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Home My WebLink About2006-06-26 06-250 ORDERItem No, 06 250 Date: June 26, 2006 Item/Subject ORDER, Authorizing Execution of a Purrhase Option Agreement win John Karnes for Property Located at 183 Center Street Responsible Departnern: Legal The City has acquired property at 183 Center Street by virtue of matured fax liens. The Cilys original plans were to demolish the building. John carnes has proposed to buy the property for $1,000 and renovate It for a single family home. On lune 19, 2006 the Finance Committee recommended approval of Mr. Kames' proposal. This Order authorizes the exeeutlon of a Purchase Option Agreement between the City and Mr. Karnes. Recommend approval. Department Head City Manager Budget Approval x� Finance Director Legal Approval: Introduced for X Passage _ First Reading Referral V Page 3of3 AssfEn¢dbcoantum store 06 250 Jove 26. 2006 CITY OF BANGOR (=E.) ORDER, Authorizing Execution of a Purchase Option Agreement with John Barnes for Property Located at 183 Center Street By rhe my [Dorm/ofthe Qty of&ngo: ORDERED, THAT the City Manager is hereby authorized to execute a Purchase Option Agreement, in a form substantially the same as attached hereto, with John Karnes for property located at 183 Center Street. Said Agreement shall be in a final form as approved by the City Solicitor or Assistant City Solicitor. IP CIST COOYCIL Joao 26,-2006 ffitinu Elude and Seconded foi Pas age Pea dESH ia_ a 0 R OP.'R tirrfsJ Au[horiaiv¢ faecuHov of a Purchase Option A reemeor alth Jahu Karnes for Property Located at 1 3 f pier Street PURCHASE OPTION AGREEMENT AND DEVELOPMENT OF 183 CENTER STREET 'Ibis Agreement made Ws 1? day of T1.,t 2006 by and between the City of Bangor, a municipal corporation, duly organized and exisdng under the laws of the State of Maine having a place of business a 73 Harlow Street, Bangor, Maine 04401 (hereinafter City), and the John Karnes of Burger, Penobscot County, State of Maine (hereinafter Eames). Section A. Grant of Ootion 1. Grant of Ootion: The City grants to and Kames accepts an exclusive option in purchase property located at 183 Center Street in Bangor for the purpose of renovation of an existing building for a single family home. Said development shall in accordance with the tams and conditions of this Option Agreement 2. Premises Subject to Option: Building and land at 183 Curter Smeet, Burger, Maine (hereinafter the Property) 3.Oofion Period. This When shall rmt from lune 27, 2006 until July 30, 2006 or until such alter date as the parties may agree. 4. Exercise of Oration. Provided that Kamer is not in defaWt ofany of the terms a ndwnditioasofddsagre t,Kamermayexercisethisoptionandac ethesubject property by giving written notice of its intent to do so to the City at any time during the option period. Such notice shall be effective if delivered to the City office at the City's address stated above. Thereafter, the pasties shall schedule a closing at a mutually consistent date, wldch may be after the expiration of the option period. If date for closing cert not be mutually agreed upon, a closing shall take place no later than sixty (60) days from the date of delivery of Karnes' notice to City, or the first business day after such date. 5. Purchase Price. The purchase price for the property subjecim [tris Option Agreermem shall be the some of $1,000. 6. Tvce of Convevanw. Conveyance shall be by Quitclaim Deed to Kars from City subject to the customary public utility eassments serving the premises, amd any other easements of public record, and subject to applicable zoning and land use laws and regulations. City shall prepare the necessary Deed, subject to approval by Karnes' oifts y. US -250 7, City Not to Convey or Encumber Tide. During the term of the option period, City shall not voluntarily convey, mortgage or otherwise encumber the option property or any portion thereof, without Kama prior written consent. Section B. Conditions Precedent to Exercise ofOptiand C Kames 1. Permit Reouvemerm. Prior W exercising the Option insured herein, Kames shall obtain, and provide satisfactory evidence to the City of every permit, ticevse and governmental approval necessary for the commencement and completion of the development provided for herein 2. Level of Investment. Karnes provide proof of investment of not less than $60,000 for the development. Section C.Conditions Subsemientin the C' Convenance ofthe immerb, toth Kames. L Completion Date. Koonce shall complete de development within sin (6) months after receipt of all permits, lionises and government approvals necessary for the commencement and completion of the development provided for herein. 2. Tide Reversion Prior to Comoletim. In the event that ]Carries; a shall default in or violate its obligations with respect to the construction of the improvements (i eluding the mture and the dates for the beginning and completion thereof), or shall abmubn or substantially suspend construction work and any such default, violation, abandonment, or suspension is not cured, ended, or remedied within three (3) months after written demand by the City W do so; or b. shall place thacon my ewumbrance or Her, or shall suffer my levy or amomme d W he made, or arty materislmen's or mechanic's lien, or my Atha ummrthorized encumbrance or lien to attach, and the evcumbrmce or lien is not removed or dischomm or provision made, satisfactory W the City, for such payment, removal, or discharge, within thirty (30) days after the Citys vm orm demand W do so; or c. shell make my assignment for the benefit of creditrs or areceiver or similar officer shall be appointed to take charge of all or my substantial part of Kames' property, and such assignment or appointment is not dismissed or released within thirty (30) days of the data the assigmnent in appointment is made. then the City shall have the right to re-enter and take possession of the Premises and to temwtate and revest in the Citythe entire estate conveyed by the Deed to liames as if an Died had ever been given; it being the intent of this provision that the conveyance of the Premises to the Karnes stall be made upon the condition that in the event of any default, failue, violation, or other action or inaction by the Kama specified in this Agreement, and failure on the pan of the Karnes to remedy, end, or abrogate such defnuh, failure, violation, or other action or inaction, within the period and in the warmer stated in this Agreement, the City, at its option, may declare aterrumation in favor of the City of the ride and of all the rights and interest in and to the Premises, aM that such tide and all rights suit interest of Karnes, and any assigns or successors in interen in and in the Premises, shell revert to the City. The City shall have the right to institute such actions or proccedings as it may deem desirable for effectuating the psalmists of this Section including also the right - to execute and record or file among the public land records in the office in which the Deed is recorded a written declaration of the termination of all right, tide and innocent of Karnes, its successors in interest and assigns, in the Premises and the revesting of title in the City, provided, however, that any delay by the City in instituting or prosecuting any such actions or proceedings or otherwise starring its rights under this Agreement shall not operate as awaiver of such rights or to deprive it of or limit such rights in any way. •F B�M• Filward A. Barrett tr — City �agn Dauxil /t _