HomeMy WebLinkAbout2008-02-11 08-093 ORDERCOUNCIL ACTION
Item xo.08 093
Date: February 11, 2008
Item/SubJecd ORDER, Designating Mall Area Traffic Infi'astructure Municipal Development and Tax
Increment Fnancing District and Adopting a Development Program For Me District
Responsible Deparhnent: Community & Economic Development
Cemmerxarin
This Order would adopt a Development Program and a Mall Area Traffic Infrastructure Municipal
Devebpment and Tax Increment Financing DuArd to take advantage of new development and
Investrnent In the Mall Area. Council Order 07-161, passed April 19, 2007, authorized the City Manager to
execute a letter W the Maine Department of Transportation committing the City to undertake and
complete additional offsite traffic improvements required by the Maine Department of Transportation
Traffic Movement Permit for the Wal-Mart project on Stillwater Ave.
It is proposed that the Mall Area Traffic Infrastructure Tax Increment Financing (TIF) District be funded
from new tax revenues generated by the Wal-Mart and AISID projects. None of the traffic improvements
funded with tax Increment revenues will be located on the Wal-Mart este. They are hated on Stillwater
Avenue and Hogan Road and wfll benefit existing development in the Mall area along with facilitating
further Invesbnent and development in the area.
The project Is proJected to generate $300,800 in new annual real estate tax revenue. The proposed Mall
Area Traffic Infrastructure Tax Increment Financing District would capture 50% of the new real estate tax
revenues generated by the Wal-Mart development to repay a 10 year, $1,050,0001wnd usetl to finance
the additional traffic improvements required.
Depxrbnern Head
Manager's Comments:
Recommend approval, as does Business and Economic Development
i?U3uC gMZIaG RIQuIR£D
City Manager
Associated Information:
Budget Approval:
Finan DkeMr
passage
_ First Reading
Refibrrel
AsvgoedWComcilor D'Errico February 11. 2008
o .,+ CITY OF BANGOR
(TITLE.) ORDER Designating Mall Area Traffic Infrastructure Municipal Development
and Tax Increment Financing District and Adopting a Development
Program for the District
WHEREAS, the City of Bangor (the "City") is authorized, pursuant to Chapter 206 of Tide 30-A
of Ne Maine Revised Statutes, as amended, W designate a specified area within
the City as the Mall Area Traffic ahfrasuuRure Municipal Development and Tax
Increment Financing District (the "Disbidj and to adopt a Development Program
far the District, and
WHEREAS, Mere is a need for economic development in the City, in the surrounding region,
and In the State of Maine; and
WHEREAS, Mere is a need to improve and broaden Ne tax base of the City of Bangor and to
improve the general economy of the City and the surrounding regmn; and
WHEREAS, implementation of the Development Program will help to improve and broaden tre
tax base In the City and Improve the economy of the Ory and the region; and
WHEREAS, there is a need to implement economic development initadves in the Bangor Mall
and Penjajawoc Marsh Area as well as the duwntown area of Bangor through the
establishment of the District In accordance with the provision of Chapter 206 of
Title W -A of the Maine Revised Statutes, as amended; and
WHEREAS, the City desires W designate the District and W adopt Me Development Program;
and
WHEREAS, it Is expected that the Maine Department of Economic and Community
Development (the "Department") will approve the designation of the District and
the adoption of the Districts Development Program;
BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT
Sactiort The City of Bangor hereby designates the Mall Area Traffic Infrastructure
Municipal Development and Tax Imminent Financing District and adopts the Development
Program for such District, such designation and adoption to be pursuant W the fdlowing findings,
terms, and provisions.
Sssdg" The City Coundl hereby finds and determines that:
a. At least twenty-five percent (25%), by area, of the real property within the Disurd,
as hereinafter designated, is suitable for commercial uses as cleared in 30-A M.R.SA. § 5223; and
A 09"s
b. The total area of the District does not exceed two percent (2%) of the total
acreage of the City, and the total area of all existing and proposed development tax increment
financing distk6 within the City except for the existing Bangor Downtown District does not
exceetl five percent (5%) of cine total acreage of the Dry; and
C. The original assessetl value of the District plus the original assessed value of all
aastng tax increment financing disthcls within the CIN does not exceed five percent (5%) of the
total value of taxable property within the City as of April 1, 2007; and
d. The aggregate original principal amount of municipal indebtedness financed by the
proceeds from existing tax Increment financing districts within Penobscot County does not exceetl
$50,000,000; and
e. The designation of the D6Wct and pursuit of the Development Program will make
a contribution to the economic growth and well being of the City of Bangor and the surrounding
region and will contibu[e fo the betterment of the health, welfare, and safety of the inhabitants
of the City of Bangor, including a broadened and improved tax base and economic stimulus, and
therefore mnsGhRs a good and valid public purpose.
Section 3. Pursuant to the provisions of 3 A MRSA. § 5227, the percentage of
Increased assessed value to be retained as captured assessed! value in accordance with the
Development Program is hereby established as set font in the Development Program.
$Wg' n 4, The City Manager, or his duly appointed repmeantattve, is hereby authorized,
empowered, and directed to submit the proposed designation of the District and the proposed
Development "am for the District to the State of Maine Department of C nomk and
Community Development for review and approval pursuant to the requirements of 30-A M.R.S.A.
¢ 5226.
Section S. The foregoing designation of the DisfiR and the adoption of the
Development Program for the District shall automatically become final and shall take full force and
effect upon receipt by the Clry of approval of the designadon of tie District and adoption of the
Development Program by the Department of Economic and Community Development witimut
requirernenth of further action by the City, the City Council, or any other party.
Section & The City Manager, or his duly appointed representative, is hereby authorized
and empowered, at his diseetom, from time to time, to make such rev8iens to the Development
Program for the Diiatict as the City Council, or its duly appointed representative, deem reasonably
necessary or convenient in order to facilitate the process for review and approval of the District by
the Department of Economic and Community Development or for any other reason, so long as
such revisions are not inconsstent with this order or the bask structure and intent of the
Development Program.
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