HomeMy WebLinkAbout2014-03-24 14-123 ORDERCOUNCIL ACTION
Item No. 14-123
Date: March 24, 2014
Item/Subject: Authorizing Development Agreement with 25-27 Broad Street, LLC for
Property at 25-27 Broad Street
Responsible Department: Community and Economic Development
Commentary: 25-27 Broad Street, LLC has acquired a building at 25-27 Broad Street (also known
as the Circular Block) in Downtown. The developer will be completely rehabilitating this building and
creating a mixed use development with commercial space on the first floor and apartments on the
upper floors. This order authorizes a development agreement with 25-27 Broad Street, LLC whereby
the City would rebate 75% of the new tax increment revenues paid on 25-27 Broad Street for a
period of 5 years. This helps resolve the funding gap and incent the rehabilitation of this long -vacant
Downtown building.
This item was reviewed and approved by the Business & Economic Development Committee at its
meeting on March 18, 2014.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
X Passage
First Reading
Referral
Tanya L. Emery
Department Head
1
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ManagerCity
1AA-t. L
Finance Director
Page _ of _
City Solicitor
Assigned to Councilor Graham
CI`T'Y OF BANGOR
14-123
MARCH 24, 2014
(TITLE.) (TITLE.) Order, Authorizing Development Agreement with 25-27 Broad
Street, LLC for Property at 25-27 Broad Street
WHEREAS, the City of Bangor supports new investment and the creation of additional
commercial and residential space in its downtown area; and
WHEREAS, 25-27 Broad Street is currently a vacant, tax exempt property available for reuse;
and
WHEREAS, 25-27 Broad Street, LLC has acquired the building at 25-27 Broad Street and
plans to improve 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 a credit enhancement
agreement with 25-27 Broad Street, LLC to provide for the return of a portion of
new property taxes paid the City on the property by 25-27 Broad Street, LLC:
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 25-27
Broad Street, LLC, under such terms and conditions considered appropriate by the Director of
Community & 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 25-27 Broad Street, LLC 75% of the new tax increment revenues paid on 25-27
Broad Street by the 25-27 Broad Street, LLC to the City, for a period of 5 years following the
completion of the rehabilitation; and developer shall rehabilitate the property for commercial
and residential use.
IN CITY COUNCIL
March 24, 2014
Motion made and seconded for Passage
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CITY C