HomeMy WebLinkAbout2011-12-12 12-031 ORDERCOUNCIL ACTION
Item No. 1`2 0 31
Date: December 12, 2011
Item/Subject: Order, Authorizing Development Agreement for the Redevelopment of 89 and 91
Main Street
Responsible Department: Community and Economic Development
Commentary:
This Order would authorize a Development Agreement with Abraham and Heather Furth for tax
increment financing in support of the project that make possible the acquisition and rehabilitation of
this currently underutilized downtown building.
Abe and Heather Furth have an option to acquire two adjacent downtown properties, 89 and 91 Main
Street. They initially propose to rehabilitate three existing apartments on the upper three floors of 91
Main Street and create three additional apartments on the upper floors of 89 Main Street. The street
level commercial space and facades of both buildings will be rehabilitated after operation of the upper
floors has stabilized. These improvements are expected to more than double the value of the
properties and will create three additional quality apartments in the downtown. To facilitate the
financing and financial feasibility of the proposed project, the developers have requested assistance
from the City.
This item was reviewed and approved by the Business and Economic Development Committee at its
meeting of December 7, 2011.
Manager's Comments:
Associated Information: Order
Budget Approval:
Legal Approval:
Introduced for
x Passage
First Reading
Referral
Department Head
City Manager
i_l
Finance Director
zl��d -
City Solicitor
Page _ of _
Assigned to Councilor — Longo
CITY OF BANGOR
12 031
December 12, 2011
(TITLE.) Order, Authorizing Development Agreement for the Redevelopment of 89
and 91 Main Street
WHEREAS, the City of Bangor supports new investment and the creation of additional
housing in its downtown area; and
WHEREAS, 89 and 91 Main Street are currently underutilized mixed-use buildings in a key
part of Downtown Bangor; and
WHEREAS, Abraham and Heather Furth have an option under contract to acquire 89 and 91
Main Street with the intent to improve the properties for commercial and
residential use; and
WHEREAS, the investment required for the acquisition and redevelopment of the properties
is not economically feasible without assistance; and
WHEREAS, the assistance necessary can be provided through a Development Agreement
with the City whereby the City would return a portion of new property taxes paid
the City on the improved properties:
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 Abraham
and Heather Furth, on or before March 31, 2012, 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 Abraham and Heather Furth 100% of
the new tax revenues on the improved properties received by the City for a period of 8 years
following the completion of the rehabilitation of 89 and 91 Main Street but beginning no later
than July 1, 2012.
IN CITY COUNICIL
December 12, 2011
Motion Made and Seconded for Passage
Passed
zv
CITY CLE
(TITLE,) Authorizing Development Agreement for
the Redevelopment of 89 and 91 Main Street
Assigned to Councilor i�