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
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