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
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