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HomeMy WebLinkAbout1998-12-09 Community and Economic Development Committee MinutesCOMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE Wednesday, December 9,1998 @5:30 PM MINUTES (confinuazion of meeting which originated from 12 Noon - I PM) COMMITTEE MEMBERS PRESENT: Councilor Michael Aube, Chair Councilor John Rotation, Councilor Jin Tyler Councilor Judith Vardamis Councilor Gerry G.M. Palmer, Jr. OTHER COUNCILORS PRESENT: Councilor Joseph Beldacci STAFF PRESENT: Edward A. Barrett, City Manager Rodney G. McKay, Director of Commodity & Economic Development Peter R. D'Errico, Economic Development Officer Erik Stampfel, City Solicitor OTHERS PRESENT: Linda LaGassce, President of Board for Partners for Healthy Communities Buddy Murray, State Senator for Bangor & Venda Bob Collins, President of Bangor Center Management Corporation Alan Como, Acadia Hospital and Eastern Maine Healthcare Ed Youngblood, Senior Vice President, Bangor Savings Bank Rick Schweikert, Owner of The Grasshopper Shop The meeting was called to order by Committee Chair, Councilor Aube at 5:30 PM. IIEMML- Review of Proposals Received in Response to Request for Proposals for Use of Space inthe Freeses Building Rod McKay, Director of Community and Economic Development, reviewed the process for the Request for Proposals for Use of Space in the Freeses Building to solicit tenants for the bottom 3 levels on the Main Street side. Three proposals have bean received - 1 from Partnerships fox Healthy Communities for a children museum; 1 from the University of Maine Department of Art to establish an an school for displays and instructional classes; The Maine College of Art fiom Portland also submitted aproposal to establish an art school for displays and instructional classes with an additional Proposal for artists lofts in the upper levels of the building. The option agreement that the City has with Realty Resources Chartered for assisted living apartments on the top 3 levels calls for the transfer of the title to the Property before the end of December 1998. It is expected that this closing will take place on December 2Y. It will be necessary to reserve the space in the building if the City is going to make it available to other groups. Linda Le(mwe, President of the Board of Partnerships for Healthy Communities for the Children's Museum, stated that over the past year their volunteer group has developed a financial feasibility study, a business, fund raising and capital campaign and exhibits; now have renderings available to share with the community. Their final goal is to have an agreement with the City for the museum in the Presses building. The database for this project shows that in April of 1997 when the word was put out for interested citizens to come and join the volunteer group, more then 200 people showed up for the first meeting. Over the past 20 months this commitment has continued; the process building site is a must for this project to become viable. Buddy Murray, State Senator for Bangor and Venue, also spoke to the Committee in support of the Children's Museum for the Protests building. Bob Collins, President of Bangor Center Management Corp., spoke as well in favor of this project as a positive tenant for downtown in the Freeses building as part of the revitalization and redevelopment of the downtown area Alen Como - employed at Acadia Hospital and Eastem Maine Healthcare stated that as a professional in me mental healthcare sector he has learned that for children to develop into healthy adults they need a sense of belonging in community, a feeling of competency that they an do things well with strong self-esteem and they need to have the ability to exercise their creative rmture or else that creative nature will not develop. He strongly supports the Children's Museum as an opportunity to focus on the potential of the children. Ed Youngblood, Senior Vice President, Bangor Savings Bank, stated that in his capacity with the bank he is responsible for development on a state-wide basis. Development projects in any downtown in the state today are hard to come by; there we many communities in the state that wish they had the volunteer base that Bangor does to take on a project of this nature and size. He stated that Bangor Savings Beth: is very interested in one project and the continued development of downtown Bangor. Rick Schweikert, owner of The Grasshopper Shop - downtown Bangor, stated Nat the opportunity cost, if this project is not helped along by the City, will be greater than whatever investment they have to make. He feels this is a positive investment for the downtown and feels that without it the downtown will suffer. k- Review of Proposed Agreement with Realty Resources Chartered to Provide for Use of Space by Partnerships for Healthy Communities to Establish a Children's Museum - Recommendation to City Coumcil Rod McKay reviewed the proposed agreement with Realty Resources which will provide for space in the Freeses building (through December 31, 2000) to accommodate the Children's Museum. The Children's Museum group needs aperiod of 24 months to do their fund raising in order to raise $3.6 million for establishing the museum. The construction on the building has begun and should be completed on the lower 3 levels sometime in the 3'd quarter of 1999. In order to accommodate the period of time for fund raising, this space (from the time of construction completion) would have to be reserved though December 31, 2000. The City would be obligated to pay the carrying, costs for this space for that period of time. The cost would be approximately $66-88,000. This would include deferring loan repayment on this space, cost of utilities, cost of heat. This is a lease with the option to purchase agreement; they would have unfit December 31, 2000 to purchase one property. It would be assignable to a third party so if the Children's Museum wanted to buy the space later on, it could be sold to them. A motion was made and seconded to recommend to the full City Council for action on this Lease with Option to Purchase Agreement with Realty Resources Chattered - Former Freese's Building - Children's Museum Space. So voted. ITEM41Q- Review of Proposed Agreement with Partnerships for Healthy Corruvunitiesto establish a Children's Museum -Recommendation to City Council Rod McKay reviewed the proposed agreement which would authorize an Agreement with Partnerships for Healthy Communities in which the City agrees to earth an agreement with Realty Resources Chartered to lease the space needed for the children's museum from the time improvements are completed unfit December 3l, 2000. This time period would give them the 24 months it needs to raise the $3.6 million in funds. The City would also have an assignable option to purchase the children's museum space until December 31, 2000. If the fund raising effort is successful, the City would either exercise its option to purchase the space and donate it to the children's museum or would assign its option to purchase to the children and forgive' that kart of the City loan to Realty Resources attributable to the space involved. arn A motion was made and seconded to recommend approval of this item to the fall City Council. So voted. ITEE NZq- Review of Proposed Agreement with Realty Resources Chartered to Reserve Remaining Space in Freeses Building - Recommendation to City Council This Agreement with Realty Resources Chartered would reserve remaining space in the Freews building for other prospective truants. The City has received two proposals expressing interest. They me the University of Maine- Department of Art and The Museum of Art. Also, the Maine College of Art. Both schools have proposed art instruction and displays as their uses, with the Maine College of Art also proposing artists lofts. This Order would authorize a lease option agreement with Realty Resources Chartered providing an assignable option for the City to lease the remaining space not proposed for use by the children's mneme. A motion was made and seconded to recommend this Agreement to the full City Council. So voted. IIF,MN21 - Scheduling of Interviews with the University of Maine for its Proposed Use of Space in the Freeses Building and with the Maine College of Art for its Proposed Use of Space in the Freeses Building Due to lack of time, this item was tabled until a later meeting. Meeting adjourned at approximately 6:45 PM.