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HomeMy WebLinkAbout2012-03-07 Business and Economic Development Committee Minutes BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Wednesday, March 7, 2012, 5 pm Council Chambers Minutes Councilors: Chair Gratwick, Blanchette, Durgin, Longo and Sprague Staff: Conlow, McKay, Vanadestine, Wallace Others: Betsy and Zeth Lundy As Councilor Hawes (a member of this committee) was not in attendance, Councilor Blanchette (not a member of this committee) sat in her place. Chair Gratwick moved to have the Public Hearing opened at this time. 1. PUBLIC HEARING – Amount of Federal Community Development Block Grant Funds expected to be available for the Period July 1, 2012 through June 30, 2013 and the Eligible Uses of Community Development Funds and the Submission of an Amendment to the City’s 5-Year Consolidated Plan Rod McKay, Director of Community & Economic Development, presented background on the Federal Community Development Block Grant Program of which the City of Bangor is an Entitlement Community. This program is through the U.S. Department of Housing & Urban Development. Each year the City receives an entitlement amount and is required to have a minimum of two public hearings on this issue. This is the first of the public hearings; the intended purpose is to inform the citizens of Bangor that we are eligible for the funding, how much is available and what those funds can be used for. At the second public hearing that is scheduled for May 9, 2012, the BED Committee will announce its recommendation to the City Council for the intended use of the funds. Rosie Vanadestine, Asst. Community Development Director, further explained the various eligible activities and the process of handling CDBG funds. The activities completed must meet one of three national objectives. The Program Year runs from July 1, 2012 – June 30, 2013. This year the estimated amount for the grant will be $748,313 and with program income of $250,000 the City will be getting an estimated $998,313. (This amount is $367,119 less then what the City received in 2010.) Staff also has to include within the public hearings this year their submission of an amendment to the City’s 5-year Consolidated Plan. This will include the new Neighborhood Revitalization Strategy Area (NRSA) that the City is creating. The boundaries of the new NRSA are from Union to Buck Streets and Main to Third Streets. The City’s current 5-year plan covers from 2010 to 2014. Because the new NRSA covers a large area, a phased approach will be used anticipating 3-5 years to complete. Staff has held one neighborhood public meeting on this plan so far and the second is scheduled for Thursday, March 8, 2012 at 6 pm at the Doughty School Auditorium. Other City departments that are working collaboratively on this plan along with Community & Economic Development are Code Enforcement, Engineering, Parks & Rec, Planning, Police Department and Public Works. Staff will also be doing a reallocation of prior year funds; going back to 2008 closing out any activities that are open and any unspent funds will be reallocated. It is staff’s goal to reassign those funds towards the new NRSA. Councilor Durgin requested that staff find out if we can get a ‘reading’ from HUD as to how and why they have decreased Bangor’s CDBG funding; he further stated that this reduction is unusually severe for the City of Bangor. Rod McKay added that staff will be coming back to the committee between now and the th May 9 public hearing with their detailed proposed use of funds that the Council can give staff guidance on how they want to proceed with the funding. Public Hearing closed. 2. Contract CDBG Administrative Services – Town of Orono Rosie Vanadestine stated that the City of Bangor has been approached by the Town of Orono to see if the City would be interested in contracting for services for a CDBG grant that Orono is pursuing for façade improvements in their downtown. The Town of Orono does not have the capacity for the administrative component of that grant. The grant is due on March 30, 2012. Councilor Durgin expressed that he is very much in favor of going forward with this and asked Rosie to gather the associated cost and arrangement that would work for Orono, and bring it back to the BED Committee. Councilor Blanchette stated that she is in favor of this as well but is also concerned if Bangor’s Planning staff has the capacity to take on added responsibility like this. She would like to have further information as to what the time commitment would be; who will be doing it and who will be taken away from Bangor’s business to do a contractual arrangement with another town. Rosie replied she has already put out some ‘feelers’ to other entitlement communities to see who is doing this and how it is working; she has also contacted HUD to ask what the protocol is and if they have management tools for this type of thing. Rosie will come back to the committee at their March 21, 2012 meeting with a memorandum of understanding that will spell out the duties and costs should this be something the City can accomplish; and there will be a revenue stream for the City through the administrative line. City Manager Conlow stated that we would only proceed with this contract with Orono within the existing capacity of staff. Her understanding from Rosie is that we do have the capacity and that we could do it potentially if all of these other things work themselves out. Councilor Durgin made a motion to adopt staff recommendation as presented. Seconded by Councilor Sprague. Unanimous Committee vote. Councilor Durgin made a motion to go into Executive Session – Negotiations for Disposition of Property – 24 Central Street – 1 M.R.S.A. § 405 (6) ( C ) 3. Executive Session – Negotiations for Disposition of Property – 24 Central Street – 1 M.R.S.A. § 405 (6) ( C ) 4. Committee Action on Above Item Consensus of the Committee was that they would like to sell the property at 24 Central Street to the party who has proposed to purchase it from the City but they wish to see the specifics of what the deed will involve. Two issues brought up were: a) City to have right of first refusal should the interested party decide to sell in the future; b) what kind of fences are to be used and what will the shed look like. Further, the interested party is to work with the City’s Asst. Solicitor on the specifics of this. Any questions can be directed to the City’s Legal Dept. This item is to be brought back to the BED Committee at their next meeting on March 21, 2012. Out of Executive Session. 5. Economic Development FYI Tanya Pereira, Business Development Specialist, stated that Governor LaPage’s administration has announced a new program through the Department of Economic and Community Development which they’re calling The Certified Business Community Program. This is an opportunity for the administration to recognize communities that they feel are business friendly. There is an application process. This will be done on a quarterly basis – they’ll be accepting applications from communities and they’ll be reviewed by a score panel and then evaluated. Communities that do pass the threshold and are accepted into the program will receive recognition from the governor; they’ll have a sign that says ‘open for business’. There is some discussion about them receiving some additional consideration for CDBG competitive programs, which obviously doesn’t apply to us as we’re an entitlement community. th The first round of applications will be due April 6. Meeting adjourned.