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HomeMy WebLinkAbout2015-04-27 15-155 ORDERCOUNCIL ACTION Item No. 15-155 Date: Auril 27, 2015 Item/Subject: Morizing Development Agreement with 28 Broad Street, LLC for Property at 28 Broad Street (Tax Map 042, Lot 196) Responsible Department: Community and Economic Development Commentary: This order will authorize a development agreement with 28 Broad Street, LLC for property located at 28 Broad Street. 28 Broad Street is currently a vacant, underutilized property, which has been proposed by owner/ developers, 28 Broad Street, LLC, to be renovated for a mixed use development consisting of commercial on the first floor and residential on the upper floors. The developer proposes to investment $1.46 million of private funding and equity to develop the project leading to a substantially increased assessed valuation. It is anticipated that the project will be completed by June 1, 2016. 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 100% of the increase in real estate taxes paid on the increase in value created by the improvements to the property for a period of eight (8) years. This Order, if approved, will authorize the City to enter into Agreements with 28 Broad Street, LLC, which will include the following terms: a return to 28 Broad Street, LLC 100% of the real estate taxes paid on the increase in the value of property located at 28 Broad Street as a result of the development of the property for a period of eight (8) years; $1.46 million of private funding and equity in the development project; project to be completed by June 1, 2016; project shall be for commercial and residential uses.; and such other terms and conditions as appropriate. This was reviewed and approved by the Business & Economic Development Committee at its April 21, 2015 meeting. Tanya L. Emery Department Head Manager's Comments: �Lot-",) - City Manager Associated Information: Order Budget Approval: Finance Director Legal Approval: Solicitor Introduced for X Passage First Reading Page _ of _ Referral Assigned to Councilor Plourde CITY OF BANGOR 15-155 APRIL 27, 2015 (TITLE.) (TITLE.) Order, Authorizing Development Agreement with 28 Broad Street, LLC for Property at 28 Broad Street (Tax Map 042, Lot 196) WHEREAS, the City of Bangor supports new investment and the creation of additional commercial and residential space in its downtown area; and WHEREAS, 28 Broad Street is currently underutilized, long vacant and 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 28 Broad Street, LLC to provide for the return of 100% of real estate taxes paid on the increase in value created by the improvements to the property for a period of eight (8) 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 28 Broad Street, LLC, which will include the following terms: a return to 28 Broad Street, LLC 100% of the real estate taxes paid on the increase in the vaule of property located at 28 Braod Street as a result of the development of the property for a period of eight (8) years; $1.46 million of private funding and equity in the development project; project to be completed by June 1, 2016; 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 APRIL 27, 2015 MOTION MADE AND SECONDED FOR PASSAGE ZED CITY CLERK