HomeMy WebLinkAbout2004-07-12 04-229 ORDERItem Mo. 04-229
Date: July 12, 2004
Item/Subject: ORDER, Extending Realty Resources Chartered Tentative Developer Status -
Essex Street Uevebpme of Site
Responsible Department Community & Economic Development
Commerdary: One response was received to the CWs Request for Proposals for redevelopment of the
former Naval Reserve Center property on Esex Street. Realty Resources Chartered has proposed a 32
unit affordable housing project. The primary source of funding for Me project would be federal low
Income housing tax credits available through the Maine State Housing Audbodty. The City Council
granted Realty Resources tentative developer status to allow its application to Me Maine State Housing
Authority for low income tax credits m go forward. The application was successful, providing $2,556,417
in equity financing for the proposed project. The Business and Economic Development Committee has
reviewed the Realty Resources proposal and recommends Mat Me City Council extend the tentative
developer status previously granted Realty Resources by 90 days to allow time for City staff and Realty
Resources to negotiate a development agreement that would establish Me terms and considers under
which development of the site would occur. This Cider would extend Realty Resources exclusive status
as developer of the site until October 12, 2004. The proposed financing for Me project (who an
estimated $4,633,000 cost) B MSHA Tax Credit of $2,556,417; a MSHA RLP Loan of $614,424; a MSHA
Subsidy of $600,000; a City Community Development loan of $370,000; and City Tax increment financing
of $322,000. Passage of this Order does not obligate the City M provide the proposed City financing.
Department Head
Manager's Comments:
City staff will continue M work with Realty Resources on MIs project. A proposed development
agreement, should one be negotiated, will be returned te the Business and Economic Development
Committee for its reviev and recommendation and will require the eventual approval of the full City
Council. The extent of the required financial participation of the City may be problematic and will be a
major area of discussion WO the designated developer. a m a
laW
City Manages
Associated Wormation:
Budget Approval:
Finance Director
Legal Approval:
Solicitor
Introduced for
X Passage
_First Reading Page _ of
Referral
' Assigxdto Cowcilar Greene July 12, 2006
CITY OF BANGOR
(TITLE.) Order, Extending Realty Resouns Chartered Tentative Developer Status Flex meet
Development Site
WHEREAS, the Ory of Bangor issued a request for proposals for redevelopment of the former
Naval Reserve Center site on Essex Street and
WHEREAS, the only proposal received was from Realty Resources Chartered of Rockport,
Maine, which has proposed the development of 32 units of alfordable hawing on
this site; ant
WHEREAS, the proposal has been reviewed by the Business and Economic Development
Committee of the Qty Coundl; and
WHEREAS, by passage of Council Order 04-84 on February 23, 2004 the City Council granted
tenbtve developer status to Realty Resources Chartered for development of the
former Naval Reserve Center site on Essex Street; and
WHEREAS, Me Business and Economic Development Committee has recommended the City
Counal extend tentalrve developer status to Realty Resources Chartered until
October 12, 2004, duHng which time City staff and Realty Resources will negotiate
an agreement for consideration by the City Counol setting forth the terms and
conditions under which the development of the site would oats;
NOW, THEREFORE, BE R ORDERED BY THE CRY COUNCIL OF THE CM OF BANGOR THAT
the exclusive status ganhtl Really Resources Chartered as Lentative developer of the former
Naval Reserve Center site on Essex Street be extended to October 12, 20D4 W allow tme for
CRy staff and Realty Resources Onarteretl to negotiate a development agreement for
subsequent consideration by the Business and Economic Development Commitee and City
Council seting font the terms and conditions under which development of the site would
occur.
I9 CFP4 COONCIL
- July l2, 2004
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x 04-227
ORDER
(TITLE) Rsteaaing Realty Rasoarces
cbartered Tentative Developer Status -
Reset Street Development Site
Assigned to Councilor L-aP
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