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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 �Comments: / _ // kptuJa✓�ald%/ I� �f Oty Manager Associaa1.teed Information: �•" LEMIMPAS _Y_ Passage _ First Reading Page _ of _ geferral 06 30 N rYV Aadgaedwcouncila Greene August 28. 2006 rr 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 ORD MM (IITLMJ e..rx.Illi.p, m rlltauta Ootioo Agteeoeot for Poit 9o. 1 io 6 Central fitters. Inc.d/roa Epic sPOrts o "ired to coeMiro. � R6 and 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: