HomeMy WebLinkAbout2015-12-28 16-060 ORDERCOUNCIL ACTION
Item No. 16-060
Date: December 28, 2015
Item/Subject: Authorizing Development Agreement with Abraham and Heather Furth
for Property at 26 State Street
Responsible Department: Community and Economic Development
Commentary: Abe and Heather Furth have acquired a building at 26 State Street in Downtown.
They have submitted plans to rehabilitate the building and create a mixed use development that
includes a commercial space on the first floor and apartments on the upper floors. This order
authorizes a development agreement with the Furths whereby the City would rebate 75% of the new
tax increment revenues paid on 26 State Street for a period of 7 years. This helps resolve the funding
gap and incent the rehabilitation of this Downtown building.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
/s/ Tanya L. Emery
Department Head
Page _ of _
City Manager
Finance Director
ty Solicitor
16-060
DECEMBER 28, 2015
Assigned to Councilor Graham
CITY OF BANGOR
(TITLE.) (TITLE.) Order, Authorizing Development Agreement with Abraham and
Heather Furth for Property at 26 State Street
WHEREAS, the City of Bangor supports new investment and the creation of additional
commercial and residential space in its downtown area; and
WHEREAS, 26 State Street is currently a vacant property available for reuse; and
WHEREAS, Abraham and Heather Furth have acquired the building at 26 State Street and
are improving the property for fully taxable commercial and residential use; 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 into a credit
enhancement agreement with Abraham and Heather Furth to provide for the
return of a portion of new property taxes paid to the City on the property at 26
State Street:
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
The City Manager is hereby authorized to enter into a Development Agreement with Abraham
and Heather Furth, under such terms and conditions considered appropriate by the Director of
Community and Economic Development and City Solicitor or Assistant City Solicitor; and in a
final form approved by the City Solicitor or Assistant City Solicitor; wherein the City of Bangor
agrees to return to the owners 75% of the new tax increment revenues paid on 26 State Street
by the owners to the City for a period of 7 years following the completion of the rehabilitation;
and developer shall rehabilitate the property for commercial and residential use.
IN CITY COUNCIL
DECEMBER 28, 2015
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CLEAk