HomeMy WebLinkAbout2019-03-25 19-126 Order
03/25/201919-126
03/25/2019
19-126
Community & Economic Development
Order
041-196
Title, Order
Authorizing Execution of a Development Agreement and Credit Enhancement Agreement with Cressey, Butler
& Cohen, LLC, for Property at 29 Franklin Street
This order will authorize the execution of a Development Agreement and Credit Enhancement
Agreement with Cressey, Butler & Cohen, LLC for property located at 29 Franklin Street. 29 Franklin
Street is a former non-profit office building that is being renovated for a mixed use development
consisting of commercial space on the first floor and residential units on the upper floors. The
developer proposes to invest $1.625 million of private funding and equity to develop the project leading
to a substantially increased assessed valuation. It is anticipated that the project will be completed by
March 15, 2020. The level of investment required for rehabilitation of the property is not economically
feasible without assistance from the City. This assistance can be provided through an agreement with
the developer to return 75% of the increase in real estate taxes paid on the increase in value created
by the improvements to the property for a period of seven (7) years.
If approved, this order will authorize the City to enter into Agreements with Cressey, Butler & Cohen,
LLC, under the following terms: The developer will invest $1.625 million of private funding and equity
in the development project; the City will return to the developer 75% of the real estate taxes paid on
the increased valuation of property located at 29 Franklin Street as a result of the investment in the
property for a period of seven (7) years; the developer will substantially complete the project by March
15, 2020; the project shall be for commercial use on the street level and residential use on the upper
floors; and such other terms and conditions as appropriate.
Business & Economic Development Committee
03/05/2019
Recommend for passage
40
New Business
03/25/201919-126
CITY OF BANGOR ORDER
03/25/2019
19-126
Davitt
Authorizing Execution of a Development Agreement and Credit Enhancement Agreement with Cressey, Butler
& Cohen, LLC, for Property at 29 Franklin Street
WHEREAS, the City of Bangor supports new investment and the creation of additional commercial and
residential space in its downtown area; and
WHEREAS, 29 Franklin Street has been acquired by Cressey, Butler & Cohen, LLC with plans to renovate the
property for commercial space on the street level and residential use on the upper levels; and
WHEREAS, 29 Franklin Street is currently tax exempt, underutilized, long vacant, and the developer's
renovation of the property will result in substantial increase of the property taxes on the building and land;
and
WHEREAS, the investment required for rehabilitation of the property is not economically feasible without
assistance; and
WHEREAS, the assistance necessary can be provided through entering a credit enhancement agreement with
Cressey, Butler & Cohen, LLC, to provide the return of 75% of real estate taxes paid on the increase in value
created by the improvements to the property for a period of seven (7) years:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT:
The City Manager is hereby authorized to enter into Agreements with Cressey, Butler & Cohen, LLC, which will
include the following terms: a return to Cressey, Butler & Cohen, LLC 75% of the real estate taxes paid on the
increase in the value of property located at 29 Franklin Street as a result of the development of the property
for a period of seven (7) years; $1.625 million of private funding and equity in the development project;
project to be completed by March 31, 2020; the project shall be for commercial and residential uses; and such
other terms and conditions as appropriate and the Agreements shall be in a final form approved by the City
Solicitor or Assistant City Solicitor.
IN CITY COUNCIL
MARCH 25, 2019
CO 19-126
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
>';7:1/JL-/? >44(2e- --)
CIT CLERK