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HomeMy WebLinkAbout2020-07-27 20-238 Order 07/27/202020-238 07/27/2020 20-238 Community & Economic Development Order R33-018 Title, Order Authorizing an Amendment to the Agreement for Payment in Lieu of Taxes with Penobscot Theatre Company for Property Located on Kenduskeag Avenue for a One-Year PILOT Reduction for FY2021 This Order will authorize a one-year reduction to a payment in lieu of taxes (PILOT) from 100% to 30% for Penobscot Theatre Company for FY 2021 in response to their request for assistance as a result of the COVID-19 pandemic. In 2014, the City authorized the sale of the former Fire Station #6 to Penobscot Theatre Company. Along with the sale, the City and the Theatre Company also entered into an Agreement for Payment in Lieu of Taxes. The PILOT amount began at 50%, and increased to 100% over five years. The PILOT amount for FY 2021 is 100%, due September 1, 2020 and March 1, 2021. Currently, the property is valued at $183,200, and the PILOT payment for the full fiscal year would be $4,250.24. This Order authorizes an amendment to the PILOT Agreement allowing for a one-year reduction to the PILOT payment to 30% of the assessed value in FY 2021. pre-council 07/13/2020 Recommend for passage New Business CITY OF BANGOR ORDER 07/27/202020-238 07/27/2020 20-238 Okafor Authorizing an Amendment to the Agreement for Payment in Lieu of Taxes with Penobscot Theatre Company for Property Located on Kenduskeag Avenue for a One-Year PILOT Reduction for FY2021 WHEREAS, in 2014 the City of Bangor sold the former Fire Station #6 to the Penobscot Theatre Company; and WHEREAS, the City of Bangor and Penobscot Theatre Company entered into an agreement at that time for a payment in lieu of taxes to be implemented, increasing to 100% in 2020; and WHEREAS, this year Penobscot Theatre Company has experienced significant financial hardship due to the COVID-19 pandemic and has requested consideration to reduce the payment in lieu of taxes to assist them during this financial hardship; and WHEREAS, it is in the City's best interests to provide supports for the arts and culture organizations that have so many tangible and intangible positive impacts on Bangor and the City's residents and visitors; BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT The City Manager is hereby authorized, on behalf of the City of Bangor, to execute an amendment to the Agreement for Payment in Lieu of Taxes with Penobscot Theatre Company for its property on Kenduskeag Avenue to reduce the PILOT for FY 2021 to 30% in a form approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL JULY 27,2020 CO 20-238 Motion made and seconded for Passage Vote: 9—0 Councilors Voting Yes: Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague, Supica, Tremble,Davitt Councilors Voting No: None Passed CITY CLERK