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: &rrran) 1/ram* R�r��R��/ilan27n% d.. / City Manager Associated (Information: 67ry Firm Director Shccgvr 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 sag Pae d 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