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HomeMy WebLinkAbout2011-09-21 Business and Economic Development Committee Minutes BUSINESS & ECONOMIC DEVELOPMENT COMMITTEE Wednesday, Sept., 21, 2011, 5:00 pm City Council Chambers Minutes Councilors: Chair Weston, Blanchette, Bronson, Durgin, Longo, Nealley and Palmer Staff: Conlow, McKay, Bolduc, Pereira, Willette, Inman, Cyr and Yardley Others: Reverend Carlson of Penobscot Community Health Care (PCHC); Dr. Tripp Gardner Chief Psychiatric Officer at PCHC and Jack Barrows. Chair Weston moved Agenda Item #3 to #1 due to time constraints. 1. (Item #3 on Agenda) Economic Development Monthly Report Tanya Pereira, Business Development Specialist, reviewed activities she has been working on over the last month. She’s continuing to work with clients on a couple of large-scale projects that involve evaluation of a number of site locations and opportunities on multiple parcels within the City. Have had a couple of manufacturing inquiries in September; one land inquiry for a unique business opportunity that already exists in other states; some downtown space inquiries that are on-going with notable local businesses. Have also been discussing with other Economic Dev. staff about doing a “Downtown Open House” – this would provide visibility for downtown property owners. Also, have two proposals (under Executive Session) coming before the Committee tonight. It was decided by Chair Weston and City Manager Conlow to go into Executive Session before hearing the public review of the following item. 1.a. Executive Session: Review of Employment Contract – Golf Course 1 M.R.S.A. § 405 (6) ( C ) No Committee action was taken. 2. (Item #1 on Agenda) Golf Course 12-Month Financial Review City Manager Conlow stated that the City Council had asked staff to do a review of the golf course to see whether or not the operation should continue to be an in-house operation or whether we would be better off privatizing it. This is being looked at now by the BED Committee in order to address some of the issues. (This is also reviewed during the annual City budget process.) Tracy Willette reviewed the City Municipal Golf Course 12-month financial report. He handed out a historical result of how the golf course has been doing financially over the last few years. In summary, the golf course is operated as an enterprise fund and essentially covers its own costs as well as contributes to the administration within the general fund of the Parks and Recreation Dept. for administrative time that they assist the golf course with. Consequently, the golf course does not cost the Bangor taxpayer out of the general fund. Over the last few years there has been extreme growth in golf and now that has subsided not just in Maine but throughout New England and across the country. Additionally, Bangor has the only 27-hole facility in the area; they compete as a municipal entity with many of the private courses in the immediate area for the same group of golfers. A recent change that has helped Bangor is to its membership structure – as a result this has brought in 50-55 new members. Staff receives positive feedback as to the product they’re offering; they have looked at how they’re doing in their marketing efforts and what they can do to improve it and have also allowed them to be scrutinized by the PGA on how Bangor operates. The PGA provides a very detailed report on what changes Bangor could make in going forward. Staff hopes to implement these changes. Discussion continued on the financial aspects as to the revenue the golf course brings in on an annual basis and what is then needed to cover various City staff costs associated with the operation of the golf course. It was noted that maintenance costs have been escalating over the last several years. Muni Golf Course staff has related to its members, however, that prices may have to be raised next year due to increased costs. In response to an inquiry from Councilor Bronson, Finance Director Debbie Cyr stated that the golf course funds its deficit; it has adequate cash on hand to cover any operating losses that it has in these periods. In the years that the golf course loses money we do not transfer money over to the Parks & Rec reserve but we still get our money for Parks & Rec administration at City-wide indirect overhead administration costs as well. The loss number is not a direct loss to the general fund. Councilor Durgin said that in addition to looking at the golf course from purely a financial perspective it is also incumbent upon the Council to make some determinations on whether we’re satisfied with the current management approach and to go forward with it, or do we want to make some changes. Need to be careful that we’re not looking at deteriorating the capability of the community to offer something as fine as a golf course – need to look at this in terms of want we’re doing better in publicizing and using this as part of our total package for destination on the gateway here in Bangor. Councilor Palmer suggested that there should be a strong connection between the golf course and the other entities in the entertainment district in that area such as the new arena, Hollywood Slots and the waterfront. He expressed concern with the fact that travelers on I-395 cannot see the golf course due to the growth of the trees over the years and feels this should be corrected. He further suggested that there be a paved path from the golf course to the new arena, and that golf carts should be located near Hollywood Slots for visitors. Also consider putting together a package with Hollywood Slots that could include a two night stay at Hollywood Slots, a round of golf at Bangor Muni and perhaps a concert venue. He added that when staff begins looking at the various groups that rate municipal golf courses, need to see where Bangor Muni stands now; at one time the City of Bangor was very high on the ‘rating’ list. Also find out what the criteria is that they use in order to see what we have and what we need to improve upon. th Parks & Rec Director Tracy Willette stated that staff is preparing to locate a sign behind the 12 th tee on the 18 which will face I-395 to let people know there is a golf course in Bangor. Staff has also taken a closer look at their marketing efforts and what can be done to improve it. The connection that has been discussed since the new arena had first been talked about a few years ago is certainly something staff will take a look at and if it’s not a literal connection certainly will be a figurative connection between 2 of the 3 facilities. Councilor Nealley suggested that a comparative assessment of other golf courses be done in order to make us well informed to see if we’re more in line with where we’re supposed to be or maybe we need to look at a private sector organization and see what they might recommend. City Manager Conlow stated that in 4-6 weeks staff would be able to bring back to Committee comparative information on golf courses with the understanding that the goal of the golf course is to maintain that asset within the community and that it is affordable. She added that we need to ask ourselves is the ultimate goal to make a lot of money or is it to have an asset that supports a range of people within the community. She concluded she would go with the latter choice of making it as affordable as possible for the widest range of people. 3. (Item #2 on Agenda) Penobscot Community Health Care / Hope House – Request for Transfer of Land Reverend Carlson, President of Penobscot Community Health Care (PCHC), reviewed this item for the Committee. He stated that Hope House (an alcohol and substance abuse treatment facility) began in 1973 and PCHC began in 1998. Approximately a year ago, Hope House became the Acadia Recovery Center and it came back under PCHC’s umbrella as a facility. PCHC has been operating it since that time to the present day. The Maine State Housing Authority (MSHA) has come out with a grant whereby there is $3 million available, on a competitive bid process, for development of transitional housing to stabilize people who are homeless and peri- homeless. PCHC currently leases land from the City on Indiana Ave., adjacent to the Maine Business Enterprise Park, for operation of the Hope House. PCHC owns the buildings and leases the land from the City for $1.00/year. PCHC is now asking that the City transfer the ownership of the leased land adjacent area to PCHC for $1.00 to allow PCHC to seek MSHA funding for the addition of 20 to 25 single room occupancy (SRO’s) housing units and additional clinical and support space for the integrated delivery of care. The property is zoned Government and Institutional Service District (G&ISD). G&ISD preserves and protects those areas of the City occupied by public and nonprofit Institutional buildings or uses. Housing per se is not a permitted use in a G&ISD. Staff stated that at issue is whether or not the City Council approves further expansion of the Hope House. If housing is proposed, as defined by the City’s Land Development Code, rather than providing overnight accommodations for patients for treatment purposes, zoning issues would have to be resolved. Committee discussed the issues at hand. Councilor Nealley stated that there does not seem to be a comprehensive primary full-care continuum of services presently in Bangor. Consequently, he would be supportive of this request as presented. Councilor Bronson concluded that he would have to see a different plan come before the Committee from PCHC then this particular plan before he would support it. Councilor Palmer stated that there is a tremendous need for the services that PCHC provides and that this proposal has merit and should be explored. He would like to hear (in the near future) from Shawn Yardley and Rod McKay regarding the CDBG monies that are anticipated. Councilor Blanchette stated that this project will take people that do not have a home and will place them in a home environment. With this comes a feeling of responsibility and respectability and that’s what some of these people need to get back on their feet; these people will have to prove themselves over the years. Bangor can continue to ignore the problem of the homeless and the addicted and we will see our general assistance budget go up in large amounts every year. This lease can be written in a way that when PCHC stops offering shelter and 1-room apartments to people in need of treatment, the land will come back to the City of Bangor and then you turn around charge square market value for the square foot of the land. We’re going to pick up $5,000 every year on property that has not been paying taxes since we took it over from Dow Air Force Base. We’re going to have questions but I think we can face them and work them through. I am glad that we have people like Rev. Carlson and Dr. Gardner; I know that Shawn Yardley cannot do it all. 2.a. Executive Session (if needed) re: Above Item – 1 M.R.S.A. § 405 (6) ( C ) A motion was made, seconded and approved to recommend to the City Council an Order authorizing the City Manager or her designees to negotiate a Development Agreement with Penobscot Community Health Center for the acquisition of property located on Indiana Avenue for the purpose of expansion of the Hope House. 4. Executive Session – Economic Development – Waterfront Property Disposition Negotiations – 1 M.R.S.A. § 405 (6) ( C ) 5. Committee Action on Above Item A motion was made and seconded and unanimously approved to recommend to the City Council approval of an Order designating Bond Properties, LLC, owners of The Fish House Grill in Bar Harbor, as Tentative Developer of Front Street Development Parcel #3 for a period of 90 days, during which time City staff will negotiate exclusively with Bond Properties, LLC for lease of Parcel #3 for development of a restaurant. 6. Executive Session – Negotiations for Incentives for Downtown Property Acquisition and Improvements – 1 M.R.S.A. § 405 (6) ( C ) 7. Committee Action on Above Item No Committee action was taken.