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HomeMy WebLinkAbout2006-01-11 Business and Economic Development Committee Minutes � ' BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE January 11, 2006 � Minutes Councilor Attendance: Greene, Gratwick, Hawes, D'Errico, Farrington, ' Palmer Staff Attendance: McKay, Moses, Bolduc � CONSENT AGENDA , A motion was made and seconded to approve the Consent Agenda item. � 1. Extension of Lease Agreement with Eddie Rideout d/b/a Rideout Enterprises — Office Space — 39 Florida Avenue (see attached Memo) ' AGENDA 2. Bangor Radiator Community Development Business Development Loan 1 McKay said that Bangor Radiator is being relocated from the corner of Main/Cedar Streets to make room for the new police station and for the realignment of the bypass from Main Street to Cedar Street across to , Route 9. The City acquired the property and has provided relocation assistance to the owners of Bangor Radiator, the Cormier's. The I Committee has approved a loan in the amount of $100,000 for this project, which is a new building on Maine Avenue. Due to the increase in costs by the Cormier's, additional loan funds are needed to complete the , project in the amount of approximately $35,000. Due to Hurricane Katrina, there has been an increase in costs for materials. The total development cost is approximately $350,000. The Cormier's are using ' $250,000 of their own resources. Staff recommends that the Committee approve the loan. With five Councilors in attendance, if approved, the loan will not require fuil Council approval. Responding to Gratwick, McKay � explained the specifics of the loan. Additional jobs will be created due to the expansion/move of Bangor Radiator. Responding again to Gratwick, McKay said that the City, under state and federal law, and in this case ' using local funds to acquire the property, is required to pay fair market � value for the property. Appraisais are done of the property. There is a provision for relocation assistance which can typically run $10,000. The iproperty is fairly compensated for the value of the property and the cost of the move. Grahvick spoke of the NH Bragg relocation many years 1 back. McKay said it was a federal program with similar benefits as the current discussion. There was no CDBG program at that time but there was an Urban Renewal program. Farrington made a motion to approve � � � staff's recommendation. The motion was seconded by Hawes. Discussion ' continued. In the beginning, Hawes said the Council's concern was that the Cormier's would be made whole and on this arrangement, had they � not had the extra square footage, they would have been made whole. McKay agreed. The extra cost came from wanting the larger facility. Hawes said the Council did what they agreed to do in the beginning. In ' terms of history, D'Errico said the Perry Road lots which accommodated all of the Urban Renewal relocations (including NH Bragg) was $2,500/acre. � The assessments were deferred to whereby developers paid 25% of the assessment and the remainder was shared with neighboring property and the City of Bangor. The Perry Road Industrial Park was created forty-five , years ago for the urban renewal relocations. Palmer agreed with Hawes in making Bangor Radiator whole. He praised the Community and Economic Department, and the Legal Department staff for their � involvement in the project. Greene asked for a show of hands and received unanimous vote for staff's recommendation to approve the additional loan amount. � 3. Review of Final Plans— Penview Waterfront Condominiums Staff and the developer, Brian Ames, will presented the final plans for the ' proposed 28 unit residential condominium project for the Committees � review and consideration for approval. McKay said the project is still on schedule. The Committee has previously approved the preliminary plans at its last meeting. Ames has submitted plans for review but does not � have the final rendering complete at this point. Ames is also working with the Planning and Engineering staff to finalize details on the site plan that he wili submit to the Planning Board. The transaction of transferring the � property with the Hutchins is this week, McKay said. At the last meeting, preliminary plans were reviewed and Ames indicated there were some changes from the building earlier proposed, reducing the size from 32 to ' 28 units, removing some of the roof elements and reducing the elevations of each floor by approximately one foot. The schedule called for Ames to come back to the Committee with final plans for consideration. Any ■ changes requested by the committee would be referred to the next �� Committee meeting for its consideration. The purpose of this meeting is � for the Committee to let Ames know of any elements of concern for Ames to take into consideration before finalizing their final plan. McKay asked Ames to explain the changes in the elevations of various views from the � various streets surrounding the project so that the Committee will have a good idea of the proposed changes. Greene asked for the essential changes. McKay reviewed the changes referring to a drawing. Ames � referred to a plan developed a year ago which was bid out last spring. The result of that plan was a project that would retail at $500,000/unit on ' � I , average. The market unfortunately proved to not support such a level of development. A more reasonable, straightforward approach was needed � which will average at approximately $400,000/unit. Ames said the end result is a project that is very much true to the original character of the development in that it is still a significant building and addition to the � waterfront. Ames said the addition of the Dana's Grill site put them back into a planning mode and how it can best be put into the overall planning. At the upcoming January 22 BED meeting, Ames will return with a plan � that encompasses any revisions/ changes resulting from tonighYs meeting and the contractor's bidding to be received next week. The contractor has indicated there wili be no savings by cutting back in the underground r garage spaces. Ames will put the spaces back and eliminate the car ports. (Ames continued speaking about elevations but stepped away from the ' mic). Hawes indicated that the rendering presented by Ames resembles a box , with no character, design and nothing that she personally would want to see on the waterfront. She understands the need for some of the cutbacks. (Ames continued speaking away from the mic). When Ames 1 returns to the January 25 meeting, he will have a color copy of the architect's rendition. Hawes clarified that the proposed changes would reduce the unit price by $100,000. � Palmer agreed with Hawes. The project has been 'dumbed down' and not ' appealing for the waterfront, the most valuable real estate in the , community. The proposed building needs to live up to the City's vision. I Gratwick asked about the responsibilities of the architectural task force, which has until April 1�to present its recommendation on design guidelines for the downtown. Responding to Gratwick, Barrett said the ' Council has to approve the final design of the project. Gratwick acknowledged that Ames has put a lot of time and money into the project but he agreed with Councilors Hawes and Palmer with the current � proposed rendering. The city and government have put $7M into the waterfront and this project doesn't fit into it. � Farrington asked about design plans. Ames said that there are not 7 units per floor as opposed to 8/floor totaling 28 overail. He said the overall value of the project will still be in the $12M range. There are not many ' buildings in the city that reach that value. Farrington and Ames spoke of heat savings. Farrington also spoke about parking inside and out. Ames � said that the Dana's Grill site provided an additional 10 spaces which were of critical need for the project. The property acquisition has been a long process and is still not quite in place. It forces Ames to go back to the ' � � Planning Board on February 7 with the final site plan. Farrington said he , would like to see a rendering that gives a dimensional viewpoint. Ames said that when the Committee sees the color rendering that it will be happy. � Barrett said the largest changes are on the entry side. It has gone from a � structure that has architectural detai� that breaks up the fa�ade to a structure that basically looks like a blank wall with a few standard windows. He suggested Ames consider a plan at a relatively low cost that � would provide some of the breaking up of the fa�ade on the original plan. The other elevation looks similar except for roof detail changes. He thinks it looks like a modern motel as opposed to something that has character � shown on the other side. Greene asked if the original colors are still in place. Ames said yes. , Palmer again underscored the efforts of Ames. He mentioned the thousands of people who would be viewing the building and he feels it ' needs to be a ta-da building. Architecture is frozen music. This one is not singing to him. ' In summary, Greene felt the Committee is not ready to make a decision at this point but needs further information. Ames will provide that at the � January 22nd meeting. McKay indicated that this was an informational item only. 4. Review of Maine Business Enterprise Park Development Policy & Preferred ' Reuse of UMS Maine Avenue Buildings McKay said the City has worked over the years to develop a policy for the � Maine Business Enterprise Park. Considerable dollars have been spent to improve the Park's infrastructure. The Council has adopted covenants for , the park which require higher quality building standards than in other areas of the City. Staff is suggesting a change to the zoning of the park � from Industry and Service District to a Technology and Service District. McKay also reviewed the other City Parks. The City is now allowed to sell lots in the Maine Business Enterprise Park so it has become more � attractive. The Ciry's intent is not to just sell a lot but use the lots to attract new investments and new jobs to the area. Some businesses have an interest in relocating their current business to the park. McKay spoke ' of some grandfathered use and, responding to Greene, said it could be part of a developing process. If anything were to happen to the building that is grandfathered, Greene said any new structure would conform to � the new standards. Bofduc clarified that the former Chancellor's Office ' , � ' building is not part of the Park and not be covered by the covenants. The buildings were owned by the Universiry and the land owned by the City. , If the Council wanted to include it, the covenants could be changed. Hawes supported changing the former Chancellor's Office building to be part of the Maine Business Enterprise Park. (Gratwick asked a question ' but mic was not on; McKay responded but was away from the table). Liz and Paul Leonard spoke regarding their interest in developing a chiid � care center. She is looking at a 10,000 sq. ft. The Park is a convenient location for parents. She prefers Bangor and the 107 Maine Avenue � building. Hawes asked the number of children involved. There will be a total of 180, with a staff of 24-27. Palmer asked for a background and history of child care work. Liz provided the information and then turned � to Paul Leonard, who provided his background. If the adjacent buildings (dormitory and building 56) were to work into the project, he would be pleased and has some ideas. Their main focus, however, is the 107 Maine ' Avenue. He spoke of a 'kid's courtyard'concept where children come after school. Leonard originaily thought to incorporate this concept into their building but now thinks perhaps the other buildings could be used � for a courtyard as a part of the overall project. The Leonard's are at this meeting to find out where the City is at with its plans for the building. Palmer asked Leonard about curb cuts, traffic flow and safety on Maine � Avenue. Leonard addressed the issues. There are currently three entrances. Gratwick asked the Leonard's for their background in terms of � running a day care and the type of clientele served. Mrs. Leonard said they have decided not to franchise, have been mentored and coached over the past two years, hands-on learning about child care centers. She � has been a pre-school teacher with a class of 25. They will hire quality staff. They would be the only accredited child care center in the area. In the future, all child care centers will need to be accredited. The Leonard's ' plan to cater to employers in the Park. It wili not be a head start program. They will have extra-curricular activities available as well. Hawes asked the Ciry Engineer if Maine Avenue is an area that can handle ' the inFlux of vehicles during the morning hours and evening hours. Ring responded yes. He said the real issue is the timing of the trips and the configuration of ingress and egress. Staff will review that issue. Over � time, the City will be making improvements in that area. If a new business entails over 100 trips, it requires a MDOT traffic permit. � Farrington said the Council needs to be certain that the best use of the building is determined. He asked why this is a better situation for the Leonard's as opposed to their original use of Lot 9. He also asked if the ' out buildings are a part of the plan. Mr. Leonard said not really, just a thought. � � , Barrett indicated that the discussion is a bit premature in that basically , this discussion is leading up to the next issue that staff is recommending a RFP for the buildings the City will acquire back from the Chancellor. The , RFP process would allow individuals to make a proposal to the City about the specifics of their project. The next issue is what should the City consider for use of the buiiding. � Palmer asked the Leonard's residency, which is Brewer. He spoke about signage and the important need of day care in the community. He spoke � of the need for a covered drop off. He asked about special needs children accommodation. Mrs. Leonard indicated the day care is state regulated � which takes are of these issues. Carolyn Fish, ReMax Advantage, addressed the Committee. She has � expressed an interest in Lot 13 at Maine Enterprise Park. She is currently located at 500 Main Street. She would like to build from scratch. She has preliminary estimates from WBRC for a 5,000 sq. ft. building, which she � realizes is larger than what the City wants for that park. She detailed some of her plans for the office space. 5. Review of Proposed Request for Proposals for Former University of Maine � Syatem Office at 107 Maine Avenue Barrett spoke about the RFP indicating the most important part of it is the � statement of purpose and background which should reflect what McKay � has covered at this meeting in terms of purposes of the Maine Business Enterprise and the kinds of uses involved. Barrett said it should reflect the uses set forth on the draft of the Technology and Service District zone � which would be business and professional office, service business, outdoor storage, clinic, medical or dental, research and testing laboratories, daycare centers. He also suggested that language be included that the , City would prefer uses that were not retail. McKay discussed the RFP process agreeing with Barrett's suggestions. Hawes would like to see the language reflect the items discussed this evening. Gratwick talked about ' evaluation of proposals and thought there should be language reflecting the use of local resources, local individuals, and basically recycling money within the City as opposed to bringing in a building that is constructed elsewhere and brought in by segments. He wants to see preference given � to locally owned operations. He would like to see this in all RFP's. � Barrett said this is for use of existing buildings. Remodeling would be the main construction for this site. Farrington said he leans on staff for guidance for the best use of any property. Barrett pointed out that , sometimes the City does not receive any response to RFP's but feels it is the first step to market the property. Regarding the ReMax interest, it � , , � needs to be discussed by staff and committee in an executive session at some point. Palmer spoke about preference to local business. Barrett 1 said these factors can be taken into consideration at the time of a receipt of a proposal. A motion was made and seconded to approve staff recommendation and to authorize staff to got out to RFP. IA MOTION WAS MADE AND SECONDED TO GO INTO IXECUTIVE SESSION FOR THE FOLLOWING: � 6. Executive Session — Economic Development — Economic Development Proposals — Maine Business Enterprise Park — 1 M.R.S.A. § 405(6)(C) � 7. Committee adion on above item, if any � No Committee action was taken. � 8. F�cecutive Session — Economic Deveiopment— Economic Development Proposal — BanAir Industrial Park— 1 M.R.S.A. § 405(6)(C) 1 9. Executive Session — Economic Development— Waterfront Development Proposal — 1 M.R.S.A. § 405(6)(C) � 10.Committee action on above item, if any , No Committee action was taken. 1 1 � I 1 1 1 1