangor Historic Track Responsible g pail neint: City Manager/legal Commentary: At Its meeting of May 22nd, the City Council also approved an amended and restated Indenture of final lease w1h Bangor Historic Track. That agreement was subject to and conditioned upon the execution an or before May 26, 2006 of Purchase and Sale Agreements by and between Bangor Historic Track, Inc, and L& C Corporation and Kenduskeag Yacht Club Providing forthe acquisition by Bangor Historic Truck, Inc, of the privately owned parcels located within the Riverside Block Bangor Historic Track has entered into a purchase and sale agreement with L & C Corporation. A similar agreement has not yet been signed with Kenduske ig Yacht Club, although we believe that such an agreement should be completed in the near future. As a result, it is necessary for are Council to once again approve the revised final lease. The attached orderwill do w subjeRto BIR creating a purchase and sale agreementon or before lune 23, 2006 with acquisition to be final on or before December 31, 2006. Among the significant changes are: adjusting the term to an initial 15 years with three 10 year options; reducing the area of Bass Park to be leased on Bangor Historic Track and establishing a horsed property (ease rate with periodic adjusbients; clarifying Me portion of Me Bass Park property for which Bangor Historic Track will be responsible for real property taxes; simplifying Me language relating to revenue sharing payments to be made by the City by eliminating the current Provisions under which such payments may either increase or decreasing and requiring a straight 3% of gross slot machine income plus the 1% host community payment required by State statute; clarifying liability and Insurance requirements; and addressing cost sharing and risk allocations should any significant changes in law take place. Department Head Manager's Comments: Recommend approval. 944a 6r Oi/ t! City M�aanaagger Associated Information: Budge Approval: TV/AAa Fire Legal Approval: ty Solicitor X Passage _ First Reading Page _ of Referral 0§•.235 AunpaltoComcilor Farr = June 12, 2006 �, Al CITY OF BANGOR (TIRE.) ORDER Authorizing the City Manager to Execute an Amended and Restated Indenture of Final Lease with Bangor Historic Track WHEREAS, the City and the predecessor to Bangor Historic Track, Inc. (BHI) entered Into a Final Lease sated October 31, 2003 under which BHT kneed a portion of the City's Bass Park Complex for the purpose of operating a harness racing track and for use as the location of a permanent gaming facility; and WHEREAS, this agreement was subsequently amended on July 5, 2005 to authonze BHT to establish a temporary gaming facility and to adjust avtaln dates and other requirements of the original agreement; and WHEREAS, under edsting agreements, BHI has an obligation W develop a permanent gaming fadlity at Bass Park; and WHEREAS, the City has identified a number of owcems regarding hating the permanent fadlRy In Bass Park Including th potential necessity of relocating the Bangor State Fair; a negative imp d on parking availability for visitors to events M the Bangor Aud'todum and Civic Center•, the potential elimination of Bass Park as a possible location for a new arena; and possible traffic impacts; and WHEREAS, as a result of these considerations, the City has worked with BHT W Investigate other possible locations near Bas Park for the censtrection of the Permanent Gaming Facility; and WHEREAS, BHT has proposed locating this facility on Main Street between Lincoln and Dutton Streets, the Riverside Block so-called; and WHEREAS, the Partes agree that this location would avold the potential negatve Impacts associated with constructing this facility at Bass Park; and WHEREAS, It Is the Intention of BW to move forward with the acquisition of the alternate site on Main Street subject to subject to amending various agreements with the City m allow this alternative to proceed; and WHEREAS, the City has determined that development on the R'werade Block is in the best Interests of the citizens of Bangor; and WHEREAS, transferring the location of the permanent facility requires a variety of adjustments to the terns and conditions of the Final Lease; 06 235 ,; WHEREAS, on May 22, 2006, by Council Order 06-196, the Clty Council authorlaed execution of an Amended and Rntated Indenture of Final tease with Bangor Historic Track, Inc. subject to the execution of a Purchase and Sale Agreement between Bangor Historic Track, Inc. and Kenduskeag Yacht Club on or before May 26, 2006, and WHEREAS, because of circumstances beyond the parties' control, the Purchase and Sale Agreement between Bangor Historic Tack, Inc. and Kenduskeag Yacht Club was not executed by May 26, 2006. NOW, THEREFORE, BE IT ORDERED BY WE CITY COUNCIL OF WE CITY OF BANGOR MAT The City Manager is hereby authorivad to execute, in a form substantially the same as is attached hereto, an Amended and Restated Indenture of Final Lease with Bangor Historic Track, Inc. Execution by the City of Bangor is effective only upon the follaving condition subsequent: the execution of a Purchase and Sale, on or before lune 23, 2006, by and between Bangor Historic Track, Inc. and Kenduslo ag Yacht Club providing far the acgulation by Bangor Historic Tack, Inc. of the pnvabdy owned parcels located within the Riverside Block so-called, i.e., the area bounded by Main, Uncoln, and Dutton Streets Bangor, Maine, said aamnsiti¢n to occur on or before December 31, 2006. The Amended Finml Lease shall be in a final form as approved by the Cloy Solicitor or Assistant City Solicitor. M CIM WMCIL June 12. 2006 passO 06-235 R d�R 0R➢¢R 9ME Au[harisine [he CI[v Mem¢ex to H cute an Amended amd Restated Indenture of FLl Lease vlth Mneor R toric Track