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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. x8 cxY[ C1 20 Pe ll,1, 3008 Xotim !lade avd Seconded I p 08-093 to p [be Puhllc 9earivg Pob1le fra th Op bUc 0 8 0 8 0. Fo r f[w [he public cme pa[va[d Fotion Fnde and Se ari d to lnfra d Fesi®aHne Mall Atea Tref Ic Close the Public gea[ivg xn£raetmcture Fnpicipal 8evelopmievt Public' 8earivg Clnaed add "O xnaaaent lL ntve ogra* t lbtia.Fede e� 8ecovded and 9doping egeveloprevt Program for aeasge for Poe niatrie. 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