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Home My WebLink About2006-10-23 06-360 ORDERItem Ne. Date: October 23, 2006 06 360 Item/Subject ORDER, Authorizing Purchase and Sale Agreement for Unit No. 1 In 6 Central Street Condominium —Spangler & Salisbury, LLC Reaperrsible Deparbrrenb Community& Economic Development Council Order 06 312, passed on August 2Q 2006, authorized the sale of Condominium Unit No. 1 at 6 Central Street ro Bangor Outfitters, Inc., doing business as Epic Sports, and requiretl the transfer of Me property to take place on or before October 15, 2006. The buyers, Brad and Lynda Ryder, wished M form a United! Uability Company (LLC) as one ownership entity and were not able W accomplish this before the October 15 deadline. they have asked for an edension of the closing data W the and of the year. This Order would authorize a new Purchase and Sale Agreement within Spangler & Salisbury, LLC and extend the property conveyance date to not later than January 15, 2007. Epic Spoils will remain in the purchased space and will lease the Unit No. 1 space from Spangler & Salisbury, U.C. The Bass Building, known as gIe former W.T. Grant building, was purchased by the City under Its Community Development Program In December 1996. Bangor Outfitters has leased it space since 1997. The building 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 approdmately 27,913 square feet of the building consisting of most of the street level, basement space, subbasement space, and part of Me meaanlne. The approved purchase price is its appraised value of $350,000, less $72,100 of real estate improvement costs Incurred by Bangor Outfitters, for a net purchase price of $277,900. The purchase would be Chanced by the City a[ 5.5% over 20 years. Department Head Recommend approval, as does the Blueness and Economic Development Ca ittee, yK(/rt0 City Manager Budget Approval: �NL��A/1 dR Finance Director Legal Approval: City Bolmir Introduced for X passage _ First Reading Page _ of _ Referral 06 3130 AssignN to Councilor Greene October 23. 2006 CITY OF BANGOR (MILE) Order, AuNorhing Purchase and Sale Agreement for Unit No. 1 in 6 Central Street Condominium— Spangler St Salisbury, LLC By Q'fy Cpvnti/ of Bre CSfy Of Havigon ORDERED, WHEREAS, Brad Ryder on behalf of Bangor Outliners, Inc., doing business as Epic Sports M 6 Central Street in Bangor, submitted a proposal to purchase from the City Unit No. 1 in 6 Central Street Condominium; and WHEREAS, by passage of Order 06 312 the City Council had previously authonzed a Purchase Option Agreement with Bangor Outliners that required the conveyance to take place an or before October 15, 20W; and WHEREAS, Bangor Outfitters, Inc. his leased space in the former W.T. Grant Building, known as the Bass Building, from the City since June 5, 1997 an has successfully operated a sporting goods retail srore M that looabon during Me pend of the lease; and WHEREAS, Me continued operation of Epic Sports as a retail store in downtown Bangor has been an integral element In the success of the downtown economy e:cipederlced over the last decade and the proposal conforms to the City's plans and objtttives for the downtown core; and WHEREAS, Me principals, Brad and Lynda Ryder, wish to form a new entity, Spangler B Salisbury, LLC, to be the ownership amity of condominium Unit No. 1 with continued occupancy by Meir business, Epic Sports; and WHEREAS, the Rydels ware not able to form the LLC before and accept transfer of ownership of condominium Unit No. 1 pnor to Me October 15, 2006 deadline established by Order O6 312: NOW, THEREFORE, BY THE CITY COUNCIL OF ME CITY OF BANGOR BE IT ORDERED THAT the City Manager is hereby authodzed to execute, on behalf of the City of Bangor, a Purchase and Sale Agreement with Spangler & Salisbury, LLC for purchase of Unit N0. 1 in 6 Central Sheet Condominium, under terms and conditions substantially the same as in the attached Purchase and Sale Agreement, and In a final farm approved by Me City Solicitor or Assistant City Solicitor. IM CITY CCO m October 23, 2006 Motion Made and Seconded for Passage Pasx T2 M g 06-360 ORDER ffITL6J9uthoiiziv¢ Porchu¢ and Sale R green for Wit No. I in 6 Central Street f dvminLm- Svaveler 6 Sallnbory LLC e1'_ 0:6, 360 PURCRASE AND SALE AGREEMENT This PURCHASE AND SALE AGREEMENT is made and accused into [Itis _ day of 2006,byandbetween: CITY OF BANGOR, a municipal corporation organized and existing under the laws of the State of Maine, with anoffice located at 73 Harlow Street, Bangor, Penobacot County, Mame (hernaaHerSELLER), and SPANGLER & SALISBURY, LLC, a limited liability company organized and existing under the laws of the State of Maine, with an office located at 6 Counted Sheet, Bangor, Penobscot County, Maine (handicrafter BUYER). 1. Premises. The BUYER agrees b purchase and dw SELLER agrees to sell and convey Unit No. l located in 6 Central Street Condominium, Bangor, Maine (hereirmafler'Pcotises'7 with all fixtures and in its current condition, in accordance with the terms of this Purchase and Sale Agreement 2. Purchase Price. The purchase price for the Premises shall be TWO HUNDRED SEVENTY-SEVEN THOUSAND NINE HUNDRED DOLLARS($277,900.00). The parties hembo agree that this purchase price account for certain improvements to real estate made by BAYER in the course of its tmency of the Parcel and valued m $72,100.00. 3. pig SELLER shall finance BUYER's purchase of the Premises by executing a separate Promissory Note and Agremmmt and Mortgage Deed with the terms substantially as follows: SELLER will provide BUYER with a loan net to exceed $277,900, at an menus] interest rate of 5.5%, with monthly amortization over a period of 20 years, providedBUYER continues to operate the Premises as aretail store or offer use as may be approved in writing by the SELLER. In the event the BUYER fails to continue operation of due Promises as a retail store or other use as maybe approved in writing by the SELLER, the outstanding principle balance shall be due and payable in full within W days of notification to the BUYER by the SELLER. os 360 4. I' Me of Cmnyey511e4. SELLER shall convey the Premises to BAYER by Qwtclaim Deed with Caveman. SELLER shall prepare the necessary Deed, subject to approval by BUYER's attorney. SELLER shall convey fide ander this paragraph to BAYER with good and marketable title free and clear of all emambrenms except customary, public utility easements serving the programs and any other easerneras of record and shall be subject to applicable zoning and land use laws and regulations. S. Taxes. BUYER shall be responsible for all property taxes assessed against the subject premises following the closing 6. Closine Dae. The SELLER shall deliver the deed to BUYER and BUYER shall execute the Promissory Note and Agreement and Mortgage Deed an or before January 15, 200], or this Purchase and Sale Agreement shall be call and void. IN WITNESS WHEREOF this Agrcement bas been executed, sealed and delivered in duplicate counterpart as of the day and year first above wntten CITY OF RANCOR BY Edward A. Bartell Its: City Manager SPANGLBR & SA JSBURY, LLC By: Brad Ryder Its: