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
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AssrgodwCwvcicr Balser June 12, 2006
CITY OF BANGOR
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(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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