HomeMy WebLinkAbout1995-02-13 95-108 ORDERCOUNCIL ACTION
Date: Feb 13 1995
Item No. 95-108
Item/Subject: DESIGNATING WATERWORKS MUNICIPAL DEVELOPMENT DISTRICT
AND TAX INCREMENT FINANCING DISTRICT AND ADOPTING A
DEVEIIJPMENT PROGRAM FOR THE DISTRICT
Responsible Department: Community and Economic Development
This Council Order will designate the Waterworks site as a Municipal
Development District and Tax Increment Financing (TIF) District and adopt a
Development Program for the District. This is the next step in the process
of redeveloping the site for a Muddy Rudder Restaurant.
The proposed Development Program for the District includes the financing
of $600,000, (1) through Tax Increment Revenues generated by the project and
(2) if necessary, additional development assessments levied on the Waterworks
site.
The TIP project, as proposed, is consistent with the plan outlined when
the option agreement was approved by the Council.
Staff will present information related to the TIF plan during the public
hearing.
DeTartment Read
Manager's Commentev. V&
�. b�iC f}PQw.I\WC�'MUS'� b2 he�GF %2 �Y�
City Manager
Associated Information:
Budget Approval:
Finance Director
Legal Approval: -.
p7n;4 0m,
City Solici
cad For
Passage
First Reading- Page_of
Referral
ca -v -ti£
C.O. 95-108
AS AMENDED
A meed to CouncJor
CITY OF BANGOR
(TITLE,) Mrber,____- Deaig atrng_ w c 1. rka Mnn .pal Development
District and Tax Increment Financing District and
Adopting a"Development Program for the District
BY the City Counot of Ge Oft of Ba --
ORDERED,
THAT WHEREAS, the City of Bangor is authorized pursuant to
Chapter 207 of Title 30-A of the Maine Revised Statutes, as
ended, to designate specified areae within the City as a
Municipal Development District and Tax Increment Financing District
and to adopt a Development Program for such District; and
WHEREAS, the Waterworks site, owned by the City of
Bangor, has been largely vacant for the last 25 years; and
WHEREAS, the Waterworks site is a blighted area, and is
in need of major rehabilitation, and redevelopment work; and
WHEREAS, the City has attempted to solicit development
proposals over the last twenty years but no project has been
successfully implemented; and
WHEREAS, the condition at the Waterworkssite creates a
financial and legal liability for the City of Bangor; and
WHEREAS, the Chafe Restaurant Corporation plans to
undertake a major redevelopment project and convert the site into
a quality restaurant; and
WHEREAS, there is a
need to provide n and continuing
employment opportunities for the citizens ofBangor and the
surrounding region; to improve and broaden the tax base of the City
ofBangor; and to improve the general economy of the City of
Bangor, the surrounding region and the State of Maine; and
WHEREAS, this project will provide employment
opportunities to the citizens of Bangor and the surrounding region;
improve and broaden the tax base in the City of Bangor and improve
the economy of the City of Bangor and the State of Maine; and
WHEREAS, there is a need to encourage redevelopment of
the Waterworks site through the establishment of a Municipal
Development District and Tax Increment Financing District
accordance with the provisions of Chapter 207 of Title 30-A; and
n
WHEREAS, the City has contemporaneously herewith held a
public hearing on the question of establishing 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 designate the Waterworks
Municipal Development District and Tax Increment Financing
District, and adopt a Development Program for such District; and
WHEREAS, it is expected that approval will be sought and
obtained from the Maine Department of Economic and Community
Development, approving the designation of the District and the
adoption of the Development Program for the District;
NOW, THEREFORE, BE IT HEREBY ORDERED BY THE BANGOR CITY
COUNCIL THAT;
Section 1. The City hereby finds and determines that
(a) At least 259, by area, of the real property within
the District, as hereinafter designated, is blighted and in need of
rehabilitation, redevelopment and conservation work as defined in
30-A M.R.S.A. 55253; and
(b) The total area of the District does not exceed 2t of
the total acreage of the City and the total area of all development
districts within the City (including the District) does not exceed
5k of the total acreage of the city; and
(c) The aggregate value of equalized taxable property of
the District as of April 1, 1994 does not exceed 5& of the total
value of equalized taxable property within the City as of April 1,
1994; and
(d) The aggregate value of indebtedness financed 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 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 designation of the District and pursuit of the
Development Program will generate substantial economic benefits for
the City, State and its residents,including employment
opportunities, broadened and improved tax base, elimination of
blighting conditions, preservation of a historic site, and
therefore constitutes a good and valid public purpose.
Section 2. Pursuant to Chapter 209 of Title 30-A of the
Maine Revised Statutes, as amended, the City hereby designates the
Waterworks Municipal Development District and Tax Increment
Financing District designated and described as more particularly
set forth in the "CITY OF BANGOR, MAINE, WATERWORKS MUNICIPAL
DEVELOPMENT DISTRICT AND TAX INCREMENT FINANCING DISTRICT
DEVELOPMENT PROGRAM" presented to the City Council in the form
attached hereto, and such Development Program is hereby
incorporated by reference into this Order as the Development
Program for the District.
Section 3. Pursuant to the provisions of 30-A M.R.S.A.
55254, the City hereby adapts the following statement of the
percentage of Assessed Value to be retained by the City for
purposes of said Section 5254:
Fiscal Year
Percentage Retained
Percentage Retained
Ended June 30
Real Estate
Personal Property
1997
loot
look
1998
look
look
1999
look
loot
2000
look
loot
2001
loot
look
2002
loot
look
2003
loot
look
2004
look
look
2005
loot
look
2006
look
look
2009
look
loot
2008
look
100%
2009
100%
look
2010
loot
look
2011
look
look
2012
loot
loot
2013
100%
loot
2014
loot
look
2015
loot
100%
2016
100%
100%
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 valueshall 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
Development Program over the life of the District.
Section a. The City Manager be, and hereby
authorized, empowered and directed to submit the proposed
designation of the District and the proposed Development Program
for the District to the State of Maine Department of Economic and
Community Development ("DECD^) for review and approval pursuant to
the requirements of 30-A M.R.E.A. 995253 (1)(F) and 5254-A
(1-A) (D) .
Section 5. The foregoing designation of the District and
the adoption of the Development Program for the District shall
automatically become final and shall take full force and effect
upon receipt by the City of approval of the designation of the
District and adoption of the Development Program by the Department
of Economic and Community Development, without requirement of
further 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 to the Development Program for the District a
the City Manager deems reasonably necessary or convenient i order
to facilitate the 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
n
not inconsistent with
these solutions the basic structure andintent of the
Development Program
DATED: February 13, 1995
95-108
Areipmdm Coundw Tyler February 13, 1995
CITY OF BANGOR
(TITLE.) f®rba ,., Designating Waterworks Municipal Development
District and Tax Increment Financing District and
Adopting a Development Program for the District
BY she City Ceundl of 414 C ty ofBenyar:
ORDERED,
TWT WHEREAS, the City of Bangor is authorized pursuant to
Chapter 209 of Title 30-A of the Maine Revised Statutes, as
ended, to deaignate specified areas within the City as a
Municipal Development District and Tax Increment Financing District
and to adopt a Development Program for such District; and
WHEREAS, the Waterworks site, owned by the City of
Bangor, has been largely vacant for the last 25 Festal and
WHEREAS, the Waterworks site is ablighted asand is
in need of major rehabilitation, and redevelopment work; nand
WHEREAS, the City has attempted to solicit development
proposals over the last twenty years but no project has been
successfully implemented; and
WHEREAS, the condition of the Waterworks site creates a
financial and legal liability for the City of Bangor; and
-WHEREAS, the Chafe Restaurant Corporation plans to
undertake a major redevelopment project and convert the site into
a quality restaurant; and
WHEREAS, there is a need to provide new and continuing
employment opportunities for the citizens of Bangor 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 State of Maine; and
WHEREAS, this project will provide employment
opportunities to the citizens of Bangor and the surrounding region;
improve and broaden the tax base in the City of Bangor and improve
the economy of the City of Bangor and the State of Maine; and
95-koa
WHEREAS, there is eed to encourage redevelopment of
the waterworks site through the establishment of a Municipal
Development District and Tax Increment Financing District
n
accordance with the provisions of Chapter 207 of Title 30-A; and
WHEREAS, the City has contemporaneously herewith held a
public hearing on the question of establishing the District i
accordance with the requirements of 30-A M.R.S.A. 55253, upon at
least ten (10) days prior notice published in a newspaper of
generalcirculationwithin the City; and
WHEREAS, the City desires to designate the Waterworks
Municipal Development District and Tax Increment Financing
District, and adopt a Development Program for such District; and
WHEREAS, it is expected that approval will be sought and
obtained from the Maine Department of Economic and Community
Development, approving the designation of the District and the
adoption of the Development Program for the District;
NOW, THEREFORE, BE IT HEREBY ORDERED BY THE BANGOR CITY
COUNCIL THAT:
Section 1. 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 eed of
rehabilitation, redevelopment and conservation work as defined in
30-A M.R.S.A. 55253; and
(b) The total area of the District does not 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 as of April 1, 1994 does not exceed 5& of the total
value of equalized taxable property within the City as of April 1,
1994; and
(d) The aggregate value of indebtedness financed by the
proceeds from tax increment financing districts within Penobscot
County, including the proposed District, does not exceed $50
million; and
(e) The City expecte that the Development Program will
be completed within five years of the designation of the District
by the Department of Economic and Community Development; and
95-108
(f) The designation of the District and pursuit of the
Development Program will generate substantial e c benefits for
r
the City, State and its residents, ncluding employment
opportunities, broadened and improved tax base, elimination of
blighting conditions, preservation of a historic site, and
therefore constitutes a good and valid public purpose.
Section 2. Pursuant to Chapter 207 of Title 30-A of the
Maine Revised Statutes, as amended, the City hereby designates the
Waterworks Municipal Development District and Tax Increment
Financing District designated and described as more particularly
set forth in the "CITY OF BANGOR, MAINE, WATERWORKS MUNICIPAL
DEVELOPMENT DISTRICT AND TAX INCREMENT FINANCING DISTRICT
DEVELOPMENT PROGRAM" presented to the City Council in the form
attached hereto, and such Development Program is hereby
incorporated by reference into this Order as the Development
Program for the District.
Section 3 Pursuant to the provisions of 30-A M.R.S.A.
55254, the City hereby adopts the following statement of the
percentage of Assessed Value to be retained by the City for
purposes of said Section 5254:
Fiscal Year
Percentage Retained
Percentage Retained
Ended June 30
Real Estate
Personal Property
1994
loot
100%
1995
100%
1004
1996
3004
look
1997
loot
loot
1996
look
100%
1999
1004
loot
2000
100%
loot
2001
loot
look
2002
look
loot
2003
loot
1004
2004
100%
loot
2005
loot
look
2006
100%
1004
2007
100%
loot
2008
loot
look
2009
loot
1004
2010
look
100%
2011
1004
look
2012
100%
100%
2013
loot
loot
2014
loot
loot
If at any time during the term of the District the
captured assessed value increases by reason of re valuation, the
maximum amount of retained captured assessed valueshall increase
in proportion to the increase in assessed value attributable to
95-108
such revaluation, it being the intent of the City that the retained
tax inent from the captured a l
sed value shall r at a
level ate least equivalent to the dollar values specified in the
Development Program over the life of the District.
Section 4. The City Manager be, and hereby
authorized, empowered and directed to submit the proposed
designation of the District and the proposed Development Program
for the District to the State of Maine Department of Economic and
Community Development ('DECD") for review and approval pursuant to
the requirements of 30-A M.R.S.A. 555253 (1)(P) and 5254-A
(1-A) (D) .
Section S. The foregoing designation of the District and
the adoption of the Development Program for the District shall
automatically become final and shall take full force and effect
upon receipt by the City of approval of the designation of the
District and adoption of the Development Program by the Department
of Economic and Community Development, without requirement of
further 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 to the Development Program for the District a
the City Manager deems reasonably necessary or convenient in order
to facilitate the 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
n not inconsistent with
these resolutions the basic structure andintent of the
Development Program.r
DATED: February 13, 1995
95-108
IN CITY C13, IL
1995 O R D E R
Passed A lAm Amended
Passed As Amended by Abstai`p[ion
count 6 yes, 1 ng a Abstai§aed Ditle,strict
Designating In Watrement rksFin Municncing palDistrict
Deverict agmen[
councilors voting Yes: District and Tex Increment ramfor t e District. and
Soucy,
Blanchette, Cohen, Tyler.
Frankel, r ........ a Development Program for the Dietxicc.
Councilor
Sullivan 6 o: Pop .;......................................
Cou lox Abst No: Popper':`
Cau ox 'A/beca nin aldedei .......... ..........n......... .
CITY 'RR (,(,
into
\nn\'n1Iew'v�M`n �'rn'^
......V .. �.: Y-(. ..n
U Councilmen
CITY OF BANGOR
PUBLIC NOTICE
Notice is hereby given that the City of Bangor will hold a public
hearing February 13, 1995 at 7:30 P.M. in the 3rd floor City
Council Chambers, Bangor City Hall, 73 Harlow Street, for
purposes of receiving public comments on the designation of its
proposed waterworks Municipal Development District and Tax
Increment Financing District, and the adoption of a development
program for the said District, pursuant to the provisions of
Chapter 207 of Title 30-A of the Maine Revised Statutes, as
amended.
The proposed municipal development district and tax increment
financing district consist of the former Waterworks Complex and
associated land area located at 619-639 State Street.
A copy of the proposed development program for the district will
be on file with the City Clerk after 2:00 P.M. on February 10,
1995 and may be reviewed at the office of the City Clerk during
normal business hours.
All interested persons are invited to attend the public hearing
and will be given an opportunity to be heard at that time.
February 3, 1995
x Ma