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Home My WebLink About1992-10-21 Community and Economic Development Committee Minutes COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE Wednesday, October 21 , 1992 MINUTES S MEMBERS PRESENT: Councilor Pat Blanchette Councilor Don Soucy Councilor Marshall Frankel OTHERS PRESENT: Councilor Gerard Baldacci Councilor Jane Saxl Kenneth R. Gibb, Director of Community & Economic Dev. Stephen Bolduc, Economic Development Officer Edward A. Barrett, City Manager John Lord, Planning Officer Rod McKay, Community Development Director T.J. Martzial, Housing Resources Coordinator James Ring, City Engineer Bob Ziegelaar, Airport Manager The meeting was called to order at 5:35 PM. Councilor Don Soucy chaired the meeting in the absence of Councilor W. Tom Sawyer, Chairman. AGENDA ITEM #1 - Rehab Loan - 22 Ohio Street, 10 units T.J. Martzial, Housing Resources Coordinator in the Community 110 Development Division, presented 3 loans to the Committee, this being the first. The work to be done at this site is to convert the 10 units from electric heat to oil heat. The owners (Steve & Sally Dubay) have been running at a 25% vacancy rate over the past couple of years due to the fact that tenants cannot afford the cost. The Dubay's have a substantial income flow; they have an excellent credit rating. The problem is one of lack of equity. The first mortgage is at $210,000; the property is assessed at $214,000 and the loan is going to be for $22,700. They have several other assets - stocks (currently earning an interest rate of 11-12%) and securities; another property in Hampden and another in Danforth. Erik Stumpfel, City Solicitor, is discussing with Mrs . Dubay the possibility of securing the loan on some of their stock. Staff recommends approval of this loan contingent upon Erik being satisfied with whatever security they can offer. The stocks are preferable because that can be done in less time then securing one of the properties which would require an appraisal . Pat Blanchette recommended approval of the Dubay loan contingent upon Erik's approval. Gerard Baldacci seconded. So voted. 410 „sift. 2 AGENDA ITEM #2 - Rehab Loan - 26 Williams Street, 1 unit 410 This property is owned by Barbara Lyon. Her furnance needs to be replaced as well as some bathroom remodeling, paint the exterior of the house, new sills, and insulation. She is eligible for a deferred loan; she has an excellent credit rating. There is plenty of equity in the property - it is assessed at $80,000 and appraised at $79 , 000 and she owes $34,000; the loan is for $13,000 . Marshall Frankel motioned to approve this loan request; Gerard Baldacci seconded. So voted. AGENDA ITEM #3 - Rehab Loan - 1 Birch Street, 2 units Brent and Beatrice Jameson are the owners of this property. They occupy one floor and rent out the first floor. The major problem with this property is the foundation. They also have a furnace in the living room of the first floor apartment which should be relocated. They have a good credit report; sufficient income to make the loan payments . The problem is one of insufficient equity. The assessed value is $50,900; they owe $42 ,432; they need $23,715 in rehab costs . Staff has outlined three (3) alternatives with respect to this loan request. it is estimated (by Ben Birch, City Assessor) that the assessed value of this property (after rehab) will be around $61,600 which is still less then the amount of the loan request. tJ Discussion pursued between Staff and Committee regarding the pros and cons of the alternatives presented by Staff. It was motioned by Councilor Pat Blanchette that the option to go with would be to approve this loan request. Councilor Marshall Frankel seconded. So voted. AGENDA ITEM #4 - RFP for Airport Gasoline Facility Ken Gibb introduced this item to Committee. This was discussed at the last C & E Meeting but since there was not a quorum a decision had to be postponed until today. Secondly, Mr. Brown, of North Star International Energy Corporation (who was invited to today's meeting) , is in disagreement with the City's position of putting out an RFP on the proposed new facility and location. Councilor Gerard Baldacci asked to be excused from voting on this item as he has consented to speak on behalf of Mr. Brown in respect to this item. So approved by Committee. �,i 3 Steve Bolduc, Economic Development Officer, briefly gave the 410 background of this item. The issue is the leasing of a gasoline station on Maine Avenue at the site of the Maine Business Enterprise Park currently under construction. The City has leased the current gasoline station site to North Star International Energy Corporation for ten years . That lease expired in 1991 and North Star International has continued on a month-to-month basis since that expiration. During the last year, Airport and Economic Development Staff have discussed whether there should be a gasoline station continued there and, if so, what would be the preferable location in light of the redevelopment plans for that area. After much discussion, Staff reached several conclusions which were presented to Mr. Brown about a month ago. The final conclusion being that it was appropriate to have a gasoline station in the park. However, the redevelopment plans for the area call for a relocation of the current gasoline station primarily since the current land parcel is too large and it is felt by Staff that this parcel could be better used for the development of a larger structure in keeping with the overall spirit of the Maine Business Enterprise Park. A gasoline facility could be constructed on a smaller land parcel across the street of the current location. The RFP process will instill the knowledge that the existence of this facility would be an exclusive arrangement in the Maine Business Enterprise Park. The terms that staff have suggested would be a 20-year lease 410 with ample time to amortize the development. A motion was made and seconded to negotiate initially with North Star Energy Corporation. Only if an agreement could not be reached would an RFP be issued. The motion was withdrawn, however, as the issue of North Star's financial standing of lease payments on their current facility was questionedby Committee members . Staff stated that they would gather this information and bring it back to Committee for their review. A special meeting was set-up for Wednesday, October 28, 1992 for this purpose. AGENDA ITEM #5 - RFP for Waterfront Bulkhead Study City Staff has prepared an RFP for the Bangor Waterfront in respect to a bulkhead feasibility study and repair/replacement strategy. The overall purpose of this RFP is to determine the stability of the property along the waterfront that the City has acquired. Currently, the existing riverside timber bulkhead and cribwork is deteriorated. The City hopes to eventually support a range of water related commercial and recreational uses in this area. A motion was made, seconded and unanimously approved which authorized Staff to proceed with issuing an RFP. 4 AGENDA ITEM #6 - Eastern Transportation System - Review of Relocation Alternatives Eastern Transportation is being asked to move due to the development of the Maine Business Enterprise Park. Tentatively, they have located their offices and vehicles to a building on lower Main Street but there is some question as to whether this location is going to be financially feasible for their company. Staff is attempting to find them a permanent location to which they may relocate which will have lower lifecycle costing for the company's housing needs . Several sites have been located. Staff is requesting the Committee's approval to continue this effort by conferring with Eastern Transportation as to the sites that have been located. The Committee consensus was that Staff should continue to work with EIS in evaluating locations. The meeting was adjourned at 6 :40 PM. rp