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HomeMy WebLinkAbout2025-02-10 25-070 OrderCITY COUNCIL ACTION Council Meeting Date: Item No: Responsible Dept: Requested Action: Summary Committee Action Meeting Date: For: Against: City Manager City Solicitor Finance Director Map/Lot: Introduced for: Order Committee: Action: Staff Comments & Approvals Date: Item No: Assigned to Councilor: 25-070 FEBRURARY 10,2025 ECONOMIC DEVELOPMENT PROGRAM CITY OF BANGOR, MAINE An Application for a Municipal Development and Tax Increment Financing District BANGOR DOWNTOWN OMNIBUS MUNICIPAL DEVELOPMENT AND TAX INCREMENT FINANCING DISTRICT DEVELOPMENT PROGRAM AMENDMENT #3 Approved by: BANGOR CITY COUNCIL , 2024 i 25-070 FEBRURARY 10,2025 TABLE OF CONTENTS SECTION PAGE I. Introduction ....................................................................................................................................1 IL Third Amendment to Development Program................................................................................1 III. Municipal Approvals ...................................................................................................................6 A. Notice of Public Hearing...................................................................................................6 B. Minutes of Public Hearing ...............................................................................................6 C. City Council Order............................................................................................................6 D. Statutory Requirements and Thresholds Form..................................................................6 EXHIBITS: A-1 TIF Revenue Actual Capture B Notice of Public Hearing C Public Hearing Minutes D City Council Order E Statutory Requirements and Thresholds Form ii 25-070 FEBRURARY 10,2025 I. Introduction The City of Bangor designated the Downtown Municipal Development and Tax Increment Financing ("TIF") District(the "District") on February 27, 2006 in order to encourage continued development and improvement of the City's Downtown and Waterfront and to capture increased assessed value on real and personal property within the District, and received Maine Department of Economic and Community Development (DECD) approval for the District on March 29, 2006. The District was amended for the first time on March 9, 2009. The first amendment to the District (the "First Amendment") modified the existing approved project costs and added additional projects for parking lot improvements, pedestrian bridge repair and crosswalks, park improvements, racing track barn replacements, and environmental improvements. The First Amendment was approved by DECD on April 21, 2009. The second amendment to the District (the "Second Amendment") extended the term of the District to the allowable thirty (30) years and added additional project costs. The Second Amendment was adopted by the City Council on December 29, 2010 and was approved by DECD on January 4, 201 l. IL Third Amendment to the Development Program The City of Bangor now proposes a third amendment to the District (the "Third Amendment"). The Third amendment also seeks to establish the District as an "Omnibus District" to allow the City to enter into Credit Enhancement Agreements with individual commercial property owners within the District and to rename the District to the `Bangor Downtown Omnibus Municipal Development and Tax Increment Financing District." Additionally, the City seeks to add additional project costs to the project list as set forth in Table 1 to allow the City to use TIF Revenues for costs associated with the operation and financial support of affordable housing and homelessness services and to work with a third-party contractor to enhance safety, provide ambassador services, and other general increased level of service and responsiveness within the Downtown. All other aspects of the District and Development Program not specifically mentioned in this Third Amendment shall remain consistent with the existing Development Program. Below in Table la is a list of previously approved project costs and their current status, as well footnotes indicating where the third-party services outlined above qualify under the existing approved projects costs. As a part of this amendment please see Table lb to see additional project costs added in this Third Amendment. 1 25-070 FEBRURARY 10,2025 Table 1 a. Project Cost Statutory Authority: Status Estim ate Transportation (Pedestrian and Vehicular) $2,220,000 30-A M.R.S. § 5225 Ongoing Imnrovements:i Construct and improve crosswalks and (1)(A)(1) sidewalks and improve ease and safety of pedestrian passage. Improvements to Downtown parking facilities and make infrastructure improvements designed to facilitate traffic flow and safety throughout the Downtown District. Capital costs related to the demolition of the City's former and now vacant Police Station, located on Court Street, and related structural improvements to Court Street;recent studies conducted by the City reflect that the Police Station building is providing structural support to a portion of Court Street that is located within the Downtown District; repairs are necessary to improve Court Street, and to add additional parking spaces to an existing downtown parking lot. Park Imnrovements: Additional capital costs related to $240,000 30-A M.R.S. § 5225 Ongoing improvements to the City's parks located within the (1)(A)(1)& (1)(C)(2) Downtown District; all proj ects would be similar in nature and scope to those park projects approved by the Department in 2006 as part of the original District approval. Administrative and Professionai Services:2 $715,000 30-A M.R.S. § 5225 Ongoing Administrative and Professional services related to the (1)(A)(4); (1)(A)(5); establishment and administration of the TIF District, (1)(A)(7) including: Professional service costs,including,but not limited to, licensing, architectural,planning, engineering and legal expenses; Fund the newly created Business Development Specialist position and the City's '/2 share of the Business &Economic Development Of�cer/ Downtown Coordinator position, and other economic development positions as may be necessary to offset any adverse impact of Mall area development on the Downtown District; Administrative costs,including,but not limited to, reasonable charges for the time spent by municipal employees in connection with the implementation of a development program; and Organizational costs relating to the establishment and amendment of the district,including, but not limited to, the costs of conducting environmental impact and other studies and the costs of informing the public about the creation or amendment of development districts and the implementation of proj ect plans. 1 The City intends to work with a third-party contractar to enhance downtown safety,including certain pedestrian improvements under this approved category. 2 The City intends to work with third-party contractors to provide economic development ambassador services and other general increased level of services and responsiveness in the Downtown under this approved category. 2 25-070 FEBRURARY 10,2025 Generai Economic Develonment:3 Improve signage $980,000 30-A M.R.S. § 5225 Ongoing throughout City to increase identity and branding of (1)(C)(1); (1)(C)(2) downtown and to facilitate access to the Downtown. Provide annual operating subsidy to Greater Bangor Convention and Visitors Bureau related to Bureau's work to market the City as a business, event, and tourism destination; subsidy provided is proportional to overall operating budget and designed to cover only Bangor-related activities. Improve City's GIS system to enhance the City staff's capacity to identity development potential, and conduct mapping; and market the City using GIS with potential developers and investors. Hammond/Columbia Street Parkin� Structure Deck $1,600,000 30-A M.R.S. § 5225 Ongoing Repiacement (1)(A)(1) West Market Sq., under�round utilities,pavers, $1,000,000 30-A M.R.S. § 5225 Complete landscanin� (1)(A)(1) Sidewaik Reniacement— $3,646,824 30-A M.R.S. § 5225 Ongoing a. Broad St., one side,West Market Sq. to Pickering (1)(A)(1) Sq. b. Main St.,both sides, Hammond St. to Union St. c. Exchange St., east side, State St. to Washington St., Exchange St.,west side, Hancock St. to Washington St. (Court House) d. Park St., east side, State St. to Penobscot St. e. Harlow St.,both sides, Central St. to Franklin St. Harlow St., east side, Central St. to Haynes Ct. £ Franklin St,both sides,Norumbega Mall to Harlow St. g. Middle St., one side, Main St. to Columbia St. h. Cross St., one side i. Columbia St.,both sides, Hammond St. to Union St. j. Washington St., one side,Union St. to Oak St.; Washington St., one side,Union St. to Exchange St. New Parking Structure,Waterfront,Main St. Corridor $6,400,000 30-A M.R.S. § 5225 No Longer (1)(A)(1) Pursuing Surface Parkin�Area-Waterfront, Summer/Pieasant $200,000 30-A M.R.S. § 5225 No Longer St. area (1)(A)(1) Pursuing �The City intends to work with third-party contractors for certain economic development services under this approved category. 3 25-070 FEBRURARY 10,2025 Pubiic Park Improvements,Davenport,Hannibai $100,000 30-A M.R.S. § 5225 Ongoing Hamiin,Norumbe�a & Gomez (1)(A)(1) Waterfront/Core area Pedestrian/Transportation $500,000 30-A M.R.S. § 5225 Ongoing Linka�es (1)(A)(1) Onen Snace,Park&Recreation Area-Waterfront $2,476,218 30-A M.R.S. § 5225 Ongoing (1)(A)(1) & (1)(B)(1) Performance Facilitv,Performance Area-Waterfront $400,000 30-A M.R.S. § 5225 Complete (1)(B)(1) & (1)(C)(1) New Parkin�Deck-Downtown Core,Abbott Square $1,440,000 30-A M.R.S. § 5225 Ongoing (1)(A)(1) Dock Facilitv Expansion/Repiacement $200,000 30-A M.R.S. § 5225 Ongoing (1)(A)(1) Pronertv Acquisition,Business Relocation & Site $650,000 30-A M.R.S §5225 Ongoing Redevelopment-Waterfront (1)(A)(1) Underground Utilitv Conduit-Downtown Core $500,000 30-A M.R.S.A. §5225 Ongoing (1)(A)(1) & (1)(B)(1) Street Li�htin�Reniacement $240,000 30-A M.R.S.A.§5225 Ongoing (1)(A)(1) & (1)(B)(1) Muiti-purpose Arena $54,000,000 30-A M.R.S.A. §5225 Ongoing (1)(A)(1) & (1)(C)(1) Main Street Corridor Traffic/Transnortation $1,000,000 30-A M.R.S.A. § Ongoing Improvements 5225 (1)(A)(1) Pickerin� Square Parkin�Gara�e ciip repiacement $400,000 30-A M.R.S.A. § Ongoing 5225 (1)(A)(1) Peirce Park Stens -Reset& Renair $310,000 30-A M.R.S.A. § Ongoing 5225 (1)(A)(1) Atier Parking Lot Reconstruction $47,000 30-A M.R.S.A. Ongoing §5225(1)(A)(4) and (1)(A)(a) Kenduskea� Stream Pedestrian Brid�e Repair $482,000 30-A M.R.S.A. § Ongoing (1)(A)(1) Downtown Cross Waiks $125,000 30-A M.R.S.A. § Ongoing 5225(1)(A)(1) Broad St.Pocket Park Improvements $300,000 30-A M.R.S.A. § Ongoing 5225(1)(A)(1) Bass Park Barn Reniacement $1,800,000 30-A M.R.S.A. § Complete 5225(1)(A)(1) Penobscot River Cieanup $6,000,000 30-A M.R.S.A. § Ongoing 5225(1)(B)(1) & �1)�C)�2) 4 25-070 FEBRURARY 10,2025 TOTAL $87,972,042 Table lb Project Cost Statutory Citation Estim ate Pubiic Safetv Facilities and Equipment: Fund costs related to 30-A M.R.S. the construction or operation of new public safety facilities and §5225(1)(B)(2) equipment,prorated for portion of costs related to establishment &(1)(C)(9) of the commerciaUbusiness development within the District, $400,000 and/or related to general economic development within the City not to exceed 15%of the captured assessed value of the District. Environmentai Improvement Proiects: Costs of funding 30-A M.R.S. environmental improvementprojects developedby the municipality for $500,000 §5225(1)(C)(2) commercial or arts district use or related to such activities. Credit Enhancement A�reement Pavments: 30-A M.R.S In the event the City sees fit to enter into credit enhancement § 5225(1)(A)(1) agreements with developers and other businesses within the and/ar(A)(2) Downtown Omnibus District the City Council shall ha�e the authority after a public hearing to enter into such agreements as $410,000 long as the agreements comply within the existing TIF policy of the City and with the CEA terms outlined in the District's Development Program. Affordabie Housin�: Authorized project costs for improvements 30-A M.R.S. § 5225 as described in Title 30-A M.R.S. Section 5249 in support of (1)(A)(9); (1)(B)(4); municipal economic development activities regardless of whether (1)(C)(11); (1)(E) such costs are within an affordable housing development district as de�ned in Title 30-A M.R.S. Section 5246, subsection 2; costs $0 associated with the operation and financial support of affordable housing in the municipality. Costs associated with the operation and financial support o£ (a) Affordable housing in the municipality to serve ongoing economic development efforts,including the further development of the downtown t�increment financing districts; and(b) Housing programs and services to assist those who are experiencing homelessness in the municipality or plantation as defined in the municipality's development program. Costs associated with the development and operation of affordable housing or housing services for persons who are experiencing homelessness as defined in the municipality's development program. Broadband Infrastructure: 30-A M.R.S. § 5225 Costs associated with broadband and fiber optics expansion $0 (1)(C)(10) projects,including preparation,planning, engineering and other related costs in addition to the construction costs of those projects. If an area within a municipality or plantation is unserved with respect to broadband service, as defined by the ConnectMaine ut onty as provi e in �"ud �� ��`> ..,..�b�;�°du��tt� �Y��D�::�l, �b�,ul��b�;�°du����...��:.� broadband and fiber optics expansion projects may serve residential or other nonbusiness or noncommercial areas in 5 25-070 FEBRURARY 10,2025 addition to business or commercial areas within the municipality TOTAL (Tabies lA and 1B) $89,282,042 Estimates of the TIF Revenue and Tax Shift Projections for the remaining years of the District do not change from the previously approved application documents. The actual captured TIF Revenues generated by the District to date are shown in Exhibit A. IIL Municipal Approvals A. Notice of Public Hearing Attached as Exhibit B is a copy of the Notice of Public Hearing held on February 10, 2025 in accordance with the requirements of 30-A M.R.S. § 5226(1). The notice was published in a newspaper of general circulation in the City on or before a date at least ten (10) days prior to the public hearing. B. Minutes of Public Hearing Attached as Exhibit C is a certified copy of the minutes of the public hearing and City Council Meeting held on February 10, 2025, at which time the City Council approved the amended District and Development Program. C. City Council Order Attached as Exhibit D is a certified copy of the Bangor City Council Order adopted by the City Council at a Council meeting duly called and held on February 10, 2025, amending the District and Development Program. D. Statutory Requirements and Thresholds Form Attached as Exhibit E hereto is a completed Statutory Requirements and Thresholds Form demonstrating the District's Statutory Compliance. 6 25-070 FEBRUARY 10,2025 �1 Nat[ces c�rr o�eaNcoR i�o�ice oF Pu�Lic Mea�i�uc Regarding "Tha 7hfrd Am�ndment"to the Bangar Clowtttown MunicfpaE Dev�lopment end 7ax lncrement F7nancing U7strict" to 6a renamed t�ie' "Ban or�owntown prnnibus Municipal Qevelopme�it and�ax Inerpment�'Inanoing�lstrict" Notice is hereby given thAt the City of Bangqr{fhe"City"I wiU hald a pabljc hearing on February 10,2025 via Zoom and in persnn at 252 tlarlow Street.Bangor,ME OAqD7 the Publlc Hsatfng wifl he at 7;30 p,trt. . ThQ purpose af the public hearfng is to rmcoivp puplin comments on the toflow[ng items pursuant ro the provisions of ChApter 206 af Title 30-A of the Maine Rovised 5tatutes,as emended: Yhe Thied Amendment to iho Bangor Dnwntown N3un€cipal Developmont and Tax fncrement Financing T!F�istrict and�evelopment Prageam which was �rst dasignatod in.2006 seaks to establish the Downtown District as an "Omnibus" to allow the City to anter into future Credit Enhancement Agreerrcants with individual cnmmercial prop¢rty owners within the District, and ta 3dd additional pro1'ect costs to a[low tha City to use TIF reveauas fqr cqsts related to,affnrdable hbusing and homefessness snd to work with a third-pariy+contractor to enhance safety, provide ambassador s�rvicos and olher qanaral inoroased 3evel o# service and responsiveness within Ehe Downtpwn. A copy of the rQlevant materiafs relating ta the prapused'Third Arrtendment to Fho 0owntqwn TIF wili h�a on ille wiih the City and a copy can 6e raquested by aafling City Clerk Lisa Goodwin at 207-992-4218 p€ior to the public ' hearing.A11 interested persons are in�lt�d to atEend the public hearing and � will ba given an opportunityto bQ heard at that time. Momhers pf the public mey�oin ihe mesting by Znnm or bY phone.Agenda � and jaining instructions can ba fpund on the meeimg calender at f b�ngnrmain�.goblvideo.Memberrs af the puhlic may also suhmit comments via pmAlE€o ciryc[ark@6�ngormaine.gov. Cnmments may a€so he submitted - in writing at any time prio€to iho Pubfic Hrsaring. if yau ara physically unablQ . . to access any.o€-the City's Pfp�lAI313 OF.5@NEC65„E3I@85$ contact lisa Goodwin at 207=992�A218 so that accommadaEions can be made. J�n.24;�025 IN CITY COUNCIL FEBRUARY 10, 2025 CO 25-070 Motion made and seconded to open Public Hearing Public Hearing Opened Motion made and seconded to close Public Hearing Public Hearing Closed Motion made and seconded for Passage Passed �����:,w�,��° '" .�� ��°,„�,��"���,°��*°.������ �� CITY CLERK