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:
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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