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/