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
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Associated Information:
Budget Approval
Fnartce Director
Legal Approval:
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(=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.
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