Loading...
HomeMy WebLinkAbout2008-09-03 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE , September 3, 2008 � Minutes Councilors: Palmer, Farrington, D'Errico, Wheeler ' Staff: Barrett, McKay, Bolduc Others: David Lawler, Julia Wilcock 1. Extension of Lease Agreement for Office Space at 39 Florida Avenue ' Boiduc said this is an extension of a lease of Office J at 39 Florida Avenue. There is an increase in the rent to $156/month. Responding to D'Errico, Bolduc said � the building is fully occupied. Wheeler questioned the low rent. Bolduc said it is a 12' by 12'foot, and all utilities are included. A motion was made and , seconded to approve staff recommendation. 2. Purchase Option Agreement of 113 Maine Avenue with David B. Lawler � Bolduc said this item has previously been before the Committee at which time Lawler was designated as tentative developer of 113 Maine Avenue. Staff and Lawler have worked out a purchase option agreement for Committee's review ' and recommendation. Reviewing some of the terms, Bolduc said it is a slightly under 5,000 sq. ft building, the land area is just under an acre, Lawler would � ' have the option to purchase through the end of October and close by the end of November for $100,000, an option fee of $1,500. In his site plan, Lawler is allowed to request one vehicular entrance and exit onto Maine Avenue from the ' properly, the zoning would be changed from the current Govemment and Institutional Services Distrid to a Contract Industry and Service District. Lawler will invest at least $300,000 which includes the $100,000 acquisition price, this , Committee will approve plans for renovations, Lawler will obtain this Committee's approval and site plan approval before the property is conveyed to him, Lawler will show proof of financial backing, and work will begin by December of this � year and completed by November 2009. Responding to Palmer, Bolduc said the estimated value of the completed building is expected to be $300,000-$400,000. A motion was made and seconded to approve staff's recommendation. It will be � moved forward to the full City Council. 3. Request from Volunteers of America for Community Development Block � Grant Funds to Fund Off-site Work on Curoe Street for their Senior Housing Project at 315 Harlow Street , At the suggestion of the City Solicitor, McKay took the terms of the development agreement and placed it into a Committee Resolve format which would approve the loan. The proposal is for a 55-unit senior citizen apartment complex at 315 � Harfow Street (formerly Capital Ambulance). VOA has been successful in combining several sources of funding for the project. The missing piece is funding for the grading of the City of Bangor's property between Curve Street ' ' 1 1 and the project. It is considered an off-site improvement project and the VOA's ' available funding sources do not cover it. The work is necessary as a condition of the Planning Board's site plan approval. The estimated cost is $18,000. Staff recommends that the Committee approve this as a loan and, as long as the � property is rented to low and moderate income individuals under the guidelines of HUD, the payment would be forgiven each year. , Julia Wilcock, Vice President of Business Development for Volunteers of America, said that VOA purchased the property in February of 2008. All necessary plans � have met approval by appropriate boards, and VOA has an October closing date. Wilcock stated that their funding is 15 years under the tax credit and 40 years under the HUD 202 funding. She presented final drawings for the proposed � project. Grading of the property in question is needed to reinforce the area. VOA does not have the necessary funding. At the request of Palmer, Wilcock provided background information about the Volunteers of America. ' Farrington asked what would happen if the City does not provide the $18,000. Wilcock said she isn't certain where the funding would be otherwise found. She ' spoke of a payment in lieu of taxes as opposed to a property tax. In response to Wheeler, Wilcock provided a breakdown of the income level for tenants. Wheeler � said that McKay confirmed that the dollars requested are available in the CDBG funds. Barrett said that staff has confirmed that the hillside in question needs to be taken care of and that it is unsightly. � Heitmann said that the requested money is for grading and landscaping on an easement area owned by the City. In addition to a vote on the loan amount, staff ' also needs a recommendation to the full Codncil to approve a landscaping and grading easement for the City-owned property. Wilcock thought this had been previously done, and Barrett said no record was located. Wilcock said that I Bowman Brothers has been selected as the project contractor. -'•i Wheeler made a motion to recommend approval of the Council Resolve stating � that in as much as this Council has already pledged up to $125,000/year for five years to the Hammond Street Center and $50,000 a year thereafter to approve a , mere $18,000 for assistance in the necessary grading work to be done for the VOA project be approved. The project will provide needed housing for the City's senior population and will provide an economic boom for the City and that area ' of the City. The motion was seconded. Farrington said he wanted to be certain that the action did not interfiere with the CDBG program guidelines. McKay said that this funding would come out of the already approved CDBG funds and in , particular the Property Rehabilitation Loan program under that program. It is an eligible activity under the HUD guidelines. , ' ' Heitmann pointed out that the Resolve does not need to be forwarded to full ' Council but approved at the Committee level. The easement issue needs to go � before the full Council. Palmer clarified that the Resolve would be passed at the Committee level and the � easement to go before the full Council, and asked for a show of hands. It received unanimous Committee approval. Responding to Farrington, Wilcock said there are 66 parking spaces for the � project. There will be an on-site property manager. � � , ' M 1 ! _ t � t 1 1 1 1