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HomeMy WebLinkAbout2011-06-08 Business and Economic Development Committee Minutes BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE Wed., June 8, 2011, 5 pm City Council Chambers Minutes Councilors: Weston, Blanchette, Bronson, Durgin, Longo, Nealley, Staff: McKay, Wallace, Bolduc, Gould, Patterson, Pereira Others: Kerrie Tripp of CVB; John Hamer of BCC/DBP Board; Keith Ewing of Plymouth Engineering; CONSENT AGENDA 1. Community Development Residential Rehabilitation Loan – 80, 84 & 112 Center Street Councilor Nealley made a motion to move the Consent Agenda as presented; seconded by Councilor Longo. Unanimous Committee vote. REGULAR AGENDA 2. Authorizing a Letter of Support for the Greater Bangor CVB’s application for the City of Bangor to be considered a destination for the Fireball Run Adventurally The Bangor CVB requested a Letter of Support from the City of Bangor to support their application to attract Fireball Run Adventurally to the City. This is a national event headquartered at the NBC/Universal Studios in Orlando, Florida and is safety sanctioned by the United States Auto Club (USAC). The event is scheduled for September 2012. The letter to bid is due the week of June 13, 2011. Kerrie Tripp, Executive Director, added that the Fireball Run Adventurally organization approached the Bangor CVB, in hopes of Bangor being a finish line destination. This is tourism, marketing and a communication tool that places selected cities in the heart of the competitive experience. The city chosen as the ‘official finish line city’ will enjoy the most exposure in the production, estimated at $35 million in publicity focus, providing tourism-destination related content. There is no cost to the City of Bangor, there is no bid fee required. If, however, the City of Bangor is awarded to be the “Finish Line City” there may be some areas where the CVB could use some assistance such as a police escort from the highway to a local facility. Costs would mostly fall within the CVB membership and with them doing some sponsorship opportunities for it. Councilor Nealley made a motion to recommend a Letter of Support to the CVB for this event as presented; seconded by Councilor Longo. Unanimous Committee vote. 3. Bangor Center Management Corporation / Downtown Bangor Partnership Rod McKay presented background on the special City assessment in the downtown area and reviewed the process that is needed to adopt the subject program each year. There are four (4) Council Orders required for the public hearings. The first one is for a Public Hearing is held on the Municipal Development Program and Budget for the Bangor Center Development District. The other 3 are for the Public Hearing on the Establishment of Implementation Assessments for the Bangor Center Development District. The budget proposed by the Municipal Development District Advisory Board and the Bangor Center Management Corporation/Downtown Bangor Partnership is $96,295; $52,507 of which is proposed to be raised from implementation assessments on property owners within the District, with $13,967 carry-over from FY 2011 and $30,000 to be raised via sponsorships and event revenues. The special assessment rate needed to fund the $52,507 district budget in the coming year is $.051 per $1,000 of assessed value based on an estimated total district assessed value of $102,957,100. An overlay rate of $0.02 per $1,000 of assessed valuation is recommended, resulting in a total implementation assessment rate of $0.53 per $1,000 of assessed value, the amount indicated in the public hearing notice as the “Maximum Rate of Assessment” for the period commencing on July 1, 2011 and ending on June 30, 2012. Shirar Patterson, City Liaison for the Bangor Center Management Corp./Downtown Bangor Partnership Board (BCC/DBP), reviewed their Fiscal Year 2011 Annual Report and Fiscal Year 2012 Proposed Work Program and Budget. Some of the highlights are: in 2011 DBP supported $11,000 of beautification in the downtown; $9,800 towards public safety for the bike patrol; and they brought close to 14,000 people into downtown. Through their marketing and advertisement they had the potential for people to see something about downtown Bangor over one million times. Twenty-six new businesses opened downtown; 8 closed – a net of 18 new businesses (with 3 relocating to other Bangor sites). John Hamer, newly nominated President of DBP, also spoke to the Committee. He related that Brian Ames is the outgoing president and that he’s done a great job over the past few years helping the DBP focus their efforts. John reviewed DBP’s continuing goals for the upcoming year. The categories are: Networking/Outreach; Marketing/Promotions; Events/Activities; Advocacy/City Liaison. Staff recommends adoption of all four (4) Council Orders as presented and request the Committee’s recommendation to the City Council for approval. Councilor Durgin made a motion to adopt staff recommendation as presented. Seconded by Councilor Longo. Unanimous Committee vote. 4. Proposed Amendment to Multi-Family & Service (M&SD) Zone Rod McKay presented this item to the Committee stating that it is a request to allow him to initiate the process to consider zoning amendments. In the multi-family and service district, business uses are allowed in historic properties and landmarks as long as they are located on a major arterial. There are several large buildings in M&SD Districts that are not on major arterials that staff thinks would benefit from being able to have office use in the properties. Both the City’s Planning office and Code Enforcement office have recommended that we consider this amendment which will allow business office use of historic properties in M&SD Districts even if they are not located on major arterials. Planning Officer, David Gould, further reviewed this proposed amendment outlining the areas where there are M&SD, and designated historic districts as well as individual landmark buildings that would be applicable under this proposed amendment. Rod McKay requested that if committee approves the proposed amendment will go on the City Council agenda to be referred to the Planning Board, Historic Preservation Commission will most likely want to comment on it and then it will go back to the City Council for consideration. The general consensus of the Committee was to approve staff’s request. 5. Dr. Michele Spekhardt – Review of Building Plans Steve Bolduc, Executive Director of BanAir Corporation, reviewed this item for the Committee. He then introduced to the Committee Keith Ewing of Plymouth Engineering who represents Dr. Michele Spekhardt in this matter. The City and Dr. Spekhardt have been going through the process for a project in the Maine Business Enterprise Park (MBEP). They are now at one of the final steps for the City Council in that process. They have a Purchase and Option Agreement with Dr. Spekhardt to purchase lot #6 in the MBEP and this option requires the development of a building of at least 7,800 square feet of finished space at a cost of not less than $1 million. The option also requires the approval of the Business & Economic Development Committee of final plans and specifications. Mr. Ewing then presented those plans and specifications to the Committee. Staff recommends that the Committee recommend approval of the project pending approval by the Planning Board. Councilor Blanchette made a motion to recommend approval of this project as described pending approval by the Planning Board. Seconded by Councilor Nealley. Unanimous Committee vote. 6. Volunteers of America – Assignment of Loan Terms and Intercreditor Agreement Rod McKay stated that this is mainly a ‘housekeeping item’. The BED Committee had approved a loan to Volunteers of America (VOA) in September of 2008 for $18,228 to undertake off-site grading and landscaping improvements along Curve Street for VOA’s housing project located at 315 Harlow Street. Through their financing for the project they could not secure financing for improvements made off-site so the BED Committee approved the loan. The loan was made to VOA – they are the parent company, the Housing Development is actually owned by VOANNE (Volunteers of America in Northern New England). The Resolution needs to be changed to reflect: a) the name of the loan recipient from Volunteers of America to VOANNE Bangor Senior Housing, L.P. and b) to change the number of units referenced as available to low- and moderate-income persons from 55 to 54, as one of the 55 units built will be used by resident staff. VOANNE and other lenders providing financing to the project have requested an Intercreditor Agreement which will require Council approval. Staff recommends the Committee’s approval on both the change in the Resolve and for the Intercreditor Agreement as presented. Councilor Durgin made a motion to move adoption of staff recommendations as presented. Seconded by Councilor Nealley. Unanimous Committee vote. Rod added that he is meeting with Julia Wilcox of VOA on July 7 to assist them in their search for another site in the Bangor area to build more housing for low- to moderate-income people. 7. Authorizing Director of Community & Economic Development – to apply for Zone Change – Property acquired by the City at 63 Sixth Street under the Neighborhood Stabilization Program Rod McKay reviewed this item for the Committee. He stated that this is a foreclosed property that his dept. bought under the Neighborhood Stabilization Program (NSP). It is a very large property and is suited for a multi-family project. The adjacent property is an old ice cream factory – the City Council in December of 2010 approved a zone change from URD-1 to URD-2 on that site. Rod added that his request today is to apply for a zoning change for 63 Sixth Street which would allow it to go on the City Council agenda and Planning agenda for consideration to re-zone to URD-2, the intent being to make it a 4-unit property. If this zone change request is authorized and approved then staff would propose to enter into an agreement with Community Housing of Maine (CHOM) to develop 4 units of affordable housing at that location. The former ice cream factory building is currently under development by CHOM. Councilor Durgin made a motion to move to approve staff recommendation for the zone change request as requested. Seconded by Councilor Nealley. Unanimous Committee vote. Chair Weston then directed the Committee to go into Executive Session - Negotiations for 74- 96 Main Street – 1 M.R.S.A. § 405 (6) ( C ) 8. Executive Session – Economic Development – Negotiations for 74-96 Main Street – 1 M.R.S.A. § 405 (6) ( C ) 9. Committee Action on Above Item The Committee voted to recommend to the City Council that the City take the necessary actions to take title to the property at 74 – 96 Main Street. 10. Executive Session – Economic Development – Lease Negotiations – Baltimore Waterfront Associates Parking Lease – 1 M.R.S.A. § 405 (6) ( C ) 11. Committee Action on Above Item The Committee voted to establish approve a Lease Agreement with a rate of $40.00 per month per space for the eight parking spaces to be leased by the City to Baltimore Waterfront Associates adjacent to its property at 4 Union Street, with a $4.00 allowance per space per month, for a one year period. 12. Executive Session – Economic Development – 110 Hildreth Street – 1 M.R.S.A. § 405 (6) ( C ) 13. Committee Action on Above Item The Committee voted to authorize the Director to accept the Keenan Auction proposal dated May 26, 2011 for services to auction off Hallowell International, LLC assets securing Community Development financing provided Hallowell.