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HomeMy WebLinkAbout2004-11-22 05-24 ORDERItem No. 05-24 Date: November 22, 2004 Item/Subject: Authorizing Option Agreement for Purchase and Development of Lot 30 in the Maine Business Enterprise Park - Sunbury Properties, LLC Responsible Department: Community and Economic Development Commentary: Sunbury Properties, LLC has requested the City grant them a Purchase Option Agreement for development of proposed 23,000 square foot medical once and service building on Lot 10 in the Maine Business Enterprise Park. The Option would extant to June 30, 2005. The purchase pricewould be$147,695 based on the City's offering price of$54,500 an acre. Sunburyisamr-profitentityand would be responsible for all property tares assessed against the property following the closing. The Option requires Sunbury to construct a professional office building on Lot 10 remaining not less than 23,000 square feet of building space above ground level not including basement space. The build'mg and site development plans require approval of the Business and Economic Development Conteni[tee and must be in confomance with the Declaration Of Covenants, Conditions, And Restrictions - Maine Business Enterprise Park, with an approximate construction related cost (building and site) of $3,500,000, exclusive of soft costs and foes. The Option requires Sunbury submit an application for site plan approval by the Planning Board not later than April 15, 2005 and secure Planning Board site plan approval bolster than April 30, 2005. Project plans and specifications would have to be approved by the Business and Economic Development Committee no later than April 15, 2005. Site work and building construction would have to commence no later then August 1, 2005 and be completed no later than two yews from the commencement of construction. Department Head Managees Comments: This has been reviewed and Is recommended for approval by the Business and Economic Development Committee.N -(/Lcygef(1 City Manager Associated Information: Budget Approval: Finance Director Legal Approval: SDhater Introduced for x Passage _ First Reading Page _ of Referral 0s 2s November 22, 2006 Assigned WCoancikr Tremble CITY OF BANGOR (MLE,) Order, Authorizing Option Agreement for Purchase and Development of Lot 10 in the Maine Business Enterprise Park—Sunbury Properties, LLC WHEREAS, Sunbury Propeltles, LLC has submitted a proposal to to City for to development of a medical office building on Lot 10 in the Maine Business Enterprise Park; and WHEREAS, the development proposed is a 23,000 square foot medical office and service building; and WHEREAS, the Proposal is consistent with die objectives of the City for development in the Maitre Business Enterprise Park: and WHEREAS, to Proposal and proposed Purchase Option Agreement have been reviewed by the Business and Economic Development Committee, which recommends approval; NOW, THEREFORE, BE IT ORDERED BY THE CIT/ COUNCR OF THE QTY OF BANGOR, MAT the City Manager is hereby autorized to execute, on behalf of to City of Bangor, a Purchase Option Agreement wit Sunbury Properties, 11C for purchase and development of Lot 10 in to Maine Business Enterprise Park, under terms and coMitiens substantially as contained in to Purchase Option Agreement, a mW of which is on file In to office of to City Clerk, and iMa final form approved by the City Solicitor or Assistant City Widtr. IN CCIY WMCIL November 22, 2106 Notion Mede eed Seconded for Passage X 05-26 Pa ed CITY CLENN (TITLE,) 6uthovimiae option nereemeot for Purchase sad frevelopment of Lar 10 in the Maine fuaiceea Enterprise Park - Swbu Assigneci to Councilor IrvtM�W PURCHASE OPTION AGREEMENT CITY OF BANGOR, abody corporate, of 73 lfarlow Street, Bangor, Penobscot County, Maine (hereinafter OPTIONOR), for convderaaonpaid and other movies referred to below sad to be paid at the closing of the purchase and sale of me premises described in Paragraph 1 below, hereby grants to SUNBURY PROPERTIES, LLC, of Bangor, Penobscot County, Maine (hereinafter OMONEE) an option to pumbase, upon the tours and conditions set forth below, the premises described in Paragraph 1 below. TERMS: This option is granted subject on the following tams and conditions: 1. Premises Subien to Ootiw. Aparcel of land described an Lot 10 as shown on a plan of "Maine Business Enterprise Park" dated September 3, 1991 and recorded in the Penobscot County Registry of Deeds in Plan File #D171-94 (hereinafter the Property), atopy of which is attached hereto as Exhibit A. The Property is shown on Exhibit A 2. Ootion Period. This option shall run from the date hereof until 4:30 P.M. Iwo 30, 2005. 3. Exercise of Ootiw. The OPTIONEB may exercise this option and arquire the subject property by giving written notice of its intent to do so to the OPTIONOR at coy time during the option period prior to 4:30 P.M. June 30, 2005. Such white shall beeffbaive if delivered to the OMONOR's City Solicitor's office a the OPTIONOR's address stated above. Thereafter, the parties shall schedule a closing a a munally convenient date, which will be nolaterthen July31,2005. However, OPTIONOR shall not be obiigared to convey the property to OPTIONEB until such time as OP70NEE has seemed alt required approvals fihm the City. of Bangor Planning Board and the City shall have reviewed and approved in writing 0 building and site development plans as provided for in the attached "Declaration Of Covenants, Conditions, And Restrictions—Maine Business Enterprise PwW' dated October 14, 1992, and attached hereto as Exhibit B. 4. pmohase Price. The prrchase price for the property subject to this Option Agreement shall be $147,695. 5. TypeofConwavionce Conveyance"by Quitclaim Deedwith Covenant to OPIIONEE from OPTIONOR OpnONORsbaE prepare the necessary - Deed, subject to approval by OPTIONEE's attomey. OPTIONOR shall convey title under this paragraphre OPTIONEE with good and mazketable tide free and clear of all encumbrances except customary public utility easements serving the premises ant any otter easements ofrecmd or ropmred as a condition of this Option and shall be subject to applicable sorting and land use laws and regulations. , us -z4 05-24 b. Taves.OP'ITONEE shell be responsible for all property taxes assessed against the subject premises following the closing. 7. OPTIONORNot to ConwayEncumber Ttle. During the term of the option period, OPTIONOR shall not voluntarily convey, mortgage or otherwise encumber the optioned property or any portion thereof, without OPTIONEE's prior written consent. S. OPnONEE's Conditions. Notwithstanding OPTIONEE's exercise Of do option, OPTIONED stroll have no Obligation to arsluhe the property udess the following conditions are not, to OPTIOIgEE's satisfaction: a. The OPTl0alMb shall review and be satisfied with au mnmg, land we and enviroarvental laws, codes, ordinances and regulations affecting the Property and shall obtain all WrIO& subdivision and envhonmevtal permits and approvals and any other applicable permit or approval as may be necessary for the OPTIONEE's proposed use and development of the Property, including any thereof pertaining to wetlands or wetlands raidgation and the "Declaration Of Covenants, Conditions, And Reshictious — Maine business Euturprise Park" dated October 14,1992 attached herein as Exhibit b.. b. There shall not be any moatorium or any Other restrictive measures N effect which Prevent or be a detriment to the OPTIONEE's intended use and development of the Property. c. OPTIONEE shall be satisfied tlsat title and access to the Property is good and marketable and insurable for the benefit of OPTIONEE and any mortgagelender. Upon the execution ofthis Agreement, OPTIONOR shall provide OlsOONEE with any existing title htnuence policy, abstracts oftirle, or other title evidence. 9. Conditions. OPTIONEE shall cousnvct a professional office building on Lot 10 containing not las than 23,000 square feet of building space above ground level not including basement space. The building shall be of consternation approved by the City Council Partners and Economic Development Connotation, and the Design Review Committee as provided for in the "Declaration Of Covenants, Conditions, And Restrictions — Maine Easiness Enterprise Pm12' dated October 14, 1992, with an approximate wnsnncfion related cost (building and site) of 93,500,000, exclusive of soft vests and fees, and shall include On site puking to accommodate not Jew than one vehicle per 300 square fact of office space developed, and shall m all resp conform to the requirements Of the City Of Bangor Land Development Code and "Declaration Of Covenants, Conditions, And Restrictions - Maine Business Enterprise Park" dated October 14,1992 hundred hereto as Exhibit B, all hereinat er referred to as the "PROJECT". Behma conveyance, the Design Review Committee shall review all building and site development plans as provided for in the "Declaraton Of Covenmis, Cond ime, And Restictions-Maine Business Enterprise Park" dared October 14,1992 attached haem as Exhibit B. In. In the event OP11ONEE exercises this OPTION to purchase, wnveym z of the property shall be subject On retentive or granting of suitable utility easements to the City of Bangor and the Bangor Water District for the purposes of accessing, maintaining, replacing or repairing mil ides on the Property. No armature shall be placed on or over any utilities. C. OPTIONEE shall submit an application for site, plan approval for the PROSECT by the City of Bangor Planning Board not later than April 15, 2005, said application to contain all information requhed for site plan approvalby the City of Bangor Land Development Code. Submittalsshall be in conformance with all RXImbemerts of the City of Bangor Land Development Code. OPTIONEE shall obtain City of Bangor Planning Board site play approval for the PROJECT no later than April 30, 2005. d. OPTIONEE shall submit to %a City's DneMor of Community and Commune Development no later than April 15, 2005PROJPCT plans and specifeations for building and site improvements as required by the "Declaration Of Covenants, Conditions, And Restrictions - Moire Business Enterprise Park" dated October 14,1992 attached hereto as Erlubb B. Saidplansandsp ificadonssamittedsbaltc nf�the requirements of said Covenants. OPTIONEE shall obtain approval of PROTECT plans and specifications by the Bangor City Council Business and Economic Development Committee no later than AP31115, 2005. e. OPTIONEE shall obtain allnecessary inning subdivision and envirorunemal permits and approvals and my otter applicable permit or approval as may be necessary for the OPTIONEE's proposed use and development of the Property, including any thereof pertaining to wetlands or wdidards hnidgadonto Commence construction of PROJECT by July 1, 2005. f OPTIONEE shall commence rte work and building concoction no later itm August 1, 2005. Shthicient evidence ofprocea ing v dd site work and building construction is an approved Land Development Permit issuance of a Building Constmction Permit and initiation of construction of the burning. 05-24 as -24 g. OPTIONEE shall complete site mok and building construction an later than two years from the commencement of construction. Construction of building and site improvements shall be in conformance with plans and specifications approved by the Bangor City Council Business and Eamoric Development Committce as required by 9.d. above. 10. Reverter. This OPTION is made subject m the express condition that"' the OPTIONEE failsm wooly wlth the tema and conditions of lmag Phs 9(a) -(g) this Option, title to the described property shall revertan and be vested in the City of Bangor, without further retie, demand, order of condemnation, re<mry, fomclosme or otherjudicial act, notice or proess, this reverter clause coamading part of the consideration upon which said premises are conveyed by the OPTIONOR to the OPTIONEE, provided, however, that this reverter shall be subject and subordinate to any bora fide mortgage granted by OPTIONEE to a financial insdNtion Or secure a loan for corsnuctim Of improvements on the Property and OPTIONOR shall execute and deliver such documerds as may be requestedby OPTIONEE'slendaOcOnfi tldssub0fdinmionhrthe event of the exorcise of this reverter provision by OPTIONOR, OPTIONOR shall refund to 0pnoNEE the porchase price of $147,695,. without interest, togother with the costs of all improvements made In the property to that date to the extent that smh improvements are used or usable by OPTIONOR, less my diminution in fav market value of said Lot 10 as aMaud of OpTIONEE's occupancy thereof, and no other paymmt shall be due OPTIONEE. The Right of Reverter shall aummatically terminate upon the issuance to OPTIONEE of a Certificate of0cwpancyforthebactingontbe PlOPerty. At such time, ifrequested by OPTIONEE, OPTIONOR shall execnm and deliver a recordable inswmeM corSxming the release of the Right oflbronter, ughno such hmmamt shall he required On give effect art Olt termination of the Right of Reverter.. _ 11. As t. The OPTIONEE shall not at my time assign, sell, convey or transfer this Option or my Interest therem. Provided that, however, OPTIONEE shall have the fight to assign this OPTION m my corporation or other entity with which it may have become merged, consolidated or otherwise associated, or my corporation or other entity having the conanRing interest in the OPTIONEE, or many corporation or other eadtY which may be a subsidiaryoftbe OPTIONEE. OP11ONEB shall Provide OPTIONOR of a copy of said assignment. In no event, however, shall ted OPTIONEE named herein be relieved from any obligation order this OPTION by abuse of my assignment. Dated:(?.-] I -ou CITY OF BANGOR U imess Edward A. Barrett City Mamga Dated: 1 / d 0 SUNBURY PROPERTIES, LLC ' ess wimaa L. sa Mavaga $pc G+g.rk LcnA elle/ 0s u MEMORANDUM TO: Patti Dubois, City Clerk FROM: Terri Corey, Legal Department RE: Sunbury Properties. LL[ DATE: January 13, 2005 Enclosed please find a copy of an executed! Purchase Option Agreement, dated January 12, 2005, between the City of Bangor and Sunbury Properties, LLC, for the purchase and development of Lot 10 in the Maine Business Enterprise Park. This Option Agreement was approved by the Bangor Qty Council pursuant to Council Order #05-24 passed on November 22, 2004. Further reference may be had to Council Order Nos. 04-239 and 04-309 for tentative developer status. If you have any questions, please call me. Enc pc: Rod McKay Steve Bolduc both w/enclosure