HomeMy WebLinkAbout1996-10-16 96-415 ORDERCOUNCIL ACTION
Item No. 96-411
Date October 16, 1996
Item/Subject: Authorizing City Manager to execute Amendment to
Development Agreement with Freese Building Associates
Responsible Department: Legal
Commentary:
This item would authorize an amendment to the City's Development
Agreement with Freese Building Associates, reducing the City's
direct contribution from $280,000 to 0 and increasing the City's
loan commitment by $280,000. This change has been requested by
Freese Building Associates as it will enable them to sell
additional tax credits in connection with their financing of this
redevelopment project.
Depar& Neaa
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Associated
Information:
6wrl.
Finance Director
MR. 8
citysolicitor
Introduced For
Passage
First Reading
Referral Page of
96-415
Aodgmdtocounam Popper October 16, 1996
r CITY ,OF BANGOR
(TITLE.) @rb9rt.'uthor1Ing City, Manager to Execute Amendment to
Development Agreement with Freese Building Associates
By tY MY Coaaw 011ie city OfBa"40r:
ORDERED,
THAT
WHEREAS,. on December 27, 1995, by Council Order 96-60, .the City
Council authorized execution of a Development Agreement
with Freese Building Associates limited liability
company for redevelopment of the rear third of the
Freese's building, so-called, located at 74-96 Main
Street; and
WHEREAS, said Development Agreement was subsequently executed on
January 9th, 1996; and
wHBRBAB, said Development Agreement hoe subsequently been
amended to extend project deadlines originally
contained therein; and
wHSEBEs, on July 22, 1996, by Council Order 96-322 the City
Council approved further amendments to the Development
Agreement to reduce the City's total direct
contribution to the project from $400,000 to $280,000,
while increasing the City's COBS loan commitment to the
project from $188,000 to $275,000; and
WHEREAS, Freese Building Associates has proposed additional
amendments advantageous to the City which will further
reduce the City's direct contribution to the project,
with a corresponding increase in the City's loan
commitment;
NOW, THEREFORE, by the City Council of the City of Bangor, ba it
ORDERED,
THAT the City Manager, on behalf of the City of Bangor, is hereby
authorized to execute an amendment to the January 9, 1996
Development Agreement with Freese Building.Associates, as
previously amended, to revise paragraphs 5, 15, and 16-20 of the
existing agreement as follows:
96-415
Paragraph 5 -- Change to "City agrees to provide Developer a loan
in the amount of $280,000 to assist Developer in the financing of
the Project. The source of such loan shall be the issuance of City
of Bangor taxable general obligation! bonds. Such loan shall be
made upon the Developer submitting evidence that Developer's costs
.... (as in current Paragraph 5)"
Paragraph 15 - Change to "The City Intends to fund its loan to the
Developer as provided in Paragraph 51 above with a twenty (20) year
general obligation bond issue. The 'City, in Its municipal
government capacity, will retain up 20 the full amount of the tax
Increment generated by the Project by designating any "captured
set value," as defined in 30-A M.R.S.A. 5 5254, for a period not
to exceed twenty (20) years, for the repayment of bonds issued up
to a maximum of Two Hundred Eighty Thousand Dollars ($280,000), to
the extent such revenues are available. The Developer agrees for
itself and for its s and assigns that, should the tax
increment generated by the Project be insufficient in any year to
make any scheduled payments for the bons, the City of Bangor, in
its municipal government capacity, may impose special assessments
pursuant to 30-A M R.S.A. 5 5255 in an amount necessary to make the
bond payments concerned. The Developer hereby agrees for itself
and its successors and assigns, to execute
cute any necessary written
consent to such special assessments.The payment of any such
special assessments shall be due thirty (30) days before the bond
payment by the City is due."
Now Paragraph 16 - "The .Developer agI see for itself and for its
successors
and assigns that it will 6kot challenge o seek deferral
ofthe property tax assessed by the City on the Project during the
period that such bonds sissued by the City remain
unpaid if the
result of such challenge would be to reduce the amount of the tax
increment payable by the Developer below the amount which is
sufficient to make the scheduled payments for the bonds."
Current
Paragraph
16
- Current
Paragraph
16
becomes
Paragraph
17
19
Current
Paragraph
Current
17
- Current
Paragraph
17
becomes
Paragraph
1S
Current
Pazearaph
10
- Current.
Paragraph
18
becomes
Paragraph
19
Current
Paragraph
19
- Current
Paragraph
19
becomes
Paragraph
20
Current
Pamaraph
20
- Current
Paragraph
20
becomes
Paragraph
21
IN CITY COUNCIL 96-415
October. 16,;1996-
Passed O R D E R
Title,Authorizing City Nang to
ITY CLBRR ExecutetAmufthiment to Development
WFAg t w1tM1 braces.B ildin� Ag ociates
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