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.