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HomeMy WebLinkAbout2009-04-22 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE � April 22,2009, 5 pm Minutes , Councilors Committee Chair Hawes, Blanchette, Bronson, D'Errico, Gratwick, Nealley, Palmer, Stone and Wheeler ' Staff: Barrett, McKay, Ring, and Bolduc Others: Rev. Bob Carlson, President of Penobscot Community Health Caze (PCHC); � Ken Schmidt, CEO of PCHC; Roger Lewis, Boazd Chair of PCHC; John McCormack, CES, Brewer; and Sal Capobianco of Capobianco Associates, � Boston. 1. Review of Revised Proposal from Penobscot Community Health Caze � Rev. Cazlson spoke to the committee on behalf of PCHC requesting that the parcel of land behind the Bangor Radiator Shop be included as part of the Auburn Hall ' complex sale. This pazcel is critical for additional parking as part of PCHC's project. The parcel is"landlocked" with no curb cut likely onto Union Street frontage, making it difficult to use for any purpose. PCHC has offered the City $1Q000 for this pazcel , bringing the total purchase price that they have offered to the City of$1,510,000 for the Aubum Hall complex. Councilar Nealley inquired about an unresolved issue remaining with the ' agreement. Rod McKay replied that it is the issue of a"Service Fee" or payment in lieu of taxes. PCHC's position is that a"service fee" is not appropriate as part of this � agreement, and not acceptable. McKay further stated that since the City of Bangor owns land and is being asked to sell or lease land to a non-profit that the City consider adopting a policy that would apply to payment in lieu of ta�ces on all non-profits leasing or buying , land from the City. This is an issue that PCHC has not agreed to. Rev. Cazlson stated that this would create for PCHC a situatio� of not knowing what that fee is going to be and how it is going to be applied. He further stated that � PCHC has expended in 2008 over$750,000 in free care to low-income residents of Bangor. As further information, City Manager Barrett gave some general background on ' the issue of tax exempt status. He stated that there is a disproportion that exists within the Ciry of Bangor(and other major communities in the State of Maine) that have significant institutional presence; these communities have relative high ta�c rates. In ' ' Bangor between 30-40% of all properties are tax exempt and this is a percentage that increases every yeaz. The citizens of Ba�gor are asked to subsidize that help through higher property taxes and paying for, in particular, police, fire and road projects that � affect those organizations. There aze several options on how this fee could be charged. It could be based on the assessed value of the property and tie it to that portion of taxes that go towards services that benefit the property(police, fire and roads). These services are ' about half of the City's tax rate, so perhaps azound $5 per$1,000 would be a feasible rate ' � ' � to charge a non-profit; or could base a fee on either a per square footage fee for services ' such as fire protection. These aze negotiable. Rev. Cazlson proposed that perhaps PCHC could make an annual `donation' to the City that PCHC determines each yeaz instead of being asked to pay a specific fee - ' until other non-profits in the City are on paz if there is some formula that gives pazody. Councilor Bronson made a motion to direct Economic Development staff to go forward with the proposal to PCHC as outlined, exempting the piece regazding any � payment in lieu of taxes. Seconded by Councilor Nealley. Councilor Bronson added that for the future, the City Council should consider having a policy in place with respect to payments in lieu of taxes. � Councilor Palmer added that he agrees with Councilor Bronson in regazd to having a policy in place with respect to payments in lieu of Gvices. Councilor Palmer also stated that if it came to a roll call on Councilor Bronson's motion,he would have a hard ' time supporting the motion as the City owns the property, they're the bank and he feels that in instances where the City can they need to have the opportunity of payment in lieu of ta�ces. He supports the work of PCHC and feels that requiring them to do a payment in , lieu of taxes would not get in the way of their mission. Councilor Nealley supports the motion as placed by Councilor Bronson in order that PCHC be able to continae their work in providing very low cost health caze. ' Committee Chair Hawes then asked for a vote on the motion on the floor that has been made and seconded. A vote no doubt was received. Rev. Cazlson added tttat if City staff would like language added to the agreement ' whereby PCHC would look at an `annual donation' to the City, and if that helps in the process as the City continues deliberations with other developers, then he does not feel this is hannful to PCHC. � Barrett replied that even though there has been a motion to pass this item, it does not restrict the City from accepting the offer from PCHC to insert language that they might feel comfortable with. He added that earlier there had been a comment of an ' option to purchase—this is not a problem as it is PCHC's option. There usually are some conditions that have to be met in terms of design review, etc. This is not a problem; Rod McKay can work this out with PCHC. , 2. Executive Session—Economic Development—Disposition of Property—Maine Avenue— 1 M.R.S.A. § 405 (6) ( C ) ' No Executive Session required. � 3. Committee Action on Above Item No further action required. , ' i ! � , 4. Design Review of Columbia Street Pazking Deck The City is in the process of contracting with Capobianco Associates of Boston to , provide design-build services and Cianbro Construction for repair/replacement of the existing two-level parking structure at the corner of Hammond and Columbia Streets. , Rod McKay stated that City staff has reviewed the proposed design of the new pazking deck and has determined that it meets the Council's adopted azchitectural review guidelines. It now needs the Committee's approval before going to final design. John � McCormack of CES, Inc., Brewer, outlined a brief scope of the project. It is proposed that the existing deck be taken down and a new state-of-the-art precast concrete deck, with brick facade, be conswcted with 84 parking spaces along with provisions for � handicapped spaces as required by code. The initial design of the proposed new deck will have a life span of approximately 50 yeazs, with proper maintenance. The City will close Columbia Street during the demolition of the lower part of the existing deck; a , crane will be placed on Columbia SVeet so as not to interfere with the flow of traffic on Hammond Street. However, when the precasi is brought in there will be some impact to Hammond Street; it is anticipated that it will only take 7 days to erect this deck. Lighting ' ' in the lower level of the new deck will have lighting levels to what the code recommends; at the entrance, transitional lighting will be provided. � In response to concerns by Councilor Palmer, an anti-graffiti coating can be placed on the brick to make it easier to clean if there's ever a problem with graffiti. Councilor Palmer also suggested that railings be added to the design of the structure on the upper wall areas to prevent sitting. , Councilor Bronson inquired as to why a 3rd deck is not being proposed for the new pazking deck structure. t At an on-site visit,the design team had discussed the possibility of a 3rd deck with Jim Ring. They did do a survey and found that approximately 20 feet of land directly adjacent to it would be needed and as well as a building that would have to be acquired. ' Given the grade challenges, at most they're allowed to rise is 10%; if there is a ramp sloped greater then 10% iYs not recommended. W ith an additional level, a net gain of approximately 20-21 spaces would be achieved but the cost would be significant. More ' information will be provided to Jim Ring and the City after further information is obtained from Cianbro. One other option that is still in the process of being studied is to allow them to use the existing entrance at Columbia Street and ramp that roof down in ' order to gain the 4 feet of clearance that would be needed and would still have to meet the grade. If a 3`d structure was approved,the completion would probably not be able to meet the 2009 deadline. , Councilor Nealley made a motion to accept City staff s recommendation to the full City Council. Seconded. So voted. , � � � , ' S. Scheduling Visit to the Cianbro and Affiliated Materiel Services Facility at 70 Bennett Street, Bangor � Steve Bolduc presented this item to the committee. Councilor Palmer has requested that a meeting be set-up with members of the Committee and Council to tour � 70 Bennett Street, Bangor where both the Cianbro facility and Affiliated Materiel Services aze located. Both organizations have purchased and renovated the building ' (former Georgia Pacific building behind former Pilots Grill). Steve will handle the scheduling of a tour. (Tour was held on May 11, 2009 at 1:30 pm at 70 Bennett Street.) � Meeting adjourned. � ' , , ' � ' , ' , ' ' '