HomeMy WebLinkAbout2014-05-28 14-197 ORDERCOUNCIL ACTION
Item No. 14-197
Date: May 28, 2014
ORDER,
Item/Subject: Authorizing Expansion of Development Agreement with 25-27 Broad
Street, LLC to Include Property at 29 Mercantile Square
Responsible Department: Community and Economic Development
Commentary: This order will authorize the expansion of a Development Agreement with 25-27
Broad Street LLC. to include the property located at 29 Merchantile Square. By Council Order 14-123,
the City Council authorized a Development Agreement for 25-27 Broad Street. That same developer
has recently acquired the adjacent building at 29 Mercantile Square. The developer will be completely
rehabilitating these buildings and creating a mixed use development with commercial space on the
first floors and apartments on the upper floors. If approved, the Agreement would rebate 75% of the
new tax increment revenues paid on both the Broad Street and Mercantile Square properties for a
period of 5 years. This helps resolve the funding gap and incent the rehabilitation of these
underutilized Downtown buildings.
This item was reviewed and approved by the Business & Economic Development Committee at its
meeting on May 20, 2014.
Manager's Comments:
Associated Information:
Budget Approval:
Legal Approval:
z
Department Head
City Manager
4" e,
Finance Director
CityS icitor
Introduced for
X Passage
First Reading Page _ of _
Referral
Assigned to Councilor Baldacci
CITY OF BANGOR
14-197
MAY 28, 2014
(TITLE.) Order, Authorizing Expansion of Development Agreement with 25-27
Broad Street, LLC to Include Property at 29 Mercantile Square
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, LLC has recently acquired the building at 29 Mercantile
Square in conjunction with its plans for redevelopment of 25-27 Broad Street and
plans to improve both properties for fully taxable commercial and residential use;
and
WHEREAS, the City authorized the execution of a Development Agreement with 25-27 Broad
Street, LLC for the 25-27 Broad Street property under Council Order 14-123; and
WHEREAS, the investment required for rehabilitation of both properties 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 to City on the properties 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 and 29 Mercantile Square by 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
MAY 28, 2014
Motion made and seconded to Postpone to the next regularly
scheduled City Council meeting
Postponed
CITY CLERK
IN CITY COUNCIL
JUNE 9, 2014
MOTION MADE AND SECONDED FOR PASSAGE
PASSED
CITY CL RK