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HomeMy WebLinkAbout2006-06-12 06-236 ORDERItem No. Date: 6-12-06 06%23G Item/Subject Order, Authorizing the City Manager to Execute a Second Amendment to a Development Agreement with Bangor Historic Track Responsible Department: City Manager/Legal At its meeting of May 22A0, the CRY Council approved a second amendment to a development agreement with Bangor Historic Track. That agreement was subject to and conditioned upon the execution on or before May 26, 2006 of Purchase and Sale Agreements by and between Bangor Historic Track, Inc, and L &C Corporation and Kenduskaag yacht Club providing forthe acquisition by Bangor Historic Track, 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 Kenduskeag yacht Club, although we believe that such an agreement should be completed In the near future. As a result, it Is necessary for the Council to once again approve the second amendment to Me development agreement The attached order will do so subject to BHT executing a purchase and sale agreement can or before June 23, 2006 with acquisition to be final on or before December 31, 2006. As a reminder, the changes include: an increase in the level of investment to be made by Bangor Historic Track from a minimum of $30 million to a minimum of $70 million; elimination of the requirement that BHT provide conference and meeting space; revising the language relating to the hotel from a requirement once certain conditions are met toan allowance for negotiations regarding a hotel once certain conditions are met; a requirement that BHT confer with the City regarding the exterior design of their facilities; the potential to speed the estimated! schedule for construction of the permanent facility win demolition to begin within 24 months and construction within 24 months of the start of demolition; and an agreement to jointly develop a long range plan for the hamess racing barns. Department Managees Comments: Recommend approval. 1 City Manager Legal Approval: Solicitor X Passage _ Part Reading Page _ of _ Referral 06 236 AssrgodwCwvcicr Balser June 12, 2006 CITY OF BANGOR tt (TIRE.) ORDER, Authorizing the City Manager W Execute a Second Amendment to a Development Agreement with Bangor Historic Track, Inc. WHEREAS, the City and the Predecessor to Bangor Historic Track, Inc. (BHT) entered into a Development Agreement dated October 31, 20(13 under which BIR is required W develop a portion of Bas Park; and WHEREAS, this agreement was subsequently amended on July 5, 2005 W authorize BIR W establish a temporary gaming family and W adjust certain dates and other requirements of the original agreement; and WHEREAS, under exit agreements, BHT has an obligation W develop a permanent gaming facility at Bass Park; and WHEREAS, the City has Identified a number of noncoms regarding loafing the permanent facility in Bass Parc including the potential necessity of relocating the Bangor State Fair; a negative Impact on parking availability for visitors to events at the Bangor Auditorium 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 BFR W investigate other posside locations near Bass Park for the construction of the Permanent Gaming Facility; and WHEREAS, BIR has proposed locating this facility can Main Sheet between Lincoln and Dulton Sheets, the Riverside Block so-called; and WHEREAS, the parties agree that this location would avoid the potential negative impacts associatetl with constructing this facility a Bass Park; and WHEREAS, it is the intention of BIR W move forward with the acquisition of the alternate site on Main Sheet subject to amending various agreements with the City W allow this alternative W proceed; and WHEREAS, the City has determined that development on the Riverside Block is In the best Interests of the citizens of Bangor; and WHEREAS, on May 22, 2096, by Council Order 06-195, the City Council authorized execution of a Second Amendment to the Development Agreement with Bangor Historic Track, Inc. subject to the execution of a Purchase and Sale Agreement between Bangor Historic Track, Inc. and Kenduskag Yacht Club on or before May 26, 2006, and 06 236 WHEREAS, because of tlramstances beyond the parties' wnhol, the purchase and Sale Agreement between Bangor Historic Track, Inc. and Kenduskeag Yacht Club was not executed by May 26, 2006. NOW, THEREFORE, BE If ORDERED BY THE QTY COUNCIL OF THE CRY OF BANGOR THAT The City Manager Is hereby authorized to execute, in a form substantally the same as is attached hereto, a Second Amendment to the Development Agreement with Bangor Historic Track, Inc. Execution by the City of Bangw is effective only upon the following condition subsequent: the execution of a Purchase and Sale, on or before June 23, 2006, by and batmoen Bangor Historic Track, Inc. and Kenduskaag Yacht Club providing for the acquisition by Bangor Historic Track, Inc. of the privately owned parcels tooted within the Riverside Mork, so-called, I.e., the area bounded by Main, Uncoln, and Dutton Streets Bangor, Maine, said acquisition W occur on or before December 31, 2006. The Second Amendment to the Development Agreement shall be in a final form as approved by the City Solicitor or Assistant City Solicitor. 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