HomeMy WebLinkAbout2019-08-26 19-332 Order
08/26/201919-332
08/26/2019
19-332
Community & Economic Development
Order
042-160
Title, Order
Authorizing Credit Enhancement Agreement with 25-27 Broad Street, LLC for property located at 25 Broad
Street and 8 Merchants Plaza
This order would authorize an extension to a Credit Enhancement agreement with Broad Street, LLC.
In 2014, 25-27 Broad Street, LLC rehabilitated two buildings in Downtown Bangor - 25-27 Broad
Street (also known as the Circular Block, map-lot 042-160) and 8 Merchants Plaza (map-lot
042-159). The developer completely rehabilitated these buildings and created a mixed-use
development with commercial spaces on the first floor and apartments on the upper floors. Given
the complex nature of this historic rehabilitation project, the developer invested significantly more
than originally projected, creating an additional financing gap. This order authorizes an amendment
to the original agreement with 25-27 Broad Street, LLC whereby the City would rebate 75% of the
new tax increment revenues paid on 25-27 Broad Street for a period of two more years.
This item was reviewed and approved by the Business & Economic Development Committee at its
meeting on August 6, 2019.
Business & Economic Development Committee
08/20/2019
Recommend for passage
Consent
08/26/201919-332
CITY OF BANGOR ORDER
08/26/2019
19-332
Schaefer
Authorizing Credit Enhancement Agreement with 25-27 Broad Street, LLC for property located at 25 Broad
Street and 8 Merchants Plaza
WHEREAS, the City of Bangor supports new investment and the creation of additional commercial and
residential space in its downtown area; and
WHEREAS, 25-27 Broad Street, LLC acquired the building at 25-27 Broad Street and 8 Merchants Plaza and
improved the property for fully taxable commercial and residential use; and
WHEREAS, the investment required for rehabilitation of the property is not economically feasible without
assistance; and
WHEREAS, the investment required exceeded initial projections, therefore creating a more significant gap in
the project funding; and
WHEREAS, the assistance necessary can be provided through extending a credit enhancement agreement
with 25-27 Broad Street, LLC to provide for the return of a portion of new property taxes paid the City on the
property by 25-27 Broad Street, LLC:
Be it Ordered by the City Council of the City of Bangor that,
The City Manager is hereby authorized to enter into an amendment to the agreement with 25-27 Broad
Street, LLC, under such terms and conditions considered appropriate by the Director of Community &
Economic Development and City Solicitor or Assistant City Solicitor; and in a final form approved by the City
Solicitor or Assistant City Solicitor; wherein the City of Bangor agrees to return to 25-27 Broad Street, LLC
75% of the new tax increment revenues paid on 25-27 Broad Street and 8 Merchants Plaza by the 25-27
Broad Street, LLC to the City, for a period of two (2) additional years beyond the initial five (5) years
previously approved.
IN CITY COUNCIL
AUGUST 26, 2019
CO 19-332
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CIT CLE