HomeMy WebLinkAbout2003-11-24 04-22 ORDERCOUNCIL AMON
Item No. 04-22
Dl 11-24-03
Item/Subject: Order, Authorizing the Cty Manager to Execute a Memorandum of Understanding
with the University of Maine System Regarding Exchange of Property for the Purpose of Relocating
the System ice and Exparding Development Opportunities in the Maine Business Enterprise Park.
Responsible Departmenb City Manager
Representatives of the University of Maine System and the City of Bangor have been in discussions
that may lead to a property transfer allowing the System to relocate its offices to the downtown
Grants Building. In return, the City would take possession of certain buildings and properties owned
by the System adjacent to the City's Maine Business Enterprise Park located on Maine Avenue.
Conceptually, this proposal would provide a range of beiefits to the City and the System. It would:
• complete the reuse of the Grants Building;
• bring 120 new employees into the downtown, increasing anivity and providing additional
customers for downtown restaurants and retailers;
• further strengthen the already strong relationship between the City and the System;
• bring all system employees together under one roof allowing for greater system efficiency;
• allow for City control of additional property adjacent to the Maine Business Enterprise Park
that cart be used for economic development, job creation, and tax base enhancement
• add a number of buildings to the City's economic development inventory that will allow the
City N respond to business prospect looking for currently available building space.
Should agreement be reached, the intent of the parties is that the UMS properties that would be
transferred to the City would be equal to the value of the Grant building, the cost of its renovation,
and other considerations of value provided by the City of Bangor. No UMS funds would be used to
renovate the space, and the overall cost of System office space would remain the same or decline.
The attached order will authorize a memorandum of understanding between the City and the
System that will set the parameters for negotiations toward a firnal agreement. Please note that as
these discussions move forward, there may be unexpected changes or complications. Should these
ease, staff will keep the Council informed.
Department Head
Manager's Commends:
Recommend approval
City Manager
Associated information
Budget Approval:
- Finar¢e Director
Legal Approval:
0 Solicitor
Introduced for
X Passage
First Reading Page_ of
_Referral
i V Assi6nedb Councilor Pa1mr Pwemaer 26, 2003
�q
CITY OF BANGOR
(TITLE.) Order, Authorizing the Oty Manager to Ekecute a Memorandum of Understanding with the
UnWerslty of Maine System Regarding Exchange of Property for the Purpose of Relocating the System
Office and Expanding Development Opporrunides in the Maine Business Enterprise Park
ORDERED,
That the City Manager is hereby authorized to Execute a Memorandum of Understanding with the
University of Maim System Regarding Exchange of Property for the Pwpose of Relucadng the System
Office and ExpanNng Development Opportunides in the Maim Business Enterpnse Park in a form
acceptable no the City Solicitor and substantially as attached hereto
IB CITY W09Cyh
November 26, 2003
Notion Made and seconded
for Passage
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(fITTLEJ Authorising the City Mooser to
grocers aMemormdum of Understanding a th
the Nniveraity of Mai,e system Regarding
Relocating the system "flee and Expanding
Develooment O000rtuvitfea in the Baine
Business enterprise Park
AssignedbCtundloloro // ria
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MEMORANDUM OF UNDERSTANDING BETVVEEN THE UNIVERSITY OF MAINE SYSTEM
AND THE CIP( OF BANGOR REGARDING EXCHANGE OF PROPERTY FOR THE PURPOSE
OF RELOCATING THE SYSTEM OFFICE AND EXPANDING DEVELOPMENT
OPPORTUNITIES IN THE MAINE BUSINESS ENTERPRISE PARK
November 25, 2004
This memorandum sets forth the proposed terms and conditions far an agreement
between the University of Maine System and the City of Bangor far an exchange of
property that will allow are University of Maine System to relocate its offices within the
City of Bangor and enhance development opportunities for the City in the Maine
Business Enterprise Palk. This memorandum does not mn4ltute a binding agreement
between the parties, but rather sets forth the conceptual framework from which a
definitive agreement may beestabtishecl. Neither parry intends Matthis letter establish
any legally binding commitment and and unless a definitive agreement is executed and
delivered by the parties.
The purpose of this agreement is to support the interest of the University of Maine
System in occupying space that more closely mails System needs at no additional cost
W the System. Further it will allow the System W bring additional staff together at one
location, provide for additional meeting space, and Improve the efficiency and
effectiveness of System operations. System occupancy of the former Grants Building
will complete the reuse of this structure, bring additional employees into downtown
Bangor in support of the City's goal of downtown Improvement, and improve and
strengthen the existing relationship between the City and System. R will also provide
City with additional property in the Maine Business Enterprise Park, including existing
buildings, that can be used for business attraction providing new employment
opportunities and expanding the City's tax base.
1. The parties are the University of Maine System ("System') and the City of Bangor
CCity").
2. The City shall establish a condominium unit Including the top three Floors and a
portion of the mezzanine of the Grants Building in downtown Bargor. Ownership of
this unit shall be transferred to the System for its use as the System's headquarters.
In addition, City shall renovate this space for System use and shall expend up to $2
million for such renova[ims. As a portion of the value Provided by the City for
purposes of establishing an equal value exchange, City shall for a period of twenty
years, provitle up to 120 parking spaces in City owned parking structures and lots for
use by System employees and shall make available up to 20 additonal spaces for
use by those visiting the System Office on System business.
3. In return, System shall transfer System oval property W the Oty of a value equal
to the value of property, including improvements, and parking spaces provided by
City W System. The property W be transferred shall include the three buildings
currently occupied by the System on property leased from Me City In City's Maine
Business Enterprise Park and other property owned by the System adjacent W the
Maine Business Enterprise Park. The extent of Me additional property beyond
on -22
System occupied buildings to be transferred to the City shall be determined based on
Me established values of the properties to be exchanged, with the overall value
transferred to each party to be as equal as possible.
9. System and Cty agree to jointly select an appraiser to advise the Clry and System on
the value of the properties to be exchanged. It is the intent of the parties that the
value of the System property to be transferred to the City closely approximates the
value of the property, improvements, and parking rights to be transferred to the
System.
5. City shall select, subject to System approval, architects and contractors to undertake
renovation work to the Grants Building. The design of such work shall be
coordinated with the System to insure that improvements meet System needs. Both
parties agree to undertake their best effects to insure that the total costs of such
renovations do not exceed $2 million.
6. City shall be the primary contact with the existing tenant in the building and will
coordinate with this tenant and System to resolve any issues relating to System
occupancy of the building.
7. System shall undertake its best efforts in good faith to maintain Its primary office
location in the Grants Building for a period of a<least twenty -years. Should System
wish to relocate during this period, System shall provide City with 180 days notice of
its interest in relocation, such notice to include the reasons for such relocation.
Should the system relocate, Cty shall have right of first refusal to purchase system's
Interest in the building.
8. Upon advance request from City, and should meeting space be available within Me
building, System agrees to make such space available for City related meetings,
Including meetings of Cty sponsored downtown organizations.
9. City and System agree to undertake their best efforts to finalize a property transfer
agreement on or before February 1, 2009 and to complete renovations to the
property sufficient to allow system occupancy by July 1, 2005.
This memorandum a understanding is not contractual in nature and reflects only the
Intenders of the parties to proceed toward the negotiation of definitive agreements and,
If such agreements are executed, the consummation of the transaction described herein.
Except as expressly set forth in this memorandum of understanding, no parry will have
any obligation or liability based upon or arising under the memorandum to any other
party by reason a the fact that a definitive agreement is not prepared, authorized,
executed or delivered.
University of Maine System CM of Bangor
Its Chancellor Its City Manager