HomeMy WebLinkAbout1992-10-28 Community and Economic Development Committee Minutes COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE
Wednesday, Oct. 28, 1992 at 5 : 15 PM
MINUTES
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MEMBERS
PRESENT: Councilor Marshall Frankel, Chair
Councilor Don Soucy
Councilor Jane Saxl
Councilor Gerard Baldacci
OTHERS
PRESENT: Kenneth R. Gibb, Director of Community & Economic Dev.
Stephen Bolduc, Economic Development Officer
Rodney G. McKay, Community Development Director
T.J. Martzial, C.D. Housing Resources Coordinator
Bob Ziegelaar, Airport Manager
The meeting was called to order by Councilor Marshall
Frankel, Chair, at approximately 5:20 PM.
AGENDA ITEM #1 - Rehab Loan - 29 Vine Street, Single Family
The owner of this property is Ann Fellows . She owes
$44, 000 for the house; an appraisal done in May of 1992 values the
property at $48,000 . The property needs $3, 000 worth of sewer
replacement work. Ms. Fellows has no other means of financial
resources and the work has to be done immediately.
• Councilor Frankel motioned to approve this loan
request. Councilor Gerard Baldacci seconded. So voted.
AGENDA ITEM #2 - Rehab Loan - Queen City Trailer Park, Mobile Home
The owner of this property is Jim Nichols . The furnace
needs to be replaced (there is no heat) . T.J. has not had the time
to verify all of the information that Mr. Nichols has related on
his application, however, the information that T.J. has received
indicates that Mr. Nichols is eligible for a deferred loan. T.J.
stated that he has written up the loan request not to exceed $500
which will cover a pump which will pump the kerosene up to the
monitor heater. The loan request has been written with the
stipulation that the loan is not to exceed $500 pending
verification of the eligibility of the applicant. T.J. 's major
concern was to see if the Committee would approve this loan request
at this time as the next regularly scheduled C & E meeting will be
after election day. He feels it would not be right to put this
off until that time. T.J. will not proceed with the work until he
has checked all of the information given by Mr. Nichols as well as
checking out the furnace himself.
Councilor Saxl motioned to approve this loan request
pending T.J. 's findings . Councilor Gerard Baldacci seconded. So
voted.
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AGENDA ITEM #3 - RFP for Airport Gasoline Facility
As suggested at the C & E meeting on 10/21/92, this item •
has been brought back to Committee to further discuss issues
regarding payments from North Star International Energy Corporation
to the City of Bangor for the leasing of the gasoline facility on
Maine Avenue as well as the RFP process as proposed by City Staff.
Steve Bolduc, Economic Development Officer, proceeded to
review this with the Committee. As of this date, North Star
International Energy Corporation has an outstanding balance of
$275 . 00 remaining on their lease payments .
Councilor Soucy inquired as to why there has never been
an audit done in respect to the number of gallons pumped over the
years as a normal part of business . Councilor Frankel asked Mr.
Brown, of North Star International Energy Corporation, if he has
ever been audited. He replied that when they send in their checks
every month they include a statement as to the amount of how many
gallons were pumped; the average (up until this year) has run
around 80-90, 000 per month. Over the last 14-15 months it has gone
down to around 75-80,000 per month (due to the various businesses
moving out of the area) .
In respect to the RFP issue on the proposed gasoline
station within the Maine Business Enterprise Park, Steve Bolduc
reviewed the conclusions that Staff has reached in their
determination that an RFP should be sent out. The lease on the new
facility will be a long-term commitment of 20 years . Staff is
requesting of Committee to give their approval to the RFP process
in order to select an operator of a gasoline station in the Maine
Business Enterprise Park.
Councilor Frankel asked Mr. Brown's feelings about his
company remaining in the area. Mr. Brown replied that they wished
to continue in this area; that with the construction of the new
business park and a new improved gasoline facility they feel that
it would be profitable. He stated that a new facility would cost
approximately $250,000 . This would include a convenience food
store, restrooms, and 2 pumps with full services (no garage bays,
however) . Mr. Brown's major concern is that he be given first
option on the new site.
Discussion pursued between Committee members & Staff on
the subject of the RFP vs . first-place status by Mr. Brown. Bob
Ziegelaar, Airport Manager, stated that he suggests that the City
go with the method whereby the appraised value of the land is
stated in the RFP. If Mr. Brown and his company agree with the
value then they can submit their plans to the City; if not, then
the City should go out with an RFP. Councilor Blanchette stated
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that she would go along with this approach as long as Mr. Brown
• gets the first option. Ken Gibb stated that the City did obtain
appraisals for the entire parcel, however it was appraised as a
business park and not as a retail location which makes for a
considerable difference in the value.
Councilor Blanchette made a motion that the City
authorize Mr. Brown to have first option on this project with the
knowledge that if Mr. Brown does not agree with the City's figures
then it is back to square 1 . Councilor Frankel seconded.
Councilor Soucy questioned whether or not this item is required to
go on to the full Council before negotiations begin with Mr.
Brown. Ken Gibb indicated that it would go before the full Council
before any further action.
A final motion was made by Councilor Blanchette that
Staff take this item to the full Council for approval to allow Mr.
Brown first option to relocate his service station (with a
long-term lease) without going through an RFP. Councilor Frankel
seconded. There were two dissenting votes which resulted in a tie
vote. Should Council approve, Staff would then begin negotiations
with North Star International Energy Corporation.
The meeting was adjourned at 5 :55 PM.
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