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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