Loading...
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 O6 152 A9elgmdbcowcBw lerrinBrw. fty 24, zooa 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 Q JRITLE dvrm,.g ri:fan � cement with the Ivere ty o Men sye[ Heger vg Retractile of Property for the Purpose of tolerating the B Opportunities in the Mafce Business gnterprise Park Avail to councilor BASEMENT FLC PLAN _\N Dimensions and layouts approximate and subject to final condominium documents G%19TI 'K BASBBNi F4GOR PLPN EPIL SPORTS UNIVERSITY OE MAINE SYSTEM LOMMOWOIRL. PIRST OR PLAN N -� Y BA99ffl IME IX9 FII PFLO PIRei 0.CDR PLAN I I ��., €7 � 0. �I�a ••� € I � vm ® 6 w...a. J q uau mmE EPIL SPORTS UNIVERSITY OE MAINE SYSTEM LOMMOWOIRL. PIRST OR PLAN N -� Y BA99ffl IME IX9 FII PFLO PIRei 0.CDR PLAN MEIIANINE FLOOR FLAN -\ rMr. r.ro F EPIC EPOR s UNI ER IT OF MAINE SYSTEM GOMMOWCIRC. RI WL I" MEQANIN@ L@JG EPIO SPORTS UNIVEft51iY OF NAINE SYSTEM LONMOWOIR 0 o 0 o sorvo ri.00le PLAu A\ w..v -/N THIRD FLOOR PLAN �\ N EPIC 5PORT5 UNNERSIT OF MAINE SYSTEM OOMMOWOI .11e H171C."'17G RRy' ATTIQ TO M: GMB WIWI" ROOR:LAM m o e 3 � v m m m m5 i NPI �IAI m s m m m THIRD FLOOR PLAN �\ N EPIC 5PORT5 UNNERSIT OF MAINE SYSTEM OOMMOWOI .11e H171C."'17G RRy' ATTIQ TO M: GMB WIWI" ROOR:LAM 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 n3lfeeuvil 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 p 152