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HomeMy WebLinkAbout2011-04-06 Business and Economic Development Committee Minutes BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Wednesday, April 6, 2011, 5 pm City Council Chambers Minutes Councilors: Chair Weston, Blanchette, Bronson, Durgin, Gratwick, Hawes, Longo, Nealley, Palmer Staff: McKay, Bradley, Bolduc, Nicklas, Pereira, Wallace Others: Mike Bush, Penquis CAP; Jerry Livengood and Richard Osborne, Jr., reps from Bangor Gas; Brian Ames of Ames A/E; Lt. Colonel Dwaine Drummond and CPT Lisa Snow of the Maine Army National Guard (MEANG) CONSENT AGENDA 1. Community Development Residential Rehabilitation Loan – 207 Grove Street Councilor Nealley made a motion to recommend approval of the Consent Agenda item as presented. Seconded by Councilor Longo. Unanimous Vote. REGULAR AGENDA 2. Bangor Gas Steve Bolduc presented this item to the Committee. Previously the City Council authorized a Real Estate Purchase Contract with Bangor Gas providing for its purchase from the City of Bangor for three (3) acres of land at 498 Maine Ave. for Bangor Gas to construct a new 12,000 sq. ft. building to house their “service center”. Bangor Gas has diligently pursued the development of that parcel; they received site plan approval from the City’s Planning Board on April 5, 2011. The issue today is approval of the development plan for the building as required in the contract. Bangor Gas reps, Jerry Livengood and Richard Osborne, Jr. further presented their plans to the committee for consideration and approval of the development of the lot at 498 Maine Ave. The new Bangor Gas Service Center will sell natural gas products, receive payments from local Bangor Gas customers, and house the equipment used to install the gas lines. They currently employ 17 people. Staff recommends the committee’s approval of the plan as submitted. Brian Ames, Consulting Engineer of Ames A/E, briefly spoke on behalf of Bangor Gas stating that the Planning Board has reviewed this thoroughly, as well as the City’s Engineering Dept. The Planning Board has approved this plan as it is proposed. To make any changes now would require it to go back to the Planning Board. Chair Weston inquired if the Committee’s concerns expressed here today with regard to storm water and impervious surface and drainage were brought up to the satisfaction of the Planning Board as the permit process went through? Brian responded that this is safe to assume and it’s also safe to assume that they meet all City criteria as well as state runoff. Councilor Durgin made a motion to approve staff recommendation for Bangor Gas’s development plan to construct a 12,000 sq. ft. building at 498 Maine Ave. as presented. Seconded by Councilor Longo. Unanimous vote. 3. Maine Army National Guard Rod McKay, Director of Community & Economic Development, presented this item to the Committee. The Maine Army National Guard has submitted a request to further develop its areas. The first part of their request is for a lease of City land (that is approximately 2.5 acres) between its property and Maine Avenue. MEANG would like to use this parcel to move their guard house/gate closer to Maine Avenue, provide additional setback area from the MEANG compound, and provide for an area to inspect vehicles before allowing access to the compound. Staff does not have any objections to this request. Secondly, the MEANG also requests that Hayes Street (an unaccepted street) from Maine Ave. to Florida Ave., become a private entrance to the MEANG compound. This would make the end of Florida Ave. as it enters Hayes Street a dead end. The only property affected would be the City property leased to Stillwater Enterprises. This request seems reasonable and staff does not have any objections to the request. Lastly, the MEANG has suggested that the City lease them a small triangle of land on the southeast corner of its property to straighten their property line; however this request is not essential to its needs and is a part of Maine Business Enterprise Park Lot #14 in an approved subdivision. This request was raised by MEANG in an earlier meeting with staff. Staff prefers not to have to prepare an amendment to the MBEP subdivision plan or to take a chunk out of Lot #14. As staff has proposed, these requests would be accomplished through an amendment to an existing lease with the United States, US Army Corp of Engineers. Through an amendment the City would actually lease the 2 acres of land to the United States, US Army Corp of Engineers, which would sublease it to the MEANG. The proposed lease rate would continue to be $1, for 25 years until 2035. Staff recommends Committee’s approval. Councilor Nealley made a motion to move staff recommendation to approve the MEANG’s request as presented to the City Council. Seconded. Unanimous vote. City Solicitor Heitmann will prepare the necessary documents for City Council consideration. 4. 24 Central Street a. Authorization to put repairs of wall out to bid b. Recommendation on Agreement making Betsy Lundy Responsible for wall in future Rod McKay presented this item by giving a brief history of the property at 24 Central Street originally owned by the Zoidis family. The building at one time was destroyed by a fire and the property remained for a number of years in disrepair until the City acquired and cleared the lot using Community Development funds. The result was a pocket-park. The former side walls that are made of interior brick were left; these are not as impervious as exterior brick so water does enter them; the adjacent property has water infiltration problems now coming in through the top and base of the wall. Asst. City Solicitor Nicklas has determined that the City is responsible for this wall. Staff is proposing to do the necessary repairs to the wall. Carpenter Associates, under contract with the City, has done the analysis of what needs to be done to repair this wall along with preparing the specifications; staff is following their engineering recommendations. The repair work is estimated at a cost of $40,000-$50,000; this would be paid for out of the Community Development fund as a public infrastructure improvement. The Historic Preservation Commission has approved the work to be done as well. Jeff Wallace, C.D. Housing Coordinator, spoke to the Committee on the procedure and materials to be used to repair the wall and pictures of the final appearance. With regard to disturbance to the park, there are some trees along the edge that will have to be removed (hopefully saved so that they can be moved to below grade portion of the foundation). There will also be propane tanks installed that will go at the very back of the lot. Vegetation will be reinstalled as much as possible. Staff requests Committee approval to issue a bid request for the needed wall repairs at 24 Central Street and a recommendation to the City Council to enter into a Quit Claim deed with Betsy Lundy whereby she accepts title to and responsibility for future maintenance of the wall. Councilor Nealley made a motion to move staff recommendation as presented with respect to putting repairs of the wall out to bid. Seconded. So voted. Councilor Durgin made a motion that Betsy Lundy be responsible for the wall in the future as stated by City Legal staff. Seconded. So voted. 5. Use of CDBG Funds FY 2012 Rod McKay presented this item to the Committee stating that each year the City has to inform the Dept. of Housing & Urban Development (HUD) on how it intends to use its annual allocation of Community Development Block Grant funds (CDBG). In order to make that submission staff has to indicate the source of funds and the intended use of those funds; do not have to approve each individual activity but each general area of activity. This year, due to possible budget reductions, City staff has been directed to submit an application that has as follows: no reduction in funds (0%), a reduction of 7.5% and a reduction of 65% (Rod provided a spreadsheet to the Committee in their agenda packets). Also, Staff has received applications from outside organizations for requests for funding; they are from Community Housing of Maine (CHOM), The Shaw House and Penobscot Community Health Care (PCHC). Rod provided a provision for each of those organizations so as these projects become better refined the Council can consider the funding of them and do so after the submission to HUD. Administrative expenses cannot exceed 20% of total funding – that would be the annual allocation plus income so if funding reductions occur would have to cut administrative costs. Rod reviewed the proposed uses of funds for the Committee’s consideration along with the proposed amounts if faced with budget cuts on: Planning Dept. services; Economic Development Assistance/Loans; Downtown Façade Program (new); Park Woods –Social Services; Residential Property Rehabilitation/Property Disposition/Public Improvements/Downtown Revitalization/Waterfront Public Improvements/Property Acquisition, Relocation and Demolition/ Program Administration. Staff requested guidance from the Committee on what projects they would like to have included and added that at the next BED Committee meeting a second public hearing will be held and to form the Committee’s recommendation to the City Council on the broad use of Community Development funds. Councilor Durgin inquired if there will be any funds directed to removing the old police station located on Court Street. Rod replied that this would fall under the activity of Downtown Infrastructure Improvements. He has been working with the City’s Finance Director, Debbie Cyr, with respect to which program funds to be used for which activity. Debbie has indicated she will be proposing funding under the Downtown TIF Program to fund at least half of what staff has estimated the cost will be. City is also working with former City Engineer Jim Ring to come up with a plan to accomplish that work. Rod added that sometimes putting federal money into a project can, because of the federal regulations and labor requirements, increase the cost of the project so it negates the benefit of using federal funds. The City Council can shift funding from one project line to the other up to a 35% change on each line item without going to HUD; if a larger change of funding is sought it will require a public hearing and a submission to HUD that you are changing the way you want to spend the money. Councilor Nealley and Councilor Bronson both are strongly in favor of the proposed funding for sidewalk improvements. Councilor Bronson further stated that in regard to when sidewalks in the downtown will be torn up for communication conduit, maybe the City ought to seriously consider retaining ownership of the conduit lines. Also should consider encouraging Bangor Gas to install gas lines in the downtown neighborhood – this would solve the propane tank installation at the pocket park on Central Street. 6. Authorizing the Sale of 41 Second Street to Penquis CAP, Inc. under the NSP Program Rod McKay reviewed this item stating that through the CDBG Neighborhood Stabilization Program (NSP) the Community Development Department has received a little over $1 million worth of grant funds through the State of Maine Dept. of Economic and Community Development. These funds are provided in order for the City of Bangor to acquire foreclosed residential properties and to rehabilitate them for the sale or reuse to benefit low-income persons. The majority of the properties acquired are single family. The City Council passed an Order authorizing the Director of C&ED (Rod McKay) to execute documents approved by the City Solicitor to transfer title of 41 Second Street to Penquis C.A.P., Inc. for its use in providing affordable housing in conformance with NSP guidelines. In exchange, the City will receive reimbursement of its $100,000 purchase price in NSP grant funding. Staff asked Committee for their recommendation to put this item on the upcoming City Council Agenda for Monday, April 11, 2011. Mike Bush of Penquis C.A.P. spoke in favor of this item as presented by City staff. Councilor Nealley made a motion to recommend to the City Council to authorize the sale of 41 Second Street to Penquis C.A.P., Inc. under the NSP Program, and that Staff add to the City Council Order that the payment in lieu of taxes be a condition of the sale. Seconded. So voted. Meeting adjourned.