HomeMy WebLinkAbout2002-11-25 03-22 ORDERItem No. 03-22
Date: November 25, 2002
Item/Subject: Supporting the Proposed Redevelopment of the Bangor Waterworks
Buildings lead City of Bangor Support for this Project
Responsible Department: Community and Economic Development
The Shaw House has submitted a proposal to the City for redevelopment of the Bangor Waterworks into
35 efficiency apartments affordable to low and moderate income persons. The Shaw House is seeking
financing commitments for the project from the Federal Home Loan Bank and the Maine State
Housing Authority through its Low Income Housing Tax Credit and Rental Loan Programs. The
Shaw House is also pledging investment of 8495,4888 in developer fees. These funds would
provide a projected 83% of the financing needed to successfully complete the project. The
Shaw House is requesting the attached Resolve be passed by the City Council in support of the
Waterworks project, demonstrating an intended commitment by the City of up to 17% of
projected project costs not to exceed one million dollars. The intended source of these funds
would be from Tax Increment Financing made possible through new tax revenues generated by
the project, from the City's federally funded Community Development Property Rehabilitation
Loan Program, and from funds currently appropriated by the City Council for improvements to
the Waterworks facility.
Managers Comments:
Associated Information:
Department Head
I�r-
City Solidmr
Introduced for
X Passage
First Reading Page _ of
_ Referral
03-22
FwF " K Assigned W Wuciloi Palaev November 25. 2002
CITY OF BANGOR
(T[T1E.) Resolve, Supporting the Proposed! Redevelopment of the Bangor Waterworks Buildings and
City of Bangor Financial Support for this Project.
WHEREAS, the Qty Of Bangor a the owner of the Bangor Mier orfs property located! on State Street
on the Penobscot River in Bangor: and
WHEREAS, the Bangor Waterworks has been designated! a HislU do Landmark by the Qty Council under
the provision of the Cihes Historic Preservation Ordnance; and
WHEREAS, The Bangor Waterworks buildings are in a deteriorated condition arid are in danger of being
lost as a historic resource to the thaws of Bangor; and
WHEPE S, the Qty, since ceasing use of the fadlity for electical power generation, has unsuconsfully
sought proem redevelopment and reuse of the property; and
WHEREAS, the Bangor Waterworks is a liability to the Qty and its resources; and
WHEREAS, the Shaw House has submited a proposal on the City for the redevelopment of the Bangor
Waterworks into thirty-five units of Musing which would be affordable W persons of low -
to moderate- Incomes (the "PROJECT'); and
WHEREAS, there appears W be substantial financial support for the PROJECT through the Maine State
Housing Authority Rental Loan Program, the Federal Home Loan Bank, low intone
housing tax credits available through the Maine State Horsing Authority, and the pledge
of developer foes by the Shaw House as developer of the PROJECT; and
WHERHS, it a projected that dues funding resources, aldhough seconded W provide apProdmately
83% of the funds needect will be Inadequate W complete the successful redevelopment of
the PROJECT; and
WHEREAS, a request has been made to sire CIW to provide the projected gap in financing needed as
successfully complete the PROJECT:
NOW, THEREFORE, BE IT RESOLVED By THE CITY COUNCIL OF THE CM OF BANGOR, THAT, subject
to the availability and eommroments of other funding from other sources needed to successfully
complete and operate the PROJECT, the CII1' will enter an agreement or agreements with the Shaw
House that, in addition to the dmaton of the Bangor Waterworks far the purposes of the PROJECT,
would porde funds In support of the PROJECT In an aggregate total amount not to exceed seventeen
(Sn percent of total pmject cost up to a maximum of One Million Dollars, from funds made available
to the CRY from new tax revenues generated by Me PROJECT through Tax Increment Financing under
the applicable provalmtate law, from,Cs of Scene Development Block Grant funds available from
the CITY's Community Development Property Rehabilitation Loan Program, and from funds currently
appoPrated by the CITY for improvements W the Bangor Waterworks.
IN CIn COIbCM
November 25, 2002
Notion Made and Sewuded
for Passage
Councilor Robman abstained
frun discussion and vote "a
W a previously astablfabea
conflict
Doug Rwabara, representing
Shop Noose. gave details of
thta Redevelopmeu[ Project
and the fiumcing for the
Pr,jec . Tam Coca , Historic
Preservation Co®las]m
supported Clefs Resolve
Notion for Passage Snuffed
Oeste: ) yes. 1 an,
I abstaining
Councilor voting yes: Allen.
Crwley, Facedown. Greeve.
Sculley, Palmer B Tremble
Councilor voting m.
Farrington
Councilor abstafnfag:
Robert,
Passed
i C CLffi
R NSOLVE
(TITLE,) SUNpOctIft the Ptposed Redevelopment
of the Senator Waterworks Buildings and City
of Bangor Piomcfal Support for this Project
Assigned Councilor