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HomeMy WebLinkAbout2008-02-11 08-089 ORDERCOUNCIL ACTION Item No, 08 089 Date: February 11, 2008 Item/Subject: ORDER, AuModzing Termination of the Waterworks Municipal Development Oland and Tax Inaemam Fnancing Astrid Responsible Department: Community & Fsonomic Development This Order would terminate the Waterworks Municipal Development and Tax Increment Framing Dishict approved by the City Council on February 13, 1995 with passage of Council Order 95-108, as amended. This TIF district was created In support of a proposal m establish a Muddy Rudder Itestauram at the site. The proposal did not go forwartl due to the significant development costs involved and limitations on the ability to create su dent parking on the site to support the proposed restaurant By terminating the Waterworks TIF District, the land area and value of the Waterworks property will no longer munt against the not to exceed land area (5% of total land area) and value of all TIF districts (5% of total taxable property) allowed by stable in Bangor. Department Head Managers Comments: Recommend approval, as does the Business and Economic Development ci . n cV//n City Manager Budget Approval: Finance Director Legal Approval: Introduced for _Z— passage _First Readirm Page— of-Referral ca 089 F A igudlo Cowcilor Farrington Feb[ &U 11. 2008 r CITY OF BANGOR (TIRE.) ORDER, Authorizing Termination of the Waterworks Municipal Development and Tax Increment Financing District WHEREAS, the City of Bangor (the 'Cty) a authorized pursuant to Chapter 206 of Title 30-A of the Maine Revised Statutes, as amended, to designee specifled areas within the City as Municipal Development and Tax Increment Financing Districts; and WHEREAS, the City created the Watenxoiks Municipal Development and Tax Increment Financing District (the "Waterworks District) by passage of Council Order 95-108, as amended, on February 13, 1995; and WHEREAS, the economic development project to be undertaken wfihin the Waterworks TIF District was unsuccessful in that the planned development project did not occur; thus, no new tax value was created within the District; and WHEREAS, the goals of the Development Program for the Watenvorl¢ Disbict cannot be realized since the planned development project did not =or in the Distrix; and WHEREAS, the CM never entered into a Credit Enhancement Agreement associated with the Watenvorks D'ishict and, thus, no other party's rights are at stake; and WHEREAS, although the Waterworks TSF Distrix is inactive, it remains officially recognized by the State Department of Economic and Community Development (the "DECD') unless and until the City terminates it; and WHEREAS, because the inactive Watenwodcs Distrix has not been officially terminated pursuant W 30-A M.R.SA. 4 5323(3), its acreage and original assessed value count tavanl one statumry limits for total acreage and total original assessed value that may be included in a municipality's w increment financing districts; and WHEREAS, in the interest of ecorwmic development the City of Bangor desires to be able W consider future new tax increment financing disricts that may bring the City dose to these statutory limits; and WHEREAS, the City desires m terminate the Watervdodcs District and its corresponding Development Program and to notify the DECD of its decision; BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT Seededl. The City of Bangor hereby terminates the Waterworks Municipal Development and Tax Increment Financing Distrix and terminates the Development Program for so& District. The City Counal hereby It rids and determines that: a. The contemplated development project within the Waterworla TIF District was not completed as panned; and b. The termination of the District and pursuit of the Development Progrems for other economic development projects which have a greater potential for success will make a contribution to the economic growth and well being of the City of Bangor and the surrounding region and will contribute W the betterment of the heats, welfare, and safety of the inhabitants of the City of Bangor, including a broadened and improved tax base and economic stimulus, and therefore constitutes a good and valid public purpose. Section 3. The Cly Manager, or his duly appointetl repesenia[we, is hereby authorized, empowered, and directed to notify the DECD of the City's decision to laminate the Waterwodcs District and associated Development Program. IB CIRY 11, C20 P iwxy 11. 2008 ; 08-089 �� ChE6R (1 R 11 P. R 111�R11 a rano of the Wtex rksRlfi CiPal Developmeu[iand '.. nwWeaacaooe�ror