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Home My WebLink About2005-06-13 05-215 ORDERCOUNCILAMON Item No. 05-215 Date: lune 13, 2005 Item/Subject: Authorizing Amendment to Development Agreement wish Realty Resources Chartered/Essex Common LLC — Redevelopment of Former Naval Reserve property— Essex Street Responsible Department: Communky and Economic Development CgrrrMWnt : Realty Resources Chartered/Essex Common LLC submitted the only proposal for redevelopment of the 3.22 -acre former Essex 4rent Naval Reserve Vrooerty. They have proposed a 32 unit affcal housing object. A Development Agreement was authore ton January 10, 2005 by Council Oder 05-61. That Agreement has not been exaculed pending a final site design that will determine the amount of Oty propend to be conveyetl and rezonetl to High Density Residential to accommodate this devebpmaart. In order to retain low income tax credit financing, Realty Resources must demonstmte that it has espendetl a minimum of 10% of tlerebpmeM costs by June 19, 2005, a and in advance of that allowed under the current Agreement Realty Resources has requested an amendment to this Agreement that would convey the she to them before June 19 so that they ran Include the purchase one as part of the required expenditumv This Order muo amend the existing Agreement to enable the purchase of Me site Poor to June 19. As approved by Council Oder 05-61, the project's prole ted $4,633,000 tort would be financed with $2,768,896 in tax credits, $1,185,000 In Maine Slate Housing Authority loans and subsidies, $183,604 from the developer, and two any bans not to ertaed $526,000. The City would receive $263,000 for the sale of the land, its appraisetl fair market value. The sale proceeds would go to BIA. Projects revenue will be limited by the maximum rents allowed to be merged to law income tenants. This limits the amount and type of debt the project will support. Realty Resources requesdi City participation to make the prefect financially feasible, and Order 05-61 audwrized two any bans. A Federally funded Community Development ban of $263,000 would be used to purchase the site from BIA. BIA would then loan this $263,00 to the Oty's Economic Development FUM at 6.5% interest for 30 years. The Econvall Development Fund would then Win Realty Resources this same amount at an interest rate of 5% since the project will only support a 5% iMerest/30 year loan within the underwriting guidelines for Its other financing. The annual differenced $3,031 between Realty Recaunces loan payments to the Economic Development Fund (at 5%) and this Funds payments to the Airport (at 6.5%) would he covered fiom the new oxg generated by the project. The Busbes and Economic Development Commmarea has review the proposed amendment and recommends approval, provided the Ory Edidtor is reasonably assured that tithe propend o conveyed to the developer and, far same son, the development does not pour in accordance with the terms of the development agreement, then the property wou10 revert to the City wIMwR encumbrances. - Department Head Associated Information: Budget Approval: Fi ector X Passage _ First Reading Page _ of Referral A npedto Counulor ltemhle June 13, 2005 A, CITY OF BANGOR (TITLE.) Order, Authorizing Amendment to Development Agreement with Realty Resources Chartered/ Essex Common LLC— Redevelopment of Former Naval Reserve Property— Fsrox Street WHEREAS, Realty Resources Chartered/Essex Common LLC submitted the only proposal received in response to the Cit^ Request for Proposals for redevelopment of Me former Havel Reserve Center property w Essex Street; and WHEREAS, Realty Resources Chartered/Essex Common LLC has proposed the development of a thirty,t (32) unit affordable hauirg project on the site; and WHEREAS, there Is a need for additional affordable housing and Me apartments developed on the site will be leasetl to lcw Income persons for a minimum period of thirty years; and WHEREAS, Realty Resources Chartered/F ex Common LLC has secured the necessary private financing and equity, which, in addition W the City assistance requested, will enable the project W go forward; and WHEREAS, the Ciry Council has approved a Development Agreement with Realty Resources by passage of Council Order 05-61 on January 10, 2005, and WHEREAS, Realty Resources has requested the Development Agreement be amendet; NOW, THEREFORE, BE IT ORDERED BY TME CITY COUNCIL OF THE CITY OF BANGOR THAT, the City Manager is hereby authorized to execute an amended Development Agreement with Realty Resources LLC, substantially in the form as on Me in the Office of the City Clerk, and in a final Pone approved by the City Solicitor or Assistant City Solicitor. IN cin c mgx Jose 13. 2005 Aottott tlade and Seconded [br Passage tion Made and Seconded to mve Question Vote 2-7 Councilors voting yes: Gratvick. Haves co ;dots voting no: Allen. Cash 1. D'Errico, Partington. Green. Stone. Tremble Failed Min M tioa Denoted voce 8 - 1 councilors voting yes: casheeaa, D'Errico, Farrington, Gratsick, Creme, Mayes, Stone. nembaa Consent voting un: Allen Pass k 05-215 (TITLE) d"thoria]ng Amendment to Deaelepamt Agrcemnty red Esser Co�fitELC- Redevelopment of Forcer moval ceserve Fricrty -ser ree Assigned to CouncilorT4LM A CITY OF BANGOR ROUTING SLIP Name/Department PnIIA , ) ISru _ Per Your Request _ Please Review _ Please Process _ Please Sign Your Information Return To Us Ia 1 I / I WOOM L Date --)lII �2uu �T— Legal Department OY215 DEVELOPMENT AGREEMENT This Ague=mtumade andemaedintowofJm014,2005bya betweeathe C=of Bmgot (hereivaltor "C1TY'�, amwicilsal cdrpnmtioh locnal.MBangor; CooptyofPembsco�SNre .... ofMaive, avd Realty Re res Chartered, haviogaplace of beauessw2oekport, Comry ofIfrmz,-- - State of e@ercnater"DEVELOPER'). IWER 9L'1 M¢REAS, the DEVELOP is desirous of developing aPneel oflavd in Bavgoc, no Essen SOn , designarei as fnty.Assessoi sM p.0 Lot 63 sad aportion of t 63A, as described On AVMbitA attachedhereto-atW-huena(terrefinedm as--`Dev lopweo[Site'.'iNa32-uvits of iffordeble boaang for low nrnmafamities,and................. -_-. - - .MOfbotion of equipment; deshgntees, Ownxees,do� m..... ......... WHHREAS, the DEVELOPER will seenot tot less than S4,13?,500 to finmarg and equity. for dw Project from soumes Other fieri the=, told. - WHEREAE,mmpledon of the Project will tons, a sgoifosot public benefit by providing affordable homing rppdrtmifin, and edbance theta brae of the C ;and ------------- �. .,....._ We high cost of &e deveblment+¢Wire; Sonsmod msiAavce from de CffYm ensure the affordability and the public benefit ofcompfetug the ProjwC aul .. - WHPREAS, rental neonate from low mcome Wants would not pmvide sdffciem revenue to Nly service Use Proposed debtor the project, and additional financial aevsnnce from the Cityis necessary to onsom the atfordabJity of the Project and the public bereft of complefng the Project; NOW THBREPORE,.M cwsidaredm of toe mute1 promises avd covmavts contived n fhn - - Agrameat, Ise C=and the DEVELOPER agmeasfollows:--..- - 1.. Subject to the provisions of this Agrceaxn4 the DEVELOPER agrees b develop On De nlopmeN Site not less than 32 wits of affordable housing for low isWow families - - meetngb meome,gusb inns-eslsbbi by nos U..S. DRarsmt ofHonsmgsad...._..._.__. Urban D,,,lopmeot'Fmilypons ncotoon 0 not tOmed W% of Ilio tea median_. .Monte for th¢Bavgrrmotropolitmsntistical arearso eatabEshed amuaty by the U. -- -- - S. Depmvneot of Housing and Urban DevelopnmA. - DevelapmaW A®eemml - . Realty Awomcea Gene¢d-_._--. Page l of 10 us 215 - 2. DEVELOPER agrees W lies[ not less thm$4,137,500 in funds seemed from somues artierman the Cuynf ... ... _ __ .... _:......___.:...... 3.. DEVELOPER agesto cora aaystrucoon contract or contacts with a reliable conimctor at cases sooblisbed as ough acompetitive bid or negotintioapbacera:-" --__-- - C DEVELOP a nes m provide evidence, not later bora December 31 2005 aafisforeory to the City Solicitor, of a binding wnsmmtion contract, or contrasts, --- - providing for sire work and building construction costs and contingeacY for the Projeaofnot less than$3,165,M, exclusive offimncing fees, bruldiog Permits ant fees; smveyl ;engineering, aruhitecmml and otber design fees; legal, title, - - recording and accounGn&fas:.construction Period taxes SJUI ivaumnce fees; conntmctern mamgement; mazket Surveys, appraisals, etivuwmmtalsNdies, Low bwnrw Tgc C,mi Pees�and other"sob costs"m!aper)ofacmai covatrucrian costs. 5. DEVELOPER agees m provide evidelce by Senbember12005, satisfactory m Ore . City Solicitor, of financing andequity iavesmlenteatollow.s: o Confimation ofMSEA's notice mproceed mdmcmg ms RLP leen of $585,000 at ammofi%or kss, forebemrofvoNessthan 30years: ----- 'smticem roceedevid MSE1A5 bald ofnM ...... less than$600,000. bISEA Carryover Allocation of low-income housing rex credit n Eow Lmme Tax r,btNd Synbogionpmgceds of not less into $2,76a,196. e. DEVELOPER equity cash invealmertt of not less than $193,604. 6. Subject to me provisions of this Agreement, the CITY agrees to sell the Development Site to DEVELOPER fin $263,00. ne, C= shall cenveyma DeveloPnwM Site to - -- _ Essex Common; [.LC CEssex Commsa") by Quitclaim Dad With Covemnt, ata closing to occur onorbefore luno 19,2005, rime being ofineessence. Afsarn closing, asc%Common shall execute and deliver to me City aProu issory Now (me "Acquisition Nott' in me amount of $263,000 in WR payment ofthe purelreae Price wino teems as follows: Payable in full on we earlier m occur of: (1) me date on which Essex Cotenant closes on ire ewatrhotion loan fineveing or (2) January 15, 2006. :. br... -..: Mri Acglnsitiam None shalLbesecured by a first mortgage noun no juror or Omer encumbrances shailbepermitxd. ILemmtgagewiliprohibitconnmctime AtYmrme Development gibeunnl meANonsibno Note ispoid inNil zM such mortgagedischorgA... .... ._...__- C. The Acquisition Now shall be guaranteed by DEVELOPER pursuant on a - - _-d-..--3brAcquiritrouNore sbail beeninteass at the lvtanelRermne $av�ce �hort- term Applicable Fouad Ratefor Juno,2005wbicbis3.41%Pef�rmn@onndenmoWbty.-.- - ......_ lwakyRemvere Chancm�nn8 e L. gmlry ed...__-_. Page iof 10 05 215, 7. Subject to dseprovisions of Us Atgeemmt.@e CITY agreesm Providethe DEVELOPERa I=(the'1CDBO Loav')to be used to repay the Acgaisitiov Note in - We aeomf of $263,000, wWcais the appressed Ur market value of she Development 'SIa. The source of the CDBG Loan shell be the CRY'S CommumtY Develapmmt Hlock Cnmt(®HG)fovdod.ResidmtialRehabJiatiovfAan Progrm�. The CDEG Lean she0bee 0%interest,with-paymeob defamed for.l6 Yamataldca-erve.all. - nioety(90)PrysWaaod'�t�le onillbla rep:yausatis dueb%SIEY my,atetleest.._..— nioeeftompaIaaef thedmte on whichrepaymmt eutstadu CITY my, at its discrctiev, pmposercOnancsng ahaewidammtirztheoasdabilR gavemedue.with .- - tamsthatwouldmtadverselY aHectdsecontinIM affacdability oErems firths------ -- _,_�.._._..,—_...r,..E.v_..:........a.ra:.:n.r,.,,Y-»r_d.._ _ time. The CITY shall, sfreaaonable requested by me DBVB PER or bsau Covuuoa, execuste'and delMt a Coneubve Heed m the Develapmmt Site V thei that the CITY makes& a CDBG I for die purpose ofruNormieg tae desenpi of the Developmem 91—W to the survey descv bmjnepared by a surveyor rctaine DEVELOPER adpoi Essex Coon at sham sole expense. The CITY shall ala all action oNnuei m dieconbpue P=Saest to die extent that it located vnl5l affects the Development Site. 8. Ifdse wooese of fonds based in Section 5 above are not adequate m food Project $263,000 A vet to exceed _ beheld W 9. The mw conmstmed ofCPfY. feuds shall not exceed $526,000, lathe event acnal cooswctiov�dol6mreiet�develapmmtcoAsme-I�than Prolectediv taello .... Pomaf tae Projeci Name; Essex Street Conomn datM 12115/04, attached haemes - - - ExWhitB. A¢Y amount ofProceeds'fmmlher3TY'31c�wtveededor fmtaMmdphapa wortleve=byDEWWPstvwsllbeappliedmretlmx-sls---+-------- outsavdivgprihapalduemeClTYbyDEVELOPBRmthe deferred loan eefettedm.--_ - mPmagraph 7 above. - 10. TheCITY'S leave will be severed by afuat mortgage or nwngaga wtheProiector - such other securityanthe ClTYmay e®ee m. 11. DEVELOPER vMI provide afetal opeesivg Pro forma to the C= no bear than 30 days prior to a PIDIX) lloan close%, w a form_ acceptable to the D tar of Community and Economic Development svdsating adequate Weems and fimncmg m _ opmate andmeivainthePmject. _ Developmwt A€rcemmt RWrY Rmowew Chemnd Pap of 10 05-215 12. CONDITIONS PRECEDEaTr TO THE CITY'S MAKING OP THE CDBG LOAN Before the CITY'S making ofthe CDBG Loan, We DEVELOPER shall complete the following: a. SubmissionoMm,- The DEVELOPER sball submitpreliminary and final Plarnfornseofft Premises for reviewaml aPProval bythe-GTY:............ DEVELOPER'S Plans submitted M accordance with this paragmph shall in all iespecmcumply adBsall applicable Codes and Ordinances ofthe City of Bangor, and in porticulaz with thee iequnemeata ofthe CEN'S Land. Development Cade. - Plans shall additionally, conform to and be submitted in accordance with the below provisions. b. Annoyed of Plans. No constmdie or renm-atiou will beallowed without Director of Co All mPlieswliconbe omic ted m Deelom City Menages do due --- _ Director of pleat Commodity enwiewed iyDevelopment hatedll by and revives to Plans sh me City staff by City staff designated Sl by the City _ mommmedanonsto the CityCountedBsubmit Nap omemoug with then Deommwdarioustothe City CmmeRBusioecsarm ie Eedand c the CityCout Committee. net Economic is Den reviewed andapptee. As ' iby the City Council Business and Economic Development Committee. As - - plans are approved by me Comnitteset each stage of the .approval........_---_. process, DEVELOPER shall beentitlyd to rely a that approval in-------- - develapingplars'stWspecifiwvoas for subsequent stages ofthe-approval -- Menw. No plans shall be approved unless said plans have been prepared by a dulyregistered architect, as defined by Title 32 ofthe Maine Revised Statutes Amofated, unless otherwise acceptedby fhe MY, The following submissions shall be required: _ (1) Preliminary Plans -The junin of the Preliroimery Plays sball be to outaw the -geaoralsoujpd of development ornedevelopinent..audm------ - _ .. wnvey to the CITY sufficient information to determine the obstructer of the work to be perfomreb_. ___.........._...__.___ __ ThelYeliminay Plays shall co Wain: ..Cevelopvrm[Agrameur RnlryRreoureeeCAtenetrA-_—___ PaBe4 of 10 05-215 Site -The site plan shall be drawn to a scale ofwe(1) - inch equalstwenty(20)£eetwhmrva PrawicaL-Theshe-.. ..---... relou prficle - oftheC=''SLmdtie mtfde. Article XVl of Oe CITY'S Laud Development Code. (b) Floor - The scale ofthe floorplav shall be leftto the - discretion of the architect This plan sball show general - room layouts anduse, including wtrances and "its. - - . Diameters may be approximateand .theoveralldlotrarea--- - for each floor shall -be-imfieated,-The elevation o€each-------- -- - floor shall be indicated. (a) Teva=ons-A suitable cross-section or elevation(hawing - ofthe building shall be provida3 indicating exterior facade - - materials seat colors to be used (2) Final Plana and Specifications- After approval of the preliminary - Plans, the DEVELOPER shall then proceed with the preparation of . - - haat plans md-specificatics.-Said plans and sesmifisamm&shall.---....:..... n1....:....... dimensions and el vatioav ahsti beac2uxateaxd all omeridslo be......._. ... - used in the structural or architectural treatment of the facility shat) - bewarnedincompletedetail If, in the opinion of the CITY, there-- - - _ is a doubt Mending the structural adequacy of my facility, the -DEVELOPER shall provide all roluhed back -UP data, mdudmg-- structural computations, boring logs or material parter es. - - - - (3) Tim stablef A=valofP 1� »rv/Fi Plans -No later than July 6,2005; the DEVELOPER shall submit totheC1T-Y'S-City----r---- Manager,inrace ofthe(PTY'S Dheetwo€Commuviry and - ---- Economic Development, preliminary Plans for approval, as .specified in 12.Is. above. If the DEVELOPER pmP�revtsims; or if the City Manager of the Director of Commonly and Economic Development dams revisions to the preliminary plans - - _ necessary or appropriate, the revisions shall be submitted to the Business and Economic Development Committee for its approval not later tha rldy31r2005, showing maximmt review time from - the City oftwo weeks. The DEVELOPER is hereby advised that . - - my time the DEVELOPER Proposes-revisImSW Plmr7(r?iously....-.--- approvoi a submitted, theproPusedTevisiousshmild be submitted-.. -...- assoonespossibletothe Ciry*Mmagee, rn wffff-hefammtflf--_....-. Cummmuty and Exissaw Development, for review and approvel - DevclapmwtA eat .. - Realty'Raomcw ChaCaed----__ - Pali 5 of 10 - - _ bafmvfiao DEVE PERpmceeds with the geparadon of final plans and slucificefions. _ - - No later then September 15, 2005, the DEVELOPER shall submit 0 the CITY'S City Mmagsm care of do! CITY'S Avectorof ............... Community add Economic➢evelropmim;' food plans ond related........... dmwings,specifications mddocamemamj formmTeeiftW" above. No lawthm September 30,2005, the DEVELOPER shall - - meet with the City Contend Business and Economic Development Committee for approval of lived plans and related drawings, specifications, and dopmmmts in the form specified above. If the .. - City CoanaLBusicess and Economic Broom,lopmevtCommittee - dreams tevisiousf-the final plane to be necessary, orappropriate,-- - Ne plans most bew rev'n:ed and submitted m the CMS City------- -- MmrW,in care of me CITY'S Director of Community and - EconomicDevelopmmino.latert Odoba30,2005,01awiffff m mummy dmebyfhe Cityoftwoweeb. bolster than November 20,2005, the DEVELOPER shall meet wit the City - Comed Business and Economic Development Committee for appro al ofth revised 5 al Tans delated dravnngs, spa5fiendrs, anddocumemss in.Lrefomspecified above. ArteradmemMEMM=. Iftlre DEVELOPER dcareato make my mbstammlahaatlnnsinthefinal plana mlhar approval. by the City Cmmerl Business andPzonomicDevelopmem Committee;-- -- the DEVEfOPBR e'aad spbmitthepmposedohmge in Vnift to---- --- the City County Business and Economie Development Committee f ids approval Ifthe final Plans, as modifiedbyfe proposed change, still conform m the requirements of 12. b., hero$ the City formal Business and Economic Development Committee shall not - unreasomblywitbholdapprovaloftheproposed change. The City - - - - Coral Business and Ecarmic DevelopmmtCommirtmshall_.. _-.. either approve or disapprowIlte proposed change wiA nten(10)..... .-.... days after its submission and amity the DEVELOPER of its -....... -.. decision, No final plan approval by the Business and Economic -' - - Development Committee sball'ovenmO myregaireinmts for the - - City ofBmgmPlanning Board. - Plan Aoorevals.No latertbm September 1, 2005, toe DEVELOPER shall - siubmitcemplete applications for all plan approvals rrepoixed by the City of - Bmgm naimplaumdaubdivisienV oval. The DEV PERshall. take ail steps necessary f obtain loyal review and approval of the site plan - and subdivisionno immthm October 15,2005: .. ....... ...... ........ _..... _ __ __. � nevelopmwtA®eemevt '_ - - AdryRrm�vrca CmMetl PW 6 of 10 os -us d Construction Prehopen'S hedul . Concurrently with the submission of the final plans, the DEVELOPER shall' submit an anticipated cohstfuotioh - - progres;achedeletotheCityCouncil. The progress schedule shall provide for the cO mcehrmt of construction no later than January 15, 2006 and shall provide for completion of construction no lata man December 31,2006, provided mat no thing heron shall be construed to - - extend, limit, or otherwise affedthe Was limits•prescribed -in anybu ding__..... permit a Planning Board approval: - '-_----............ e Zonirm. DEVELOPER shall seek and apply for on or before June 30, 2005meappmpdatez6-=geppmvalsballowdevelopmentof ProjwL -- f. Permit RentuLPrior mthe ='a making of the CDBG Loan, DEVELOPER shall obtautand shallprovide satisfactory evidence thereof to the CITY; every -parent -Em se, andpremnicand approval necessary formemmcanmtm�dwmpletionofffiePmje . No-oommdeedline- specified in this Agreement shall be extended by reason of - DEVELOPERS -failmeYo Obtain Or of an approving mflm tyto issue any to act in goad faith and to give due ioaudemriov to a taprest by - --'-- - DEVELOPER for such, an extension where the failure to obtain such approval or permit is due to circumstances beyond the mntml of DEVELOPER: g. Evideoceaff iruancine PriartatheffrTsmakingofthe CDBGL.oao, DEVELOPER shall provide the CPPY with evidence of written, legally binding commitments;inaRoss satisfaobryto ma CITY'S CitySoliains, -- it= acceptable lending institutions, governmental agencies, or other sources forunnsvuctlatt fiaancnTofnet less than $4,137;500:-_-_--- h. DEVELtion Contract Priam the ClToth making of me CDBG loam DEVELOPER stallprovide the CITYwithacying the «scored Lyme DEVELOPER and s r general contractor, certifying theexistencethe monad a contracts for cenialoco sofer toss development of the Pmjea iv accordance withiheProvisia�s-of8ila.agreemmt . ............. 13. DEVELOPER agrees Wet development of he Prolat shalt be inacmNance with all .: applicable Federal, 5tmq andEitylaws; ordinances and buildiogoodey:....._........-. __.. _.. 14. DEVELOPER agrees that conarrehon of the Protect shall conform in ail material respects to the Plans approved "e City ofBmgm. Develapmcnr Agreemmr - - Reehy RevomceaCbvc+etl---- Pnel dlO . 05-215 16. DEVELOPERb¢eby acknowled8esthat the CITY,m agrecing to provide fivanclal ---assishadceWDEVEFAPER fm the ProJwSralied inmaEedahpart uponihe asamed.............. subs vvnyct lrojwtamtbe DEVE[APEROwstoxseibbesteffoM m .................. 'eubaborigllycomp.....ffi..ProI---m bcer�D bar 312006. I6, DEVELOPER B d itahahkeepmdmaintmvbocks,rewrdsandother dociw®ta-.etstmH difectlY to the Pr Ject avd ageas that eu9 duly author¢vt-..__ _._. rePlesWtdUvepf the CffS'6hall,a[elI R850n861e timcemve acfR&4 to erld thel}Blll tomapect,copY. awtitm loon of e06 Lbvoks,recordfi'avddha docua�mrs Of - DEVELOPER uv0l domplerivv iheProject srpbr prior virinwmade - - - DE'V taA shellevsurme similefpmvis sPm iivctudd mall wutaus or _ SyIN'gllhacY3®[EICd 1aI01¢cOooP(.000 With tblsPNj6t - 17. DEVELOPER agrees tha[avY duly auNarizedrepreserrarive of the CflY shall,mall ressomblefinum, have acressto any cordon o£ese PmjeCtnnil it's wmpledon and a -,. pvmamm�LesdScab of OccnpavcY for the Prold<tbes bwnissued by the CITY. 18. - Lhe DEYEiAPER aseea that Properly taxes on the property improved with loan - ASpallofthelnan-ameameat,r_b•"n*lw ^ n ..... agrees foribdf mdevaysxcessorinimeceat mthePropedy, dr-anYpert@eraf,-.... tmt ' asnwyc%tthomevxepsrmn, omprseipmpplsrhoawvlel rbveastusbwjwhticmh melal ytabxeesorevrudaeysbserasormvweltaosaazssaid aYy6bery�ee'buovrtrg.lwdsed, htiath e-.--------... - - wtevt of the El`PS`avd D13VEIAP172;avdDEVESAPERiNtagxtawvve;�s-.. . .. ... itsel£avd avy successors inivmest-albright or pcivileBedexmmdonfromtmmicipel:-.... taxaeov of thePrvPatY imPmved wiN the to®Prode�s � thmthe L1tynfBmgor:.............. - - oivhitswcapseecbeaWhtaxlie Wa eor6perty vsquasghbUxdglosusecs or iMwchroorinay otedwruifu6e as wnoduld- v.t exist DEVOPERase,foribefduysucfsmmffictropy- - - - pooris,bowbdvibat agrees sthat Dwhich thb R,o become dueanpayable _ - Provided, how ever, roaz CITY se mous DEVELOPER, or i¢suwessorswiooper shall Neve tlserigMrocovteetthe mount of such bares or assessmerb is the roamer prescribed by law. 19. Any notice wbich eithet party desires or is required to give to the Ober in wmweNon with this Agreement shall.beinw iiog sad shall be sort posmge prepaid, owtifiW mail, return receipt requested, as fou0svp Dovekq arnPrwmet ' - Realty Beaom QWWsed—_-- Page8oflo O9 215 - Ifio CITY: Edwed A. Hserea, CityManage ..... Cityoflmge....._.._.. ]3 Helow-Sacet ---- Booth, W 04401 . - ._--- 1. __..__... tfm DEVELOPER: Joseph Cloufie ...... Renify Resomaces Cholo ed - 249 Commercial Sft [ Rockport, Me 04856 - - Or such other person em/or address as may be idmdfied m writing by the partes. - 20. Except sa provided in Us AgreemmS ontl mbsmvtal wvrpletlov of the Project, DEVELOPER shell sot assign its rights under this Ag ewowl, except to Esxs Commoq without the prior written whams of CP , which crosem shall not be - - _ smrensomblywithheld,detayelor.covdwouaL The CITY'S Obligators thunder e conivgert upon thoDEV"PER'Scomptimce with.floolO ms M&Or Conditions set font ivtlilsneoE. 21. The DEVELOPER represents and epees mat the acquisition Of the Property on Essex _ Strooh desi=pod iis Cftv A-sisessah flip 46IsmH�6 F beed Afi rhe propose ofr@velopmeat Of to Projectand not fmspeculauoninlmdholdings'Ties - representation shall uhasithe and be of on mane force and offers upon subsmsvial sodlor Essee Common fail w meet the Continue uaeesary forte= ro makethe- ----- - MW Lom on or before lmnmy 15,2006, thin to t',ITY shell have the right----------- nOwniNodcy ifln DE mitssole dismetiov)-mreacq�ureme Developmem Sice-by---- NonceNotice Ro OPVELOPER ]n theshions all yche and dobver a deed w ----. Notice a the DEVELOPER; thin Essen Cmm�ov shell execute and deliver a deed m - - the CITY witdm of n(15)dsyfmme DEVELOAlR'meeiptofauohwrirm " Notice. shilmlofcmveymcefromtlieg etohthetvrdi£or sec RMkondle Tory me CflY shall release such rights in writivB et the time mat the CflY makeame- ... CDBGLoe Upon such Siwatsitio my CITY own relit me th Nf itenN -- - valueofthe Devel=d Siceagainstany comwwbmHable Acquisitov Note: The DEVELOPER and Ess«Common shall covrivuembe Eablef myamomts rtrtuinirg dueurdathe Acquisivor Note after the epp4catlon of sucheWit note .. even[that she£sin uurke[value ofihe Development Site excwis the belavice cine ov We ArquisaimNote,.med1E1�[1JPER mdEssex Commw shall be mtltled to no ANunncalloin. nefrom.m OPERwm fteffieDme.apo sifine Acquisitor Noce. The DEVELOPERcovmmm mit me Developmem Site, if ccept forfixmheoErtgRagYspemcusruJomgt mmasAiwOhqwualriadeoummNoacea,and Joseph A. Chouldtieedj-o-i- a-_...-. intlse Development Awe®m[for&ePmPose ofPYSanravBOts................' wvv mfteventofmyencmnbreDEon me Developmant Site arising aPel. - - conveyerce of ttle5omite CTPY-taste D6VE£OPERwhile thretrquisitiomNrneis----- DevelcPm=ABe®mw - -. _ RmLLJ'Rmvrcee GmterM_-___._ Page90flo 05-215 outsfmdm& except for the=vgsge s¢ining the Acquisitim Nota dae DEVUOPM atd Joseph M: Cloufiu dw[l witlrm Uvoty (30) daysofnoficeaf=h encumMavice; PsY any'avd ad sums'dueaodbr mko mYotlta actionmaeasmy.b..... _.-. r®ovevacheucumbra*h Iv Ioe 'tiha RClT lislegal Peva asares s _ - - - DaVELOPI3R'Sar]oseph P2 Clouo-¢'adeFCIOt hehobligatimsPutswutro@ds--------- ' - pam®nPh Zl; DEVEGOPER®dJoseprllM Clotid¢;joivtlYandsevasllY: s7wB--.._... _.. reimburse the Cfl'Y'd Tc -i: . - 22. It ismte ihepamesthattiva Agreementsballopemte:aa covtract md¢aeel,m �ordaoca wiffiwiW l4 MRSAB¢.?51. - - 23. DEVEIAPIr3t agreesthe Project shaltbeused asxaWentiel rental smib renmd ro pemons of low and rmderaz income mcl E W by the U.S. Department of Sousing and Urban Development for aporiod of 30 ye¢a from the date of Qty conveymce atIrrD IopmmcSit% oxmtil SB Plojwt loan amouota are repaid the - City, whichever shalll ecamfusl.._..:.............. .. ..__.. - WfINPSS`MtBREOFO Agreemeotbasbeenexmit4sealedaxldehveredmduplicate . - cmmxxp¢te es oftlmday-eodgcac 5cst ebovewnttta --.. _._-..-......... r B - ituesa - s M CIO ' Its Presrdmt OF BANGOR By:, . .. s P1/ Mward A. Barren ha cityM Ior Thewd¢signedjcivs iv this Development Agre tfor purpo ofeodmchrg his obligation pumrantro Paregeph2l above. /U: J imess JO DevelopOeotAgreemW[ . gmlry &wooaa Channel-__..... Pao 10 of 10