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HomeMy WebLinkAbout2004-10-25 04-332 ORDERItem Nt..oe-332^- Date: October 25. 2006 Item/Subject: ORDER, Authorizing Community Development Loan to the BanAir Corporation for the Purchase of Property on Outer Hammond Street Responsible Department: Community&Economic Development At the direction of Oe City Council the BitAir Coryomder bac beer pursuing the acquisition of 82 acres on court Hammond St from the Hinfill Corporation for developmert as a business pack. The BmAv Corporation has automated a purchase and sale agremnmr w purchase the property for 3225,000. Tree Hhshhom property uadjac rat to support property and Nora Hihlreth St. businesses such as Old Town Canoe and Gandick Faems Derry making furthorbusiness developmert in this aaa appropriate. Tmel3etsAv Corporation should acquire fire property for aware development beceuw Ne City's supply of industrial paredsis dhoini ing which will limit force industrial growth. The llirsblmm properly is We largest undeveloped commuciaVindustrial p lremainmgm Bmgormdwooldpmw&ova25aaesoffeadilydevelopablelmd. Theowneriswoutof- a xis trust thaz is mo ivatW to sell ata reasonable We price. Fame to em could result m less productive uses of rhe property. The BmAir Corporation is ideu0y soared to develop the property. It was established by the City w promote, mmege mdmnli2 redevelopmmtofpropertymadeawilableto&c CStybyrheclosureofDw Air Force Base. The Hire W oro property o immediately adjusted to Ne Airport and the BaMir Industrial Park on outer Hammered Street Representing the City on the Burl Corporation Board ofDurecrors ars flus Chair of the City Council, the Chairs of We City Council's Business and Economic Dcwlopment. Finance and Government Opurarions Committees, and the Airport Manager. City Economic Development araffprovides staff services to the Bookie Corporation Board. The City can fmmce the Barth Corporation's acquisition of the Hhshhom property through its actually funded Community Development Business; Development l.nen Program. This will enable the Baton Corpcmtion to develop rhe"" as a commercial( dusNal park in accoNarce with plans approved by the City. Approval is recommended. Department Head Bridget Approval: France DirAior legal Approval: �_ Solidtar Introduced for Passage _ First Reading Page _ of Referral 04332- t ArnWd to Councilor 4Yeeoe October 25, 2006 CITY OF BANGOR (TITLE.)Order, syore dry Caanc#&o Oty ofamyo: ORDERED, Authorizing Community Development Loan to the BanAir Corporation for the Purchase of Property on Outer Hammond Street T9AT WHEREAS, since February 2002 the BanAir Corporation has been pursuing on behalf of the City of Bangor the acquisition of 82 acres on ager Hammond St. from the Hirshhom Corporation for development as a business park; and WHEREAS, the MnAlr Corporation has negotiated a purchase and sale agreement to purchase the property for $225,000; and WHEREAS, the Hirdmom property is the largest undeveloped mmmendal/industrial parcel remaining in Bangor, and me Cry's supply of industrial parcels Is diminishing which will limit future industrial growth; and WHEREAS, the City and BanAir Corporation believe it is in the City s best interest to acquire the property to make It available for future commercial and industrial growth. NOW, THEREFORE, BY THE CRY COUNCIL OF THE CRY OF BANGOR BE n ORDERED THAT the Director of Community and Economic Development is hereby authorized to loan the Bangor Airport CNc Development Corporation up to $225,000 from the Community Development Business Development Loan Program to finance the acquisition of de Hirshhom property, identified as Lots 6 and 6a on City tax map R8, for the purpose of mating the property available as a commercial/industrial park under the following terms and conditions: 1. 'The loan shall be a[ a Med Interest rate of 0% for a period of 20 years at which time any unpaid balance shall be due. 2. The proceeds of the City's loan shall be used only W finance the acqulsdfon of Lots 6 and 6a on tax map M. 3. Tice loan will be secured by a first mortgage lien on the property held by he City. 4. Proceeds from he sale of any of the property acquired by BanNr shall be applled by Ba Aur with the following prority: V to provide for needed infrastructure impravemerls to facilitate the development of the property, 2v to reduce the amount of any unpaid balance of the loan made by the Cry, and V to carry out me economic development purposes for which the BanAir Corporation was established. 5. Redevelopment of the property acquired shall be in accordance with a plan approved by the City Council's Business and Economic Development Committee and the provisions of the Citys Land Development Code. 6. The BanAir Corporation shall comply with the requirements of the Federal Community Development Black Grant program as they apply W the CiWs use of the Community Development Block Grant funds to finance the loan to the BanAir Corporation. J. The Bw vNr Corporation will use its best efforts to facilitate the esmblishment of business on the acquired property that will create a minimum of 5 full-time jobs within 3 years from the purchase of the Property. 8. Upon request by the City, the BarWr Corporation shall deed W the City any and all undeveloped pmWrty remaining 20 years from the data of acquisition, 4. The City Council Business and Economic Development Committee shall approve the sale or transfer of any portion of the property acquired and shall, on behalf of the City Council, have the authority to release the property sold or otherwise transferred by BanAir from the mortgage interest held by the City. 10. Such other requirements as may be necessary W protect the Interests of the City as determined by the City Solicitor or Assistant City Solicitor, or by the Qtys Director of Community and Economic Development. IR CITY COUNCIL October 25, 2006 Nocfon Naae and Seconded for Passage Yas ITY CL p 06-332 O NONN Ll:LEJwthorLrfng Co�mfty NevelaPeent to t ppor Purchase of Property on Outer street AsslgnedroCcuncilor IIL d