HomeMy WebLinkAbout2021-02-22 21-103 Order
02/22/202121-103
02/22/2021
21-103
Community & Economic Development
Order
042-188
Title, Order
Authorizing Execution of a Development Agreement and Credit Enhancement Agreement with Arey's Cove
Real Estate, LLC, for Property at 2 Hammond Street
This order will authorize the execution of a Development Agreement and Credit Enhancement
Agreement with Arey's Cove Real Estate, LLC for property located at 2 Hammond Street. 2
Hammond Street is being renovated for a mixed use development consisting of commercial space on
the first floor and 8 residential units on the upper floors. 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 50% of the increase
in real estate taxes paid on the increase in value created by the improvements to the property for a
period of two (2) 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 $1.375 million of private funding and
equity in the development project; the City will return to the developer 50% of the real estate taxes
paid on the increased valuation of property located at 2 Hammond Street as a result of the
investment in the property for a period of two (2) years; the developer will substantially complete
the project by June 30, 2022; 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.
Historic Preservation Commission
02/16/2021
Recommend for passage
50
New Business
02/22/202121-103
CITY OF BANGOR ORDER
02/22/2021
21-103
Dubay
Authorizing Execution of a Development Agreement and Credit Enhancement Agreement with Arey's Cove
Real Estate, LLC, for Property at 2 Hammond Street
WHEREAS, the City of Bangor supports new investment and the creation of additional commercial and
residential space in its downtown area; and
WHEREAS, 2 Hammond Street has been acquired by Arey's Cove Real Estate, LLC with plans to renovate the
property retaining the commercial space on the street level and creating residential units on the upper levels;
and
WHEREAS, 2 Hammond Street is underutilized, with the upper floors 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
Arey's Cove Real Estate, LLC, to provide the return of 50% of real estate taxes paid on the increase in value
created by the improvements to the property for a period of two (2) 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 Arey's Cove Real Estate, LLC, which will
include the following terms: a return to Arey's Cove Real Estate, LLC 50% of the real estate taxes paid on the
increase in the value of property located at 2 Hammond Street as a result of the development of the property
for a period of two (2) years; $1.375 million of private funding and equity in the development project; project
to be completed by June 30, 2022; 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
FEBRUARY 22,2021
CO 21-103
Motion made and seconded for Passage
Vote: 9—0
Councilors Voting Yes: Davitt,Dubay,Fournier,Hawes,Nichols, Okafor, Schaefer, Sprague,Tremble
Councilors Voting No: None
Passed
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CITY LERK