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