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HomeMy WebLinkAbout2020-02-10 20-076 Order 02/10/202020-076 02/10/2020 20-076 Community & Economic Development Order 043-040 Title, Order Authorizing the City Manager to Execute an Option and Development Agreement and Credit Enhancement Agreement with Timka, Inc. dba Geaghan’s Pub This Order will authorize the execution of an land development and option agreement as well as a credit enhancement agreement with Timka, Inc. for the purchase and expansion of brewery operations on a portion of City-owned land on Dutton Street (Map-Lot 043-040). Timka, Inc. operating as Geaghan’s Pub, requires additional land to expand operations which include a new brewery building, additional parking, and outdoor space to support this business expansion. The option and development agreement will detail the terms and conditions under which the city will sell approximately 0.78 acres of the parcel to Timka, Inc. for $50,000 for their development. Timka, Inc. agrees to invest a minimum of $2.0 million within the next 2 years. This order also authorizes the execution of a credit enhancement agreement which will provide a 50% reimbursement of taxes paid on the increased taxable value of the improvements to their business location for a period of 10 years. Prior to transfer of the lot, Timka, Inc. will be required to obtain all necessary plan approvals from the city, provide evidence of construction financing, secure all necessary permits, agree to a construction progress schedule, and all other such terms and conditions as reasonable and appropriate. This item addresses the Council goal to "improve economic vitality of the city and promote job growth, economic development, cultural opportunities, and housing opportunities to support job growth and expansion and growth of tax base". Business & Economic Development Committee 02/04/2020 Recommend for passage 50 New Business 02/10/202020-076 CITY OF BANGOR ORDER 02/10/2020 20-076 Fournier Authorizing the City Manager to Execute an Option and Development Agreement and Credit Enhancement Agreement with Timka, Inc. dba Geaghan’s Pub WHEREAS, the City of Bangor owns a parcel of land on Dutton Street (Map-Lot 043-040) adjacent to the existing Geaghan's Pub, which is owned and operated by Timka, Inc.; and WHEREAS, Timka, Inc. wishes to purchase approximately 0.78 acres of this land from the City of Bangor to construct a new building for their brewery business, with additional parking and outdoor space to support this business expansion; and WHEREAS, Timka, Inc. intends to invest approximately $2.0 million dollars in this business expansion within 2 years; and WHEREAS, it is in the best interests of the City of Bangor to support business expansion and the utilization of available development parcels. Be it Ordered by the City Council of the City of Bangor that, The City Manager is authorized on behalf of the City of Bangor to execute an option and development agreement and a credit enhancement agreement with Timka, Inc. These agreements shall include the terms and conditions under which the city will sell approximately 0.78 acres to Timka, Inc. for $50,000 for their business expansion project, including that Timka, Inc. agrees to invest at least $2.0 million in the project within 2 years, obtain all necessary plan approvals from City staff and Planning Board, and all other such terms and conditions as reasonable and appropriate. The credit enhancement agreement will provide for a 50% reimbursement of taxes paid by Timka, Inc. on the increased taxable value of the improvements to their business location for a period of 10 years. IN CITY COUNCIL FEBRUARY 10,2020 CO 20-076 MOTION MADE AND SECONDED FOR PASSAGE PASSED CITV tLERK/