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HomeMy WebLinkAbout2005-06-13 05-188 ORDERItem No. 05-1E0 Date: lune 33, 2005 nem/Subject Order, Authorizing Acceptance Of A Portion of School Street Extension Responsible Department Engineering Commentary: In 2000, the City discontinued an unbuilt ant unneeded section of Scheel Street at the request of Campanelli Associates who own the Broadway Stopping Center. This action was taken to accommodate an expansion of that facility. We were recently contacted by an atttmey representing Campanelli who indicated that her client was refinancing the property and discovered that the prier dlsomtinuxnce had Inadvertently created a significant title issue for them. Attached is correspondence that outiines the issue in more detall. The title issue can be resolved if the City reaccepts the previously discontinued section of School Street Extension and subsequently, discontinues it again. Campanelli has requested that the City undertake this action. The attached Order starts the process. � Deparmen Managers Cemmenta: This has been discussed with the TIC Committee, which recommends that we proceed at suggested by the City Engineer. n 1 / .,.,a �Jd.. d_ ❑ty Manager Associateal Information: Order— Finance Director tity Solicitor passage _ Fine:ReaEing page - of Referral Aaslgyed to Cowciloc Gcatvick ]uve 13. 3005 CITY OF BANGOR (TRLE.) Order, Authorizing Acceptance Of A Portion Of School Street EMension WHEREAS, an unbullt portion of School Street was discontinued as a public way by Council Order 00-105 on February 14, 2000; and WHEREAS, this discontinuance was requested by the Owners of the Broadway Shopping Center to accommodate an expansion of that facility; and WHEREAS, the owners of the Broadway Shopping Denier have recently discovered that the pnor discontinuance has Inadvertently created an Issue relative to the title of their property; and WHEREAS, the title issue can be resolved by rearxepting the discontinued pardon of School Street Extension and subsequently discontinuing said portion again; and WHEREAS, the owners of the Broadway Shopping Center have requested that the City of Bangor undertake these actions; NOW, THEREFORE, BE FT ORDERED that the City Engineer is hereby authorized and directetl to provide public notice in accordance with 23 M.R.S.A.§ 3022 and 3023 of the Intention to accept the portion of School Street previously discontinued by Council Order DO - 102 on February 14, 2000. 05 -INE ORDER oRLE AptLorizfaE Aceep[avee of a p rtiou f S Ml Street teasioa AWgo WCouocllor Ude-UIt+R� -9¢ a5-188 Jim: I am writing to follow up on our conversation regarding the Broadway Shopping Center in Bangor. As I explained, the recent discontinuance of School Street Extension (entirely located within the shopping center parking lot) has, unintentionally, created a significant fi le problem for the property. Although 1 was not involved at the time, I understand that this discontinuance was adopted to facilitate the construction by Hannafords of an addition to their store by eliminating a technical setback issue under the city's zoning ordinance. Although it was assumed that this discontinuance would result in the reversion of fee ownership of the discontinued way to the owners of the shopping center, that, in fact, is not the case. Instead, the following series of events has led to title to the discontinued ship being held In owners unknown, thereby creating a title gap which is very problematic for the financeability of the shopping center. 1. In 1960, the City of Bangor lays out the School Street extension as a public way -sae attached order. 2. In 1961, Campanelli acquires the shopping center from Hy Winer, under a deed which expressly excludes the fee in School Street Extension - see attached deed. 3. In 2000, the City of Bangor discontinues School Street Extension - see attached order. Pursuant to Maine Statutes Title 23, Section 3026, upon discontinuance of a public way, "all remaining interests of the municipality shall pass to the abutting property owners to the center of the way." Had the City's interest in School Street Extension been in fee, the discontinuance would have resulted in fee file reverting to the Campanellis. However, under Maine Statutes Title 23, Section 3023, interests taken by municipalities for highway purposes "after December 31, 1976, shall be in fee simple absolute." As noted above, the taking for School Street Extension did not specify a fee taking, and predated the 1976 date after which such takings were by statute determined asfeetakings. Hence, the City only had an easement interest which was extinguished by the discontinuance, resulting in fee title remaining in owners unknown. Copies of the Statutes are also attached. Our client has had atitle examination performed which was only able to locate titleholders to the stop through the 1920s, over 80 years ago. Clearly, the City, Hannafords and the owners of the shopping center intended to solve a technical issue; there is no one with a legitimate interest in the strip of land that has been pad of the shopping center parking lot for the past almost 45 years; it is critical for the economic health of this commercial property that title be cleared. When you and I spoke, you suggested that a possible approach to this situation was to have the City retake the extension as a public way, then discontinue the public way, thereby vesting this in the Campanellis as the abutting owner under the provisions of Section 3023. This makes sense to me, although I know that you will want to review the matter with city counsel and other appropriate parties. As you may imagine, this is a matter of deep concern to our clients. We are very appreciative of your interest in rectifying this unintentional situation, and look forward to ea,hman, wmennelshne:wnennD,aewren®wlMiemekmml Sam: IDunOay May 05.2M 11:11 MA To: Jim. RYg®kmarm.9 SAM: emal"ysh[gpry Qnlx Jim: I am writing to follow up on our conversation regarding the Broadway Shopping Center in Bangor. As I explained, the recent discontinuance of School Street Extension (entirely located within the shopping center parking lot) has, unintentionally, created a significant fi le problem for the property. Although 1 was not involved at the time, I understand that this discontinuance was adopted to facilitate the construction by Hannafords of an addition to their store by eliminating a technical setback issue under the city's zoning ordinance. Although it was assumed that this discontinuance would result in the reversion of fee ownership of the discontinued way to the owners of the shopping center, that, in fact, is not the case. Instead, the following series of events has led to title to the discontinued ship being held In owners unknown, thereby creating a title gap which is very problematic for the financeability of the shopping center. 1. In 1960, the City of Bangor lays out the School Street extension as a public way -sae attached order. 2. In 1961, Campanelli acquires the shopping center from Hy Winer, under a deed which expressly excludes the fee in School Street Extension - see attached deed. 3. In 2000, the City of Bangor discontinues School Street Extension - see attached order. Pursuant to Maine Statutes Title 23, Section 3026, upon discontinuance of a public way, "all remaining interests of the municipality shall pass to the abutting property owners to the center of the way." Had the City's interest in School Street Extension been in fee, the discontinuance would have resulted in fee file reverting to the Campanellis. However, under Maine Statutes Title 23, Section 3023, interests taken by municipalities for highway purposes "after December 31, 1976, shall be in fee simple absolute." As noted above, the taking for School Street Extension did not specify a fee taking, and predated the 1976 date after which such takings were by statute determined asfeetakings. Hence, the City only had an easement interest which was extinguished by the discontinuance, resulting in fee title remaining in owners unknown. Copies of the Statutes are also attached. Our client has had atitle examination performed which was only able to locate titleholders to the stop through the 1920s, over 80 years ago. Clearly, the City, Hannafords and the owners of the shopping center intended to solve a technical issue; there is no one with a legitimate interest in the strip of land that has been pad of the shopping center parking lot for the past almost 45 years; it is critical for the economic health of this commercial property that title be cleared. When you and I spoke, you suggested that a possible approach to this situation was to have the City retake the extension as a public way, then discontinue the public way, thereby vesting this in the Campanellis as the abutting owner under the provisions of Section 3023. This makes sense to me, although I know that you will want to review the matter with city counsel and other appropriate parties. As you may imagine, this is a matter of deep concern to our clients. We are very appreciative of your interest in rectifying this unintentional situation, and look forward to hearing from you. Thank you for all of your efforts. Kathy Katharine E. Bachman Wilmer Cutler Pickering Hale and Dorr LLP 60 State Street Boston, MA 02109 Tel: 617-526-6216 Fax: 617526-5000 katharine.bachman@wilmerhale.com