Loading...
HomeMy WebLinkAbout2002-05-13 02-202 ORDERItem NO. 02-202 Date: May 13. 2002 Item/Subject ORDER, Authorizing the Execution of a Lease with Option to Purchase with the Maine Discovery Museum Responsible Department: Legal Commentary: In 1999 the City and JMC Partners, ULC, owner of the Main Street portion of the former Feeses Building entered Into an agreement to lease with an option to purchase that potion of the building used by the Maine Discovery Museum. The City then sub -let that portion to the Maine Discovery Museum. Now that the dry has acquired the property pursuant m the purchase option we have prepared a lease with option to purchase to the Maine Discovery Museum, pursuant to the City's original develop- ment agreement with the Museum. under the terms of the proposed lease, the Museum may not exercise the option to purchase until all of its financial obligations W the City have been met. The Museum will be responsible for all costs associated with Its space, which is now one of four condominium units in the buildings. This Order will approve the lease and option to purchase between the City of Bangor and the Maine Discovery Museum. / Dpparlment Head Managers Comments: +&Gtrw ad(, o..Bfau k City Manager Associated Information: Lease with Option to purchase Budget Approval: France Director City Sdicitar Inr for Passage _ Fins Reading Page _ of_ Referral 02-202 l AuignedoCouncilor p hraa any 13. 2002 CITY OF BANGOR (TITLE.) ORDER, Authorizing the Execution of a Laase win Option to Purchase with the Maine Discovery Museum WHEREAS, in 1999 the City of Bangor and JMC Partners, LLC agreed that the City would lease that portion of the former Freeses Building that the Maine Discovery Museum occuples with an option to purchase; and WHEREAS, the City of Bangor agreed to sub -let the space to the Maine Discovery Museum pending the City's acquisition of the space and enter into a permanent lease with an option to purchase upon acquisition of the space; and WHEREAS, the City of Bangor has recently closed on the acquisition of the space from )MC Partners, LLC, NOW, THEREFORE, By the City Council of the City of Bangor, be it ORDERED THAT the City Manager is hereby authorized to execute a Lease and an Option to Purchase with the Maine Discovery Museum in a form substantially as attached hereto. The final form shall be as approved by the City Solicitor or Assistant City Solicitor. IN CIW COUNCIL May 13, 2002 Passed C Y A 02-202 (TITLE,)e. Lease w1th`Option, to Purchsse'etch ^the Mafae Discovery Mueem Assigned to Councilor ?122�� I6yVT4 THIS LEASE is made and entered into as of the�dey of/ ¢ 2002, by and between THE CITY OF BANGOR, a Maine municipal corporation having a place of business in Bangor, County of Penobscot, State of Maine, (hereinafter referred to as "Owner") and MAINE DISCOVERY MUSEUM, a duly organized and edsting Maine Non -Profit Corporation having a place of business N Bangor, County of Penobscot, State of Maine (hereinafter referred to as "Truism'). Owner does hereby lease, demise, and let unto the Tenant and the Tenant does lease and take from the Owner, for the term and upon the terms and conditions set forth in this Cease, the demised premises known as Unit No.1 to the Freese Building Condominium (heretnafter referred to as "Condomtrdum Unit") situated on Main and Water Street in Bangor, County of Penobscot, State of Maine, and more fully described in "ExldMt A" attached hereto and made a part hereof. 1. Termoflease: TOHAVEANDTOHOMthe Cmdom =Umtfortheterm of three (3) calendm yeah commencing at the date of this Lease. 2. Rent: YieldtngmdpayingrentfliueforonlheftrstdayofeachcOl wyeazan amount equal to One Dollar ($1.00) per year. 3. Subleasing and Assignment The Tenant shall not have the right to assign this Lease or sublet the Condominium Unit or any part thereof, without the prior written consent of the Owner; which said consent shall not be unreasonably withheld. 9 Maintenance and Reoafr. The Tenant shall be responsible for matntatmng the Condominium Unit in good repair and m presentable condition and will also make all incidental interior repairs and decorating, all at the Tenant's own vast and expense 5. Utlitiesmd Taxes. The Tenant shalhbe responsible for the payment of the cost Of all utilities (including heat and air coridimordng) delivered to the Condommiu iUnit and shall be responsible for the prompt payment of all property taxes assessed against the Condominium Unit and property in the Condominium Unit, commencing with the taxes assessedi wntemplahonoflawmofthedateofthls Lease. Tenantshallberesponsible fm the payment of all condominium fees, dues, assessments and other charges assessed against the Condominium Unit 6. Incurance: Tenant agrees, at the Tenants expense, to keep the Condominium Unit insured at all times against loss by fire, all risk, and extended coverage, vandalism and storm risks to a insurance company car companies authorized to do busi ss in the State of Maine, such insurance to be replacement cost Insurance in the amount of Use Hundred Permit (100%) of the total value of said C ruhsrwum Unit for replacement cost purpos sw esameisdMenminnedfomtinstot bythem.surer. Suchmsmance policyshall name the Owner as the owner of the policies and inthe event of any loss or claim, the proceeds shall be paid to the Owner and the Tenant as their respective interests may appear. The Tenant agrees it will maintain throughout the tern of this lease a policy or policies of general liability insurance indemnifying the Owner and/or Tenant against all claims and demands for any personal injuries to, or death to any persons, and damage to or destruction or loss of property which may have or be claimed to have occurred in the Condominium Unit in an amount not less than One Million Dollars ($1,000,000.00) per occurrence of injury, or death to any person, and for not less than Onc Hundred Thousand Dollars ($100,000.00) for damages to or destruction or loss of property. 7. Generalludemnificatios Tenant shall defend indemnify, and hold Owner and its hdmiumnts, officers, employees and agents completely harmless from and against all liabilities, losses, sorts, claims, judgments, lines, or demands arising by reason of injury or death of any person or damage to any property, including all reasonable costs for 2 investigation and defense thereof (inducing but not l n ited to attorneys' fees, court costs, and expert witness fees), of any nature whatsoever arising out of or incident to this Lease and/or the use, occupancy, conduct or management of the Condomintum Unit or the arts or omissions of Tenant's offices, agents, employees, contractors, subcontractors, licensees, or invitees unless such injury, death or damage is caused by the neghgeve of the Owner. The Tenant shall give to Owner reasonable notice of any such ca'ma or actions. & Tenand's Wavier of Workers' Comunuuation In mumtn Tenant hereby expressly agrees that it will defend indemnify and hold Owner, its inhabitarus, officers, employees and agents completely hanNess from any and all claims made or asserted by the Tenant's agents, servants, or employees arising out of the Tenant's activities under this Lease. Forth's VIUase. ancand all im¢mrd Tenant trayh d the Mame Workers (Donavemation Act'on Ecgmd to such churns made r as=Ud by the Tenant's ais servants or mol . Theindemnification provided for under this paragraph shall extend to and include any and all costs incurred by the Owner w answer, investigate, defend and settle all surh chums, including hot not limited to Owners costa for attorneys fees, expert and other witness fees, the cost of investigators, and payment in fid] of any and all judgments rendered in favor of the Tenant's agents, servants, or employees against the Owner in regard to claims made or asserted by such agents, servants, or employees. 9. Use: It is further understood and agreed that the Condordrdum Unit shall not be occupied during the term of this Lease for any purpose usually denominated extra hazardous as to fire by insurance companies. 19. 12magear Destruction• Ituhrtheragreedthatincasethe Condom mum Unit shall be destroyed or damaged by fire or other unavoidable casualty, so that the same shall be thereby rendered unfit for use and habitation, then, to such csse, the rent herein 02-202 before reserved, or ajust and proportionable part thereof, according to the nature and intent of the injuries sustained shall be suspended or abated, until the said premises shall have bean put in proper condition for use and habitation by said Owner, or these presents shall thereby be determined and ended at the election of the Owner or its legal representative. 11. Termination: The Ten int covena iis and agrees to quit ant deliver up the Condominium Unit to the Owner or its Attorney peaceably and quietly at the end of the tam aforesaid (or in the event of a properly executed option to renew at the std of such renewal period) in as good order and condition reasonable use and wearing thereof, loss by fire, or inevitable accident excepted, as the same now are, not to make or suffer any strip or waste thereof and to keep said premises in good condition as herein above provided and that the Owner may enter, under supervision or after giving notice to the Tenant, to view the premises. The Tenant further covenants and agrees that if the Tenant shall fail b pay the rent aforesaid when due, and if such failure shall continue for fifteen (15) days; or if it shall make or suffer any ship or waste of the Condominium Unit; or if the Tenant shall fail to quit and surrender the premises to the Owner at the end of said term (or such properly exercised renewal period) in the manner aforesaid; or if the Tenant shall violate any of the covenants or agreements in this Lease which ere to be performed by the Tenant; or if the estate hereby created shall be taken from the Tenant's property for the benefit of aedibus or if the Tenant shall in anyway come undathejurisdiclion of the federal bankruptcy court or be deemed to be insolvent; then and in any of said cases, the Owner, its agents,attorneys, sucreasom or assigns, may in any manner they set fit, re nthr into the Condo rrdum Unit, and if they please, temwste and annul this Lease as far as regards all future rights of said Tenant, and the same to have again, retain, repossess, and enjoy as in their first estate, anything herein to the contrary notwithstanding. 4 It is further covenanted and agreed that for breach of any of the covenants and agreements aforesaid, except the payment of rent, and upon notice mailed to the Tenant at least thirty (30) days prior to the taking of any action, an action of forrible entry and detained may be costumed without entry and without prejudice to any other rights the Owner may have. 12 Nondiscrimination, Tenant, for itself, its successors in funniest and assigns, and as part of the consideration hereof, does hereby covenant and agree that (1) no person or group of persons on the grounds of race, color, age, sex handicap, or national origin, or in any other marmer prohibited by law, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the Tenant's use or occupancy of the CoMominium Umt; and (2) in the construction of all improvements, buildings, structures on, over or under such premises and the furnishing of services thereon, no person or group of persons on the grounds of race, color, age, sex, handicap, or national origin or in my other manner prof fried by law, shall be excluded from participation in, denied the benefits of, or be otherwise subjected to unlawful discrimination in the Tenants use crootipancyof the Condominium Unit In Neevmtofbreachofanyoftheabove indiscrimination covenants, the Owner shall have the right, after failure of Tenant to rectify such breach within thirty (30) days after receipt of nice from Owner, to ternionate this Lease. povtded,hmwewen,that OwnershallnahawtMdghttoterminatethe Lease undertWsArtiJ threspecttoanycomplaintofdiscriminationwhichispendingfinal resolution or adjudication before any agency or court of the State of Maine or the United States. 13. Liens: The Owner and the Tenant agree that each will promptly discharge (either by payment or by filing of the necessary bond, or otherwise) any mechanics' materiahnen's or other liens against the Condominium Unit which liens may arise out of 02-202 any payment due for labor, services, materiels, supplies or equipment which may have been furnished to or for the Owner or the Tenant, respectfully. 14. Waiver. Failure on the Owner to complain of any action or nonaction on the part of the Term no matter how long the same may continue, shell never be deemed to be a waiver by the Owner of any of OwneYs rights hereunder. Further it is covenanted and agreed Out no waiver at my time Many of the provisions hereof by Owrr shaft he remarried as a waiver of any other provisions hereunder, and that a waiver at any time of any of the provisions hereof shall not be construed at any subsequent time as awaiver of the same provisions. The approval of the Owner of my action by the Tenant requiring the Owum's cement or approval shall not be deemed to waive or render unnecessary the Ownm's consent or approval of any subsequent similar ad by the Tenant. 15. Notices: Notices to the Owner provided for in this lease shall be sufficient if sent by registered or certified mail, return receipt requested, postage prepaid to: the City Manager, City of Bangor, City Hall, 73 Harlow Street, Bangor, ME 04401, with a copy to Director, Department of Community and Economic Development, 73 Harlow Street, Bangor, Maine 04401. Notices to the Tenant provided for under this Icase are to be sent by registered or certified mail, return receipt requested, postage prepaid, addressed to: Maine Discovery Museum,Atm.: Exerutive Director,74Main Suret tiangor,Mame 09401, ortoanyother respective addresses as the pames may designate to each other in writing from time to mile, 16. Renewal Option: Owner hereby grants and gives to Tenant the privilege of two (2) renewal options of this Lease, each such renewal to be for a period M one (1) year commencing upon the termination of the initial term of this tease. Term shall exercise each such option to renew by so notifying the Owner in writing at least thirty (Bo) days in advance of the temmnation of the term of this Lease. Such renewal period shall be subject to the same terms and conditions as in the initial term of this Lease. 19. Net Net Net Lease: This Lease Agreement is intended as a net net net lease, and Tenant shall pay to Owner absolutely net throughout the lease teem, rent, and other payments as described herein free of any charges, assessments, impositions, or deductions, of any kind and without abatement, deduction, or set off other than as expressly provided in time Ag ero ent, and under no circumstances or conditions whether now existing or hereinafter arising, or whether within or beyond the present contemplation of the parties shall Owner or its successors or assigns be expected or required to make any payment of any kind whatsoever, or be under any other obligation or liability hereunder, except as specifically and expressly provided in this Iaase Agreement. RV WMESSW IiEOF, the parties have hereunto set then hands and seals the day and year first above written. WITN&SS: TkIE CITY OF BANGOR, Owner ��I. ts�I�l f��✓_ MAINE DISCOVERY MUSEUM, Tenant 7 (Pm,bed Name) 02-202 02-202 EXHIBIT A Unit No. 1 (the "UNC) in THE FREESE BUILDING CONDOMINIUM (the "Condommanim") situated on Main and Water Street in Bangor, Penobscot County, Maine, as more particularly described in the Declaration of the Freese Building Condominium dated December 24,1998, and recorded in the Penobscot County Registry of Deeds in Book 6921, Page 29, as amended and restated by the Amended and Restated Declaration of the Freese Building Condominium dated March 22, 2002, and recorded in the Penobscot County Registry of Deeds in Book 8130, Page 8, as same may be further amended from Was to time in accordance with its terms and the Act (the "Declaration"), and on the Plat and Plans incorporated into the Declaration and recorded in the Penobscot County Registry of Deeds in Plan Book 1998, Pages 81 through 87, as amended by Plans incorporated into the Declaration and recorded in the Penobscot County Registry of Deeds th Plan Book 2002, Page 37 and Pages 42 through 47, as the same may be further amended from time to time in accordance with the Declaration and the Act (the "Plat and Plans"), by virtue of the recording of which Declaration. Platand Plans, )MC Parmers, LLC and Freese/MainStreet Housing Associates, LP, as Declarants, created the Condominium pursuant to the Maine Condominium Act, Title 33 of the Maine Revised Statutes of 1964, as amended. Chapter 31, Sections 1601-101, et sem., as amended (the "Ace); TOGETHER WITH an undivided interest in the Common Elements of the Condominium, the liability for Common Expenses of the Condominium, and Votes in the Association of Unit Owners of the Condominium allocated to the Unit pursuant to the Declaration; TOGETHER WITH the rights to use any Limited Common Elements allocated m the Unit as described, specified and allocated pursuant to the Declaration; TOGETHER WITH an easement in common with the Owners of other Units to use the Common Elements of the Condombdum for purposes of ingress, egress and all other uses in accordance with the Declaration and the exclusive right and easement for the use, occupancy and enjoyment of the Unit TOGETHER WITH an easement in common with all other Unit Owners to use all pipes, wires, ducts, cables, conduits, public utility lines and other Common Elements serving the Unit and located in any of the other Units. TOGETHER WITH an easement to the extent necessary, for structural and subjacent support over every other Unit and over the Common Elements; TOGETHER WITH all other rights, easements, rights-of-way, interests, Anwated Interests, pnvileges and appurtenances as more particularly described, located, defined, allocated or referred to in the Declaration, the Plat and Plans, 02-202 and the By -Laws described in the Declaration, as the said By -Laws may be amended from time to time f n accordance with the Declaration and the Act (the "By -Laws" ), all of which are incorporated herein by reference thereto; SUBJECT TO the matters affecting tide described in the Declarabon and the Plat and Plans and terms, covenants, agreements, easements and provisions of the Declaration and the By -Laws, which cerins, covenants, agreements, easements and provisions shall constitute covenants running with the land and shall bind the Grantee and any person having atany, time any interest or estate inthe Unit, as though such provisions were recited and stipulaW at length herein; SUBJECT ALSO TO an easements in common with the Owners m other Units to use all pipes, wires, ducts, cables, conduits, public utility time and other Common Elements serving the other Units and located in the Unit and to an easement for structural and lateral support in favor of every other Unit; AND, by the recording of or by acceptance of this deed Grantee does accept and agree for itself, i4 successors and assigns, to be bound by and subject m all of the tams, covenants, agreements, easements and provisions of the Act, the Declaration, the By -Laws and the Plat and Plans. For Grantor's source of title to the premises conveyed herein, reference is made to a deed from JMC Partners, LLC and Freese/Main Street Housing Associates, LP to JMC Partners, LLC dated December 24, 1998 and recorded in the Penobscot County Registry of Deeds in Book 6921, Page 88, by which deed JMC Parthers, LLC acqutred Unit 1 m the Condominium as created by said Declaration of The Freese Building Condominium dated December 24,1998 and recorded in the Penobscot County Registry of Deeds in Bank 6921, Page 29, whirls Droll was subsequently divided into two Units, being Units 3 and 3, by said Amended and Restated Declaration of the Freese Building Condomfrdum dated March 22, 2002 and recorded in the Penobscot County Registry of Deeds in Book 8130, Page 8. The City of Bangor having acquired said Unit No. 1 by virtue of a Quitclaim Dred with Covenantfrom ]MC Partners, LLC. dated March 27, 2002, to be recorded in the Penobscot County Registry of Deeds. OPTION AGREEMENF AGREEMENI'made this R,(IY„day of2002, between THE CITY OF " g a BANGOR, a Maine municipal corporation ha place of business in Bangor, County of Penobscot, State of Maine (hereinafter referred to as "Seller') and MAINE DISCOVERY MUSEUM, a duty organized and existing Maine Non -Profit Corporation having a place of business in Bangor, County of Penobscot, State of Maine (hereinafter referred to as "Buyer"). UXYYG1_1c5 WIiERF_AS, Seller is the owner of premises known as Unit No.1 in the Freese Building Condominium situated on Main and Water Street in the City of Bangor, County of Penobscot, State of Maine, more particularly described in a Quitclaim Deed with Covenant from JMC Parhters, LLC to the City of Bangor dated March 27, 2062, and recorded to the Penobscot County Registry of Deeds in Book 8132, Page 260, (hereinafter referred to as the "Condominium Utdt"). WHEREAS, Seller is desirous of granting to Buyer an option m purchase said Condominium Unit. NOW, THEREFORE, in consideration of the mutual covenants, agreements, and undertakings hereinafter expressed the parties agree as follows: LCH:tp>SbJ4Y Section 1, Option Seller hereby grants to Buyer the exclusive option M purchasing the Condominium Urdt under the terms and conditions set forth herein. Section 2 Tarin. This Option will remain in effect until five o'clock (5:00) p.m., pri vadingtime, on December 31, 2005. Section 3: Option Price. The option priceis One DoBer ($1.00), receipt of which u hereby acknowledged. Al] monies pact on account of the option price are not refuMable except in the case of a failure of title as set forth below. Sectionh Exercise. This OptionshaBbeexemisedbygivingwrittennoficethereof, at any time during the option term or extension thereof, to Seller at the following address: The City Manager, City of Bangor, City Had, 73 Halow Street, Bangor, Maine, 04401, with a copy to Director, Department of Community and Economic Development, 73 Harlow Street, Bangor, ME 04401. Such notice may he sent first class mail, postage prepaid, or delivered by hand. Section 5: Purchase Price. The purchase price for the acquisition of the Condo ndrdum Unit shall be One Dollar ($1.00), plus the payment of all outstanding Indebtedness due Seller from Buyer. Section 61 Pavia The purchase price shot be paid to full at or prior to the Closing. Sectlony:Closine. The Closing shat take place at Buyer's election but not tater dmn five o'clock (5:00) p.m., prevailing time, on the 30th day following the day upon which the notice is posted or delivered, as the case maybe. Sectin 8: Conveyance and Payment 8.1: Warrantiesand Title. Conveyance shall be made by Municipal Quitclaim Deed conveying goad marketable tide to said Condominium Unit, as defined by the standards adopted by the Meares But Association, fire and clear of encumbrances, kept for conventional utility easements and such restrictions as would not make the title munarketable. The title shall also be insurable by any reputable title insurance company licensed to do business in the State of Maine. 82 Payment. Buyer will make all payments by certified, cashier's or attorney trustaccountcheck. Section 9: Succession. This Agreement and the provisions herein shat be binding an the respective heirs, personal representatives, successors and assigns of Seller and Buyer. Section lP. Miscellaneous. 10.1: Transfer Taz. State of Maine Tra sfar Taxes shat be paid entirely by Buyer. 102: Broken. Neither party has retained a real estate broker in this transaction. 10.5: Time. Time is of the essence to at matters relating to this Agreement IOA "AS Is" Condition The Condomhdum Unit will be sold in"as is" physical condifion, and Seller makes no representations to Buyer whatsoever as m Else physical state of same. This linummon shall prevail through the Chasing, and no further writing shall be necessary with respect thereto. 105, Goverrtng Law. This Agreement and the tranaacfion contemplated by it shall be governed by the laws of the State of Maine. 10.6: Notices. Arty notices required by or useful under the terms of Otis Agreement shallbegiven,intbecase MSeller,ro: The City Marmger, City of Burger, Cfty Hall, 73 Harlow Street, Bangor, ME 04401, with a copyto Director, Department of Community and Economic Development, 73, Harlow Street, Bangor, Maine 04401; and in the case of Buyer, to Maine Discovery Museum, Alto .: Executive Director, 74 Main Sheet, Bangor, ME 04401, or such other persons and addresses as the appropriate party may hereafter designate. All such ounces shall be sent first class mai), prepaid, or delivered m hand. 10.7: Entire Agreement This Agreement contains the entire and only agreement between the parties and no oral statements or representations or prior written matter not contained in this Agreement shall have any force and effect. Sectimill,ShomForinforRecUrding. Buyer may wishm give notice of this Option through a recordation in the Penobscot County Registry of Deeds. Seller and Buyer agree that the entire contents of Urs Option need not be made public through such recording. Accordingly, a reduced version of this Option may be executed simultaneously, with the execution of this Option, and Seller agrees that only the reduced version shall be so recorded. The reduced version of flus Option when recorded shall serve as notice to all of the contents of the complete version of this Option Agreement INWFFNESS WHEREOF, the parties hereto have hereunto set then hands and seals on the day and year fust above written. THE =OF BANGOR, Seller By: !XN'aMl'G W Edward A. Barrett, City Manager FedermMNo.: 01-6000020 MAINE DL9COVERYMI15EUK Buyer