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HomeMy WebLinkAbout2008-02-11 08-088 ORDERCOUNCIL ACTIO Item No. 08 088 Date: February 11, 2008 Item/Subject: ORDER, AuBmdang Terminadonofdre9orlon's Meats Municipal Development District and Tax Increment Hnandng District Responsible Deparbnent: Community A Economic Development Commentary: This Order would terminate the Development Program and Council onJordan's Meats Municipal Development and Tax Increment 99,98.. rdanct approved by the City Council on Febmary 22, 1999 by passage r Council Resolve City's Credit ler Enh Meats nt nae make the level of Investment or nocreate inc pee number ofuobs of the tl in the Cno n wtax Enhancement Agreement with them. As there was no increase in the value of the property, no new tax revenue was rBangor [herefore a [ax Increment financing was bonsprovided. souther Meats shut down Its operation In Bangor in September 2001 l <artareaa n ifs value the in property Maine. lancer termination in the a3ordans not to Meats TIF District, ( the of area and value of the property will no longer count against the not to exceed land area ang of total land area) and value of all TIF districts (5% of total taxable property) allowed by statute In Bangor. Department Head Recommend approval, as does Business and Economic Development City Manager legal Approval: Ity solicitor Passage _ Fust Reading Page _ of _ Referral A 088 Amignadto Cowclor Palmer Pearva 11, 2008 CITY OF BANGOR (TITLE.) ORDER, Authorizing Termination of the Jordan's Meats Municipal Development and Tax Increment Financing District WHEREAS, die City of Bangor (the "City') is authorizecl pursont to Chapter 206 of Tide 3D -A of the Maine Revised Statutes, as amended, to designate specified areas within the City as Municipal Development and Tax Increment Financing Districts, and WHEREAS, the City authorized the establishment of the Jordan's Meats Municipal Development and Tax Increment Financing District (the "Jordan's Meats District") by passage of Council Resolve 9998 on February 22, 1999; and WHEREAS, the City entered into a Credit Enhancement Agreement ("CEAJ With the developer of the Jordan's Meats facility associated within the Jordan's Meats District dated March 31, 1999; and WHEREAS, the CFA slates that any rambursement by the City to the Devebper was contingent upon the Developer investing at least $1 million in new real estate or personal property by April 1, 2000; and WHEREAS, the CEA states that any reimbursement by the City to the Developer after April 1, 2002, would be further conditioned upon Jordan's Meats investing an additional $1 million In new real estate or personal property by April 1, 2002; and WHEREAS, the CEA further slates that the amounts of tax reimbursements payable by the City to the Developer would be tied to the average number of full time jobs and full tlme job equivalents located within the District; and WHEREAS, the economic development project to be undertaken within the Jordan's Meats TIF District was unsuccessful in that the Developer failed to make the required financial investments and failed to meet the employment levels set font in the Development Program and the CEA; and WHEREAS, the property value in the Jordan's Meats District decreased from 1998 to 1999 and again from 1999 W 2000, demorstratlng Cat the Developer falletl to make the required $1 million investment under the CEA and absolving the City of any obligation to make payments to the Developer; and WHEREAS, the goals of the Development Program for the Jordan's Meals District cannot be realized given that the current owners of Jordan's Meats terminated its operations in the Jordan's Meats District in W01 and have since net employed anyone for any positions within has Jordan's Meats District; and )3 088 WHEREAS, no other parties' rights are at stake in the termination of the Jordan's Meats District; and WHEREAS, although the Jordan's Meals District s inactive, R remains officially recognized by the State Department of Economic and Community Development (the "DECD') unless and until the City terminates 2; and WHEREAS, because the inactive Jordan's Meats District has not been officially terminated pursuant to 30-A M.R.S.A § 5223(3), its acreage and original assessed value count toward the statutory limits on total acreage and total original assessed value that may be included In a municipality's tax increment financing districts; and WHEREAS, in the interest of economic developmeM, the City of Bangor desires to be able to consider future new tax increment fimnong district that may bring the City dose W these statutory limits; and WHEREAS, the City realms to terminate the Jondan's Meats District, it corresponding Development Program, and CEA and will so notify the DECD of it decision; BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Section 1. The City of Bangor hereby terminates the Jordan's Meats Municipal Development and Tax Increment Financing District and terminates the Devebpme t Program for such DIstAct. ecUgn 2. The City Council hereby finds and determines that: a. The contemplated development project within the Jordan's Meats TIF District was not completed as planned; and b. Jordan's Meats has not made the required investment in the Jordan's Meat District and does not employ any people In the Jordan's Meats District, both of which were required under the Credit Enhancement Agreement in order for the Developer to receive any reimbursement of taxes; and C. The temirotion of the Jordan's Meat District and pursuit of development programs for other economic d opment projects that will have a greater potential for success will make a contribution W the economic growth and well being of the City of Bangor and the surrounding region and will contribute to the betterment of the health, welfare, and safety of the inhabitant of the City of Bangor, including a broadened and improved tax new and economic stimulus, and therefore mretitutes a goad and valid public purpose. S n 3. The City Manager, or his duly appointed representative, Is hereby authorized, empowered and directed to notify the DECD of the CWS derision to berminate the Jordan's Meats District and associated Development "ram and Credit Enhancement Agreement. Feb ry 11. 2008 PaAd R OR-0AR 0 R D RR d'fY dRHR pIlyF,a Ci R Tetviva[ivv wx a Rata ip Dvelou[ eaTaIvrmv[ HnLft District A®ipta W c ua W