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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