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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