HomeMy WebLinkAbout2010-08-18 Business and Economic Development Committee Minutes JOINT MEETING OF THE AIRPORT COMMITTEE
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BUSINESS& ECONOMIC DEVELOPMENT COMMITTEE
Wed., August 18, 2010, 5 pm, City Hall, Council Chambers
Minutes
Councilors: Airport Committee Chair Palmer, Blanchette, Wheeler (alternate)
BED Committee Chair Weston, Nealley, Wheeler(alternate)
Staff: McKay, Wallace, Hupp,
Others: Nicole Lovell; Bruce Brookings; Steve Ribble, Chair of Cultural Commission; Andrea
Stark,The Maine Discovery Museum; Michael Boyd, President of The Boyd Group;
Airport Committee Chair Palmer stated that the Agenda will start with the Business &
Economic Development Committee Agenda, Items 5, 6 &7.
BED Committee Chair Weston began the meeting as follows:
5. Cultural Commission—Authorizing Grant of$8,000 to the Maine Discovery Museum
This item was postponed until the representative for this item arrived.
6. Community Development Residential Rehabilitation Loan—22 South Park Street
C.D. Housing Rehabilitation Coordinator,Jeff Wallace, reviewed this item stating that on April
21, 2010 the BED Committee approved a residential rehab loan in the amount of$15,510 for Dorothy
and Robert Cayford to replace the foundation of their single family home at 22 South Park Street. The
contractor who was to do the work has failed to do so; no funds have been distributed to that
contractor. The Cayford's have expressed an interest in utilizing Gendreau Masonry and Construction
(who provided the second lowest bid during the original project bidding period). Gendreau's bid
amount was$7,725.50 higher than the original contractor's was for this project. Staff recommends
approval of an additional loan of$7,725.50 under the same terms and conditions as the original loan
with 3% interest and all payments deferred until the property is sold or otherwise transferred.
Councilor Nealley made a motion to approve staff recommendation for approval of an
additional loan of$7,725.50 for Dorothy and Robert Cayford's home improvements with Gendreau
Masonry and Construction. Seconded by Councilor Wheeler. So voted.
7. Review of Proposals Received for 227 Pine Street
Rod McKay, Director of Community& Economic Development, reviewed this item stating that
staff had received a non-solicited proposal from a local contractor,John Karnes,to purchase and
rehabilitate the property for single family rental use. The BED Committee at their June 23, 2010
meeting considered that proposal and determined that staff should go out for proposals to see what
other interest there might be from other parties. The Request For Proposals (RFP)was issued and the
City has received 3 proposals from the following interested parties:
a) John Karnes of R&K Construction b) Brookwood and Company c) Nicole M. Lovell
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7. Review of Proposals (con't.)
Rod reviewed these 3 proposals, adding that if the Committee and the Council thinks the best
course of action is to rehabilitate the existing property for reuse, staff recommends that John Karnes
be the designated developer. If the Committee and Council feels the best use of the property is to
demolish the existing structure and have the abutting owner purchase it for reuse as a vacant lot or as
a site for new construction of a single family house, staff recommends Nicole Lovell's proposal. Staff
would need guidance as to what the Council and Committee would want in a development
agreement.
Chair Weston invited any of those present who submitted proposals to come forward and
address the Committee if they so wished. In response, Bruce Brookings of Brookwood and Company
and Nicole Lovell abutting property owner of 227 Pine Street briefly spoke outlining their proposals
and qualifications.
Councilor Nealley made a motion to accept the proposal from Nicole Lovell per the terms of
her proposal to the City and that Community Development Director Rod McKay draw up details of a
development agreement to accept that proposal. Seconded by Councilor Wheeler. So voted.
5. Cultural Commission—Authorizing Grant of$8,000 to the Maine Discovery Museum
Chair Weston stated that as the Maine Discovery Museum is a client of the firm that he is a
partner of, if any of the other Committee members present are uncomfortable with this he will
remove himself from participating in the discussion.
Councilor Wheeler made a motion that Councilor Weston does have a conflict on this
particular item. Councilor Nealley seconded. So voted. (Chair Weston then left the room for the
duration of this item.)
At this time, Councilor Nealley was the alternate Chair for this item.
Steve Ribble, Chair of the Commission on Cultural Development, reviewed the recent
application of the Maine Discovery Museum that the Commission has recommended to the Bangor
City Council for approval in the amount of$8,000. This grant will be used to activate the Maine
Discovery Museum's capital campaign efforts in terms of capacity,fundraising consultant and
marketing.
A motion was made by Councilor Blanchette to recommend for approval to the full City
Council the application from the Maine Discovery Museum for an $8,000 grant as they presented to
the Commission for Cultural Development. Seconded by Councilor Wheeler. So voted.
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Airport Committee Chair, Councilor Palmer, introduced the following item:
1. Presentation and Discussion with Mike Boyd, President of The Boyd Group
Mike Boyd, BIA's Air Service Development Consultant, presented to the Committee for
discussion the current state of the aviation industry, how national trends impact the Bangor region
and how the Airport is working to recruit potential airlines and to position itself for future
opportunities.
2. Discussion of HUD Sustainable Communities Grant Application
Rebecca Hupp, Director at BIA,stated that the Bangor region has an opportunity to
submit a grant proposal to HUD Livable Communities. The grant ranges from $500,000 to$5,000,000;
the application deadline is August 23, 2010. The intent of the grant is to support metropolitan and
multi-jurisdictional planning effort; it requires the support of all local municipalities. EMDC, on behalf
of Mobilize Maine, is requesting that all of the communities in the region enter into a Memorandum
of Understanding in supporting the grant application and activities. If the BED Committee
recommends approval, staff will sign and submit it to EMDC to be included in the grant application.
The item will be on the City Council agenda on August 23, 2010 requesting the full Council ratify the
Committee approval pending review and approval as to form by the City Solicitor.
Councilor Nealley made a motion to move staff recommendation that the full City Council at
their August 23, 2010 meeting authorize the City of Bangor and its various departments (such as the
Airport, Economic Dev., Parks& Rec., Community Health &Services)to participate in this process.
Seconded by Councilor Wheeler. So voted.
3. Small Community Air Service Development Grant Application
Rebecca Hupp stated that BIA will be submitting a grant request to the Department of
Transportation again this year under the Small Community Air Service Development Program for
funding to support new air service development initiatives. The grant is for$500,000;the application
deadline is August 27, 2010. This grant would enable BIA to target additional hub capacity primarily
the Washington, D.C. area, Chicago or Charlotte. They're also considering including additional low-
cost service. For BIA's application to be successful, need to have a local match and commitment from
non-aeronautical revenues and non-airport revenues. Rebecca will be meeting with the Mobilize
Maine Leadership Committee to discuss this initiative and ways to all work together (groups consist of
BRDA, Chamber of Commerce, Mobilize Maine, EMDC, and the CVB). She has also talked with the
State of Maine, and the Dept. of Tourism has committed $25,000 in support of this application. The
DOT will be announcing in December 2010 the applications that it selects. Rebecca suggested that the
City should consider designating at least $50,000 to this project and preferably$75,000 knowing that
it's not a necessity that it would have to be spent but that you would have to be committed to it if all
of the pieces fall into the right place.
Councilor Blanchette made a motion to forward as presented the Small Community Air Service
Development Agreement application to the full City Council for the August 23, 2010 meeting.
Seconded by Councilor Wheeler. So voted.
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4. Airport Marketing and Public Relations Update
Rebecca Hupp stated that the following items go hand-in-hand:
a. Airport Customer Forum
b. Trade Show and Business Development Activities/Events
The most significant Trade Show and Business Development that BIA has done recently is
their Customer Forum—a one-clay conference whereby their customers are brought in. Attendance
this year doubled from last year's—very positive feedback from their customers as well as the
vendors who participate. Everyone had an opportunity to see Bangor first hand and see what BIA
does; they look forward to coming back next year.
c. Passenger Statistics
Over the next 5 years air passenger traffic is going to go down in the U.S. Airline Industry for
the first time in its history; don't think it's going to go up until 2012. The bottom line is the number of
U.S. passengers that are driven by directly or indirectly by international traffic. It's about 26%this
year; it's going to go up to about 27%—28% by 2014. Through BIA, international traffic is mostly
Asian and Latin America—BIA has great access to both places right now and it's going to get better.
U.S. Airways and Delta airline system are adding significant amounts of capacity—they're the only
U.S. carriers that are and that's good news for this market place. Bangor has plenty of market;the
airline industry has been restricted where they haven't been able to take full advantage of it at this
point. BIA does not have a traffic problem or a demand problem—they have a capacity problem and
it's driven by what the airlines are doing. The last quarter this year vs. the last quarter of last year in
terms of what airlines are scheduling to 'wear' shows BIA is going to have 19% more capacity. A lot of
that capacity is coming from U.S. Airways and some from Delta.
Meeting adjourned.
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