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CITY OF ORONO MEMORANDUM <br />DATE: <br />June 26, 2017 <br />TO: <br />Orono City Council <br />FROM: <br />Doug Reeder, Interim City Administrator <br />RE: <br />Orono Woods Contract <br />1. Purpose. To discuss a Declaration of Restrictive covenants for Orono Woods to replace the <br />existing lease. <br />2. Background. The City of Orono approved a TIF project in 2001 to help finance the construction of <br />a Senior Apartment which includes some below market units. At this time the owners of the building <br />have proposed to sell the building to a new owner. The new owner is an operator of many senior <br />buildings and has stated that their intent is to purchase the property to continue to operate it as a senior <br />building and to make improvements to the property. <br />3. Cost Participation. There is no cost to the city. If the city denies the request the TIF will remain <br />in effect until 2024 when the taxes will then go back to the taxing jurisdictions including the City of <br />Orono. The park dedication and SAC and WAC will be forgiven. If the TIF were extended for 4 years, <br />as requested, the City loss in tax revenue would be approximately $59,000 assuming no increase or <br />decrease in tax rate or market value. <br />Attachments <br />Exhibit A. Proposed Declaration of Restrictive Covenants <br />Exhibit B. Proposed Amendment to Developers Agreement <br />