United Bank of Bangor could move its headquarters to a new building next to Maliseet Gardens under an option agreement approved Monday by the Bangor City Council.

Councilors authorized the city manager to sign an agreement giving Bangor Real Estate a 12-month option on one of the last remaining urban renewal parcels downtown. The 1.1-acre lot is at the corner of Hancock and Exchange streets.

The agreement requires BRE to construct a two-story, 25,000-square-foot commercial building on the site. Lowell T. Sherwood Jr., president of BRE, refused to discuss his plans for the property.

Rodney McKay, community development director for Bangor, said United Bank would occupy the new building. Bank officials could not be reached for comment.

The option agreement requires BRE to submit preliminary plans for the building by Aug. 23. Final plans must be presented to the council by Jan. 24, 1994.

Bangor Real Estate will pay an option fee of about $160 a month. If it purchases the lot, the price will be $48,425.

BRE proposed to build a second structure on the site “as soon as economic conditions permit.” The firm also requested a right of first refusal on an adjoining, 13,431-square-foot urban renewal parcel at the corner of Oak and Hancock streets.

The smaller parcel would be used to provide parking for the second building. The city agreed to the proposal as long as the second structure was at least two stories tall and not less than 15,000 square feet.