HomeMy WebLinkAbout2004-05-24 04-152 ORDERItem 111 .0 152
Date: Mas 24, 2004
Item/Subject: ORDER, Authorizing an Agreement with the University of Maine System
Regarding Exchange of Property for the Purpose of Relocating the System Office and
Expanding Development Opportunities in the Maine Business Enterprise Park
Responsible Department: Community& Economic Development
Commentary:
Representa0ves of Ne University of Maine System and the City of Bangor have been in discussions
regarding Ne exchange of property Nat would allow the System N relocate its offices to the dowmown
Grants/Bass Building. TheCity would renovate the upper three floors of the Grants/Bass Building for Ne
Chancellors office use M a cost not exceed $3,154,000. The City would than deed the space as a
condominium unit to the University of Maine System. The City word! also provide 120 tlowntown parking
spaces for UMS use. In return, UMS will convey to City the buildings known as the Trustee's Building,
Auburn Hall, and Building 26 located at 107 Maine Avenue, and approximately 14.33 acres of land and
the buildings known as the Parrots CAP Daycare Cerner, Pine Tree Inn, and 1126 Air Ambulance at 107
Maine Ave. These properties are located adjacent to the City's Maine Business Enterprise Park. This
proposal would provide a range of benefits to the City and Ne System. It would:
• complete Ne reuse of the Grams Building;
• bring 120 new employees into the downtown, Increasing activity and providing additional customers
for downtown restaurants and retailers;
• mrther strengthen Ne already strong relationship between Ne City and the System;
• bring all system employees together under one roof allowing for greater system of deny;
• allow for City conal of additional property adjacent to the Maine Business Enterprise Park that can
be used for economic development, job depends, tae base enhancement, and other public purposes;
• add a number of buildings to the atys economic development Inventory that will allow the City to
respond to business prospects looking for currently available building space.
This Omer will authorize the Agreement between Ne City and the System.
Department Head
Manager's Comments:
IN Manager
Assodate0 Information:
Finance Director
Legal Approval:
Ply sdrd r
Introduced for
X Passage
_ Frs[ Reading Page _ of
Referral
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CITY OF BANGOR
CrnU.) Order, Authorizing an Agreement with the University of Maine System Regarding
Exchange of Property for the Purpose of Relocating the System Office and Expanding
Development Opportunities in the Maine Business Enterprise Parc
WHEREAS, representatives of the University of Maine System and the City of Bangor have been
In discussions regarding and equal value exchange of properties dmt would allow
the System to relocate its offices W downtown Bangor; and
WHEREAS, under this proposal, the City would receive properties adjacent W the Maine
Business Emarprse Park in retum for the upper three floors of fire Grants Building
located at the intersection of Hammond and Central Streets; and
WHEREAS, this exchange would complete the reuse of the Grants Building and bring 120 new
employees into the downtown, Mus Increasing activity and providing additional
customers for downtown businesses; and
WHEREAS, the proposal will further strengthen the already strong relationship between the City
and the University of Maine System; and
WHEREAS, the System property adjacent W the City's Business Enterprise Park can be used for
ecorwmic development, job creation, tax base enhancement or other public
purposes; and
WHEREAS, the City Coundl has determined that this exchange is in the best Interests of the
City of Bangor and Its citizens.
NOW, THEREFORE, BE U ORDERED BY THE Clay COUNCB.OF THE CRY OF BANGOR THAT
the City Manager Is hereby authorized to execute an agreement with the University of Maine
System regarding exchanging property for the purpose of relocating the System Office and
expanding the development opportunities and potential public uses of the System property
looted adjacent W the Maine Business Enterpree Park. The terms of this agreement shall be
generally In accord with the fallowing:
NATURE OF EXCHANGE: The City shall establish a condominium unit including the top those
floors and a portion of the mezzanine of the Grants Building and convey this space to the
University of Maine System for Its use as its headquarters in retum for the buildings known as
the Trustee's Building, "bum Hall, and Building 26 located at 107 Maine Avenue and the
approximate 14.33 acres of land and buildings.
CM RESPONSIBILITIES: The City shall expend up to $3,154,000 W renovate the space in the
Grants Building and coordinate this work with UMS W Insure that the improvements meet their
needs. Additionally, the City will provide up W 120 parking spaces (and 20 validated parking
spaces for visitors) in CM owned parking facilities for system use for a wood of not less than
ten nor more than ovenry, years. The City will coordinate any issues involving renovations to
the Grants Building with the existing tenant currently in the building.
UNIVERSITY OF MAINE SYSTEM RESPONSIBILITIES: UMS shall undertake Its best good faits
efforts to maintain Its primary office location in Me Grants Building for at least twenty, years.
DOCUMENTATION: UMS shall provide to City all title, survey, and environmental information In
its possession relating to the property to be transferred to the City. Ory shall provide this same
information on the Gram Building to the System. In addition, City shall provide horizontal and
vertical Boor plans indicating the areas constituting Me condominium uni4 common areas, and
limited condominium areas and shall secure any subdivision approval required before
transferring condominium space to the System. The City and UMS shall Jointly agree on the
Declaration of Condominium that sets forth respective rights and responsibilities.
RIGHT OF FIRST REFUSAL: Should UMS decide th relocate prior to July 1, 2030, the City shall
have the right of first refusal to purchase the System's space in the Grants Building at fair
market value.
BE IT FURTHER ORDERED, THAT the form of the final agreement shall be approved by the City
Solicitor. In the event that any provisan of the final agreement diverges from the terms
outlined above, such change must be feviewed and approved by he Business and Economic
Development Committee of the City Council.
IA CITY COMM
May 24, 2004
Motion Made cad seconded
for Penance
Pawed
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JRITLE dvrm,.g ri:fan � cement with the
Ivere ty o Men sye[ Heger vg Retractile
of Property for the Purpose of tolerating the
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Opportunities in the Mafce Business gnterprise
Park
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AGREEMENT
THIS AGREEMENT, executed thi%0 day of s��•�•� -2004, by and
betwsm
CITY OF BANGOR, a municipal corporation duly oryoiud and existing coder
and by vntue of the laws of the Stam of Maine, and having its Principal offices at 73
Harlow Street, Bangor, Maine (hereinafter sometimes referred to as "the City")
AND
UNIVERSITY OF MAINE SYSTEM having a place of business a[ IQ7 Maine
Avenue, Bangor, County of Penobscot, State of Maine (hereinafter sometimes referreil to
as "UMS,�
WITNESSETH:
WHEREAS, UMS is owner of certain premises by virtue of deed dated from the
United State of America to University of Maine and mounted in Volume 2214, Page
285, Penobscot Registry of Deeds; and _
WHEREAS, the City is the owner of certain premises by a deed from Matthew S.
Come and Cheryl D. Curtis dated May 13, 1997 sod recorded in Book 6385, Page 256,
Penobscot Registry of Deeds located at 6 Central Stmt, Bangor, known as the Bass or
Gnat's building; and -
WHEREAS, the City and UMS are parties W a lease of land m Maine Avenue,
Bangor, Mame dated lune 4, 2001; and
WHEREAS, the parties agree that it would be to their mutual benefit for each to
trmufa can m lands sed buildings in the other, and otherwise agree on the use of certain
portions of the above reference properties.
NOW, THEREFORE, it is mutually agreed as follows:
ARTICLE
EXCHANGE OF REAL ESTATE
On in before lune 30, 2005 EMS will convey W City the buildings known as the
Trustee's Building Aubum Hall and Building 26 located at 107 Maine Avenue as shown
on the attached Exhibit A.
On or before lune 30,2M5 UMS will convey W City approximately 14.33 acres
of land and the buildings thereon knavm as buildings 339, 345 and 346 as shown on the
attached Exhibit B. -
On ce before June 30, 2005 the City will establish a condominium unit including
the top three floors and a porton of the mezzanine to be shared with Epic Sports and a
Portion of the first floor for the purpose of an $trance from Central Street of the Grants
Building located at 6 Central Street in downtown Bangor as shown on Exhibit C and
hereinafter refs r to as "Condominium Space' and convey said Condominium Space to
UMS for its use as UMS's headquarters.
ARTICLE II
RENOVATION OF CONDOMNM SPACE
Prior to conveyance to UMS, City shall renovate Condamhmon Space for UMS
e and shall expend up to $3,154,000 for such renovations. IDMS shall, with the advice
and participation of City, select architects and connectors to undertake renovation work
to Ne Condominium Space. The design of such work shall be coordinated with the City.
UMS agrees that any expenditure of City funds is contingent upon City Council approval
of the appropriation of the foods.
ARTICLE III
PROVISION OF PARKING
City will, for aperiod often (10) years, begimiing with the issuance of a
Certificate of Occupancy by the City of Bangor for the renovated Condominium Space,
provide up to 120 parking spaces in City owned panting structures and parking lots
located within the boundaries of the City's Downtown Parking Management District for
use by UMS employees at no cast to UMS, including three (3) spaces in the Lower
Hammond Broad parking deck. In no case will specific spaces be reserved for, or
assigned m, UMS.
City shall make available up to 20 validated puking spaces in City owned parking
structures aW lets for use by Nose visiting the UMS Office on UMS business. The City
provides assurance that its public facilities or lots will amouunodate up to 20 vehicles of
visitors of the UMS headquarters at any one time on UMS business. The City will honor
the cast of up In $900 per month in validated parking charges for visitors of the UMS
headquarters on UMS business.
In the event the current occupanu terminate the use and occupancy of building
numbers 345 and 346, the City agrees to negotiate with UMS a longer parking term based
upon the value of said buildings.
M-Isz
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COOMWAT[ON WITH EXISTING TENANT -6 CENTRAL STREET
City shall be the primary contactwim the existing tenant in 6 Cenral Standard
will coordinate with this meant and UMS to resolve any issues relating in the renovation
of the Condominium Space until City conveys the Condominium Space to UMS.
ARTICI.EV
MISCELANEOUS
City shall provide UMS all title, survey and envimmnental information in
possession of City relating to 6 Centel Street.
I1MS shall provide City all tide, survey and environmental information in its
possession relating W UMS property m be conveyed w City under this Agreement. If
UMS has no envimmnental inforntation on the property to be conveyed, UMS sball
provide Can City with a Phase I Mom The City may at its sole discretion order and pay
for a Phase 11 report and if the report indicates aneed to wrrect wvironmomml issues, the
City may, in its sole discretion terminate this agrewent The City shall make said
date mammoa within sixty (60) days of the rewim of the Phase E report IEUMS has no
survey, they shall prepare and provide to the City a survey of the property to be conveyed
to the City.
ARTICLE VI
CONDOIvflNIUM DOCUMENTS
City shall provide IDMS a survey of the 6 Central Street property that will be
subject to a Declaration of Condominiums.
City will provide UMS hotizo nal and vertical floor plans of the inside of the
Condominium Space dam by floor indicating what is a condominium urd6 what is a
common area, and what is a limited condominium area.
City shall prepare or cause to be prepared a Declaration of Condominium that sets
out the rights and responsibilities of she ovmers, the declaram, the unit owners
association, insurers, M.
City shall be responsible for securing any subdivision approval required before
mansfrrrfg Condominium Space to UMS
06-152
ARTCLE W
GOOD FAITH EFFORT
UMS shall undertake its best efforts in good faith to maintain its primary office
location in the Condominium Space for a period of at least twenty -years from the date the
City issues a Certificate of Occupncy for the Condominium Space for use by UMS.
ARTICLE VII
CITY RIGHT OF FIRST REFUSAL
Should UMS wish to relocate from the Condominium Space before July 1, 2030,
UMS shall provide City with 180 days notice of its interest in telocation, such notice to
include the reasons for such relocation. Should UMS decide to relocate, City shall have
right offirst refusal to purchase VMS's interest in the building. The purchaseprice of the
Condominium Space shall be fir market value as determined by a qualified independent
appraiser engaged by City. Should UMS not agree with the fah market value opinion
provided by the independent appraiser engaged by the City, UMS shall engage asecond
qualified independent appraiser in provide an opinion of fair madret value. If City and
UMS can then not agree on a fair market value for conveyance of the Condominium
Space by UMS to the City, and the City in its sole discrtion decides to further pursue
acquisition of the Condominium Space from UMS, the independent appraiser engaged by
the City and the independent appriser engaged by UMS stall choose a Hurd qualified
independent appraiser to provide an opinion of value, which shall be binding on both
UMS and City.
ARTICLE VIII
AUTHORITY TO ENTER WTO AGREEMENT
The City hereby represents and warrants that it has taken all necessary procedural
and legal steps as required by federal, state and local laws and regulations for the purpose
ofauthenzing me execution of this agreement and that execution of this agreement by the
City Manager renders this agreement a valid arta binding document on the part of the
Gty and the same is fully enforceable in all of its terms and conditions by UMS.
UMS hereby represents and warrants that it has taken all necessary procedural and
legal saeps as required under all state, local and federal laws and regulations, and all
necessary corporate action to authorize the execution of this agreement by its undersigned
corporate officers and that upon such execution this agreement is a valid and binding
document on the part of the UMS rand is fully enforceable in au of its terms and
conditions by the City of Bangor.
M WITNESS WHEREOF, dse parties hereto have set them hands and seals the day and
year written above.
51:
CITY OF BANGOR
(fid A. Bm J
Its Cit A.Barren
Its: City Manage
UNIVERSITY OF MAINE
SYSTEMSYST'E/M
N/
de:
W-152
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