HomeMy WebLinkAbout2006-07-24 06-278 ORDERItem No.
Date: 3uly 24, 2006
Item/Subject ORDER, Authorizing Purchase Option Agreement for Development
of Former Trustees Building at 102 Maine Ave. —Paul and Liz
Leonard
Responsible Depart nt Community and Economic Development
This Order would authorize the City Manager to execute a purchase Option Agreement with Paul and Uz
Leonard to provide for their purchase and renovation of the former Trustees Building a[ 102 Maine
Avenue for Its use as a daycare facility at a total project cost of not less than $946,000 including a
purchase price of $425,000. The Purchase Option Agreement would remain in effed until September 30,
2006. Renovation of the daycare facility would have m begin not lata than October 1, 2006 antl be
ounpleted no later than December 31, 2006. Prior to conveyance of the property by the Oty, the
Leonard's would be required to seek and reralve all nea ssary permits, approval of renovation and
Property improvement plans by the Business and Economic Development Committee, antl provide
satisfactory evidence of Rnandng am a construction contract.
DepaMient Neal
Manager's Comments:
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Introduced for
Passage
_ First Reading Page _ of _
Referral
_ Assigned to Councilor Greene July 26, 2006
CITY OF BANGOR
(TITLE.) Order, Authorizing Purchase Option Agreement for Development of
Former Trustees Building at 107 Maine Ave. —Paul and Liz
Leonard
By the Qty Counci/of the Gry of Bangor.
ORDERED,
WHEREAS, Paul and Liz Leonard have submitted a proposal to the City M develop a daycare
facility in the former Univemlty of Maine Trustees Building a[ 109 Maine Avenue; and
WHEREAS, the Option would require that not less than $9%,OW be inverted in purchasing the
property and renovating it far daycare use; and
WHEREAS, the purchase price would be $475,000; and
WHEREAS, the Option period would eidend through September 30, 2006, and during this
period, and before the property mve conveyed to Paul and Liz Leonard, they would have to
submit and obtain approval of preliminary and final development plans from the Business and
Economic Development Committee, obtain me necessary permits and site plan approvals,
provide evidence of financing, and evidence of a construction contract; and
WHEREAS, the Option would require construction to begin no later than October 1, 2006 and
be completed by December 31, 2006; and
WHEREAS, the proposal cdomms to the CWs plate and objectives for development d the
sites:
NOW, THEREFORE, BY ME CRY COUNCIL OF THE CRY OF BANGOR, BE R
ORDERED THAT Me City Manager is hereby authorized m ezecure, on behalf of the City of
Bangor, a Purchase Option Agreement With Paul and liz Leonard, under terms and conditions
sulumemally as contained In the Purchase Option Agreement, on file In the dace of the City
Clark, and in a final from approved by the City Solidror or Assistant CM Solicitor.
IN CITY COUNCIL _
July 26. 2006
IbHw Nude and Seconded
a
for
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CLgNN a
Y 06-2]X
ORDER
(fifLN tMLizing Purchase Option
Agreenent for Development of Former
Trustees guildioe at 107 Maine Avenue
Paul and Lis Leonard
Mlgytd ro Couetibe_- � 9
w'
CITY OF BANGOR
73 Harlow St.
Bangor, Mame 04401
Department ojCommumm,&Ecormmic Development
(20'7)992-4240
(207) 945-0447 (Fax)
15IITD) LV I ILLI
Jury 20, 2006
To: City Council
PR: Rodney G. McKay, Director of Community & Economic Development
RE: Coundl Order 06-278
Paul and Dz Leonard
Council Order 06.278 authorizes the City Manager to'execute a Purchase Option
Agreement for development of the former Trustees Building at 107 Maine Avenue with
Paul and Liz Leonard. Attached is a copy of the Purchase Option Agreement for your
Information.
Pc: Path. Duldois,City Clerk
Edward A. Barrett, CRy Manager
Norman S. Heitman, III, City Solicitor
Stephen A. Bolduc, Economic Development Officer
ClT! OF BANGOR, a body corporate, of 73 Harlow Street, Bangor, Penobscot
County, Maine (hereinafter OP70NOR), for consideration paid and other monies
referred W below and W be Paid at the dosing of the purchase and sale of the premises
described in Paragraph 1 below, hereby grants W Ill AND PAUL LEONARD, of Brewer,
Penobscot County, Maine (hereinafter OPTIONEE) an option W purchase, upon the
terms and carcinoma; set With below, the premises described in Paragraph 1 below.
TERM : This option Is granted! subjectto the following terms and conditions:
1. Premises Subiect to Option. A parcel of land and building at 107 Maine
Avenue In Bangor described on the attached Exhibit A and hereinafter
referred! W as PREMISES, subject W approval of the Bangor City Coal
Business and Economic Development Committee of picking, ingress and
egress plans, and any easements for same as appreved and required by the
Business and Economic Development Committee of the City Council of the
City of Bangor..
2. Option Pedpd. This option shall run from the date hereof until 4:30 P.M.
September 30, 2006.
3. Exercise of Option. The OMONEE may exercise this option and acquire the
subject property by giving written notice of Its Intent W do so W the
OPTIONOR at any time during the option period prior W 4:30 P.M. August
30, 2006. Such notice shall be effective A delivered to the OP710NOWs Ory
Solicitors office at the OPIIONOWs address stated above. Thereafter, the
parties shall schedule a closing at a mutually convenient data, which will be
no later than September 30, 2006. However, OPTIONOR shall not be
obligated to convey the property to OMONEE until such time as OMONEE
has secured all required approvals from the City of Bangor Planning Board
and the Gly shall have reviewed and approved in writing all building and site
development plans as herein provided for.
4. Purchase Price. The purchase price for the Property subject W this Option
Agreement shall be $475,000.
5. Toe of QNowevance. Conveyance shall be by Quitclaim Deed with Covenant
to OMONEE from OMONOR. OPTIONOR shall prepare the necessary
Deed, subject W approval by OPITONEE's attorney. OPTIONOR shall convey
title under this paragraph W OPTIDNEE with good and marketable tte bee
and clear of all encumbrances except customary public utility easements
serving the premises and any other easements of record or required as a
condition of this Option and shall be subject to applicable zoning and land
use laws and regulations.
6. Taxes. OPTIONEE shall be responsible for all property taxes assessed
sill the subject premises following the closing.
]. OP IQNOR Not to Col or Encumber Title. During the term of the option
period, OMONOR shall not voluntarily convey, mortgage or otherwise
encumber the optioned property or any porton thereof, without OPTIONEE's
prior written consent
8. OMONEE's Conditions. Notwithstanding OPTIONEE's exercise of its coal
OPTIONEE shall have no obligation to acquire the property unless the
following conditions are met, to OPTIONEE's satisfaction:
a. The OPTIONEE shall review and be satisfied with all zoning, land use and
environmental laws, codes, ordinances and regulations affecting the
Property and shall obtain all zoning, subdivision and environmental
permits and approvals and any other applicable permit or approval as
may be necessary for the OMONEE's proposed use and development of
the Property, including any thereof pertaining to wetlands or wetlands
mitigation.
It, There shall not be any moratorium or any other restrictive measures in
effect which prevent or be a detriment to the OPTIONEE's intended use
and development of the Property.
c. OMONEE shall be satisfied that tte and access to the Property is goad
and marketable and insurable for the benefit of OPTIONEE and any
mortgage lender. Upon the execution of this Agreement, OPTIONOR
shall provide OPTIONEE with any edOng title insurance policy, abstracts
of We, or other Me evidence.
a. OMONEE shall make Improvements to PREMISES for Its use as a
daycare center, and shall establish and operate a daycare center as
proposed by Liz and Paul Leonard in their proposal to the City of Bangor
in their proposal submitted to the City of Bangor on March 22, 2006, at a
total project cost of not less than $946,000, approximately $800,000, of
which will be for acquisition and real estate Improvement costs.
It. OPIIONEE shall invest not less than $326,000 in building improvements
approved by the Business and Economic Development Committee of the
City Council of the City of Bangor, which in all respects conform W the
requirements of the City of Bangor Land Development Code, all
hereinafter referred to as the "PROJECT". Before conveyance, the
Business and Economic Development Committee of the City Council of
the City of Bangor shall review all buil0ing Improvement and she
development plans.
c. In the event OPTIONEE exercises this OPTION W purchase, conveyance
of the property shall be subject to retention or granting of suitable uBllty
easements W the City of Bangor and the Bangor Water District for me
purposes of accessing, maintaining, replacing or repairing Whom on the
Property. No structure shall be placed on or over any utilities. OPTIONEE
shall reserve any needed easements for public utilities and vehicular and
pedestrian access as determined "a OPTIONOR in tis sole discretion.
d. OPTIONEE shall provide for priority for daycare center clients first to
parsons employed in the City's Maine Business Enterprise Park and BG
Commercial/Industrial Park, second to residents of the City of Bangor or
to others employed in Bangor, and third to all others.
e. If required by the City of Bangor land Development Cade, OPTIONEE
shall submit an application for site plan approval for the PROJECT by the
City of Bangor Planning Board not later than September I, 2006, said
application to contain ail information required for site plan approval by
the City of Bangor Land Development Cade. Submitbls shall be in
conformance with all requirements of the City of Bangor land
Development Cade. OPTIONEE shall obtain City of Bangor Planning
Board site plan approval for the PROJECT no later than September 30,
2006.
I. OPTIONEE shall submit W the Otys Director of Community and Economic
Development no later than August 30, 2006 PROJECT Plans and
specifications for building and site improvements as required. OPTIONEE
shall obtain approval of PROJECT plans and specifications for building and
site Improvements, including parkng and access W and from the
Premises, by the Bangor City Coumdl Business and Economic
Development Committee no later than September 20, 2006.
g. OPTIONEE shall obtain all necessary zoning, subdivision and
emironmenfal permits and approvals and an/ other applicable permit or
approval as may be necessary for the OPTIONEE's proposed use and
development of Ue Property.
h. Conveyance of the PREMISES to the OPTIONEE shall be conditioned on
approval of the Business and Economic Development Committee of the
City Council of the City of Bangor of all building and property
improvement plans. The plans submitted for the Committee's
consideration shall be sufficient In detail to outline the scope and quality
of development and convey suffident information for the Committee to
determine the level of investment proposed and character of the work to
be performed. The plans are to Include a preliminary site plan showing
the footprint of the building and site improvements in relationship to the
site and surrounding improvements; suitable cross-sections and
elevations of the proposed building improvements showing the
relationship of floors to surrounding grades and indicating the exterior
10
building materials proposed to be used to enable the City m determine
the compatibility of the proposed building Improvements to the
development sole; and preliminary floor plans showing proposed general
mom layouts and proposed use, including entrances and mute and overall
floor area for each floor.
Conveyance of the PREMISES to the OPTIONEE shall be further
conditioned on and the OMONEE providing evidence in a form
satisfactory to the City of Bangor Cry Solicitor or Assistant City Solicitor,
and Director of Community and Economic Development, of (a) legally
binding financing commitments acceptable to the City and equity
Investment of not less than $1,065,000, of which nal less than $89,000
shall be OPTIONEE'S equity Investment, to carry out OMONEES
proposed daycare center project; (b) all approvals for their 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.
I.
OPTIONEE shall commence site work and building improvements no later
than October 1, 2006. Suffident eNdence of proceeding with site work
and building construction is an approved Land Development Permit,
Issuance of a Building Permit and initiation of improvements to the
Wilding.
k. OMONEE shall complete site work and building construction no later
than December 31, 2006. Construction of building and site improvements
shall be in conformance with plans and spedfiadons approved by the
Bangor City Council Business and Economic Development Committee as
hereln required.
This OMON is made subject to the express condition Nat if the
OPTIONEE fails to comply with the terms and conditions of this Option,
Me to Me described property shall revert to and be vested in the City of
Bangor, without further notice, demand, order of condemnation, re-entry,
foreclosure, or other judicial act, notice or process, this reverter clause
constituting part of the consideration upon which said premises are
conveyed by the OPTIONOR to the OPTIONEE, provided, however, that
this reverter shall be subject and subordinate to any bona fide mortgage
granted by OPTIONEE to a financial institution to secure a loan for
construction of improvements on the Property and OPTIONOR shall
execute and deliver such comments as may be requested by OPTIONEE's
lender to confirm this subordination. In the event of the exercise of this
reverter provision by OPTIONOR, OPTIONOR shall refund to OPTIONEE
the purchase price of $475,000, without interest, less any costs incurred
by OPTIONOR to restore said PREMISES as nearly as practical calls
original condition eAsting a the time of this conveyance, and less any
diminution in fair market value of PREMISES as a result of OPTIONEE's
occupancy thereof, and no other payment stall be due OMONEE. Upon
completion of the site work and building construction in accordance with
this Agreement, OPTIONOR shall execute and deliver a release of this
reverter W OMONEE or its successor in title.
11. Ass'anam .
The OMONEE shall not at any time assign, sell, convey or transfer dris
Option or any interest therein. Providetl that, however, OMONEE shall
have the right W assign this OPTION to any corporation or other entity
wide which R may have become merged, consolidated or otherwise
associated, or any corporation or other entity having the controlling
interest In the OMONEE, or to any corporation or other entity which
may be a sulosidlary of the OPTIONEE. OMONEE shall provide
OMONOR of a copy of said assignment. In no event, however, shall the
OPTIONEE named heron be relieved from any obligation under this
OPTION by vire a of any assignment
Dated: = OF BANGOR
WAW 3
Edward A. Bamett
City Manager
Dated: PAUL AND LIZ LEONARD
Wtness Paul Leonard
Witness Da