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HomeMy WebLinkAbout2006-03-22 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMITfEE � March 22, 2006 Minutes � Councilor Attendance: Greene, D'Errico, Farrington, Stone, Palmer, Allen, Cashweli � Staff Attendance: Barrett, McKay, Heitmann, Dyer 1. Amendment to Lease Agreement with Eastem Maine Healthcare Systems � — Union Street— Former Slager Property Heitmann said there are three items regarding the lease agreement. � The first is the amendment. The City has leased to property to EMH and they will be subleasing it to Affiliated Healthcare Management, of which Capital Ambulance is a part. The second is that AfFliated Healthcare is ,� obtaining a mortgage and, at the request of the lender, there are a few changes all of which are non-substantive in terms of the lease. � Heitmann recommended Committee approval of the amendment. The � � third is an easement from the City for Maine Energy, provider of LP gas at the site. A motion was made and seconded to approve staff recommendation. The item will appear on the upcoming Council agenda � for final app�oval. 2. Approving Bangor Historic Track/Bass Park Sign � Heitmann said that Bangor Historic Track is proposing and the Chamber of Commerce's Executive Board has already approved is the sign (as � presented to the committee in a picture)to be located at the entrance of Main and Dutton Streets. The Bass Park and Chamber sign would be removed and the new directional sign would take its p(ace. Bangor � Historic Track proceeded with having the sign built without receiving the City's approval. q BHT has agreed to pay for the cost of the sign, has agreed to take care of maintenance and has agreed to pay the electric � bill associated with it. Dyer and Heitmann met with Johnson of Hollywood Slots regarding the marquis. During harness racing season, the City will use three of the five lines on the message board a �' will use 2. At other times, the City wil) use 4 and BHT 1. Each will work together to accommodate needs. The Chamber of Cc will not have use of the message board but the City will contirn � work with them as in the past to place their message regarding Annual Chamber Dinner. Palmer spoke about the number of tir � `Bangor'is listed on the sign, making it cluttered. He clarified tl � not an electronic sign. Palmer mentioned that Brewer has a sig can be changed electronically and therefore eliminate employee issues. Responding to Stone, Heitmann said that BHI will take c ,� costs associated with removing the current sign. Allen said the takes away from the emphasis of the Bass Park auditorium and '�. , � � center.The sign will still be on Bangor's property and she feels that the City should have input in negotiations. Farrington made a motion to approve stafF recommendation. The motion was seconded. Though not � a voting committee member, Palmer said he would not support the sign as it is presented. He is concerned about the sign's impact on passers by on Main Street as it relates to being able to see the Paul Bunyan � Statue. The item will be referred to the full Counci! at its upcoming meeting. Heitmann said that an agreement will be drafted. Heitmann wiil check on the height level of the sign. Also, if the sign is not yet � completed, he wiil check to see if changes can be accomplished. Joel Hanson from Bangor Neon addressed the Committee. He said the sign is 85%complete. There wiil be a change of letter device on the ground � that will preclude individuals ftom needing to use a ladder. The sign will not obstruct the Paul Bunyan Statue. Greene clarified that the new sign will replace the current Chamber sign and the Chamber sign will be � moved to the entrance of the Chamber's parking lot. Palmer asked Hanson the life of the sign, and he estimated 25-30 year life expectancy. To change the lettering would take an estimated 20 minutes. Palmer � again stressed his desire for an electronic sign to avoid stafPs time involvement, money, worker's comp risk. Palmer questioned the operating costs involved with the new sign. Stone said it is insignificant, � perhaps 15 or 20 cents per hour. Hanson said some of the plastic inlays are completed but he is willing to make changes. Greene stated again that there was a motion with a second to send the item to full Council's � consideration. Allen doubted the motion. A vote was taken: 4-1. 3. Executive Session — Economic Development—Economic Development � —Waterfront Hotel Proposals - 1 M.R.S.A. § 405(6)(C) Prior to going into exeeutive session,Greene invited Peter Daigle to the � table. Daigle is the Chief Operating Officer of Lafayette Hotels and owns � the Best Inn in Bangor. He spoke against the City subsidizing a developer to build a hotel on the waterfront whether that subsidy or � incentive involves building a parkirrg garage, giving a TIF, of offering -. land at low or below market prices. He is not opposed to hotel development in Bangor. If the demand does exist, the developer should make the investment, take the risk and build the project without �� taxpayer dollars. If it makes economic sense, the development will succeed without public subsidy or incentive. If it is a City funded � project, it will steal customers and staff ftom existing hotel owners, who have paid property taxes for many years. It is not fair for City funds to be used to underwrite a project that will compete with private business. He spoke about hotel developments in Waterville and the City of � Waterville did not become involved. The City needs to retain ownership and control of the waterfront and suggested using City money to � develop parks, trails, playgrounds, athletic fields,a skate park, festival space, etc. He referred to an Orlando Sentinel newspaper article dated March 13, 2006 which referred to the lack of hotel business due to what � � � customers refer to as an acceptable inventory of the right kind of � lodging space. Orlando has 112,000 hotel rooms. This issue exists in many communities. Building a hotel doesn't assure that�people will ,� come,'Daigle said. Although not advocating it, someone asked Daigle: if the City wants to improve the quality of lodging product in Bangor, why doesn't it offer tax incentives to existing hotels to improve their rooms, which makes as much sense as paying a developer to build new � lodging. A new hotel will not create demand. It will succeed if the economy grows. After a long stagnant, period, Bangor's lodging sales - have grown due in part to airport acfivity and Canadian visitors. Bangor � has 1,599 rooms in its region. Daigle's analysis indicates that the occupancy rate is close to 56-58% with an approximate $60/night rate. Farrington thanked Daigle for his input. He asked Daigle if 1,599 rooms � is sufficient for the region. Daigle said it has been in the last few years. Farrington asked Daigle if there were any circumstances that he would ,� think that public subsidy would be permissible. Daigle is opposed to private endeavors used to compete against existing businesses. Responding to Farrington, Daigle prefers a level playing field for hotei � and parking garage development. As an exampie, Daigle said if a developer were proposing a hotel near the mall, the City would be asking them for assistance with infrastructure costs. If a waterfront � hotel is approved with higher room rates, Stone asked Daigle if that would help current hotel businesses to raise their rates. Daigle said it would help. � Cashwell said that in one way Daigle advocates for greenspace at the waterfront. The City's desire is to protect greenspace and also provide ' � for an upscale hotel. Responding to Cashwell, Daigle said if the parking garage exclusive serves the waterfront hotel, he doesn't see a public purpose. It would be more beneficial in another part of the downtown. "� Cashwell spoke of building a waterfront hotel with parking in the area between the railroad tracks and Main Street. Daigle agreed. Cashwell asked if there was a public purpose to protecting the greenspace while � fulfilling the City's goal of a hotel. Daigle said he didn't see it.. D'Errico asked Daigle of the Smith Travel Research equates to a marketing feasibility plan. Daigle said Smith does not do feasibitity study but they � do sell their data. Responding to Cashwell, Daigle again said he is not . against another hotel as Iong as the there is a level playing field. Barrett talked about the City's general TIF policy and its use in the past �� for companies that are aimed for job creation, to address market obstacles such as downtown redevelopment projects,the Shaw's project � which required remediation of the site. He said that the logic behind what the City has done in the past with TIF's should be considered with thinking of the current situation. � � �