On the agenda: Bangor meeting — data center (Apr 6)

AGENDA
Business & Economic Development Committee
Monday, April 6, 2026, 2026
73 Harlow Street – Council Chambers
Bangor, Maine
May immediately follow other Committees
1.

Continued Discussion on possible moratorium on data centers

2.

Proposed Changes to the Membership and Management of the Downtown
Parking Advisory Committee

3.

Review of Tax Increment Financing tools and Special Assessment Districts

4.

Downtown Bangor Partnership – Quarterly Report

5.

Community Development Block Grant Program – CDBG Week April 6th to 10th

6.

City Lease Review

7.

Executive Session: Acquisition of real property or economic development 1 M.R.S.A.
§ 405(6)(C)

8.

Possible Actions on Executive Session Items

Action request: Provide feedback to staff

Action request: Provide feedback to staff

Action request: Provide feedback to staff

Action request: None – for information purposes

Action request: None – for information purposes

Action request: Forward to Council

Upcoming Items:
Central Kitchen Update – April 2026
Short Term Rental Overview – April 2026
Code Division Overview of Procedures and Protocols – April 2026
Banair Review – May 2026
Feasibility Study Work on City-Owned Properties – May 2026

Memorandum
To:
From:
Date:
Regarding:

Business & Economic Development Committee
Planning Division
March 23, 2026
Data center moratorium

At the March 2nd B&ED meeting, staff outlined the challenges large-scale data centers could pose to Bangor
and presented regulatory tools the City may consider to mitigate negative impacts while preserving economic
development opportunities. At that meeting, Councilors expressed a desire for a moratorium in order to provide
adequate time to develop regulations on this use. Planning and Legal staff have drafted the attached
moratorium ordinance on this use for Councilors’ review; this moratorium would be retroactive to the initial
discussion about this issue at the March 2nd B&ED Committee meeting. If Council is amenable, staff will move
this language forward for formal adoption at the April 13th Council meeting. Due to the emergency nature of this
issue, staff request that Council waive the requirement for first reading for this ordinance and pursue second
reading at the meeting on the 13th. Council is able to do this with a 2/3 majority vote.

Item No

Date

CITY COUNCIL ACTION
Council Meeting Date: April 13, 2026
Item No:
Responsible Dept: Planning
Action Requested: Ordinance

Map/Lot: N/A

Title, Ordinance
Moratorium Ordinance on Data Centers in the City of Bangor, Maine.
Summary
The proposed ordinance would establish a 180-day moratorium on the development of data centers in the City
of Bangor, retroactive to March 2nd, 2026. The City of Bangor is suddenly experiencing increased development
pressure from data centers, which are a rapidly growing and evolving land use that typically require substantial
electricity and water usage for cooling and related operations, often generate air, water, and noise pollution,
and can take up a very large amount of land. Because this development pressure was unanticipated, existing
ordinances and development standards do not adequately address the unique infrastructure demands,
environmental impacts, impacts to neighboring property owners, and operational characteristics of data
centers. Therefore, the City Council finds that a moratorium of 180 days is necessary to develop and
implement the necessary amendments to the Land Development Code to accommodate and mitigate negative
impacts from this development pressure.
Committee Action
Committee: Business & Economic Development Committee

Meeting Date: April 6, 2026

Action:

For:

Against:

Staff Comments & Approvals

City Manager

Introduced for:

First Reading and Referral

City Solicitor

Finance Director

Item No

Date

CITY COUNCIL ORDINANCE
Date: April 13, 2026
Assigned to Councilor:

ORDINANCE, Moratorium Ordinance on Data Centers in the City of Bangor, Maine.
WHEREAS, the City Council of the City of Bangor, Maine, has a responsibility to protect the public health,
safety, and general welfare of its residents; and
WHEREAS, the City regulates land use and development to ensure that infrastructure systems, including
water supply and wastewater treatment, are adequate to support existing and future uses, and that potential
pollution is mitigated; and
WHEREAS, the City of Bangor is suddenly experiencing increased development pressure from data centers;
and
WHEREAS, data centers are a rapidly growing and evolving land use that typically require substantial
electricity and water usage for cooling and related operations, often generate air, water, and noise pollution,
and can take up a very large amount of land; and
WHEREAS, because this development pressure was unanticipated, existing ordinances and development
standards do not adequately address the unique infrastructure demands, environmental impacts, impacts to
neighboring property owners, and operational characteristics of newer data centers; and
WHEREAS, the potential cumulative impacts of data centers on Bangor’s municipal water supply, groundwater
resources, wastewater infrastructure, electrical grid, and air and water quality are not yet fully understood; and
WHEREAS, there is strong support for this Moratorium Ordinance from the Bangor Water District and
members of the public; and
WHEREAS, the City Council finds that allowing the establishment or expansion of data centers without the
presence of use-specific regulations could pose risks to water availability, wastewater system performance,
electrical grid resilience, environmental quality, quality of life, and the long-term interests of the community;
and
WHEREAS, a temporary moratorium will provide the City with necessary time to study these issues, consult
with experts, evaluate infrastructure capacity, consider appropriate regulations, and develop standards to
mitigate potential adverse impacts; and
WHEREAS, the City Council finds that a moratorium of 180 days is necessary to develop and implement the
necessary amendments to the Land Development Code to accommodate and mitigate negative impacts from
this development pressure; and
WHEREAS, amendments to the Land Development Code require a public hearing by the Planning Board and
City Council; and
WHEREAS, in the judgement of the City, these facts create an emergency within the meaning of 30-A
M.R.S.A. 4356 (1)(B) and require the following Moratorium Ordinance as immediately necessary for the

Item No

Date

preservation of the public health, safety, and welfare;
NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BANGOR AS
FOLLOWS, THAT a moratorium is hereby imposed, effective immediately and applicable to the maximum
extent permitted by law and subject to the severability clause below, on the acceptance, processing, and
approval of any applications, permits, or approvals related to the establishment, construction, expansion, or
operation of data centers within the City of Bangor until the effective date of the necessary amendments to
the City’s zoning and land use ordinances and regulations or until August 9th, 2026, whichever is earlier; and
BE IT FURTHER ORDAINED, that for the purposes of this Moratorium Ordinance, “data center” shall mean
any building, structure, or facility, or group thereof, whose primary use is the storage, management,
processing, or transmission of digital data, and which houses computer systems, servers, and associated
components, including but not limited to cooling systems, power supply infrastructure, and water-dependent
cooling technologies. This includes, but is not limited to cloud computing facilities, server farms, cryptocurrency
mining operations, artificial intelligence training or processing facilities, and data storage warehouses; and
BE IT FURTHER ORDAINED, that the Planning Division, Code Enforcement Division, Planning Board, Board
of Appeals, all City departments and all City employees shall neither accept nor approve any applications,
plans, permits, licenses, and/or fees for any new construction or uses governed by this Moratorium Ordinance
for such data centers for said period of time; and
BE IT FURTHER ORDAINED, that those provisions of the City’s Land Development Code and other
regulations which are inconsistent or conflicting with the provisions of this Moratorium Ordinance, including,
without limitation, the requirements for site plan review by the Planning Board, subdivision or Site Location of
Development review by the Planning Board, and variance appeals by the Board of Appeals, are hereby repealed
to the extent that they are applicable for the duration of the Moratorium Ordinance hereby ordained, but not
otherwise; and
BE IT FURTHER ORDAINED, that to the extent any provision of this Moratorium Ordinance is deemed invalid
by a court of competent jurisdiction, the balance of the Moratorium Ordinance shall remain valid.
EMERGENCY CLAUSE:
In view of the emergency cited in the preamble, this Moratorium Ordinance shall take effect immediately upon
passage by the City, shall apply, to the maximum extent permitted by the law but subject to the severance
clause above, to all proceedings, applications, and petitions not pending as of March 2nd, 2026, the retroactive
date of this Moratorium Ordinance, and shall stand repealed as of August 9th, 2026.

Community & Economic Development

Anne M Krieg, AICP - Director

Memorandum
To:
From:
CC:
Date:
Regarding:

BED
Anne Krieg
David Szewczyk, City Solicitor
April 1, 2026
Proposed Amendments to the Code for the Downtown Parking
Advisory Committee

Please accept this memorandum as a request for consideration to make amendments
to the membership, officers and meetings of the Downtown Parking Advisory
Committee. This request stems from conversations with the current Council liaison,
Councilor Leonard.
The proposed changes include:
1. Removing the Chair to be the appointed Councilor to the Committee. It is more
typical for the Councilor to function as a liaison to the Committee. The liaison
can be helpful to the full council when recommendations are made, as they will
have witnessed the proceedings. It is unusual for a Councilor in this role to also
vote and run the meetings. Instead, an at-large resident of Bangor is offered to
keep the committee membership at an odd number.
2. The language of the election of the officers was then added.
3. Required votes to pass votes of recommendation were added; this can be a point
of confusion and has needed modification for other committees.
The Committee serves to make recommendations regarding parking in the downtown
area. They work in response to Councilor requests, as well as requests from downtown
property owners. The Chair can also call a meeting. Staff has asked for Committee
meetings for the review of the 2024/25 Parking Study that was done alongside the
Village Partnership Project for downtown (traffic and streetscape improvement project,
pending full appropriation, partial work may occur in 2025-27.)
Thank you for your consideration of this request.
amk

City of Bangor, ME

§ 23-37

§ 23-37

ARTICLE V
Downtown Parking Advisory Committee
[Adopted 12-8-2014 by Ord. No. 15-015]
§ 23-35. Establishment; membership; term. [Amended 10-14-2015 by Ord. No. 15-330]
A.

There is hereby established a Downtown Parking Advisory Committee for the City of Bangor.

B.

The Committee shall consist of seven members:
(1) A City Councilor, who shall serve as Committee Chair Liaison, appointed by the Council
Chair;
(2) A person who resides within the Downtown Parking Management District, appointed by
the Personnel Committee of the City Council;
(3) A resident of the City of Bangor, with preference given to one who resides outside of
the Downtown Parking Management District, appointed by the Personnel Committee of
the City Council;
(4) The owner or manager of a business within the Downtown Parking Management
District, appointed by the Personnel Committee of the City Council;
(5) A person who owns property in the City of Bangor, appointed by the Personnel
Committee of the City Council; and
(6) Two members of the Downtown Bangor Partnership Board of Directors, appointed by
the Board; and
(7) A Bangor resident at-large.

C.

The term of each member shall be for two years, or until the member's successor has been
appointed; excepting that, for the initial terms only, two of the members appointed by the
Personnel Committee and one of the members appointed by the Downtown Bangor
Partnership Board of Directors shall be appointed for a one-year term. Any vacancy shall be
filled in the same manner for the unexpired term.

§ 23-36. Authority. [Amended at time of adoption of Code (see Ch. 1, General Provisions,
Art. I)]
The Downtown Parking Advisory Committee is hereby authorized to review the City's parking
resources, prices and fees, and policies as they relate to on-street and off-street parking in the
Downtown Parking Management District and make recommendations regarding the same to the
City Council and its appropriate committees.
§ 23-37. Election of Officers
A.

At the first meeting of the calendar year, there shall be the election of officers.

B.

The officers shall be the Chair and the Vice-Chair. The Chair shall facilitate the meetings
and be the point of contact for staff coordination. The Vice-Chair assumes the tasks of the
Chair in their absence.

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City of Bangor, ME

§ 23-37

§ 23-37

§ 23-38. Meetings; quorum.
A.

The Committee shall meet as follows:
(1) Quarterly, at a regularly established time and date, provided that there is business to be
conducted; and
(2) When requested to meet by the Committee Chair or by the City Council or City Council
Committee. [Amended 10-11-2023 by Ord. No. 23-294]

B.

A quorum shall consist of at least three Committee members; at least one shall be the
Committee Chair or Vice-Char.

C.

Motions of recommendations to the City Council may be passed by a majority vote of the
members present.

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Community & Economic Development

Anne M Krieg, AICP - Director

Memorandum
To:
From:
Date:
Regarding:

BED
Anne Krieg
April 1, 2026
Tax Increment Financing, Credit Enhancement Agreements and
Special Assessment Districts

Working with prospective developers and businesses, Economic Development staff use
various tools to promote development and encourage start-up or relocation to Bangor.
Some of these tools include financial supports for economic growth, infrastructure
improvements, and redevelopment projects. Commonly used options are Tax Increment
Financing (TIF), Credit Enhancement Agreements (CEAs), and Special Assessment
Districts (SADs). Each tool offers different benefits and tradeoffs regarding fiscal impact,
risk sharing, and public perception. This memorandum explains their purpose in
preparation for the Council’s future budget review.
Tax Increment Financing (TIF)
Overview
Please find attached the city’s current TIF policy.
TIF is authorized under Maine statute (30-A M.R.S. §5221 et seq.) and allows
municipalities to capture the increased property tax revenue (“increment”) from new
development within a defined district and dedicate it to approved uses.
Advantages
 Shelters new value from state formulas: Captured value is excluded from
calculations for state education aid, revenue sharing, and county taxes, helping
municipalities avoid financial penalties from growth.
 Flexible use of funds: Revenues can support infrastructure, economic
development programs, housing, arts & culture, staff time, and/or debt service.
 Encourages private investment: By reducing development costs or improving
infrastructure, TIFs can stimulate job creation and expand the tax base. Property
owners like the ability to use TIF funds for off-site improvements for their
development or that there is a dedicated fund for their district for enhanced
services and capital investments.

City of Bangor Community & Economic Development
TIF’s, CEA’s and Assessment Districts

 Local control: Municipalities determine district boundaries, duration, and
spending priorities (subject to state approval at the Maine Department of
Economic and Community Development - DECD).
Disadvantages
 Revenue diversion: Funds that would otherwise support general municipal
services are restricted to TIF purposes.
 Complex administration: Requires state approval, reporting, and long-term
compliance.
 Long-term commitment: TIF districts can last up to 30 years, limiting fiscal
flexibility.
 Equity concerns: Critics argue some projects would occur without TIF support,
effectively subsidizing private development.
The policy, then, is that the city considers a development or a district so important to the
overall economic health of the community that the use of TIF is in the general public
interest.
The Downtown TIF exemplifies this increased support. The Downtown TIF funds
improvements downtown, supports the work of the Downtown Bangor Partnership, and
covers debt service for projects like the Cross Center. This TIF will conclude in 2036,
after which the funds will transfer to the General Fund.
Note that TIFs can’t be extended unless a large development is expected that would
lead to the creation of a new district.
In Maine, TIFs can also be used for affordable housing projects. We have used this
program with Penquis and the Bangor Housing Authority. It is expected that one will be
requested for the Grandview project.
The annual budget for the use of TIF funds is reviewed by the City Council as part of
your budget review and approval process. The TIF budget is prepared for the City
Manager’s review by staff in CED, Engineering, Public Works, and Parks & Recreation.
2. Credit Enhancement Agreements (CEAs)
Overview
CEAs are agreements within a TIF district where a municipality gives back a portion of
the incremental taxes to a developer to help cover project costs.
Advantages
 Direct development incentive: Provides a predictable revenue stream to
developers, improving project feasibility.

pg. 2

City of Bangor Community & Economic Development
TIF’s, CEA’s and Assessment Districts

 Performance-based structure: Payments are typically tied to actual tax
generation, reducing upfront municipal risk.
 Leverages private investment: Can attract large-scale or catalytic projects that
might not otherwise occur.
 Reduces municipal bonding needs: Developers often finance improvements
upfront instead of relying on public debt.
Disadvantages
 Perception of “giving money away”: Public concern that tax dollars are being
returned to private entities.
 Opportunity cost: Incremental revenue is not available for broader municipal uses
during the agreement term.
 Negotiation complexity: Agreements require careful structuring to ensure public
benefit (jobs, investment thresholds, etc.).
 Risk of underperformance: If a project under delivers, the municipality may
receive less benefit than anticipated.
The policy directive with a CEA is that the particular project is important to the life of the
district, such that the use of TIF funds to pay for the agreement is in the general public
interest. Bangor currently requires applicants for a CEA to provide a pro forma so that
the city can see the anticipated profit/loss margins as well as to avoid a failed project.
CEAs have been utilized in the downtown TIF as well as for the affordable housing
TIFs. Typically, CEAs have a shorter duration than the TIF to lessen the burden on the
rest of the district to support a single project. With construction costs high for
renovations as well as new builds, particularly to bring existing buildings up to current
codes, the profit/loss margins are wider, making CEA requests more common.
Special Assessment Districts (SADs)
Overview
Special Assessment Districts (sometimes called benefit assessment districts) are areas
where property owners pay an additional assessment to fund specific projects or
programs. Unlike TIF, they do not rely on incremental tax capture but on direct
assessments tied to benefit received.
In 1991, the Assessment District was created in Bangor specifically for the Bangor
Center Development Corporation, now known as the Downtown Bangor Partnership
(DPB).
Advantages
•

User-pay model: Costs are borne by those who directly benefit from the services.

pg. 3

City of Bangor Community & Economic Development
TIF’s, CEA’s and Assessment Districts

•
•

•

No impact on state valuation formulas: Unlike TIF, SADs do not affect education
aid or revenue sharing calculations.
Transparent funding: Clear linkage between assessment and services enhances
accountability. The DBP budget is approved as part of the approval of the
assessment on an annual basis.
Useful for service gaps: Effective for financing specific services to reduce the
burden on the General Fund.

Disadvantages




Property owner resistance: Additional assessments can be politically difficult to
implement. It is not known if the 1991 action was difficult, though it was not a
unanimous vote. We do notify all property owners in the district if there is a
proposal for a rate increase (such increase is considered as a separate Council
Order.)
Limited applicability: The district’s applicability is established at its inception. To
modify a district, it must be dissolved and then re-done.

The policy regarding an assessment district is that the district holds significant
importance for the community but requires more attention, which the users should bear
the cost of. This approach helps reduce the overall burden on taxpayers in Bangor.
Please find attached the Council Order establishing the district. The process for
approving the assessment includes a noticed public hearing, a vote on the assessment,
and a separate vote on the budget. Additionally, a vote is conducted to authorize the
city manager to enter into a contract for disbursing funds. The budget is reviewed by the
Business and Economic Development Committee before the public hearing.
Comparative Summary.
Conclusion
In Bangor, TIFs and CEAs are effective, adaptable tools for economic development and
expanding the tax base, especially because of the state-specific “shelter” benefit.
However, they need careful planning to balance public and private interests. In contrast,
Special Assessment Districts are more focused and transparent, offering management
and marketing services to the district.
amk

pg. 4

The City of Bangor Tax Increment Financing and Credit Enhancement Agreement
Policy
Tax Increment Financing (TIF)
1-101 Background.

Municipalities are authorized under Maine law to adopt Tax Increment Financing (TIF) districts
by designating a boundary around a specific geographic area to promote local economic
development and support municipal projects. Under the TIF laws, found at 30-A M.R.S. §5221
et seq (for general economic development TIFs) and 30-A M.R.S. §5245 et seq (for affordable
housing TIFs), the original assessed value (“OAV”) of property in a TIF district is fixed in time,
and the municipality sets aside any increase in assessed value (“IAV”) that occurs because of
investment in the district. Tax revenues based on the OAV within a TIF District continue to flow
to the general fund, while taxes paid on the difference between the OAV and IAV expressed as
the captured assessed value (“CAV”) become TIF Revenues. Municipalities may use TIF Revenues
on projects authorized under the TIF statutes inside the TIF district, and projects outside the TIF
district but “must be directly related to or made necessary by” the TIF district, and project costs
unrelated to the location of the TIF district. Municipalities can also enter into credit enhancement
agreements (“CEA”) to provide a property tax reimbursement to a developer in order to incentivize
the development and attract new investment in the local economy.
1-102 Purpose.
The Tax Increment Financing (TIF) policy outlines the standards and processes that will be
used by the City Council, and staff in the Community & Economic Development Department, in
initiating or considering applications to establish a TIF and/or to enter into CEA agreements
within a newly established or existing TIF District. A TIF is important to municipalities as it helps
promote economic development and revitalizes areas that may be underutilized, fund
development costs/improvements needed to propel private development, and municipalities
attract new businesses, create more jobs, more customers and, in turn more private
investment. Regardless of, these guidelines, the creation of a TIF district or authorizing any
agreement under this policy is at the sole discretion of the Bangor City Council.
Example:
Assumptions: 75% (varies) TIF Revenue Capture, Mil Rate of $18.55 per $1,000
TIF Formula: $2,000,000(IAV) – $1,000,000(OAV)= $1,000,000(CAV)
= $1,000,000 (CAV) ÷ $1,000
= $1,000 x $18.55
= $18,500 x 75%
= 13,912.50 (TIF Revenue)
1-103 General Principles.
The primary principles to consider for establishing a TIF District include:
1. To support Bangor’s Economic Development Strategic Plan, capital
improvement program, and other related City Plans and Policies;

1

2. To stimulate the expansion of the City’s commercial and industrial tax base;
3. To create quality employment opportunities;
4. To encourage new affordable and market rate housing investment; and
5. To invest in infrastructure improvements.
6. Assist existing business to expand business opportunities
7. Create significant long-term employment
8. Support an emerging business sector
9. Introduce a unique or prestigious opportunity
10. Improve local economy
11. Improve blighted areas
12. Support community priorities
13. Create public benefits for other workers and/or businesses

1-104 Considerations.

Minimum Real Property Investment. A minimum of $1,000,000 in new real property investment

for commercial and industrial development, taxable personal property, or 6 units of affordable
housing development is needed to qualify for a TIF. This is the minimum investment which makes
practical sense to consider use of the TIF program due to the amount of new municipal property
tax revenue generated from new private investment.

Job Creation. Applicants for TIF participation that include the creation for jobs will be required
to provide a plan outlining the number and quality of jobs retained or created associated with
each TIF district. While there is not a specific formula for the numbers of jobs associated with the
amount of TIF financial assistance, the number and quality of the jobs will be taken into
consideration for each TIF district. Housing projects are exempt from these criteria.

Part A - Establishing a TIF District
1-201 Application Process.

TIF District applications (whether initiated by the City or requested by a developer or business)
will be initially reviewed and vetted by the City Manager and the Community & Economic
Development Director. If found to be in keeping with the City policy and priorities, the
applications will be presented to the Business and Economic Development Committee with final
approval by the Bangor City Council. Approval of the City Council will result in the submission to
the designated agency, whether that be the Maine Department of Economic and Community
Development (DECD) for economic development projects or Maine State Housing Authority
(MaineHousing) for affordable housing projects.
The Community & Economic Development Director will coordinate all activities regarding
applications and will assist the applicant throughout the TIF application and approval process.
The terms and specific details of each TIF district and any related CEA(s) will be developed on a

2

case-by-case basis. The City Manager and Community & Economic Development Director will
negotiate on behalf of the City of Bangor, on the merits of the project and this policy, following
the process identified within these guidelines. If an applicant is applying for a TIF and a CEA at
the same time, the application requirements and fees for both must be submitted before approval
of either. All representations of the City Manager and Community & Economic Development
Director are subject to approval of the City Council.
1-202 Application Requirements.
TIF District applications not initiated by the City are subject to the following provisions:
1. Application fee. All applicants requesting the designation of a TIF District shall pay a
non- refundable application fee of $1,500 at the time of application.
2. Documentation. An applicant must submit a letter with all supporting documents to
the Community & Economic Development Director outlining the proposed project.
a. Complete application
b. Certificate of Good Standing
c. Interior and Exterior photos
d. Proof of site control such as a deed
e. Architectural Renderings
f. Detailed Project Budget
g. Financial capacity demonstration
h. Business plan
i. Pro-forma
3. Costs and fees. Other fees such as legal ads and administration fees included in the
application fee.
4. Performance Reporting. All TIF agreements are reported annually
1-203 Approval Process.
1. Pre-application meeting with staff
2. Submit application to the City Council
3. Submit application to Maine Department of Economic and Community Development
(for economic development TIFs) or MaineHousing (for affordable housing TIFS) for
final approval,
1-204 Tax Increment Financing Expenditures.
There are three categories of expenditures for revenues generated through TIF Districts, if
authorized as approved project costs in a TIF District.:
1. City economic development programs funded directly through annual funding
requests and/or appropriations. Examples of municipal economic development
programs include paying for economic development staff, infrastructure costs, paying
for costs related to the construction or operation of public safety facilities, costs
associated with broadband infrastructure, costs related to planning, design,
construction, maintenance grooming and improvements to new or existing

3

recreational trails, costs associated with the operation and financial support of
affordable housing and housing programs and services to assist those experiencing
homelessness, City and regional marketing/branding, and other activities allowed
under the TIF statutes.
2. Projects financed by City bond or debt issuance. Issuance of municipal general
obligation bonds or other financial instrument is a mechanism that may be used to
pay for the cost of an allowable project.
3. Credit Enhancement Agreements (CEA). A CEA is a contract between a municipality
and developer or other party to assist an individual development project by using an
agreed-upon portion (up to all) of the tax increment revenue generated by the
investment to pay certain authorized project costs, including site specific
infrastructure or private individual project financing needs.

1-205 Guidelines for Municipal Economic Development Programs.
The process of allocating TIF revenues for approved project costs requires City staff to develop
economic development programs and budgets, conducted through annual review by the
Community & Economic Development Department, and ultimately approved by City Council.

1-206 Guidelines for Projects Financed by City bond or Debt issuance.
Investments should have benefits beyond one individual project with a focused emphasis on
supporting business and commercial development, redevelopment, or to support buildings in need
of redevelopment.

1-207 Guidelines for Credit Enhancement Agreements (CEA).
A Credit Enhancement Agreement (CEA) within a TIF district may be considered for investment
in infrastructure within the site or project financing needs. The process and guidelines for
issuing a CEA are outlined in the next sections of this document: Credit Enhancement
Agreement Overview.

Credit Enhancement Agreement (CEA)
2-101 Background.

A CEA is a financial mechanism that may be used as a stand-alone instrument. The CEA is a
contract between the municipality and developer or business to assist the development project
by using some or all the incremental tax revenues generated by the new investment to pay certain
authorized project costs with payments made directly to the developer or business.
2-102 Purpose.

4

This policy outlines the standards and processes that the City of Bangor will use in initiating or
considering CEAs within existing or proposed TIF Districts. A CEA is a financial mechanism, if
approved by the City Council, to be one of Bangor’s economic development tools for business
attraction, retention, and expansion. Regardless of these guidelines, the creation of a CEA is a
decision made by the City Council on a case-by- case basis. Obtaining a CEA is a not a right under
Maine law, and meeting these guidelines should not be interpreted as creating any rights or
entitlements in any application.
Example:
Assumptions: CEA = $70,000 (New Taxes) × 65% × 10 years
CEA = $70,000(New Taxes) × 65% × 10 years
= $70,000 × 65% × 10 years
= $45,500 × 10 years
= $455,000
This means that over 10 years, the developer will receive back $455,000 from the increased
property taxes, which they can use to offset development costs.
2-103 General Principles.
The primary principles to consider for determining whether to create a CEA include:
1. To support Bangor’s Economic Development Strategic Plan, capital improvement
program, and other related City Plans and Policies;
2. To encourage new housing investment; and
3. Create new jobs
4. Assist existing business to expand business opportunities
5. Create significant long-term employment
6. Create or expands public infrastructure
7. Support an emerging business sector
8. Introduce a unique or prestigious opportunity
9. Improve the local economy
10. Broaden the tax base
11. Improve blighted areas and sites
12. Support community priorities; and
13. Create public benefits for other workers and/or businesses.

5

Part A - Establishing a Credit Enhancement Agreement (CEA)
2-201 Considerations.

The following criteria shall be considered in authorizing CEA for economic development or
affordable housing:
1. Would not likely occur otherwise
2. Creates housing developments
3. Creates or retains employment opportunities
4. Expands the City’s tax base; and
5. Conforms to the quality and types of development sought by the City as outlined in
the Land Development Ordinance, Comprehensive Plan, Economic Development
Strategic Plan, the Tax Increment Financing District Development Programs, and/or
other plans and policies adopted by the City Council.

2-202 Application Process.
CEA applications may be considered by the City Manager, Community & Economic Development
Director, and the City Council, with all final approvals by City Council. The Community & Economic
Development Director will coordinate all activities regarding applications and will assist the
applicant throughout the process. The terms and specific details of each CEA will be developed
on a case-by-case basis. The City Manager and Community & Economic Development Director
will negotiate for the City based on the merits of the project and these guidelines following the
process laid out in this document.

2-203 Application Requirements.
Applicants for a CEA are subject to the following provisions:
1. Application fee. All applicants requesting the designation of a CEA shall pay a nonrefundable application fee of $500 at the time of application.
2.

Documentation. The following documentation shall be included in all applications for
a CEA

•

All financial disclosures, reporting, and other documentation the City of
Bangor will be coordinated at pre-application meeting.

3. Financial Capacity. The applicant must demonstrate financial capacity to undertake
the project. All financial disclosures and financial capacity determinations will be
conducted, reviewed, and certified by pertinent staff. The applicant must be
compliant with all statutory and regulatory guidelines of the City of Bangor and the
State of Maine. The applicant shall not have engaged in illegal or unfair labor and
employment practices, unsafe employment practices, or adverse or illegal
environmental practices. No outstanding code violations shall be present without a

6

development agreement.
4. Terms. The specific terms of each CEA are negotiated on a case-by-case basis
between the City and the applicant. As a general guideline any CEA should contain
the following:
•
•
•

Financial Need: The applicant must demonstrate that the City’s participation
is financially necessary in order for the project to proceed.
Maximum Percentage: A maximum average percentage of 65% for the
entire term associated with an individual CEA, except that the percentage
reimbursement for affordable housing projects may be up to 100%.
Maximum Number of Years: negotiated to match individual private sector
commercial financing terms.

5. Costs and fees. Other fees such as legal ads and administration fees included in
application fee. All CEAs shall provide for an annual administrative fee due to the City
of Bangor, equal to one percent (1%) of the obligated CEA payment due to the
applicant, provided they follow all the terms and conditions of the CEA. Regardless
of the amount derived using the one percent (1%) calculation, the minimum annual
administration fee shall be two hundred and fifty dollars ($250). The fee shall be
deducted from the tax recapture due to the applicant, prior to the remittance of any
amounts to the applicant during the life of the CEA.
6. Performance reporting. All CEAs shall provide for the applicant to submit reports and
documentation in a form satisfactory to the City supporting any amounts to be paid
to the applicant per the terms of a CEA between the applicant and the City to assess
an applicant’s performance and compliance with the terms set forth in any CEA.

2-204 Approval Process.
1.
2.

Pre-application meeting with staff
Submit application to City Council

2-205 Guidelines for Level of Municipal Participation.
In addition to general principles, as applicable, the following shall be considered in determining
the level of participation by the City of Bangor.
1. The project assists an established business in the City of Bangor, thus retaining
existing employment opportunities;
2. The project supports or will support community projects, provides job training,
provides student internships, supports local contractors and suppliers;
3. The developer has a responsible history with property tax payment and pledges
continued responsibility.

7

0
Item No.

Date

Adopting Municipal Development

Item/ Subject:

for the Bangor Center

Responsible Department..

Community

Program

Development

and economic

91- 35E

and Budget

District
Development

Commentary:
See

HEARING -

Attached

Memorandum)

Prior to voting on this Order,

the Council is

required to hold a Public Bearing on the Municipal Develop-

ment

Program

and Budget

for the Bangor Center

Development

District.

The purpose of this Order is for the City Council to

consider the Program to be implemented

Development District.
Municipal Development

for the Bangor Center

The Program has been prepared by the
District Advisory Board,
Na

N.

s

mrver E
PUSLIC
Oen

v INWVUCien,

a% mym
mom, oyefi nwst°+xar•I
wrlr
An

xl / ImA

iwYR /

manager' s Comments: .

w"e

an

omur....

INr

wo1i aerm.

ial
fd'mfb[
Associated

az

Information:

pp
we Dirc

Legal Approval
Car sxrdro.

Int mirmd Far

dklnt
posse&Reaaipg
Ref¢nal

page —

of—

91- 256

Asgnp

w Co mato.

CITY

Adopting

Budget

Municipal

for

the

Sullivan. June 24, 1991

OF

BANGOR

Development

Frog ram and

Bangor

Center

Development

District

By aw CUY OZONE of 04 coy of Ba mn.
ORDRRRD',

THAT
in

the

WHEREAS,

downtown

District

known

accordance

area
as

with

by action of the City Council

has

the

been

Bangor

30- A

designated
Center

M. R. S. A.

WHEREAS,

30- A

S

M. R.

as

Development

5253( 1);
S.

A.

S

a certain area

a Municipal

Development

District

in

requires

that

and
5253(

2)

governing body of a Municipality shall adopt a development
for each

development

district;

WHEREAS,
Board

has

recommended

by the City

and

the Municipal
a

proposed

Development

development

District

program

to

be

Advisory
adopted

Council,
NOW,

THEREFORE,

BY THE

CITY COUNCIL

OF THE CITY

BANGOR:

ORDERED,

5 5253( 2),
Corporation
program for

the

program

THAT in accordance

with

30- A

M. R. S. A.

does hereby adopt the " Bangor Center Management
Program and Budget,
1991- 1992°
as the development
the Bangor Center Development
District.

OF

91- 256
ORDIR

In City Council

June

24. 1991

Title,

Public hearing was held
along
91-

with

2574

council

91-

258,

Adopting Municipal Development Program

orders

I........................ ?{

91- 259
and

Council

voted

No

the following

conflict

Budget

for

the

Bangor

Center

for

Councilors

Brankel. Baldacci. 5ullivan.

Anfe¢ d to

Cohen

G. . .

for the following

Councilors

s ... !..........
Councilman

Sawyer. Stone

Vote
5

for

Passage

yes .

2ND

voting

Yes

2 Abstained

Bragg, Frankel. Saz1,
Sosnaud,

voting

5ullivan

No

Beldaccl,

A

Cohen,

Abstaining Order

ypM

Sawyer ,

Stone

Passed

City Clark

u

J

91- 256

MEMORANDUM

Jose

T0:

City

PROM:

Rodney G.

RE:

Bangor

13,

1991

Council

McKay,

Center

Four City Council

q

Community Development

Development

Orders

Director A, y

0

District

and two public

hearings

required

to

continue

funding of the Bangor Center Management Corporation. are

scheduled

for the June

The purpose
of

the

24,

1991

of the first

proposed

Development

City Council

public

hearing

Program (

the

meeting.
is to consider

means

and

adoption

objectives,

including the proposed budget, to be implemented within the Bangor
Center Development District).
Notice of this hearing was published
in the June 13th edition of the Bangor Daily News ( copy of Notice
attached).

The Becond
assessments.
a

public

Bangor

public

notice

Dally

estimated

was

and

in

News which

size,

will

dollars

is

in

the

included

for

be to consider

extensive

published

assessments

0. 99 per thousand
reduced

hearing

To comply with

implementation

statutory notice

June

13,

1991

a list of all affected

each,

and

a

maximum

of

assessed

value. (

rate

of

for the required
follows:

Orders

should

be

as

HEARING -

Public

Development
Center
ORDER -

the

properties,

assessment

of

A copy of the Notice,

four

91-

of

attached.)

The City Council Agenda sequence
Council

requirements,

edition

Development

Adopting
Budget

Hearing

Program

the

on

the

Budget

Municipal
for

the

Bangor

District

Municipal

for

and

public hearings

Development

Bangor

Center

Program

and

Development

District

HEARING -

Public

implementation
Center

91-

ORDER -

Development

Bangor Center
Establishment

Hearing

on Establishment

Assessments

for

the

of

Bangor

District

Development
District of implementation
Assessments

91-

OMER -

Establishing
the Amount of the Tax Rate and
Overlay for the 1992 Fiscal Year for the
Bangor

91-

ORDER -

Center

Authorizing
Center

Development

Execution

Management

District

of Contract

with

Bangor

Corporation.

The budget proposed by the Municipal Development District
Advisory Board and the Bangor Center Management
Corporation
i
84, 892. 00,
all of which is proposed to be raised from implementation
assessments

on

property

owners

The special assessment
district
0. 9499

budget

within

of

assessed

value

assessments
ants
based

district assessed value of $ 89, 365, 000.
4 cents)

per $ 1, 000

in a total
assessed

of assessed

implementation

value,

the

amount

district.

rate needed to fund the $ 84, 892. 00

from implementation

per $ 1, 000

the

indicated

an

A comparison
Management

RGM/ lg
Attachments:

AS

of prior years
Corporation

is

estimated

is

recommended,

rate of $ 0. 9900
in

the

public

the " Maximum Rate of Assessment"
for the period
1991 and ending on June 30,
1992.

Center

in the coming

year

is

total

An overlay rate of $ 0. 0401

valuation

assessment

on

assessments
attached.

resulting

per $ 1, 000

hearing

commencing

and funding

of

notice

as

on July 1,

of the Bangor

PROPOSED

FUNDING

BANGOR

CENTER

DEVELOPMENT

PECIAL

ASSESSMENTS

JULY 1,

1991 to J UNE 90, 1992

DISTRICT_

CITY FY 1902

I CITY PARTICIPATION

06/ 1851
PROPOSED %

08: 57 AM

CITY FY 1992

BUDGETS

SPECIAL
JULY 1,

FILE: DEVDIS92

ASSESSMENTS

CITYFY1991

CHANGE

I CITY PARTICIPATION

1987 b June 50, 1992

19 - Jun - 91

91- 256

BANGOR

CENTER MANAGEMENT
Program

and
1991-

CORPORATION

Budaet
92

As we look at the downtown during this period of

economic

downturn,

we

find

that

most

of

the

businesses

are

holding steady with some experiencing a slight growth. There
are some, however, which have found that they could not

maintain their overhead costs and have closed. Fortunately
these have been very few. Everyyonescutting back, trimming
costs

and hoping

future.

are

to emerge

in the near

for some stores as many

should

even

reporting
It

for a better market

This seems to be occuring
better

spring

also

be

sales.

noted

that,

found it difficult to continue,

as

some

stores

have

others are moving into the

downtown.
One store on Central
Street doubled
another antique shop opened on a second floor

its
and

size,
Nr.

Paperback has opened another, slightly different, branch.
Bett' s Bookstore,

although closing under present ownership,

has been sold and the new owners are interested in remaining
downtown. A small restaurant on Hain Street has unfortunately
left the downtown but, at least ismoving to larger quarters
elsewhere. -

In such

times

Bangor

Center

management

Corporation,

ever

mindful of the increased burden of escalating property taxes,
has

given

great

intention

of

minimizing

consideration

eliminating

any

to

its

budget

expenditures

with

the

possible

and

others.

We have researched the possibility of expanding our

boundaries

but have

received

many indications

that

this

i

not an appropriate time to do so. We will be looking at this
action

again some

time

in the

future.

It is a part of our philosophy
catalyst for Vetting things started

that we should serve as a
to develop ideas and

take the initiative. We are taking the approach this year,
now that many projects
se

responsibility

up to undertake

are firmly
for

their

new projects.

in place,

to let others

continuation.

This

frees

we are also very pleased

us

to

have been approached

recently by three major organizations

who

co- sponsors

would

like

to

be

major goal

to " reawaken

measure

success.

of

interest

in

new

events.

in downtown",

As

this

it

is

our

is a

To speak briefly to the " reawakening of interest in
downtown...
if every event, every new development occured
solely because SCMC generated the action it would be a sign
that we were the only ones who were interested in the
downtown

and

that

overall

what

we

are

District

is

businesses

business,

its

economic

interest
aiming

for.

afunction

who

feel

do their

is

health

would

increasing
The vitality

of

that

the

number

it is the

shopping,

find

be

suspect.

in the area
of

the

of

persons

place

is

Central

fact

exactly
Business

and

to conduct

entertainment

The

their

and to live.

Major
w home

renovations

to the Tarratine

for an existing

new business,

rehabilitation

house

at

and

restoration

128- 110 Hammond

optimistic

outlook

has

of

Street

returned

the

Clark

signs

Downtown

It is important that BCMC continue,

will

provide

a

total

Cyrus

are all
to

Club

the

double

that an

Bangor.

particularly during

difficult economic times. It is during this kind of an
economy that we are having success in pulling retailers

together to work for the common good. Joint advertising

ventures

and plans

to promote

only benefit everyone.

business
and

the

downtown

as a whole

is a part of a greater whole is an important

one which

can

The emergence of the feeling that each

is resulting in an emphasis

community".

2-

step

on the " downtown

1991- 1992

T

PROGRAM

IMVrOVe
A.

OF

Downtown

NO"

Bangor

Design

1.
In order to demonstrate the viability of
renovating upper story spaceinto living quarters we will
undertake a - demonstration project which will . take . existing
pace and design an apartment and develop approximate cost
figures.

2.

As an element

in our up - coming

campaign

to

emphasize the historical content of downtown we will develop
a series

of placques

for each

building.

It is planned

that

with each property
owner' s participation,
these will be
mounted
on each structure of historical
significance,.
thus

providing
the

identification

area
B.

from

for those

interested

an

historical

perspective.

Technical

Assistance

Program

1.

We will

continue

to make technical

available to any property or business owner
them sources of financing, design ideas or
2.

We

will

provide

Historic Tax Credits
consist of assisting
filling

out

all

in exploring

assistance

in

the

assistance

suggesting

to

application

for

for building renovations.
This may
them with research or in actually

required

documentation..

3.
A major item on our program agenda will be the
development
of a Retail Market Analysis.
This will be done

in- house with the cooperation of the City' s Community
Development
will

Black Grant

provide

us

w businesses

Program.

with

solid

to the

area.

Information

information

This

value

with

of

based,
as the resulting information will
developing the waterfront area as wall. C.

this

from this

to

will

attract

be

broad-

be of use in

Promotion

1.

pent

gained
which

In aneffortto

in the downtown

to develop

maximize

we will

the advertising

work with

dollars

the retail

n on- going program of joint advertising.

wax

will

be able

mass

necessary

while individual
to

to promote

the

downtown

stores each contribute,
make

an

impact.
3-

committee

In this

as a whole,

thus creating the

2.

A continuous

effort

will

be

made

to

promote

downtown to residents of the Maritime Provinces
coming year.

As the result

sales

tax

in that area,

many more Canadian people will be shopping

in

the Bangor

and it

is important

people to the downtown

for shopping ,

3.

area

of a recently

the

in the up-

we will

be pramoting

that

by the weak economy

effort

many

the

that the downtown

businesses

we attract

these

dining and lodging.

special

are necessitated
among

increased

sales

incentives

which

and coordinating

so

that

this

it becomes

evident

as a whole becomes an attractive

shopping

the

we

opportunity.

4.

To promote

historical

value of downtown,

will

develop and distribute a brochure about the history of the
individual buildings and specific sites to attract more
visitors

D.

to

the

area.

Communication

1.
Continue
community groups
2.

Continue

to seek opportunities
to generate
interest

to speak to civic
in the downtown.

to serve

between

asa

liason

the

and

downtown

business community and city staff and elected officials.
3.

Continue

simplified

Marketing

A.

to publish

the Downtown

Bugle,

possibly

in a

format.

and

Promotion

Advertising

1.
The continued promotion
and marketing
of the
downtown will be a major part of our program. We have
some
o e group advertising
this past year and will
continue

a

place

to

for

tourists.

do

so.

This

has

involved

Christmas

shopping

and

an

our emphasis

will

on

the

be

emphasis

on

attraction
total

the

area

downtown

of

each business is a part. This advertising will continue
promote the Parking Garage as a major element in making
downtown

n

a

convenient

asset

2.
we will increase
the Maritime
Provinces

escalating potential
strategy

retailers

many of whom,

although

yet to become

the

to

which

to
the

area.

o rpremotion
of Downtown
Bangor
as this becomes a market with

for this area.

with

have

to

target

We will develop a

these

Canadian

shoppers,.

they shop in other parts of Bangor

frequent visitors

as

for

to the downtown.

B.

Events

It is our philosophy that we should serve as a catalyst

for getting things started, to develop ideas and take that
early risk. The risk we take when we initiate events is not
always financial; success or failure is often dependent upon

whether . enough people feel that it is an occasion

which they

wish to attend and it is difficult to make that determination

in advance.

Now that we have had a successful

with some events,
without

we feel confident that they will continue

our further

have co- sponsors
continue

track record

participation.

We have

been

fortunate

to

for many of these events who will be able to

as sole or prime

sponsor.

In addition,

we have

attracted the interest of several potential sponsors who are anxious to become involved in new events. This will
Permit us to continue to increase the
reasons and occasions"

to come downtown without having to undertake every event ourselves.

Among these events in which we have played a major role

is the Christmas Parade which has been taken over by

WVII- TV,
of

the

allowing

Christmas

us to concentrate

on other

aspects

season.

We have instituted and sponsored the World' s Largest
Garage Bala and the Downtown Sidewalk Art Festival with

WLBZ- TV.

Both of these events have been highly

successful
direction

and
of

will

likely

continue

to

be

so

under

the

WLBZ- TV.

we are having discussions with a church to take over the
sponsorship

of the Messiah

sing - Along.

Peddleaport
sponsorship

Weekend was a large success under the
of Old Town Canoe and the Bangor Parks

and

Recreation Department. Although we were called upon to
assist in making this happen this year, our assistance
should

not

be needed

in the

future.

Under the sponsorship of the Fourth of July Corporation,
which is composed primarily of area -wide Kawanis clubs,
the Fourth of Suly Celebration is increasing in scope
each

year.

BMC plays

a prime

role

in assisting

this event but is not called upon to provide
assistance.
Coordinated
a

role

which

For
all
we

with

financial

the 1991 celebration
BCBC has
afternoon concerts, venders and events,
will

continue.

5-

Events

which we will

the .upcoming
x

year with

Christmas

continue

to Sponsor

or to initiate

in

new co- sponsors.

Decorations

Tree Lighting Ceremony
Food

x

IV.

Festival

Re- enactment of an Historical
a History Day.

Public- private

A. Continue
are

R.

of

Develop

Event

as part

of

policy

to work

with City

particular

concern

a particular

staff
to

the

on issues

which

downtown.

role which the downtown

can pplay in furthering good relations with our Canadian
neighhors.

6-

BUDGET

Far

1991- 92

Program

Item
Proposed
Executive

Part

Director

Tine (

39, 800. 00
1, 000. 00

Christmas)

PICA
PUTA

3, 024. 00

SUTA

220.

00

600.

00

5, 400.

00

Utilities

828.

00

Telephone

1, 600.

00

Health

Insurance

2,

200.

00

Office

Equipment

1,

600.

00

1,

000.

00

3,

000.

00

60. 00

Worker' s Comp.

Insururance

Rent

Postage

Liability

Insurance

Publications

0. 00

Memberships

Bank

200.

Charges

Public Hearing Notice

Market

Analysis

Advertising
Promotional

Material

Events

Conferences/

0.

00

12,

500.

00

3,

000.

00

3,

000.

00

500.

00

500.

00

11500.

00

0.

00

200.

00

0.

00

892.

00

Meetings

Travel

Professional

services

Bugle
Miscellaneous

Payroll

00

160. 00
3, 000. 00

Preparation

84,

A Market Analysis will be done in cooperation with the City' s
Community

Development

BCMC will complete

demographic

Black

Grant

Program.

The Director

of

the work and CUBG will assist in obtaining

materials

and

in the

final

publication

resulting
report.
it should be noted that this
be applicable to the Waterfront development.

of the

research

will

BANGOR

CENTER

MANAGEMENT

DEVELOPMENT glass

Downtown
Rennet

NCDED

public

grant

area

Design

CORPORATION

on

t0 study

Broad

Issues *

Cnmmifiiap *

nnn

a

ACCOMPLISHMENTS

proposal

St. *

HE

Maine

Products

Nmim

Procnn,

Survey *

On- going

Assisted

ations *

tenants

elooers.

encl

Commissi

Center

Fee

mMnn

remm

efforts

with

owner

owners

with

Historic

downtown

Assisted

evfisted

for

Arts

i*

of

in finding tenants for

in

permit

realtors.

process *

orooerty

On-

owners *

mile
ve

Park +

Christmas

tion

of

ng design

Yng*

itCangi
osswal
Banor
h Polkdsatice' +s

the

ONE -

Numerous
Promotion

N. B *

speaking
of

engagements

relations

with

promoting

Saint

John

On- going Information source *

and

publication

of

downtown

newspaper "

and

The

issues) *

Christmas Window Decorating contest

ertising,

Window

s.

Merchandlsina

stations /

9

Decorating,
Techniques

newspapers /

Facade

and

Store

599aaines /

4

Hours
magazines /

ng Planner' s Guide / Extensive adowntown advertising
sources

other

than

Ure

our

vvv

budaet *

coFiea

r

co - Sponsor

Historic

s

2) *

Parades (

Festival *
rfront

4th

Downtown

zru

Walking

World'

of July -

Concert /

Jingle

ceu) '*

s

easonai

map

Garage

Sale

Map

Largest

Assist

Co - Sponsor

multi-

Jazz

Kiwanis

i

Concert *

imp Concerts *
Santa Claus *
Blueberry Bazaar
hristmas Tree Lighting *
Messiah Sing -Along

is * Camelot *
Co - Sponsor

eekend *

Camelot Sunday *
voyage

2000 *

Carousel

CO - Sponsor

Farmer' s Market ( upcoming)

Downtown Bangor Partnership
2027 Budget
2027 Budget

2026 Budget

Revenue
4000 Levy - Special Assessment

$300,090.00

$239,009.84

$230,000.00

$230,000.00

4050 Interest

$1,000.00

$1,000.00

4100 Sponsorships

$3,000.00

$3,000.00

4110 Beautification

$20,000.00

$12,000.00

4120 Events

$16,000.00

$16,000.00

4130 Networking & Outreach

$3,250.00

$3,250.00

4140 Marketing

$32,000.00

$15,000.00

Total 4100 Sponsorships

$74,250.00

$49,250.00

4500 Event Revenue

$16,000.00

$7,500.00

$20,000.00

$4,000.00

Requested Assessment Increase
Requested Ambassador funding

Pride

$27,556.00

4900 Other Income
RERC Digital Kiosks Administration

$3,000.00

$3,000.00

Mix Maine Sublet

$30,000.00

$30,000.00

Other Sublet

$12,000.00

$12,000.00

TIF Funding for ED

$43,746.12

$43,746.12

Total Revenue

$730,086.12

$605,061.96

$3,060.00

$3,060.00

Expenditures
5100 General & Administrative
5105 Accounting Fees
5106 Legal & Professional Fees
5107 Legal Advertising

$500.00

$250.00

$7,000.00

$7,000.00

$2,000.00

$2,000.00

5108 Other Contracted Services
5110 Insurance
5112 Workers Comp Insurance
5115 Memberships/Registration Fees
5120 Postage & Printing
5122 Supplies

$877.50

$877.50

$8,000.00

$6,000.00

$75.00

$75.00

$1,500.00

$1,500.00

$1,500.00

$1,504.00

Equipment - New Computer
5124 Phone & Internet
5130 Bank & Credit Card Fees

$200.00

$200.00

$42,000.00

$8,100.00

Electricity

$1,800.00

$500.00

Heat

$8,000.00

5140 Rent

5142 Other Business Expenses

$500.00

5150 Payroll
5152 Payroll Wage Expenses- ED

$69,601.49

$63,739.73

5153 Payroll Wage Expenses - Mktg/Event

$63,051.53

$57,189.60

Payroll Wage Expense Interns

$8,060.00

5154 Payroll Tax Expenses

$10,228.91

$9,780.32

5156 Payroll Fees

$2,100.00

$2,100.00

5158 Retirement Benefits

$3,979.59

$3,627.82

$157,021.52

$136,437.47

$234,034.02

$167,503.97

Total 5150 Payroll
Total 5100 General & Administrative

5200 Marketing
5210 General (Data and tools)

$10,500.00

5212 Printed Materials

$21,550.00

$34,000.00

5214 Website

$2,000.00

$2,000.00

5216 Television/video

$14,500.00

$7,000.00

5218 Digital

$29,000.00

$7,000.00

$77,550.00

$50,000.00

Total 5210 General
5240 Holiday Promotion

$8,000.00

$8,000.00

$85,550.00

$58,000.00

5305 Flower Boxes

$7,500.00

$7,500.00

5310 Gardening

$5,250.00

$5,250.00

5315 Holidays and Lighting

$10,000.00

$10,000.00

5320 Art

$10,000.00

$10,000.00

Banners and Streetscape

$10,000.00

Total 5200 Marketing

5300 Beautification

Total 5300 Beautification

$42,750.00

$32,750.00

Total 5400 Events

$24,000.00

$24,000.00

Pride

$20,000.00

$4,000.00

Total 5500 Networking & Outreach
Operational Reserve

$3,750.00

$3,750.00

$5,000.00

$5,000.00

Street Plus/Service Provider
5600 Public Safety - StreetPlus

$340,000.00

$310,000.00

Total 5600 - Public Safety

$340,000.00

$310,000.00

Total Program Expenses

$496,050.00

$374,500.00

Total Expenditures

$730,084.02

$605,003.97

$2.10

$57.99

Net Revenue

​33 State Street, #10
Bangor, ME 04401
T. 207.922.2451
www.downtownbangor.com
[email protected]

Dear BED Committee and City Councilors,
During the first eight months of Fiscal Year 2026, the Downtown Bangor Partnership (DBP) is
excited to share that we have accomplished many of the goals laid out in the Fiscal Year 2026
Reauthorization and added activations and enhancements to more of downtown.
Notable projects include:
●​ Reinstallation of Umbrella Sky installation in partnership with Northern Light Hospital.
●​ Creation of a seasonal mini golf and picnic area on Central Street
●​ Execution of an expanded Holiday Light and Music Show and decoration of West Market
Square in partnership with Hollywood Casino and Raceway.
●​ Extended holiday decorations including “Candy Cane Lane” and “The North Pole”.
●​ Addition of 40 lit snowflakes to “gateway” entry points in downtown.
●​ Launched a facade grant program to highlight retail storefronts in the district.

Economic Health and Vitality
Downtown Bangor Partnership is currently assessing its economic health in comparison to
national standards for retail and food and beverage sectors which demonstrate sustained post
pandemic health and growth trajectories.

Food and Beverage
Total Food and Beverage establishments
currently operating: 55
National Average lifespan of a restaurant with
more than 5 employees: 5 years
Downtown Bangor average lifespan of
restaurants that closed within the last 5 years:
12.5 years
Downtown Bangor average lifespan of restaurants currently operating: 15
*This includes the 7 restaurants that were “new” within the last year.

Retail
Total Retail establishments currently operating: 41
Nationally 20% of independent retailers close within the
first year
Downtown Bangor 0% of retailers closed within the
first year
Nationally 50% of independent retailers close within five
years
Downtown Bangor 26% of retailers close with five
years
Downtown Bangor average lifespan of retailers currently operating: 26.6
In addition to fostering healthy sustainability, Downtown Bangor’s retail and restaurant sectors
also reflect enviable growth trajectories over the last 15 years despite the pandemic disruption.
Of note is that retail sector growth from 2024 - 2025 would be flat without the expansion of the
Downtown Development District while the Food and Beverage sector would have reflected
growth.

Beautification and Streetscapes
In addition, the Beautification Committee raised $11,000 of private sector funding to complete
winter programming including:
●​ Management of the Adopt-A-Garden program which planted over 100 garden plots
●​ Spring Cleanup
●​ Planting 56 bridge flower boxes, and 45 large planters
●​ Pocket park mini golf and picnic area
●​ Fall Cleanup
●​ Holiday tree upgrades, additional downtown winter decorating, including seasonal
greenery in bridge flower boxes, the addition of photo ops in other areas in downtown

Events and Activations
The Events Committee continued to host and support events downtown including:.
●​ Summer Sidewalk Art Festival which raised $21,000, hosted over 115 vendors and
welcomed thousands of guests to Downtown Bangor.
●​ Fall Sidewalk Art Festival which raised $7,500, hosted over 75 vendors and welcomed
hundreds of guests to downtown despite inclement weather.
●​ Partnered with Wabanaki Public Health to host the Wabanaki Art Market with 20
Indigenous creators from throughout the Dawnland.
●​ A refreshed Downtown Countdown ball drop in Pickering Square including a partnership
with WKIT and Mix Maine, who conducted live broadcasts from multiple locations and
robust promotion of stakeholder events drawing thousands of visitors of all ages to
downtown.
●​ Supporting others in creating and hosting events and festivals in Downtown Bangor

Networking and Advocacy
During the first half of this fiscal year we partnered with the City of Bangor tax assessing
department to host a property owner lunch with the objective of preparing downtown property
owners for the unique process of commercial revaluation. We also hosted a retailer meeting to
share information about opportunities for collaborative marketing and targeting.
Our bi-weekly business and property owner
newsletter was sent to over 450 recipients
in the the district to update constituents
about important issues and opportunities.
We welcomed 22 new businesses to
downtown Bangor with ribbon cuttings,
social media announcements and press
releases.

Marketing
The Marketing and Development Committee continues to market both locally and within the
tourism sector (added in Q2 of FY 2025) focusing on our 50-mile catchment area, the network of
MTA Visitors Centers, and direct flight pathways to Bangor. Major accomplishments include:

Visit Downtown Bangor Guide:
Distribution of 10,000 updated map
brochures and 10,000 updated and
refreshed “Visit Downtown” guide books
to rest areas, visiting cruise ships, local
businesses, through Maine Highlands
direct mailings, and along the Interstate
95 travel corridor.
Maine Tourism Association rest areas and
Bangor International Airport confirm they
are the number one regional guide taken.
Started to directly mail guides to
individuals requesting one via the DBP
website.

Print Advertising: In
partnership with City of
Bangor Community and
Economic Development,
created thematic print
advertisements focused
on opportunities and
experiences throughout
the city, with dedicated
website landing pages.

●​ Digital marketing: Maintained local, OTT, social and digital campaigns in our target
markets, including locations where Maine Department of Tourism has invested in
promotion
●​ Social media: The DBP Facebook page has 23.2K followers, and content between
1/1/2025-1/1/2026 has had more than 4.5 million views
●​ Website: DowntownBangor.com was viewed more than 227,313 times by 115K users,
with top page visitation for the community events calendar, Why Downtown Bangor,
Business Directory, Food and Drink, and the Interactive Map.
○​ Top visitors are from Bangor (14K), Boston (9.9K), New York (5.1K)
○​ Saw a YOY $126% (51K) increase in new website users and (3.3K) 41%
increase in returning users – (11/19/25-2/16/26 vs 11/19/24-2/16/24)
●​ Video: Continue to deploy video content created during the year-long video content

project, strategically deploying videos outside our catchment area to promote Bangor as
a tourist destination, while also targeting local visitors in our driveshed. Videos include a
holistic video promoting downtown as a place to shop, dine, play and stay and targeted
videos promoting individual activities. Most recently we launched our new holiday video
which captures the lights, energy and assets of winter in downtown Bangor.
We also worked with Maine Biz to secure three stories highlighting the growth and opportunity in
Downtown Bangor.

Safety and Hospitality
The Downtown Safety and Hospitality Ambassador team has been at or near full staffing this
entire fiscal year with solid management, training and outreach.
We continue to work with the Bangor Police Department to establish community standards and
enforceable actions, and with community service providers to properly direct struggling
individuals to necessary resources.

The DBP thanks the City for its ongoing support and partnership in completing projects to
enhance and promote Downtown Bangor as an arts and economic center for the region.
Thank you for the opportunity to share our work with you, much of which would not be possible
without the support of Staff and Council. We look forward to a robust 2026 calendar year and

updating you on our continued success as we work together to create a vibrant Downtown for all
citizens and visitors.

Memorandum
To:
From:
Date:
Subject:

Business and Economic Development Committee
Robyn Stanicki, Community Development Officer
April 1, 2026
Community Development Update

The purpose of this memorandum is to outline the public participation process associated with the development of
the Consolidated Plan, as well as the City’s annual grant award process. The Community Development Officer also
provides this Committee with an update on the activities that will be held on Community Development Week
April 6-10, 2026.
The City of Bangor celebrates Community Development Week each April, taking time to recognize your work to
improve our neighborhoods and the lives of Bangor’s residents. The event traditionally takes place during the
Congressional spring recess each year. It’s a time for cities like Bangor to showcase the impact of the Community
Development Block Grant (CDBG) program. City staff will hold our annual Open House here at City Hall.
Attendees at this event include the general public. We welcome all to join us on Tuesday, April 7, 2026, from 4:30
to 6:00 pm.
Community Development Week also launches the start of our public engagement process for the upcoming CDBG
program year. The City of Bangor administers the Community Development Block Grant (CDBG) program in
accordance with federal requirements, which include a structured and inclusive public engagement process. This
process is designed to ensure that community priorities are reflected in both long-term planning documents and
annual funding decisions.
Public Engagement Process
As required by federal regulation, the City will provide multiple opportunities for public input during the
development of the Consolidated Plan. Beginning in 2024, staff held neighborhood-level forums and stakeholder
meetings in a variety of settings for residents, service providers, business leaders, and property owners to hear their
views on the issues that matter to them. These perspectives are reflected in the body of the Plan.
The City will host a series of public workshops at the end of this month (April). These workshops are intended
to provide residents, stakeholders, and partner organizations with an opportunity to engage directly with staff,
review key findings, and offer feedback on proposed priorities and strategies.
This Committee may recall you have been briefed on certain components of this document workshop-style,
beginning with the Needs Assessment in August 2025, and the Market Analysis in October 2025, as well as an
overview of the Strategic Plan in February 2026. The final chapters of this plan include the several smaller plans,
such as the Anti-Poverty Plan, Fair Housing Plan, and Annual Action Plan, which is a one-year summary of
implementation goals.

A formal public comment period will be held from April 15 through May 15. During this time, draft materials will
be made available for public review, and comments will be accepted through email or written mail. A postcard will
be mailed to residents with information about the plan that can be accessed digitally with a smartphone. A hard
copy of the plan will also be available for in-person review at our office during that period.
Consistent with statutory requirements, the Consolidated Plan may not be submitted prior to May 15, or within
60 days following HUD’s announcement of allocation amounts, whichever is later. HUD provides entitlement
communities with their annual CDBG allocation in advance of the program year to allow sufficient time for public
engagement, plan development, and submission. ensuring that the full public comment period is completed and that
all input is appropriately considered before submission.
Annual Action Plan and Allocation Process
This Committee may recall that the public engagement process also serves as the foundation for HUD resource
allocations, aligning funding decisions with identified community priorities and guiding the distribution of funds
across eligible activity categories. Staff provides a recommendation to the Bangor City Council regarding the
proportion of anticipated local, state, and federal funds that may be used in addressing these needs. Once approved,
this budget guides the staff's decision-making for all activities throughout the year.
To assist staff in making those recommendations, the City issues a Notice of Funding Availability (NOFA)
during Community Development Week, inviting eligible public service organizations to apply for CDBG funding.
Following the application period, a review committee is convened to evaluate proposals based on established
criteria, including community need, project feasibility, and alignment with the Consolidated Plan priorities. The
strongest projects are written into the Annual Action Plan for that year. City departments are now invited to request
CDBG funding as part of this competitive process. This is a change from prior years, aimed at increasing
transparency and consistency in how funding decisions are made.
Submitting the Plan
At the conclusion of the public comment period, the final draft of the Plan, alongside these funding
recommendations and broader allocation considerations, is then presented during a formal Public Hearing. This will
be held at the regular meeting of the Bangor City Council, which is tentatively scheduled for May 27, 2026.
Through this structured approach - combining public comment periods, community workshops, competitive
funding processes, and formal public hearings - the City ensures that its CDBG program remains transparent,
responsive, and aligned with both federal requirements and local priorities.
Action Requested
Staff ask this Committee to provide feedback on the public engagement process.

2|P a g e

Memorandum
To:
From:
Date:
Regarding:

Business and Economic Development Committee
Biguita Hernandez-Smith, Economic Development Officer
April 6th, 2026
City Lease Portfolio and Operational Approach (Informational)

Purpose
Provide an overview of City-managed lease properties and staff’s approach to lease management
and operating considerations.
As previously presented to the Committee, the Economic Development Fund operates as an
enterprise fund supporting the lease and management of City-owned properties. Lease revenues
support ongoing maintenance and operational needs. Staff are actively reviewing and updating lease
agreements on an ongoing basis, including terms, conditions, and lease amounts, to ensure
consistency and alignment with current operating needs.
City-Managed Lease Properties
The following properties are currently leased:
•
•
•
•
•
•
•
•

BWD Water Towers – $3,362.59/month
GE Building – $10,706.51/month (shared revenue with Bangor International Airport)
GE Parking Lot – $699/month (shared revenue with Bangor International Airport)
First National Bank Parking Lot – $1,500/month
120 Venture Way (Penquis) – $3,116.00/month (rented by Penquis)
39 Florida Avenue (Hannaford) – $3,066.00/month (rented by Hannaford)
49 Florida Avenue (KidsPeace) – $3,081.67/month (rented by KidsPeace)
931 Union Street (Northern Light) – $1,500/year (rented by Northern Light)

Utilities and Operating Costs
Utility responsibilities vary by lease. In many cases, tenants are responsible for utilities to help ensure
continuity of service and avoid risks associated with interruption. In other cases, certain utility costs
are covered within the lease structure and supported by lease revenues through the Economic
Development Fund.
Recent increases in electricity costs have been noted broadly. Currently, these increases are not
presenting a direct financial impact on the City’s lease portfolio. However, staff recognize the
importance of these rising costs to our tenants and acknowledge utility costs as part of ongoing lease
management. Staff remain committed to positioning tenants for continued stability and success within
City-managed properties.

Operational Considerations
Management of these properties is currently handled within the Economic Development team. As
activity and operational needs continue to evolve, staff are exploring the use of Economic
Development Enterprise Funds to support a dedicated property management model.
This approach would strengthen:
•
•
•
•
•

Day-to-day property and tenant management
Maintenance coordination and responsiveness
Lease administration and consistency
Evaluation of energy efficiency opportunities, including potential energy audits across
applicable properties
Allows Economic Development staff to focus on core strategic initiatives and priority projects

This item is provided for informational purposes. Staff will continue to manage and refine lease
operations as part of ongoing Economic Development responsibilities.

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