HomeMy WebLinkAbout2014-05-28 14-192 ORDERCOUNCIL ACTION
Item No. 14-192
Date: f MAY 28, : 201
Item/Subject: Order, Authorizing Development Agreement with Queen City Properties,
LLC - 22 Merchants Plaza
Responsible Department: Community and Economic Development
Commentary:
Queen City Properties, LLC is redeveloping a building at 22 Merchants Plaza building (formerly
Northeast Occupational Exchange office space) in Downtown. The developer is rehabilitating this
space into 9 market rate residential units. In 2011, The City Council approved a development
agreement with Queen City Properties, LLC whereby the City would rebate 50% of the new tax
increment revenues paid on 22 Merchants Plaza for a period of 20 years. However, the developer did
not move forward with the renovations on the timeline they expected, therefore the agreement was
voided. The developer has since then asked if we would reconsider the TIF at the same terms. The
Business and Economic Development Committee reviewed this at a recent meeting and stated that if
the developer completed the renovation within 12 months, they would support honoring the TIF
under the original terms of 50% for 20 years. This helps resolve the funding gap and would incent
the rehabilitation of this currently vacant Downtown building. This order would authorize a new
development agreement with Queen City Properties, LLC whereby the City would rebate 50% of the
new tax increment revenues paid on 22 Merchants Plaza for a period of 20 years provided the
renovation of the building is complete by June 1, 2015.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
Introduced for
Passage
First Reading
Referral
Department Head
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City Manager
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Finance Director
ity Solicitor
Assigned to Councilor Durgin
CITY OF BANGOR
14-192
MAY 28, 2014
(TITLE.) Order, Authorizing Development Agreement with Queen City Properties,
LLC - 22 Merchants Plaza
WHEREAS, the City of Bangor supports new investment and the creation of additional
housing in its downtown area; and
WHEREAS, 22 Merchants Plaza facing Pickering Square is an under utilized property in need
of further rehabilitation; and
WHEREAS, Queen City Properties, LLC is under contract acquired 22 Merchants Plaza and is
improving the property for taxable residential use; and
WHEREAS, the investment required for conversion of the property into residential use is not
economically feasible without assistance; and
WHEREAS, the City Council had previously approved a development agreement with Queen
City Properties, LLC to provide for the return of a portion of new property taxes
paid the City on the property by Queen City Properties, LLC, however the
redevelopment was postponed and not completed by the agreed upon deadline;
and
WHEREAS, the assisstance necessary can be provided through entering a credit
enhancement agreement with Queen City Properties, LLC to provide for the
return of a portion of new property taxes paid the City on the property by Queen
City Properties, 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 Queen City
Properties, LLC, on or before June 15, 2014, 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 Queen City Properties, LLC 50% of the
new tax increment revenues paid on 22 Merchants Plaza by the Queen City Properties, LLC to
the City, for a period of 20 years following the completion of the rehabilitation of 22 Merchants
Plaza but beginning no later than June 1, 2015; and developer shall rehabilitate the property for
residential use.
IN CITY COUNCIL
MAY 28, 2014
PASSED
CITY CL RK