HomeMy WebLinkAbout2006-08-28 06-312 ORDERItem No. 06 312
Date: August 28, 2006
Item/Subject ORDER, Authorizing Purchase Option Agreement for Unit No, 11n 6 Central
Street Condominium— Bangor Outfitters, Inc. d/b/a Epic Sports
Responsible Department: Community S Economic Development
Commentary:
This Order would authorize the sale of Condominium Unit No. 1 at 6 Central Street to Bangor Outfitters,
Inc. which has been leasing the space from the City and doing business as Epic Sports. The farmer W.T.
Grant building, brown as the Bass Building, was purchased "a City under its Community Development
Program in December 1996. Bangor Oulfiters has leased fts space since 1997. The building recently
was divided into two condominium units and ownership of Unit No. 2 has been transferred to the
University of Maine System. Unit No. 1 occupies approwmately 27,913 square fest of the building
consisting of most of the street leve, basement space and subbasement space, and part of the
mezzanine. The purchase price would be Its appraised value of $350,000, less $72,100 of real estate
Improvement costs incurred by Bangor Outhlters, for a net purchase price of $2T/,900, which would be
financed by the City at 5.5% ever 20 years.
Department Head
Manager's
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06 30
N rYV Aadgaedwcouncila Greene August 28. 2006
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CITY OF BANGOR
(TREE.) Order, Authorising Purchase Option Agreement for Unit No.1 In 6
Central Sheet Condominium — Bangor Out WAM Inc d/b/a
Epic Sports
By Bre 0[y Camti/ofine 0ty ofBanga:
ORDERED,
WHEREAS, Brad Ryder on behalf of Bangor Outfitters, Inc., doing business as Epic Sports at 6
Central Street in Bangor, has submitted a proposal to purchase from the Ory Unit 1 in 6 Central
Street Contlominium; and
WHEREAS, Bargor Outfitters, Inc. has leased space in the farmer W.T. Grant Building, known
as the Bass Building, from the City since June 5, 1997 and has successfully operated a aborting
goods retail store at that location during the period of the lease; and
WHEREAS, R is the Intent of Bangor ONfihers, Inc. to continue operating the space now
designated as Unit No, I In 6 Central Street Condominium as a retail store; and
WHEREAS, the continued operation of Epic Sports as a retail store In downtown Bangor has
been an Integral element In the success of the downtown economy experienced over the last
decade and the proposal conforms to the Citys plans and objectives for the downtown care;
NOW, THEREFORE, BY THE CRY COUNCIL OF ME QTY OF BANGOR, BE R
ORDERED THAT the City Manager is hereby a"rized w execute, on behalf of the City of
Bangor, a Purchase Option Agreement with Bangor Outfitters, Inc. for purchase of Unit No. 1 in
6 Central Street Condominium, under terms and conditions substantially as contained in the
Purchase Option Agreement, on file in the office of the City Clerk, and in a final form approved
by the City Solicitor or Assistant City Solicitor.
I6 ClW COOPCIL
August 28, 2006
Motim Made aua seconded
Pause ) # 06-312
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06 312
THIS PURCHASE& SALE AGREEMENT is made and entered into this dayof
2006, by and between:
QTY OF BANGOR, a municipal roryoration orgardzed and existingunder the laws of
the State of Maine, with an office located at 73 Harlow Stmt, Bangor, Penobscot
County, Maine (herelnafler SELLER),
BANGOR OUTFITTERS, P C., a corporation orgmdzed and existing under the laws of
the State of Maine, with an office located at 6 Cannot Street, Bangor, Penobscot County,
Maine (herelnafler BUYER).
1. Premises.
The BUYER agrees in purchase and the SELLER agrees to sell and convey Unit No. 1
located in 6 Centel Street Condominium, Bangor, Maine (hereinafter "Premises") with
all fixtures and in its current condition, in accordance with the terms of this Purchase &
Sale Agreement.
2. Purchase Price.
llte purchase price for the Premises shall be TWO 11114DRED SEVENTY-SEVEN
THOUSAND NINE IIIINDRED DOLLARS ($2]],900.00). The parties hereto agree
that tiffs purchase price accounts for certain improvemeeYs to real estate made by BUYER
in the course of its tenancy of the Parcel and valued at $72,100.00.
3. Financin
SELLER shall finance BUYER's purchase of the Premises by executing a separate
Promissory Note & Agreement and Mortgage Deed with the terms substantially as
follows:
SELLER will provide BAYER with a loan not to excced $277,900, at an sweet
interest tate of 5.501o, with monthly amonizatton over a period of 20 years,
provided BUYER contimres to operate the Premises as a retail store or odser use
as may be approved in writing by the SELLER. m the event the BIIYER fails to
continue operation of the Premises as aremil store or other we as may be
approved m ommig by the SELLER, the outstanding principle balance shall be
due and payable in full within 90 days of notification to the BAYER by the
SELLER.
06 91.22
4. Twe ofConvevance.
SELLER shall convey the Premises in BUYER by Quitclaim Dead with Covenant.
SELLER shall prepare the necessary Deed, subject to approval by BIIYER's attorney.
SELLER shall convey title under this paragraph to BUYER with good and marketable
title free and dear of all eauunbrances except customary public utility easements serving
the premises and any othereasemenfs ofremrd and shall be subject m applicable zoning
and land use laws and regulations.
5. Taxes.
BUYER shall be responsible for all property taxes assessed against tlu subject premises
followingthe closing.
6. Closing Date.
The SELLER shall deliver the deed m BUYER and BUYER shall execute the Promissory
Note & Agreement and Mortgage Deal on or before October 15, 2006, or this Purchase
& Sales Agreemw shall be null and void.
M WITNESS WHEREOF this Agreement has been executed, sealed and delivered in
duplicate counteryarts as of the day and year that above written
SELLER-CITYOFBANGOR
By: Edward A.Barrat
Its: City Manager -
BUYER -BANGOR OUTFITTERS INC.
By: Brad Ryder
Its: