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HomeMy WebLinkAbout2006-02-22 Business and Economic Development Committee Minutes ' ' BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE February 22, 2006 rMinutes � Councilor Attendance: Greene, Stone, D'Errico, Allen, Gratwick, Staff Attendance: Barrett, McKay , 1. Recommendation to City Council on an Application of a Downtown Bangor Municipai Development District and Tax Increment Financing District L McKay said that staff is proposing the adoption of and application for designation of a downtown tax increment financing district (TIF) that will encompass what is presently called the Downtown Special Assessment District. The proposal is to ' expand the district to include the commercial properties on Main Street from I- 395 down to Cedar Street. The total area is approximately 300 acres. Because it is a downtown development district, it is exempt from the State Statute which � places caps on the amount of acreage in a municipality that can be in a TIF District as well as the amount of monies that can be invested in a TIF District. � Staff would like Council's approval at their February 27 meeting so that application can be made to the State to receive approval prior to April 1�. As part of applying for the TIF District, the City needs to adopt a Downtown Bangor � Development Program. McKay presented a document for the Committee's review and asked for comments to be submitted to the City Manager or to McKay. The purpose of the 20-year TIF District is to capture the new tax � revenue generated within the District. The revenues would be designated for use within the District for public infrastructure and improvements including downtown streets, sidewalks, street lighting, parks, Columbia/Hammond Street � parking deck, and to add a deck to Abbott Square. Also a portion of the revenues will be used to help finance a new arena that will replace the Bangor Auditorium and Civic Center. Revenues from Hollywood Slots will also be used , for the building replacement. This will not represent an extra cost to owners within the District. It is not a special assessment. McKay indicated the new � assessed values generated within the District will be exempt from the State formulas used in computing the State Aid to Education, State revenue sharing and the county tax. Responding to Farrington, McKay said that historically the , City has been providing more services to the downtown area than it receives in taxes from the downtown area. The TIF District will make the downtown area self-sufficient. The overall tax value allows a community, as expenses increase, ' to maintain a stable tax rate. Responding to Gratwick, McKay said the TIF District is a projection of the infrastructure improvements the city wants to make and of the expected revenues from the District. Those projects will not be ' undertaken until the revenues are in place. This will require additional action of the Council to appropriate the funds for the improvements. Barrett said it is not � � ' an unchangeable 20 year plan and the program can be modified by Council as it ' moves forward. Gratwick about HUD dollars available for downtown parking and asked if the plan would interdigitate with the hotels and conference center. � McKay said the remaining HUD funds of $5.7M is a federal guaranteed loan to the Ciry. It was previously coupled with a $2 M grant, and that grant period has expired. The Ciry would have to reapply for the grant funds. Barrett said the , conference space would be included in the multi-purpose arena as opposed to a standalone on the waterfront. Allen talked about conference space within the hotel. Barrett indicated that at one point it was discussed. During a recent ' discussion by this committee, it seemed to be the committee's decision that the idea did not make sense for financial and operational purposes. Conference and meeting space was determined to be part of the arena. Barrett assumes any � waterfront hotel would have meeting space. Responding to Allen, Barrett said the proposed district does not affect any of the zoning in the area. McKay said ' there is a potentiai for using the TIF revenues for operational expenses. Allen referred to the special assessment district and those revenues are used to assist downtown activities. The proposed TIF would not affect the special assessment � district. Barrett talked about the policy relating to racino revenues. Allen asked why the two districts are separate. McKay said the special assessment district is in effect through June. Each year the Bangor Center Corporation prepares a new ' development program with recommendations to the Council for its approval and adoption. McKay explained to D'Errico the difference between old and new taxes particularly with property on the north side of Main Street. Stone asked about � the tax increment revenue chart and the State's personal properry tax. Barrett said that it does not repeal personal property tax on gaming. In response to Greene, Cyr said the City would not borrow money through bonding until it was , certain of revenues. The arena and new parking structure would be considered for bonding. Cyr stressed that any bonding would require separate Council � action and approval. Responding to Allen, McKay said that similar smaller towns have implemented Districts but this will be the first to encompass a downtown area. As long as this is approved as a downtown district, Barrett said it will have , no effect in terms of acreage and other districts within the City. In responding to Farrington, McKay said the State Commissioner of Economic and Community Development needs to approve a downtown TIF district to avoid the caps. Once � the Council approval is in place, it becomes a TIF district. The Finance Director will establish a fund into which all new tax revenues would go. There will be two sub-funds: a sinking fund to pay for any debt the Ciry incurs in carrying out the , projects and a project cost account to pay for costs as incurred. Allen asked how the TIF district will affect neighborhoods off the Main Street area. Barrett said the plan follows the actual Commercial Zoning lines. Having the district does not , change the status of residential structures that are on property that is commercial zoned. , � � ' ' A motion was made and seconded to approve staff recommendation to apply for a Downtown Bangor Municipal Development District and Tax Increment � Financing District. Allen asked if a map could be prepared for the upcoming Council meeting which will outline the area of the proposed district. She felt the citizens should be able to view the proposal. McKay indicated that a public � hearing notice with the outlined district had been advertised. Barrett said the information could also be made available on the City's web site. Barrett again stressed that property owners in the district will not see a change in their tax bill. ' 2. Executive Session — Economic Development — Economic Development Proposals — Lawler Proposal — Union Place - 1 M.R.S.A. § 405(6)(C) � No action was taken by the Committee ■ A motion was made and seconded to go into Executive Session for items 3, 4, 5. A 3. Executive Session — Economic Development — Economic Development ' Proposals — Webber Proposal — Summer Street - 1 M.R.S.A. § 405(6)(C) INo action was taken by the Committee 1 4. Executive Session — Economic Development— Economic Development Proposals — Waterfront Hotel Proposals - 1 M.R.S.A. § 405(6)(C) , No action was taken by the Committee � , ' , ' � � �