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HomeMy WebLinkAbout2010-05-05 Business and Economic Development Committee Minutes BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE City Hall Council Chambers Wed., May 5, 2010,5:00 pm Minutes Councilors: Chair Weston, Bronson,Gratwick, Nealley and Wheeler Staff: McKay,Harrington, Bolduc Others: Jason Bird and Sally Tardiff from The Shaw House. 1. Amendment to a Lease Agreement with the Philtrum Corporation City Economic Development Officer, Steve Bolduc, reviewed for the Committee a request from the Philtrum Corporation to extend the term of their lease with the City of Bangor. They have been leasing a building at 49 Florida Ave.since 1986 for use as office facilities. The most recent lease agreement was for three years expiring on May 31, 2010,for a rate of$2,070 per month with the tenant paying all utilities. The proposed amendment to the lease would extend the term for three years, until 2013 as follows: June 1, 2010-May 31, 2011, $2,074.00 per month;June 1, 2011-May 31, 2012,$2,088.00 per month;June 1,2012-May 31,2012, $2.088.00 per month. Staff recommends approval of this amendment of the lease agreement under the terms and conditions as outlined to the City Council. Councilor Gratwick made a motion to move staff recommendation as presented to the full City Council; seconded by Councilor Wheeler. So voted. 2. PUBLIC MEETING on the amount of Federal Community Development Block Grant Funds expected to be available for the period July 1, 2010 through June 30,2011 and the eligible uses of these Community Development Funds. C&ED Director Rod McKay presented this item stating that the City of Bangor is an entitlement community under the Dept. of HUD Community Development Block Grant Program and as such Bangor receives an annual allocation of Community Development Block Grant funds. The City Council then decides how those funds will be used within the range of eligible activities that HUD allows. At this time, staff proposes a change to eligible activities for the elimination of an elevator proposed for the Parks& Recreation building at a cost of$250,000. Staff has made some adjustment to the Property Rehabilitation Loan Program so that the income revenues and grant funds equal the amount of proposed expenditures. This year the City will receive$1,115,432 and in addition to those grant funds, there is program income projected at$250,000 made up principally of loan repayments. Rod reviewed the other proposed uses of funds that will be submitted to the City Council at its May 10 meeting. If the Committee and the Council decide to shift some of the funding around throughout the year,this is doable as long as it is an activity that staff has included in the proposed use of activities. Public Comments were taken at this time. Jason Bird, Board Chair at the Shaw House,stated that he has spoken with Asst. C.D. Director Kaleena Harrington about a project that Shaw House staff has been trying to acquire funding for. He then turned his presentation over to Sally Tardiff of Shaw House. She explained that Shaw House assists young people who are homeless;once they are ready to transition out and graduate from the Shaw House program, they are having difficulty finding affordable housing. Shaw House staff is proposing to purchase property at 174 Essex Street in order to rehab it and to build another component to the transitional program that would be a shared house model. This model nationally is well recognized and the belief is that it shows a lot of promise as a next step for young people who are working towards being fully independent. At this time,Shaw House is seeking $150,000 for the purchase and rehab of the house at 174 Essex Street. Councilor Nealley inquired of Rod McKay if this type of project would fall under the CDBG Property Rehabilitation monies that are earmarked. Rod replied that the type of project and activity that Shaw House proposes is eligible under the Community Development Program; it can be accommodated under the proposed use of funds that Rod presented earlier this evening. However, if C.D.staff can find a property that had been foreclosed on, abandoned or vacant, this could potentially be done under the Neighborhood Stabilization Program (NSP). He suggested that Community Development staff work with Shaw House to come up with the best way to achieve what they want to do,then bring it back to this Committee as a proposed project. Councilor Nealley made a motion to approve the recommendation of the Community Development staff to continue this conversation with Shaw House on their proposed project and bring their recommendation back to the BED Committee. Seconded by Councilor Gratwick. So voted. 3. Disposition of 227 Pine Street Rod stated that recently the City took possession of 227 Pine Street under a matured tax lien for outstanding taxes of approximately$5,000. The owner is deceased and his heirs expressed no interest in the property. The building is dilapidated and the City Code Enforcement Department recommends that it be demolished and cleared. However, a local contractor,John Karnes,who has done excellent rehab work in the past for Community Development, has submitted a proposal to acquire and rehabilitate the property at an estimated cost of just over$100,000 if the City will finance 80%of the cost through its Community Development Residential Rehabilitation Loan Program. If during this process of readying the building for rehabilitation it is found that it is not feasible to rehabilitate the property, Mr. Karnes would demolish it at no cost to the City. If demolition is necessary, the lot is not large enough to build another house on and staff suggests selling the lot to the abutting owners. Community Development or Neighborhood Stabilization funds could be used for demolition of the property. If the property is sold for rehabilitation, it has been the policy of the City to attempt to recover back taxes owed through the sale. Staff recommends that neighboring property owners be invited to a subsequent meeting of the Committee to give them the opportunity to comment before the Committee recommends a course of action. Staff also proposes that if Committee approves that John Karnes be given permission to go forward with readying the property at 227 Pine Street,that a Development Agreement between the City and Mr. Karnes be drawn up outlining the terms as discussed. Also,the Development Agreement can read that the property comes back to the City if it is determined that it is not rehabable. Councilor Bronson suggests that the process should be to contact the neighboring property owners first for their input, before any agreement with a contractor. Councilor Gratwick made a motion to move staff recommendation as presented; seconded by Councilor Nealley. So voted. Meeting adjourned.