HomeMy WebLinkAbout2005-05-25 Business and Economic Development Committee Minutes i
' BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE
May 25, 2005
' Minutes
� Councilor Attendance: Tremble, D'Errico, Hawes, Farrington
Staff Attendance: McKay, Ring, Heitmann
' CONSENT AGENDA
� 1. Amendment to Promissory Note — Neville
A motion was made and seconded to approve staff recommendation to
amend the Community development loan Promissory Note with Barbara
� Neville to allow her to transfer her home into joint ownership with her
daughter.
' 2. Amending Dates in City / University of Maine System Agreement for
Exchange of Property.
� McKay said the Agreement is for the exchange of the University of Maine
System's property on Maine Avenue and the top three floors of the
former Grant's building owned by the City. The City funding the UMS
' renovations to the GranYs building for its use is making up the difference
in value. The transfer of property was to have been completed at the time
, the GranYs building were complete. The original slated date for
completion of the Grants building was June 30 and the new anticipated
date is now September 20, 2005. McKay suggested September 30 and
' the University suggested October 30"'. A motion was made and seconded
to recommend approval to the full City Council for their finai action to
amend the June 30 dates in the Agreement to read Odober 30.
' REGULAR AGENDA
1 3. Review of Revised Development Plans, Zoning and Transfer Request for
Realty Resources Chartered Development of an Affordable Housing
Complex on Essex Street. '
, McKay said that Realty Resources was the sole responder to the RFP for
� the former Naval Reserve Center. Their proposal is for 8 buildings
containing 32 units of affordable housing. The Committee has had several
meetings with Realty Resources and has concerns with the density of the
� development. The traffic concerns have been addressed. Realty has two
new proposed layouts. Realty prefers one due to a lesser cost involved;
City staff prefers the other because the buildings are further apart. The
'
�
�
majority of financing for the project will come from low income tax credits '
made available through the Maine State Housing Authority. In order to
retain low income tax credit financing, Realty Resources must ,
demonstrate that it has expended a minimum of 10% of development
costs by June 19, 2005, a date in advance of that made possible under
the current Agreement. Realry Resources has requested an amendment to ,
this Agreement that would allow conveyance of the site to them before
June 19 so that they can include the purchase price as part of the
required expenditures. ,
Barrett said that staff's recommendation is for the plan that is the similar �
to Realty's original plan that shows three parking areas with property
areas adjusted in order for Realty to meet their setbacks. Barrett
suggested that Realry provide the check and the City will place it in �
escrow. Heitmann said that Realty has two financing term sheets— one
from MSHA and from a private lender that are forms of commitment.
Reaity's counsel has indicated that Mr. Cloutier will provide a personal ,
guarante to ensure the property will free of any encumbrance should the
development not go forward for any reason and ownership revert back to
the City. If the Committee is willing to consider working out something �
whereby Realty can spend the funds, it can be placed on the June 13rn
Council agenda. A motion was made and seconded to approve staff's
recommendation to full Council, provided the City Solicitor is reasonably �
assured that if the property is conveyed to the developer and, for some
reason, the development does not occur in accordance with the terms of '
the development agreement, then the property would revert to the City
without encumbrances. Staff will also notify neighbors of the June 13�'
meeting. �
Executive Session — Land Negotiations for Properly Acquisition and Disposition —
1 M.R.S.A. § 405(6)(C) - Negotiations for the disposition of properly — Front '
Street
4. A motion was made and the Committee voted to go into executive session �
to discuss negotiations for the disposition of City owned property on Front
Street. Following the executive session, the Committee voted to
recommend to the full City Council that Larry Springer be granted '
tentative developer status to provide Mr. Springer an opportunity to
present further defined plans to develop two buildings on Front Street at �
the end of Railroad Street.
5. Executive Session — Land Negotiations for Property Acquisition and �
Disposition —
'
,
I
1
, 1 M.R.S.A. § 405(6)(C) - Negotiations for the disposition of property -
Summer and Railroad Streets (Confidential Memorandum provided
� separately)
A motion was made and the Committee voted to go into executive session.
� Following the executive session, no Committee action was taken.
Business Development Loan Application — Michael Cormier, sole proprietor of
Bangor Radiator Shop. The loan requested was for $100,000 to be used for
, acquisition of land from the City, and equipment and construction of a new
building on Maine Avenue. Bangor Radiator is being relocated from its property
on Main SXreet needed for construction of the City's new police station. Collateral
' would be a ist mortgage position on land and buildings and all other business
assets. The source of funds would be all Community Development funds or a
combination of City financing of the purchase of the property at $54,500 and the
,' balance of up to $46,500 from the Community Development Business
Development Loan Program. The applicant, representing approximately 65.5%
' of total project cost, would provide the balance of funding for the projected
$289,815 project. The public would benefit by the creation of Z-3 new jobs due
to expansion of services provided by the business. All or some of the new jobs
, could be available to trainable low- and moderate-income persons. Staff
recommended and the Committee approved a loan not to exceed $100,000
financed at 6.25% interest repaid over 20 years, secured by a first mortgage on
, land and buildings on Maine Avenue. A second loan application of Bangor Truck
Equipment was briefly discussed and action was deferred until additional
information was available.
'
i
1
1
t
1
1
1
1