HomeMy WebLinkAbout2002-10-15 02-380 ORDERItem No. _02 -IN
�.rYm �iFfP_kPta
Rem/Subject: ORDER, Requesting and Authorizing Abrogation of the Conditions of a Deed
from the United Sates of America to the City of Bangor (Harold Stager Army Reserve Center --
Union Street)
Responsible Departmerd: Legal
Commenmry:
By deed deed November 22, 19W tide to the so-called Slager progeny on Union Street was
urmsfeered to the City rather the educational public benefit allowance discount authority ofthe Federal
Property and Administrative Services Act of 1949. Thus, if the property were used for educational
purposes for 30 years the City would not have m pay for it. A subsequent inspection of the building
estimated the cost of necessary repairs and improvements to be approximately $450,000.
The School Department decided that, due to budgetary constraints, it could not do the necessary
repairs and use the building.
Under the conditions of the deed, if the property, is not used for educational purposes it will, at the
request of the government, revert back to the government.
With the permission of the govemmem, the City may seek an abrogate the requirement that the
property be used for educational purposes by purchasing it for its appraised value. The formula for
determining the price to be paid is the value less the percentage of the thirty years that the building was
used fm public educational purposes. Although the property, was not used for educational proposes, the
government will give the City credit for one your. The appraised value was $208,000. The purchase price
will be Ne $201,136.
This Order will authorize the official request for the abrogation of the conditions of the deed and the
acceptance of the release.
Department Head
Manager's Comments: oCA /
Ory Manager
Associated Information: Release
Budget Approval:
Finhace Dlrctcr
Lepel Approval:
City sollaw
Introduced far
_ Passage
_ First Reading Page _j_ M 7
Referral
02-380
AvulinedroCouncilm Palwer October 15. 2002
.; a ` CITY OF BANGOR
(TITLE.) ORDER, Requesting and Authorizing Abrogation oftlie Conditionsofa
Deed from the United States of America to the City a Bangor (Haroltl Stager
Army Reserve Center -- Union Street)
By aye City faun#ofAne DO, of Banyan
ORDERED,
WHEREAS, by Cwndl Order #OD16 the Bangor City Council approved the acceptance of a
deed from the United States of Amerm for the Harold Stager Army Reserve Center, Union
Street, Bangor (Tax Assessors Map R-29, Lot S-A) at no cat to the City; and
WHEREAS, the said deed required the City to, for a period of thirty years, use the property
solely and continuously for educational pumaes; and
WHEREAS, due to the cat of rehabilitation of the building on said property, the City has
determined that it will be unable to use the property for educational purposes; and
WHEREAS, the midi deed includes a provision that for payment of fair market value, less an
amount determined by a formula set forth In said deed, the condition In the dead requiring the
property W be used solely for educational purposes may be abrogated, midi price being
$201,136.00.
NOW, THEREFORE, by the City Council of the City of Bangor:
ORDERED, THAT the City Solicitor shall make a formal request for the abrogation of the
condition In the deed from the United States of America to the Cdy of Bangor for the Harald
Slager Army Reserve Centcr, Union Stree4 Ba cor requiring that the property be used solely
and continuwsN for educational purposes.
and be R further,
ORDERED, THAT the Mayor, on behalf of the City of Bangor, is hereby authorized to accept a
release of said condition in mid deed for the payment of fair market value. A espy of said
Release is attached hereto.
IS MPP COUNCIL
October 15. 2002
Nation gede and Seconded# 02-380
for Passage
Passed ^ o T e y
(TITLE.) Sea '18 aea nntbariaing
Abmgatfw of the Conditions of a Oeed
from the United States of America to the
e
Center - Union Street)
)
Aulgneles Couu�ncilorr 'r6
et
A4
02-380
ABROGATION AND RELEASE OF RESTRICTIONS
TffiS AGItEEd1ET4T is made thisday of November, 2002, betwcen the UNITED
STATES OF AMERICA, acting by and through the Secretary of Education, saceessor in function
to the Secretary of Health, Educator- and Welfare, acting by and through Peter Wica urek
Director, Eastern Operations, Federal Real Property Assistance, Office OfMavagemerA, United
State Department of Education ("GRANTOR") pursuant to Section 203(k) of the Federal
Property and Adminis0 hive Services Act of 1949, as amended ("AGI"), P.L. No. 81.152, 63 Stat
377, 40 U.S.C. 5484(k), Reorganization Plan No. 1 of 1953, the Department of Education
Orgavvsti® Act of 1979, P.L. No. 9&88,93 SM 668,20 U.S.C. §34019 req., and the City of
Burger, a political subdivision ofthe State of Mamn("GRANTEE).
L RECITAL
L On November 22, 1999, the UNITED STATES OF AMERICA, acting by and through the
Secretary of Health, Eda vroom and Welfare, acting by and through David B. Hakoln, Director,
Federal Real Property Group, Office ofMenagement, U.S. Department of Education, conveyed
certain real property in dare City of Els gor, Sure of Maine, formerly known as the Harold Slager
Army Reserve Center, Union Street, Hangar, Maim ("Property") to GRANTEE, by Quitclaim
Deed ("Deed"). The Deed is recorded in the Penobscot County Registry of Deeds in VOI.7252
Page222. T Propertyismorepardoulmlydesa don Mm2&3ofdw Dced.
2. The Dced provided that the conveyance was subject to cenaiu covenams. conditions
subsequent and nsmismom. Among those conditions are conditions subsequent cambered 1, 2,
3,ami4ofthe Deed. The Deed provided on Page 11that these conditions subsequent could be
02—MO
abrogated if me GRANTOR consented and upon payment ofan abrogation sum.
3. GRANTEE bas requested release Sam conditions subsequent 1, 2,3 and 4 in the Deed
pursuant to a resolution dated October 15 2002.
4. GRANTOR and GRANTEE have agreed that $201,136.00 is the payment required fa
securing the release of conditions subsequent 1, 2,3 and 4.
5. Notice of the proposed abrogation has been given to the Administrator of the General Services
Admiviatration and by Inundated] August 29, 2002, he did not objectio the abrogation.
11. AGREEMENT
W CONSIDERATION OF the payment "a GRANTEE of $201,136.00, the mutual
agreements contained herein and other good and valuable consideration, the receipt of which is
hereby acknowledged, the GRANTOR and GRANTEE agree to the following:
6. GRANTOR, by exeentian of this Agreement, releases GRANTEE, its successors and assigns,
from the conditions subsequent numbered 1, 2,3 add 4 as set forth in the Dead.
]. Except as provided in paragraph #9 below GRANTOR, by execution of this Agement,
waives its rights to all revenues or the reasonable value of benefits m the GRANTEE deriving
directly or indirectly from such sale, lease, mortgage, encumbrance, disposal or we ofthe
Property as set forth in the Deed, and releases GRANTEE, its successors and assigns, from such
covenants and agreements as they apply to the Property.
8. GRANTOR, by execution of this Agreement, removes releases and extinguishes its right
provided in the Dad to the fA unrestricted possession, control and use of the Property, or my
portion thereof, during any period of emergency declared by the President or Congress of the
United Stores,
9. As a material molacementto enter into this Agreement, GRANTOR and GRANTEE have
relied upon areal came appraisal which estimated the fair market calm of the Property 9
$208,000.00. GRANTOR ad GRANTEE undemtand ami agree that a cast estate appraisal is
subjective estimate of the value of the Property, and that amore objective estimate of value is
that transit which the Property will bring in an open, competitive and free market GRANTOR
end GRANTEE therefore agree, Nm if dad, correct; lease or other agreement is executed
within five (5) yeas from the dare of this Agreement which sells, transfers, conveys, hasees me
property or which commits the GRANTEE to the We, transfer, conveyance or other disposal of
the property or any rights therein for a sum or sums m excess of $208,0110.00, then GRANTEE
shall remit to GRANTOR my amount received or promised in excea of $208,000.00.
GRANTEE shall remit my sums as may be required above within 24 from of receipt of such
monies together with pertinent copies of the deeds, contacts, leases or other agreements whish
establish the actual or promised consideration. GRANTEE agrees that 0 sums received in
excess of $208,000.00 as provided above shall be held in trust for the UNITED STATES OF
AMERICA subject to the directive said control of the GRANTOR.
10. GRANTORand GRANTEE hansom mutually agee that, except as provided in this
Agreement, all the provisions ofthe Deed shall remain in full force and effect.
To indicate Abair agreement to the provisions contained in this Agreement, GRANTOR and
GRANTEE have executed this document as of the data and year first above carmen
UNITED STATES OF AMERICA
Acting by and through the
Secretary of Education
GRANTOR:
By:—q inR\�1�9�pm
Prier A. Wieczorek, ystm
Eastern Operations VVV
Federal Real Property Assistance Program
Office of Management
U.S. Depmtraent of Education
ACRNOWT.EDGMENTS
Comnomvealth of Massachusetts)
County of Suffolk1)
On rids�s�Nay of , O02, personally appeared before me. a Notary Public in and for
the Commmweallh of Massachusetts, Paler A Wicau rek, Director, Eastern Operations, Federal
Real Property Assistance Program, Office of Management, United States Department of
Education, acting for the United States of America and the Secretary of Education, known to me
on be the same person whose name is subscribed to the foregoing instrument and acknowledged
m me that he executed the same on the date hereof as his Gee and voluntary set and deed loc the
purposes and crosidermon therein expressed and with fail authority and voluntary act and deed
of the United States of America and the Secretary of Education
IN NESS WHEREOF, I have an my hand and seal 9 Boston, Massachusells, this 2fl)
day 0
fD/jv%1Q02
Notary Public �/ /�a''
My Commission Expues: Vw lldz l
ACCEPTANCE
By the acceptance oftlus ABROGATION AND RELEASE OF RESTRICTIONS, the
GRANTEE, for itself, its successors and assigns, and each of them, accepts and agrees w all the
obligations, conditions, and covenams Nerein contained.
The City of Bangor, Maine
GRANTEE:
BY: C_
Maym, City of Bangor, Maine
STATE OF MARE)
COUNTY OF PENOBSCOT
On tbis� day of�J_�k 2002, personally appeared before me, a Notmy Public in and
forthe Siateof Maine .a.: F..\... Mayaof CityofBangor,wmeknownmbethesame
person whose name I5 subscribed the foregoing iulnmtent and acknoMedged m me that be
exeeumd the same Co the date hermfas bis free and voluntary Set and deed for the proposes and
considenabon tberein expressed and wiN fall authority and m voluntary act and deed of Ne City
of Bangor.
AI WITNESS WITEREOF,Ihave set my hand andseal on this Z6 ri "^
dSyo 't":
2002.
Public
My Commission Fxpires:_
NONXI4N S. HWISUC, MEIN, IN
NOTON EXPIRES MRINE
MY COMMISSION EFPIPESJPXUMY 31.ID%