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Home My WebLink About2002-06-24 02-267 ORDERItem No. 02-267 Dace: 0une 26, 2002 Item/Subject: Authorizing Development Agreement- Engineered Materials of Maine, LLC Responsible Department: Community and Economic Development This Order would approve a development agreement with Engineered Materials of Maine, LLC, that vrould provide for a return of 50% of taxes paid on any increase in assessed value of 110 Hildreth Street over the April 1, 2002 assessment, and on any increase in assessed value of personal property used by Engineered Materials of Maine, LLC at 110 Hildreth Street, for a maximum of 20 years, an long as Engineered Materials of Maine Operates an engineered wood products manufacturing facility at 110 Hildreth Street. Manager's Comments:'$rFD.a.wnna+e6n o ffaenr.Q VV !C City Manager Finance Director Legal Approval: H Solicitor _ Passage _ First Reading Page _ of Referral 02-26) Assigned m Councilor Tremble June 26, 2002 a CITY OF BANGOR (TITLE.)Order, Authorizing Developtierst Agreement— Engineered Materials of Maine, LLC By [he 01y Coaxi/oftlre 01y ofEmpor. ORDERED, THAT WHEREAS, Engineered Materials ofMaine, LLC propose b establish an engineered wood products manufacturing facility N the City of Bangor, and WHEREAS. Engineered Materials of Maine is seeking a development agreement with the City of Bangor, NOW, THEREFORE, BE IT ORDERED BY THE CITY COUNCIL OF THE CITY OF BANGOR THAT the City Manager is hereby authorized in execute a Development Agreement with Engineemd Materials of Maine, LLC for development of an engineered wood products manufacturing facility at 110 Hildreth Street, Bangor, Maine, a copy of which is on file in the Office of the City Clerk and in a final form as approved by the City Solicitor or Assistant City Solicitor; and BE IT FURTHER ORDERED THAT the City Manager is hereby authorized, on behalf of the City of Reagan, to carry out the terms of the Development Agreement hereby approved, in a final form or fonts as approved by the City Solicitor a Assistant City Solicitor. IN CITY COUNCIL Sane 26. 2002 Notion Hade and Seconded ♦' for Passage R 02-267 Passed 2 26]Passed nn (TITLE tnurizi �ac emem-t -En-�ei4ed Materials of Maine. LLC Assigned to Councilor sn I f 00- 02-262 DRAFT DEVELOPMENT AGREEMENT CITY OF BANGOR AND ENGINEERED MATERIALS OF MAINE, LLC This Agreement is made and entered into as of lune , 2002 by and between the City of Bangor (hereinafter "City"), a municipal corporation located in Bangor, County of Penobscot, State of Maine, and Engineered Materials of Maine, LIC, a Maine Limited Liability Company with a place of business in Bangor, County of Penobscot, State of Maine. FJvQ1* 6T4YH WHEREAS, Engineered Materials of Maine, LLC has proposed to establish an engineered wood products manufacturing facility at 110 Hildreth Street in Bangor, Maine; and WHEREAS, Engineered Materials ofMome, LLC has requested assistance from the City; and WHEREAS, the estimated war of establishing the engineered wood products manufacturing facility requires an investment of $2.8 million from investors and financial ivstitutions in addition to (be war of leasing the property at 110 Hildreth Street from the City; and WHEREAS, Engineered Materials of Maine, LLC will secure not less than $2.8 million in private financing and equity for the project; and WHEREAS, Engineered Materials of Maine, LLC projects employment of 18 salaried positions and 68 hourly positions at full production by 2005; and WHEREAS, completion of me engineered wood products manufacmnng facility will create a significant public benefit by providing new employment opportunities and siguificarmy enhancing the tax base of the City; NOW, THEREFORE, M CONSIDERATION of the mutual promises and covenents contained in this Agreement, the City and Engineered Materials of Maine, LLC agree as follows: 1. Engineered Materials of Maine, LLC shall commence operation of an engineered wood products manufacturing facility at 110 HBdreth Street in Bangor, Maine prior to December 31,2002, Page 1 of 3 2. Engineered Materials of Maine, LLC agrees to invest not less than $2.8 million secured privately, in its engineered wood products maanfachuing facility located at 110 Hildreth Street in Bangor. 3. Engineered Materials of Maine, LLC agrees to provide evidence by Jane 30, 2002, satisfactory to City Solicitor of City, of legally binding private lender Bouncing commitments and equity investment of not less than $2.8 million for financing of its engineered wood products manufacturing operation at 110 Hildreth Street in Bangor. 4. City shall rebate to Engineered Materials of Maine, LLC 50% of the real estate taxes paid to the City of Bangor by Engineered Materials of Maine, LLC, on any increase in assessed value of 110 Iildreth Street over its cannot assessed value of $1,067,400, every you for a period of twenty years from the date of this agreement, provided Engineered Materials of Maine, LLC employs no fewer than 9 salaried and 34 new employees in its engineered wood products manufacturing facility at 110 Hildreth Street in Bangor. City shall pay the rebate to Engineered Materials of Maine, LLC within ten (10) days after Engineered Materials of Maine, LLC has provided City with evidence of payment of the Lanes and of the number of employeasapplicable. The numberof fall time employees shall be the number of full time employees employed by Engineered Materials of Maine, LLC engaged in engineered woad products numufachuing at 110 Hildreth Street on April l of each year of the twenty years m which Engineered Materials of Maine, LLC maybe entitled Wthe real estate bx rebate. in order to receive said rebate, Engineered Materials of Maine, LLC shall locate and maintain its engineered wood products manufacturing operation at 110 Hildreth Street in Bangor. 5. City shall rebate to Engineered Materiels of Maine, LLC 50% of the personal property taxes paid m the City of Bangor by Engineered Materials of Maine, LLC, on my machinery and equipment located and used by Engineered Materials of Maine, LLC at 110 Hildreth Street, every year for a period of twenty years Dorn the date of this agreement, provided Engineered Materials of Maine, LLC employs no fewer than 9 salaried and 34 new employees in its engineered woad products manufacturing facility at 110 Hildreth Street in Bangor. City shall pay the rebate m Engineered Materials of Maine, LLC within ten (10) days after Engineered Materials of Maine, LLC has provided City with evidence of payment of the mxesmdoftMnumberofemploymsapplicable. Thenumber of full time employees shall be the number of full time employees employed by Engineered Materials of Maine, LLC engaged in engineered wood products manufacturing at 110 Hildreth Street on April t of each year of the twenty years in which Engineered Materials of Maine, LLC may be entitled to the real estate Lex rebate. In order to receive said rebate, Engineered Materials of Maine, LLC shall locate and maintain its engineered wood products manumcturing Warman at 110 Hildreth Street in Bangor. 6. Engineered Materials of Maine, LLC acImowledges that the City, in agreeing m provide assistance to Engineered Mateials of Maine, LIC, relied in material part upon the assured operation of an engineered wood products manufacturing facility at 110 Hildreth Street in Bangor and Engineered Materials of Maine, LLC agrees to use its best efforts to substantially begin its engineered wood produces manufacturing operation no later than March 31, 2003. Page 2 of 3 s- 7. Any notes which either party deshes or is required to give to the other in oowectiw with this Agreement shall be in writing and shall be sent postage prepaid, certified mail, return receipt requested, as follows: Ifto City: Edward A. Barren, City Manager CityofBangor 73 Harlow Street Bangor, Maim 04401 If to Engineered Materials of Maine, LLC: Jon Fiutak 110 Hildreth Super Bangor, Maine 04401 Or such other person and/or address as may be identified in writing by the parties. 8. Engineered Materials ofMeine, LLC shall not assign its rights under this Agreement without the prior written consent of City, which consent shall not be impressionably withheld, delayed or conditioned The City's obligations hereunder are contingent upon Engineered Materials of Maine, LLC's compliance with the terms and/or conditions set forth in this Agreement. 9. TheprdesimenddmtWsAgreemmtsOlopere mcomuctwdwwal,inwc nce with 14 MRSA Sec.751. WITNESS WHEREOF this Agreement has been executed sealed and delivered in duplicate cowtarmul as of the day and year first above wriaea. Witness ENGINEERED MATERIALS OF MAINE, LLC By Its President CITY OF BANGOR By Witness Edward A. Barrett Its City Manager Page 3 of 3