HomeMy WebLinkAbout2011-10-24 11-315 ORDER COUNCIL ACTION
Item No_.
i 115
Date: October 24. 2011
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 under contract to acquire a building at 22 Merchants Plaza (formerly
Northeast Occupational Exchange office space) in Downtown. The developer will be rehabilitating this
space into 9 residential units. This order authorizes 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. This helps resolve the funding gap and would incent the
rehabilitation of this currently vacant Downtown building.
This was reviewed and recommended for approval by the Business and Economic Development
Committee at its meeting of October 19, 2011.
Department Head
Manager's Comments:
Crith M (-l'ULe,3
City Manager
Associated Information: Order
Budget Approval:
Finance Director
Legal Approval:
City Solicitor
Introduced for
_t Passage
First Reading Page_of_
Referral
I
1 .i. 3 .. z
October 24, 2011
rs.
1p( "Nce,:r Assigned to Councilor _ Nealley
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4 '' ' CITY OF BANGOR
(TITLE.) Order, Authorizing Develoment 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 currently a vacant tax exempt
property available for reuse; and
WHEREAS, Queen City Properties, LLC is under contract to acquire 22 Merchants Plaza and
improve the property for fully 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 assistance necessary can be provided through entering a credit enhancement
agreement with Queen City Properties, LLC to providing 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 December 31, 2011, 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 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 July 1, 2012; developer shall rehabilitate the property for
residential use.
-411
IN CITY COUNCIL
October 24, 2011
Motion Made and Seconded for Passage
Roll Call Vote Requested •
Vote: 9-0 tF I1-115
Councilors Voting Yes: Blanchette. Bronson,
Durgin, Gratwick, Longo, Hawes, Nealley, ORDER
Palmer & Weston
Councilors Voting No: None •
Passed (TITLE,) Authorizing Development Agreement
CIO with Queen City Properties, LLC 22 Merchants
C TY ERR -�p—y��' — Plaza
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Assigned Uo Councilors t XXRI eMnL/