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HomeMy WebLinkAbout1995-06-12 95-271 RESOLVEDate Tune 12 1995 Item No. 95-271 Item/Subject: Designating Main Street Municipal Development District and Tax Increment Financing District and Adopting a Development Program for the District Responsible Department: Community & Economic Development Commentary: PRIOR TO MUNCIL ACTION, A PUBLIC HEARING IS SCHEDULED. The attached Council Resolve designates the Main Street Municipal Development District and Tax Increment Financing District and adopts a Development Program for the District. The Main Street Development District would consist of approximately 6 acres of land n Main Street and includes the Gasworks Parking Lot which is owned by the City of Bangor. The District is the site of the proposed Shaw's Supermarket. The Development Program projects that the cost of land assembly, environmental remediation, site and building construction and installation of equipment and furnishings will exceed $9 million. The Program proposes that the Tax Increment Financing share of the project be $975,000. Department Head Manager's Comments: J. .. 6 0�Q� City Manager Associated Information: — Finance Legal Approval: iifm +^, / City Solicitor Introduced For % Passage First Reading Page 1 of Referral 95-271 (AS AM W CITY OF BANGOR (TITLU PWIVt----- __ Des,ignap ng. Main Street Municipal..Develpp,Mpnt_ District and Tax increment Financing District and Adopting a Development Program for the District By W Qty Ca aU 0 de City ofBmm . RESOLVED, WHEREAS the City of Bangor is authorizedpursuant to Chapter 209 of Title 30-A of the Maine Revised Statutes, as ended, to designate 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, by Council Order 261AE passed June 29, 1999 the City of Bangor established the Third -Main Neighborhood Conservation Project area; and WHEREAS, the former Bangor Gas Works site was purchased by the City of Bangor in 1978 pursuant to. the 1999 Plan for the purpose of rehabilitation and redevelopment; and WHEREAS, by Council Order 95-210 passed May 8, 1995 the City of Bangor adopted an update of the 1977 Plan for the Third -Main Neighborhood Conservation area in April of 1995; and WHEREAS, the updated Flan identifies the continuing blighted conditions within the Third -Main neighborhood in general and in the area adjacent to the former Gas Works site specifically; and WHEREAS, the updated Plan authorizes acquisition of additional properties adjacent to the former Gas Works site for the purpose of blight clearance, rehabilitation and commercial redevelopment; and WHEREAS, the downtown area and west side neighborhood were left without a vital neighborhoodservice when the area's only grocery store was closed in 1993; and 95-271 (AMENDED) WHEREAS, the Senior Company and Shaw s Supermarket plan to undertake a major redevelopment project and to convert the site into a full service supermarket; 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, the Eoulos/Shaw's 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 provide a neighborhood grocery store for the west side neighborhood and downtown area, and WHEREAS, there is a , eed to encourage redevelopment of the Main Street throughthe establishment of Municipal Development District and Tax Increment Financing District 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. Section 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 Main Street Municipal Development District and Tax Increment Financing District, and to 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 approving 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: 95-2]1 (RID; M) (a) At least 25}, 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. Section 5253; and (b) The total area of the District does not exceed 2k 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 plus the aggregate value of equalized taxable property of all existing tax increment financing districts an of April i, 1995 does not exceed 5k of the total value of equalized taxable property within the City as of April 1, 1995; and (d) The aggregate value of indebtedness financed by the proceeds from tax increment financing districts within Penobscot County, including theproposed 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, and the provision of essential neighborhood services; and (g) The designation of the District and pursuit of the Development Program will he in the public interest. Section 2 Pursuant to Chapter 207 of Title 30-A of the Maine Revised Statutes, as amended, the City hereby designates the Main Street Municipal Development District and Tax Increment Financing District designated and described as more particularly net forth in the "CITY OF BANGOR, MAINE, MAIN STREET 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 95-2)1 (AMENDED) incorporated by reference into this Order as the Development Program for the District. c 3 nation Pursuant to the provisions of 30-A M.R.S.A. Section 5254, the City hereby adopts the statement of the percentage of Assessed Value to be retained by the City as set forth in Tables 3-A and 3-B of the Development Program for purposes of said Section 5254. If at any time during the term of the District the captured sed value increases by r of revaluation, the maximum asses ncrecap asses amount of o retained captured assessed value shall increase i proportion to the increase in assessed value attributable to such valuation, it beinggthe intent of the City that the retained tax se increment from the captured assessed value shall remain at a level at least equivalent to the dollar values specified ;n the Development Program over the life of the District. Section 4. The City Manager is hereby authorized, and directed to submit the proposed designation of the District and proposed Development Program for the District and the proposed Development Program for the District to the State of Maine Department of Economic and Community Development (^DECO^) for review and approval pursuant to the requirements of 30-A M.R.S.A. Section 5253 (1) (F) and 5254-A (1-A) (D). Section s The foregoing designation of the District and the adoption ofthe 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 s The City Manager is hereby authorized, from time to time, to make such revisions to the Development Program for the District and to take such other actions as the City Manager deems reasonablynecessary or convenient to facilitate review and approval of the District by the Department of Economic and Community Development, or for any other reason, so long as such revisions and actions are consistent with this Resolve and withthe basic structure and intent of this Development Program as stated herein. "signed to Councilor Tyler June 12, 1995 95-271 _ CITY OF BANGOR (TIRE.) Ywoolue, Designating Min Streett Municipal Development _...'-- ............_.... .. District and Tax Increment Financing District .and Adopting a .Development P for the District By as Cay CauuY of t/u City ofBaygeno BIi.SOLVBD. 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 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, by Council Order 261AE passed June 27, 1977 the City of Bangor established the Third -Main Neighborhood Conservation Project area; and WHEREAS, the former Bangor Gas Works site was purchased by the City of Bangor in 1978 pursuant to the 1977 Plan for the purpose of rehabilitation and redevelopment; and WHEREAS, by Council Order 95-210 passed May 6, 1995 the City of Bangor adopted an update of the 1977 Plan for the Third -Main Neighborhood Conservation area in April of 1995; and WHEREAS, the updated Plan identifies the continuing blighted conditions within the Third -Main neighborhood in general and in the area adjacent to the former Gas Works site specifically; and WHEREAS, the updated Plan authorizes acquisition of additional properties adjacent to the former Gas works site for the Purpose of blight clearance, rehabilitation and commercial redevelopment; and WHEREAS, the downtown area and est side neighborhood were left without a vital neighborhood service when the are only grocery store was closed in 1993; and WHEREAS, the 9oulos Company and Shaw's Supermarket plan to undertake a major redevelopment project and to convert the site into a full service supermarket; and 95-271 2/ 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, the Boulcs/Shaw's 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 provide a neighborhood grocery store for the west side neighborhood and downtown area, and WHEREAS, there is a -need to encourage redevelopment of the Main Street area through the establishment of a Municipal Development District and Tax Increment Financing District accordance with the provisions of Chapter 209 of Title 30-A; and, WHEREAS, the City has contemporaneously herewith held a public hearing on the question of establishing the District r accordance with the requirements of 3D -A M.R.S.A. Section 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 Main Street Municipal Development District and Tax Increment Financing District, and to 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 approving 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 258, 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. Section 5253; and (b) The total area of the District does not exceed 2% of the total acreage of the City and the total a of all development districts within the city (including the District) does not exceed 5% of the total acreage of the City; and 95-271 3/ (c) The aggregate value of equalized taxable property of the District plus the aggregate value of equalized taxable property of all existing tax increment financing districts as of April 1, 1995 does not exceed Sk of the total value of equalized taxable property within the City as of April 1, 1995; and (d) The aggregate value of indebtedness financed by the proceeds from tax increment financing districts within Penobscot County, including theproposed District, does not exceed $50 million; and (e) The City expects that the Development Program will be completed within five years of the designation of the District by the Department of Economic and Community Development; and (f) The designation of the District and pursuit of the Development Program will generate substantial economic benefits for the City, State and its residents, including employment opportunities, broadened and improved tax base, elimination of blighting conditions, and the provision of essential neighborhood services, and (g) The designation of the District and pursuit of the Development Program will be in the public interest. Section 2. Pursuant to Chapter 207 of Title 30-A of the Maine Revised Statutes, as amended, the City hereby designates the Main Street Municipal Development District and Tax Increment Financing District designated and described as me particularly set forth in the ^CITY OF BANGOR, MAINE, MAIN STREET MONICIPAL DEVELOPMENT DISTRICT AND TAX INCREMENT FINANCING DISTRICT DEVELOPMENT PROGRAM" presented to the City Council in the form attached hereto, and such Development Program is hereby incorporated by reference into this Order as the Development Program for the District. Section 3. Pursuant t0 the provisions of 30-A M.R.S.A. Section 5254, the City hereby adopts the following statement of the percentage of Assessed value to be retained by the City for purposes of said Section 5254; Fiscal Year Percentage Retained Percentage Retained Ended Tune 30 Real Estate Personal Property 1996 ok ok 1997 look 100$ 1998 loot 1008 1998 look loot 2000 loot 100% 2001 944 94t 2002 88k 88k 95-271 4/ 2003 82k 82% 2004 77& 77% 2005 728 723 2006 67k 67% 2007 62k 62% 2008 583 58% 2009 543 54% 2010 483 483 2011 43k 43k 2012 38k 38k 2013 34k 34& 2014 30k 303 2015 263 26k 2016 23k 233 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 inent from the captured assessed value shall remain at a level ate least equivalent t0 the dollar values specified in the Development Program over the life of the District. Section 4. The City Manager is hereby authorized, and directed to submit the proposed designation of the District and proposed Development Program for 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. Section 5253 (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 is hereby authorized, from time to time, to make such revisions to the Development Program for the District and to take suchother actions as the City Manager deems reasonably necessary o convenient to facilitate review and approval of the District bthe Department of Economic and Community Development, or for any other reason, so long as such revisions and actions are consistent with this Resolve and with the basicstructure and intent of this Development Program as stated herein. IN CITY COUNCIL 95-271 June 12, 1995 Ng$0L V Public Hearing Opened: Ren Gill, Director of Commodity Designating Main Street Municipal 6 Economic Development, Development District and Tax Increment Reviewed this Resolve for the [ng District a erupting a Council E Public. lopmentProgram Development for the District Stephen Cole from S.W. Cole Engineering, Which conducted Environmental Site Assessment for iProject, ave an " Oxer -view or the Assessment. John Rohman, Representative from the Greater Bangor number of Commerce, express ad the Support upped n n Deve of the Chamber for the Hain Street Charles Project. Chailey Curran,Pine SCCesC essldenq notQuestioned in a Small Business could not remain fa this area. Frank fve resident, spoke in favor of this development and urge d the Councils consideration. Publi< Hearing Closed: Pee a Amen d by ubstituticn ClY CLERK BANGOR DAILY NEWS BANGOR NBLISMING COMPANY 491 MAIN STREET PD BOX 1329 BANGOR, Mass OBem IUD TELEPHONE m0.990-BA0 1 Junl 1995 AffidavitofpubBcation Mus is to l the advenisiug of.. City of Bangor Main Street Municipal Development District was published in the BANGOR DAD.YNBWS on June 2, 1995 Sign ' QaseifiWTBlephovegutxn9aor Linda C Quimby Subscdbed end Swwv b Before . mew w.e.4 r49s' M'COMMISSION E Ip BovemM912. 1M9 Notal public PamelaL lkxedie