HomeMy WebLinkAbout1998-09-28 98-395 RESOLVECOUNCIL ACTION
Date: September 28, 1998
Item NO.
Item/subject: Atntoding Developmem Program for Pickering Square Munkipal Development District and Tax
hwnsment Financing District
Responsible Department: Community & Economic Development
commentary:
The City Council designated the Pickering Square Municipal Development District and Tax
increment Financing District and adopted a Development Program for the District by
passage of Council Resolve 96-53 on December 11, 1995. The 1995 Council action
provided for tax in anent fimncing to support the residential development of 34 units
of affordable housing in the Pickering Square section of the former Freezes Department
Store building. This proposed amendment to the Development Program for the District,
the District being the former Freese building property, will provide for tax increment
financing to support development of 39 unite of affordable housing in the top three
floors and rehabilitation of approximately 45,000 square feet of commercial
ial space i
the bottom three floors of the Main Street section of the building The Freezes
building, after completion of improvements, will havenassessed value of
approximately $4,440,000, generating a projected $3,344,326 1 w property tax
revenues over the life of the District from 1995 to 2021. The Development Program
proposes to dedicate all tax revenue proceeds to a inking fund for repaying City
financing of redevelopment of the presses building, with excess proceeds dedicated to
financing additional police patrols add security, capitalizing as volving loan fund
for facade improvements and business expansion, and improving public infrastructure i
the Bangor Center Municipal Development District, all of which will help ensure the
economic viability of the Presses project.
Ise ent read
Manager's comments: D d
{dLMnmla�A /�Ma
City Manager
Associated Information "NO
Budget Approval:
�.
Finance Director
Legal Approval:
Snyn/ ., �M/ yp/ 1u'
V. ' , L
City Solicitor
Introduced For Passage O First Reading ❑ Referral
Page_l_of I
98-395
Assigned to Councilor Baldaccl September 28, 1998
fu CITY OF BANGOR
ITITLEJ 3RM0IjM..._.... Amending Development Program for Pickering Square Municipal _
Development District and Tax Increment Pinaming District
By the CSty Coaneit of she qty of Ba*oar:
RSSOLVRD,
WHEREAS, the City of Bangor is authorized pursuant to Chapter 207 of Tide 30-A
of the Maine Revised Statutes, as amended, to designate specified areas widtin doe City As a
Municipal Development nonct And Tax Incremctn Financing Distrito and to adopt a Developrcea
Prgam for such District; not
WHEREAS, the Main and Worn Street returns "rte Main Street Block" of the
Comer Freese's Department Store Building is owned by the City of Bangor Audi is vacant anal
available for the purpose of redevelopment; and
WHEREAS, the City of Bangor approved and adopted the Community
Development Downtown Revhalization Program by passage of Council Order 82-239 on October
13,1982; and
WHEREAS, this Plan identified the continuing blighted conditions within the
Downtown Area; and
WHEREAS, tiffs Plan tecogwzd de need for higher levels of utilization of upper
story space Nsuugh renovation for medium rent office uses, residential use and other innovative
activities; and
WHEREAS, ted Plan recogazed Oe City's commitnem to assist private sector
investment in downtown by making available to Private investors financial assistance though
available loan or grant programs and
WHEREAS, the City of Bangor Designated the Pickering Squ ne Municipal
Development District aM Tax Interment Financing District and adopted a Development Program
for the District by Passage of Courted Resolve 96-53 on December 11, 1995; and
WHEREAS, ted Maine Commismader of Ecommic and Community Development
approved rte Pickering Square Municipal Development District and Tax Increment Financing
District by letter dated February 14, 1996; aM
WHEREAS, since adoption of the District Realty Resources Chartered completed
rehabilitation of the Pickering Square Block of the former priest's Department Store building
converting the space into 34 units of affordable housing thereby completing the Development
Program adopted December 11, 1995; and
WHEREAS, Realty Resources Chartered now plans to undertake a further major
redevelopment project and convert me Main Street Block section of the former Freese's
Department Store building into 39 units of affordable housing and approximately 45,000 square
feet of retail, professional office, service or cultural uses; and
WHEREAS, there is a need to provide affordable housing for the citice s of Most
and the surrounding region; to improve and broaden the tax base of the City of Bangor; and to
improve the general economy of the City of Bangor, the surrounding region and the Snte of
Maine, and
WHEREAS, the Realry Resources Chartered projeotwdl provide affordable housing
opportunities to the citvetrs of Bangor and Ne surrounding region; improve and broaden the tax
base in the City of Bangor; improve the economy of the City of Bangor and me State of Maine;
and provide for the renovation of vacant and blighted downtown building space; and
WHEREAS, there is a need to encourage further redevelopment of the Downtown
Area through amending the Development Program for the Pickering Square Municipal
Development District and Tax Increment Financing District in accordance with the provisions of
Chapter 207 of Title 30-A; and
WHEREAS, me City has contemporaneously herewith held a public hearing on the
question of amending the Development Program for the District in accordance with the
requirements of 30-A M.R.S.A. §5253, upon at least ten (10) days prior notice published in a
newspaper of general circulation within the City; and
WHEREAS, the City desires to amend the Development Program for the Pickering
Square Municipal Development District and Tax Increment Financing District for Ne purpose of
providing tas increment financing to assist the proposed rehabilitation and conversion of Ne Main
Street Block of the District, and adopt an amended Development Program for such District and
WHEREAS, it is expected than approval will be comfit and obtained from the
Maine Department of Economic and Community Development, approving the amendment to the
Development Program for the District;
NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COLICIL
OF THE CITY OF BANGOR THAT:
98-395
Section The City hereby finds and determines that
(a) At least 25%, by area, of the real property within the District,
as hereinafter designated, is blighted and in need of rebabilitation, redevelopment avd comervation
work as defined in 30-A M.R.S.A. §5253; and
(b) The total area of the District does tent exceed 2% of the total
acreage of the City and the total area of all development districts within the City (including the
District) does not exceed 5% of the total acreage of the City; and
(c) The aggregate value of equalized taxable property of the
District plus the aggregate value of equalized taxable property of all existing tax incremem
f arcing districts as of April 1, 1998 does not exceed 5% of the total value of equalized taxable
property within the City as of April 1, 1998; and
(d) The aggregate value of indebtedness fuunred by the proceeds
from tax increment financing districts within Penobscot County, including the proposed District,
does not exceed $50 million; and
(e) The City expects that the amended Development Program will
be completed within five years of the designation of the District by the Department of Economic
and Community Development, and
(f) The District and pursuit of the amended Development
Program will generate substantial economic benefits for the City, State and its resider¢, including
the provision of affordable housing, employment opportunities, broadened and improved rax base,
and elimination of blighting conditions; and
(g) The District add pursuit of the amended Development
Program will be in the public interest.
Sccliim 2, Pursuant to Chapter2M of Tide 30-A of the Maine Revised Strums,
as amended, the City hereby amends the Development Program for the Pickering Square
Municipal Development District and Ta increment Financing District described as more
particularly set forth th the =Y OF BANGOR, MAINE, PICKERING SQUARE MUNICIPAL
DEVELOPMENT DISTRICT AND TAX INCREMENT FINANCING DISTRICT
DEVELOPMENT PROGRAM AMENDMENT OF SEPTEMBER 28, 1998" presented to rhe
City Council in the form attached hereto, and such amended Development Program is hereby
incorporated by reference into this Resolve as the Development Program for the District.
Section 3. Pursuant to the provisions of 30-A M.R.S.A. §5254, the City mribv
adopts the statement of the percentage of Assessed Value to be retained by the City as set forth in
Tables 2-A and 2-B of the amended Development Program for purposes of said Section 5254.
If at any time during the term of the District the captured assessed
value increases by reason of revaluation, the maximum amount of retained captured assessed value
shall increase in proportion to the increase in assessed value attributable to such revaluation, it
being the intent of the City that the retained tax increment from the captured assessed value shall
remain at a level at least equivalent to the dollar values specified in the amended Development
Program over the life of the District.
&ction 4. The City Manager be, and hereby is, authorized, empowered and
directed to submit the proposed amendment to the Development Program for the District to the
Smm of Maine Department of Economic and Community Development ("DECD") for review and
approval pursuant to the requirements of 30-A M.R.S.A. §§5253 (I)M and 5254A (I-A)(D).
eection.5. The adoption of the amended Development Program for the District
shall automatically become fuel and shall take bad force and effect upon receipt by the City of
approval of the adoption of the amended Development Program by the Department of Economic
and Commodity Development, without requirement of fuller action by the City of Bangor.
Section 6 The City Manager be, and hereby is, authorized and empowered, at
his discretion, from time to time, to make such revisions in the Development Program for the
District as the City Manager deems reasonably necessary or convenient in order to facilitate die
process for review and approval of the District by the Department of Economic and Community
Development, or for any other reason, so long as such revisions are not inconsistent with these
resoludons or the basic structure and intent of the Development Program.
IN CITY COUNCIL
September 28, 1998
Notion for Passage Made and Seconded
Passed
CITY CLERK
98-395
EES0LVE
gmenciin¢ Develoumenc Program for
Pickering Square Municipal Development
District and Tax Increment Financing
District
41,
BANGOR DAILY NEWS
BANGOR POBOSHING COMPANY
191 MAIN STREET
P0. B0%13R3
BANGOR. MAINE 044tQ 1329
TELEPHONE 3Wd90deW
98-395
EXHIBIT J
svi
RECEIVED
Sept. 18, 1998 '
Affidavit of Publication
This is to Certify the advertising
R . Development Program for Pickering Square
was published in the BANGDRDAII.Y NEWS
on: Sept. 18, 1998
Signed
Classffeddvertising Manager
Nancy 7. Golding
Then personally appeared the above named (name of the officer
who signed the deed with her fide), and acknowledged the
foregoing instrument to be her free act Bad deed in her
said capacity and the flee act add deed of said corporation.
Before me,
I21999
NJ mwmadon vier Nw by 12, 1999
NotaryPublic
Pamela I. Tweedie