HomeMy WebLinkAbout1998-06-08 98-257 ORDERItem N9.98-257
Date: 68-98
Item/Subject: ORDER, Adopting Policy Guidelines for Use of City Incentives for Development and
Redevelopment Projects
Responsible Department: City Manager
Commentary:
The attached Policy is intended to provide guidance to City staff and interested parties who are involved
in development and redevelopment efforts regarding the Potential availability and use of City incentives
f suchprojects. The Policy provides guidelines for: staffauthorizationtoproposetheuscofCity
incentives requirements for City participation; considerations related to the level of City participation;
and specific criteria related to the we of project proposed.
In general, this policy track with the current evaluation system used by staff when projects come forward
requesting City participation. The ahrantageofa written guideline is to insure consistent guidanceto
staff and the availability oftbis information in those who may be invested in seeking City participation.
These guidelines will be reviewed by the Commmity, and Eoommic Development Continuum Prior to
Mundoys meeting. I would anticipate that the Commitne will have a recommendation for the Council on
Monday.
Manager's Contmmta:
Associated Information:
Order, Policy
budget Approval:
W
Legal Approval: /9J-"'YIM
V-/rl,S
CitySolici
Introduced for
Postage
Firm Reeding Page—of
Referral
Assigned to Councilor Baldaccd June 0, 1998
a CITY OF BANGOR
(TITLE.) MXDPX Adopting 1. P Icy Guidelines for Use I o£City
Incentives for Development and Redevelopment Projects
By the City Coursed of Ow City ofSasgar:
ORDERED,
TORT the attached"Policy Guidelines for Use of City Incentives
for Development and Redevelopment Projects" is hereby adopted.
IN CITY COUNCIL
June 8, 1998
Notion for Passage
made and seconded
Passed
ITY CLBRR
98-257
u NOfR
Title, Adopting Policy Guidelines for
use of City Incentives for Development
and Redevelopment Projects
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�I Assigned b.'
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Councilman
98-251
POLICY
GUIDELINES FOR USE OF CITY INCENTIVES
FOR DEVELOPMENT AND REDEVELOPMENT PROJECTS
1.0 PURPOSE. The City of Ranger fare available a numbs of incentives which can be and
to support development or redevelopment projects throughout the community. These
range from Tex Increment Fimncing (M), through which a municipality may rorm a
percentage of additional Property tax revenues generated by the project to the benefit of
the developrnm, to below market rate loans. In general, them incentives are used to
farther the aeommic development and community redevelopment goals of the City. This
policy is intended to provide guidance to staff who are involved in development and
redevelopment efforts and iNbrm Nose seeking such incentives of the interests of the
City.
2.0 AUTHORIZATION TO PROPOSE USE.
2.1 City Participation Required.
City staff is authorized to propose the use of development incentives where it has
been established based on information promoted by the developer and the
independent analysis of City staff that the City's participation is nwemary in order
for the project to be undertaken. The need for City involvement must be initially
demonstrated by one or more of the following threshold criteria:
2.1.1 The need to offset economm advantages available to the applicant ifit
should build or expand outside of portion.
2.1.2 The need to offset infre5trucone costs unique to the development or
redevelopment site and required to make the site economically feasible.
2.1.3 The suck of sufficient private or otherpublic funding sources m meet the
Mi capital investment needs of the applicanL
2.2 Other Requirements for City Participation.
Any proposal for City participation roust meet the following requirements prior to
findapproval. City staff isresponsibleforproviding Nfommtionm the Council
documenting than them requirements have been or will be metphor to my formal
Council action.
2.2.1 The project must create significant new taxvalue and an expansion ofthe
area's employment base. The employment base requirement may, be
waived for redevelopment projects.
98-25)
2.2.2 nefinancWcapabditytoandataketheprojec inplsceorwillbein
place prior to final approval.
21.3 The projectwill comply with all statutory requirements and regulatory
guidelines.
2.2.4 All Was or other amounts due the CityrelatN to the property or
properties to receive City assistance have been paid or will be paid prior to
receiving assistance.
2.3 Cher Considerations
The City Council may, take the following considerations into aced tit in
determining whether City participation will be provided or the level of such
participation:
2.3.1 The history of performance of the developer or developers within the City
of Bangor or elsewhere.
2.3.2 The level of equity investment in the project by the developer orpartrom
or investors in the project.
2.3.3 The history ofthe developer, partners, or investors in the project in
meeting their financial obligations, if any, to the City of Bangor.
2.3.4 Should the project involve the purehese of property, the payment history
of the prior owner or owners of the property in meeting then financial
obligations to the City ofBaagor in regard In taxes or other amounts due
related to the property in question or any other properties or activities
within the corporate hours of the City of Bangor.
3.0 LEVEL OF CITY PAIInCB'ATION
The following criteria will be evaluated by City staff and Council in determirdng the level
of City participation:
3.1 Job retention and creation which will result duough assisting in the expansion of
an established business in the City of Bangor;
32 The creation of long-term, permanent employment opportunities which prove&a
livable wage and benefirs comparable to those prevailing within the comrnunity;
3.3 The project will improve a blighted area tu need of redevelopment or an area
identified as a priority by the City of Bangor;
3.4 The project will improve a blighted building in need of rehabilitation;
4.0 OTHER CRITERIA AND CONSIDERATION --PROJECT TYPE
WO
M addition W the requirements, criteria, and considerations fisted above, the following
criteria and considerations should also be evaluated in determining whether the City
should participate and the extent of Participation taking into account project type.
4.1 Priority should be given to projects which will expand employment in the
nand luring sector of the economy;
4.2 Commercial projects should only be considered where such projects meet the
specific criteria outlined in sections 3.3 and 3.4 above. Such projects shall
generally not he eligible for City participation Wen such projects are dvectly
related to other established and priority community, development objectives IR the
City;
4.3 Consideration ofMijects involving the general service sector, such as but riot
bathed to medical or professional offices, shall take into account the current
availability of euch services within the community and the current level of
competition. Where such competitive services curently exist, City Participation,
if my, should be limited to projects qualifying under 3.3 and 3.4 above and at a
level of participation which generally will not provide a competitive advantage ul
comparison with a similar project undertaken on a "green" site.
5.1 Responsible Department
The Department of Community and Economic Development will coordinate all
City activity regarding development incentives.
5.2 Departmental Responsibilifies.
The Department shall:
5.2.1 Provide information on incentives to interested parties;
5.2.2 Discos project proposals and =apt preliminary applications;
5.2.3 Review and evaluate preliminary applications;
5.2.4 Involve other City Departments as appropriate and necessary. More
specifically, the Finance Deparanent shall be involved and assist in the
financial analysis of the project and the Ugal DePmtment shall be kept
appraised of and be involved in the review of development agreements and
other contract documents;
5.2.5 Make recommendations to accept or reject the application;
5.2.6 Submit development agreements ro the City Council for its review and
action;
5.2.7 In conjunction with the Legal Department, insure that any legal
requirements related to the use of a particular incentive are met.
5.2.8 Monitor ongoing public and private investment in the development
Project
52.9 periodically report on the smtm ofprojaYs involving City participation
the City Manager and City Council.
6.0 FNAL AUTHORITY
The l ml authority to approve my development incentives aM the terns and conditions
of say development ageement relating to such incentives rests with the City Council.
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