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HomeMy WebLinkAbout2010-12-20 11-037 ORDERItem No, 1 3 Date: December 20 2010 Item/Subject: ORDER, Authorizing Staff to Seek Changes to State taws Regarding Tax Increment Financing and Municipal Debt Associated with a New Arena/Meeting Complex in Bangor Responsible Department: Legal The City has several tax increment financing districts. Funds from some tax increment financing districts may be used to pay debt service on a new arena/meeting complex at Bass Park. State law limits repayment of debt issued for projects from Tax Increment Financing (TIF) revenues to 20 years. However, borrowing for a new arena/meeting complex will likely be for a period of 30 years. State law also provides that debt for TIF projects be issued within 5 years of the data of We approval of the TIF and that the project be completed within 5 years of the approval of the TIF. The law also provides for debt limits for municipalities. This Order will authorize staff to take appropriate action to seek changes to laws regarding tax increment financing for the Downtown Bangor Municipal Development District, the Mall Area Traffic Infrastructure Municipal Development District Tax and the Penjajawoc Marsh/Bangor Mall Area Management Fund Municipal Development District and municipal debt limits associated with a new arem/meeGng complex in Bangor. Depamnent Head y41Uj �y I •: Associated Information: Budget Approval Fnartce Director Legal Approval: Introduced for _ passage _ First Reading page—of— Referral age_ofReferral li 037 neceo6er 20, 2010 5r„r Assigned mCouncilor _ graoew r e AV v IirwoC l CITY OF BANGOR (=uE.) ORDER, Authorizing Staff to Seek Dangles to State laws Regarding Tax Increment Financing and Municipal Debt Associated with a New Arena/Meeting Complex in Bangor WHEREAS, the City currently has several tax increment financing districts; and - WHEREAS, funds fmm some tax increment financing districts may be used to pay debt service on a new arena/meeting complex at Bass Park; and WHEREAS, currently State law limits repayment of debt issued for projects from Tax Increment Financing (TIF) revenues to 20 years; and WHEREAS, borrowing for a new arena/meeting complex will likely be for a period of 30 years; and WHEREAS, current law provides that debt for TIF projects be issued within 5 years of the date of the approval of the TIF and that the project be completed within 5 years of the approval of Me TIF; and WHEREAS, current law provides for debt limits for municipalities; and WHEREAS, it is in the best Interests of the City of Bangor to seek changes to current laws regarding TIFs and muniapal debt limits associated with the new arena meeting complex project. By the Goy roan/ of f he City ofaaosuan. ORDERED, THAT, City staff is authorized W seek dranges to current laws regarding tax increment financing for the Downtown Bangor Municipal Development Dlstrioy the Mall Area Traffic Infrastructure Municipal Development District Tax and Ne Penjajawoc Marsh/Bangor Mall Area Management Fund Municipal Development District and municipal debt limits associated with a new arena/meeting complex in Bangor by contacting legislators, submitting proposed legislation and taking such other action deemed necessary and appropriate. IH CITY C20.CIL pecepher 20. 2010 Mo[i® Made aad Seconded foc Passage P e CIYY CIS.gH 'nom, �y� �� 6moclated vl[h a Nw Areca/M t"g Casp In Ba Or A®�Nad'b Cwomae III