HomeMy WebLinkAbout2009-03-09 09-108 RESOLVECOUNCIL ACTION
Item No.
Date: March 9, 2009
�9 lud
Item/Subject: RESOLVE, Amending the Downtown Bangor Municipal Development and Tax Increment
Financing District Development Program
Responsible Department: Community & Economic Development
Commentary: PUBLIC HEARING. Council Resolve 06-093 passed February 27, 2006 adopted a
Downtown Bangor Municipal Development and Tax Increment Financing District and Development
Program to take advantage of new development and investment in the downtown core, waterfront area,
and Main Street entrance corridor including Bass Park. The District captures the tax revenue generated by
new private development within the District's boundaries and dedicates it to financing public
improvements and facilities within the District. These new tax revenues can be used to replace
deteriorated downtown sidewalks; refurbish downtown parks; upgrade underground electric utilities;
replace the Hammond/Columbia Street parking deck; expand parking in Abbott Square and improve other
parking facilities; improve pedestrian connections between the downtown and the waterfront; construct
new parking facilities in the Waterfront area; make traffic improvements to support development on lower
Main Street; and support financing for a new multipurpose arena to replace the Bangor Auditorium and
Civic Center. By using tax increment revenues to carry out public infrastructure improvements, new
private investment is encouraged without additional cost to taxpayers since the improvements will be
financed with new tax revenues generated in the District. This proposed amendment updates cost
estimates, adjusts the scope of some previously included improvement projects, and adds several new
projects to the list of proposed improvements to be financed with tax increment revenues. These
include: resetting and repairing the Peirce Memorial steps ($310,000); reconstructing the Atler Parking lot
($47,000); repairing the Kenduskeag Stream overhead pedestrian bridge ($482,000); installing new
thermal plastic pavement markings to delineate 20 downtown crosswalks; improving existing intersection
ramps to comply with new Americans with Disability Act requirements ($125,000); new landscaping,
lighting, and surface restoration of the existing City "**pocket" park located on Broad Street ($300,000);
replacing barns at Bass Park ($1,800,000); and partially funding cleanup of the Penobscot River
($6,000,000).
Department Head
Manager's Comments: Please note that it is unlikely that all of the projects included in the plan will be
accomplished from TIF revenues since projected costs exceed anticipated revenues. However, to be
eligible for funding from• Itohis source, all potential projects must be included
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City Manager
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Page _ of _
Director
Solicitor
Assigned to Councilor Haves
CITY OF BANGOR
March 9, 2009
09 108
(TITLE.) Resolve, Amending the Downtown Bangor Municipal Development and Tax Increment
Financing District Development Program
WHEREAS, the City of Bangor (the "City") is authorized pursuant to Chapter 206 Title 30-A of the Maine
Revised Statutes, as amended, to designate a specified area within the City as the
Downtown Bangor Municipal Development and Tax Increment Financing District (the
'*"Downtown District'j and to adopt a Development Program (the "Development Program")
for the District; and
WHEREAS, the City designated a Downtown District and adopted a Development Program for the
Downtown District on February 27, 2006 by City Council Resolve 06-093; and
WHEREAS, the City desires to amend the Development Program in order to include additional
statutorily authorized projects in the project list to be funded through the revenues
produced through the Downtown District and to update the initial cost estimates; and
WHEREAS, pursuant to Title 30-A M.R.S.A. Section 5226(5), a municipality may amend an adopted
development program after meeting the procedural requirements for the adoption of a
development program; and
WHEREAS, it is expected that approval will be obtained from the State of Maine Department of
Economic and Community Development (the "Department") approving the amendment to
the Development Program for the Downtown District;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
BANGOR THAT:
Section 1. The City of Bangor hereby amends the Downtown Bangor Municipal Development and
Tax Increment Financing District Development Program, such amendment (the "2009
Amendment') to be pursuant to the following findings, terms, and provisions:
Section 2. The City Council hereby finds and determines that:
a. The provisions of 30-A M.R.S.A. Section 5223(3) are not applicable to the Downtown
District because these conditions do not apply to downtown tax increment financing
districts; and
IN CITY COUNCIL
March 9, 2009
Motion Made and Seconded
for Passage
PassQd
'# 09-108
RESOLVE
`CITY CLM (TITLE,) Amending the Downtown
Development Program
Assigned to Councilor �%
J X08
b. The adoption of the 2009 Amendment to the Development Program will make a
contribution to the economic growth and well being of the City of Bangor and the
surrounding region and will contribute to the betterment of the health, welfare and
safety of the inhabitants of the City of Bangor, including a broadened and improved
tax base and economic stimulus, and therefore constitutes a good and valid public
purpose.
Section 3. Pursuant to the provisions of 30-A M.R.S.A. § 5227, the percentage of increased assessed
value to be retained as captured assessed value in accordance with the Development Program remains
unchanged by the 2009 Amendment.
Section 4. The City Manager, or his duly appointed representative, is hereby authorized, empowered,
and directed to submit the 2009 Amendment to the Development Program for the Downtown District to
the State of Maine Department of Economic and Community Development for review and approval
pursuant to the requirements of 30-A M.R.S.A. § 5226.
Section 5. The foregoing adoption of the 2009 Amendment to the Development Program for the
Downtown District shall automatically become final and shall take full force and effect upon receipt by the
City of approval of the 2009 Amendment to the Development Program by the State of Maine Department
of Economic and Community Development, without requirement of further action by the City, the City
Council, or any other party.
Section 6. The City Manager, or his duly appointed representative, is hereby authorized and empowered,
at his discretion, from time to time, to make such revisions to the Development Program for the Downtown
District as the City Council, or its duly appointed representative, deem reasonably necessary or convenient
in order to facilitate the process for review and approval of the District by the State of Maine Department
of Economic and Community Development, or for any other reason, so long as such revisions are not
inconsistent with these resolutions or the basic structure and intent of the Development Program.
v9 108
ECONOMIC DEVELOPMENT PROJECT
City of Bangor, Maine
DOWNTOWN BANGOR MUNICIPAL DEVELOPMENT AND TAX INCREMENT
FINANCING DISTRICT DEVELOPMENT PROGAM
2009 AMENDMENT
Presented to:
PUBLIC HEARING AND BANGOR CITY COUNCIL
March 9, 2009
09 108
Table of Contents
Section I. 2009 Amendment Procedure.............................................................1
Section II. Amendment to Section II, Development Program Narrative.....................1
Section III. Amendment to Table I — City's Project Development Costs.......................3
Exhibits:
Exhibit A. Public Notice Regarding 2009 Amendment
Exhibit B. Minutes of Public Hearing on 2009 Amendment
Exhibit C. City Council Resolve Adopting 2009 Amendment
U9 108
2009 Amendment Section I. 2009 Amendment Procedure
A. Notice of Public Hearing
Attached as Exhibit A, is a certified copy of the Notice of Public Hearing held on March 9, 2009,
in accordance with the requirements of 30-A M.R.S.A. § 5226(1). The notice was published in
the Bangor Daily News, a newspaper of general circulation in the City of Bangor on or before
February 27, 2009, a date at least ten (10) days prior to the public hearing.
B. Minutes of Public Hearing
Attached as Exhibit B, is a certified copy of the minutes of the public hearing and City Council
Meeting held on March 9, 2009, at which time the proposed 2009 Amendment to the Downtown
Bangor Municipal Development and Tax Increment Financing Development Program was
discussed and approved.
C. City Council Resolve Approving 2009 Amendment
Attached as Exhibit C, is a copy of the Resolve approved by the Bangor City Council at a City
Council meeting duly called and held on March 9, 2009.
2009 Amendment Section II. Amendment to Section II, Development Program Narrative
Section II, Development Program Narrative, Subsection B, The Project shall be amended
to make the following changes to items 1, 6, and 7, and to include new items 15 and 16 in
the list of items which the City expects the "Project" to include:
Underlines show new language.
1. The City will maintain existing parking structures, including replacing and repairing parking
decks and paved lots as needed to preserve the City's existing parking inventory. The City will
replace the parking structure at the corner of Hammond and Columbia Streets, which provides
the Downtown Core's most sought-after parking, and which, for safety reasons, has reached the
end of its useful life. (Table 1, Item 1, 17, & 19). These are improved project costs pursuant to
30-A M.R.S.A. Section 5225(l)(A)(1).
6. The City will strengthen pedestrian linkages between the Downtown Core, Waterfront, and
Main Street Corridor by improving the safety, visibility and appearance of pedestrian walkways
and street crossings. (Table 1, Item 7, 20. & 21). These are uproved project costs pursuant to
30-A M.R.S.A. Section 522 1)(A)(1)
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7. The City will create access trails, construct public facilities, and other amenities in the
downtown core area and the area of the downtown Waterfront between the railroad track and the
Penobscot River to attract public usage and support downtown activity and waterfront business
development. (Table 1, Item 9, 18 & 22). These are approved project costs pursuant to 30-A
M.R.S.A. Section 52250)(A)(1).
15. The City, in cooperation with the private entity that operates Bangor Historic Track, will
upgrade the harness racing infrastructure at Bass Park by replacing horse barns that are
approaching 40 years in age and which have exceeded their useful life with new barns. The new
barns will have a capacity to house up to 200 horses This is necessary to insure the successful
operation of a commercial harness racing meet at Bangor and to support the City's efforts to
maintain and expand the entertainment district anchored by Hollywood Slots, the Bangor
Auditorium and Civic Center, and other facilities in Bass Park. These facilities will support the
continued year round activities and economic impact associated with stabling and training horses
at the track (Table 1 Item 23) This is an approved project cost pursuant to 30-A M.R.S.A.
Section 5225(1)(A)(1).
16. Significant quantities of coal tar were deposited on the bed of the Penobscot River adjacent
to Bangor Harbor and alongthe he City's waterfront from Railroad Street to Dutton Street as a
result of a coal gasification plant that operated in that area for many years. Substantial testing
has been done to verify the extent and nature of these deposits. The Maine Department of
Environmental Protection has determined that they pose a hazard not only to the environment,
but to human health due to the constituents in the coal tar and their intermittent release into the
environment especially_ during periods of warm weather. The unremediated presence of this
material limits the potential for further development of both commercial and recreational uses
-
along the e City's waterfront a major focus of City development activities, and negativelyy impacts
the development of Bangor Harbor. For this area of the City to meet its full economic and
recreational potential these environmental and health issues must be addressed. The City has
approximately $6 million available for remediation a project that is currently estimated to cost
between $10 and $15 million. The City is currently working closely with the Maine Department
of Environmental Protection and other State and federal natural resource agencies to finalize
remediation plans We anticipate that a plan will be 4pproved within the next year with
implementation to begin shortly after plan approval (Table 1 Item 24). This is an approved
project cost pursuant to 30-A M.R.S.A. Section 5225(C)(2).
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2009 Amendment Section II. Amendment to Table I - City's Project Development Costs
Table I - City's Project Development Costs shall be amended and restated to be the
following table with the addition of items 18 through 24 to the list and an updated cost
estimate list as of March, 2009:
Table 1
City's Project Development Costs
3
Project
TIF Approved
2/27/06
CR 06-093
Revision
Proposed
3/9/2009
1
lHammondIColumbia Street Parking Structure Deck Replacement
$
1,000,000
$
1,600,000
2
JWest Market Sq., underground utilities, pavers, landscaping
$
1,000,000
$
1,000,000
3
1
ISidewalk Replacement
a
113road St., one side, West Market Sq. to Pickering Sq.
$
70,400
$
288,100
b
I Main St., both sides, Hammond St. to Union St.
$
585,200
$
1,259,550
c
Exchange St., east side, State St. to Washington St.
$
176,000
$
390.613
Exchange St., west side, Hancock St. to Washington St. Court House
$
156,300
d
Park St., east side, State St, to Penobscot St.
$
123,200
$
246,835
e
Harlow St., both sides, Central St. to Franklin St.
$
352;000
Harlow St., east side, Central St. to Haynes Ct.
$
219,930
f
Franklin St., both sides, Norumbe a Mall to Harlow St.
$
316,800
$
260,000
Middle St., one side, Main St, to Columbia St.
$
70,400
$
86,873
h
Cross St., one side
$
35,200
$
92,305
i
Columbia St., both sides, Hammond St. to Union St.
$
281,600
$
345,188
Washington St., one side, Union St. to Oak St.
$
528,000
Was niaton St., one side, Union St. to Exchange St.
$
301,130
4
INew Parking Structure, Waterfront, Main St. Corridor
$
6,400,000
$
6,400,000
5 1
ISurface Parkin Area - Waterfront, Summer/Pleasant St. area
$
200,000
$
200,000
6 1
JPublic Park Improvements, Davenport, Hannibal Hamlin, Norumbe a & Gomez
$
100,000
$
100,000
7 1
lWaterfront/Core area Pedestrian/Transportation Linkages
$
50.0,000
$
500,000
8
open space, Park & Recreation Area - Waterfront
$
800,000
$
2,476,218
9
Performance Facility, Performance Area -Waterfront
$
400,000
$
400,000
10 1
INew Parkin Deck - Downtown Core, Abbott Square
$
1,440,000
$
1,440,000
11 1
IDock Facility anion / Replacement
$
200,000
$
200,000
12
Property Acquisition, Business Relocation & Site Redevelopment- Waterfront
$
650,000
$
650,000
13
Underground Utility Conduit- Downtown Core
$
500,000
$
500,000
14 1
IStreet Lighting Replacement
$
240,000
$
240,000
15
Multiur oseArena
$
64,000,000
$ 54,000,000
16
Main Street Corridor Traffic / Transportation Improvements
$
1,000,000
$
1,000,000
17
1 Pickering square Parking Garage dip replacement
$
400,000
$
400,000
Added Projects
18
1 Peirce Park Steps - Reset & Repair
$
310,000
19
JAtler PaNng Lot Reconstruction
$
47,000
20
IKenduskeag Stream Pedestrian Bridge Repair
$
482,000
21
1 Downtown Cross Walks
$
125,000
22
113road St. Pocket Park Improvements
$
300,000
23
JBass Park Barn Replacement
$
1,800,000
24
1 Penobscot River Cleanup
$
6.000,000
TOTAL
$
81,368,800
$ 83,817,041
3