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HomeMy WebLinkAbout2004-12-01 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE , December 1, 2004 Minutes � Councilor Attendance: Tremble, D'Errico, Stone, Hawes, Farrington, Allen � Greene StafF Attendance: Barrett; McKay, Caruso, Martzial, Hamer 1. Amendment to a Lease A reement with PBB Global Lo istics, Inc. � 9 9 McKay indicated this is a two-year lease renewai for PBB Global Logistics, � which is located on Airport properly. A motion was made and seconded to approve staff recommendation. � � 2. Waterworks Lease Marizial indicated that the proposed lease with Shaw House will grant � them the necessary site control over the Waterworks Complex to meet a requirement from the US Department of Housing and Urban Development ,� under their supportive housing program. Shaw House has proposed to renovate the Waterworks Complex for use as 35 low to moderate income housing units. As part of their overall financing and operating needs, they '� have received a grant from HUD under the supportive housing program. � HUD is requiring a stronger indication of site control that is provided through the development agreement between the City and Shaw House. ,� Originally, HUD indicated that a three-year lease would be sufficient. HUD later indicated that they would require a twenty-year lease. The proposed � lease would be for 20 years at an annual lease rate of$1.00. Since Shaw House is not yet ready to administer the site, the lease will allow the City , to continue to keep the premises secure. Since the term of the lease is .� now twenty years, City Council approval is required. A motion was made and seconded to approve stafF's recommendation. 3. Residential Rehabilitation Loan: 110 Pearl Street �� Martrial indicated this has been a complete rehab of the property. The ,� project has incurred some overrun costs in the approximate amount of $12,000. The tenant had to be temporarily relocated, which was an extra expense. A motion was made and seconded to approval staff's � recommendation. 4. Residential Rehabilitation Loan: 48-56 Main Street � Gail and Martin Hipsky have purchased the former Standard Shoe � properly. Their proposed plans are to maintain the first level as retail , � ; � ---- __- — -- - - -- _- - -- - - � ' space and convert the upper level for residential use. McKay reviewed the financing as outlined in a memo he had provided to the Committee � along with their agenda packet. Councilors Greene, Stone and Tremble expressed concerns about the project and the financing loans. Martzial said that the Hipsky's have had a previous City loan for property on Essex � � Street. This was ten years ago and they have an excellent payment record. They own 17 apartment units in Bangor, which are in excellent condition. Mrs. Hipsky explained that she and her husband have been in � the real estate for thirty years in Connecticut and in Maine. Stone asked if it would be possible to secure some of Bangor's development money with some of their other properties. D'Errico asked questions about , � planned cosmetic changes to the front of the building. Mr. Hipsky outlined their planned improvements. Tremble felt the consensus of the Committee was to be very supportive of the project but concerned about � the amount and the tightness of the project. A motion was made and seconded to recommend approval to the City Council. {� 5. Update— State of Maine Trade Mission . � McKay, Tremble and Caruso accompanied the Governor on the seven-day � trade mission. Several Maine businesses were represented on the trip to build up sales for their products. Bangor staff inet with several local � development groups and businesses in Europe. McKay talked about a product manufacturing company visit that is interested in Maine. Prior to joining the Trade Mission, Caruso had attended the World Travel Market in � London. While in Germany, he was asked to attend meetings with the Maine Port Authority representatives. He met with tour operators, who market Maine as a piece of the puale; i.e. Boston, New York. Tremble _ � said that Bangor received much recognition on the trip. As part of the Mission, BIA sponsored a reception. He stressed the importance of Councilors being involved in such trips. McKay said that traveling with the � Governor and staff opens doors that would not be easily done by the City on its own. He also stressed the importance of establishing business relationships with the Maine businesses while on the trip. � 6. Update — Union Place �' McKay gave a brief background on the property. One of the current options is for the City to rehab the existing four-unit apartment building � � and, if the Council desires, build new units on site. The site can accommodate 8 units in two buildings. The other option would be to reissue a RFP, which would require definite guidance from the Council � regarding the zoning for the site. In response to Tremble, McKay said that whoever rehabs the building would have to relocate the tenants during the rehabilitation timeframe. Barrett said that if new units were to �, be constructed, the existing tenants would be moved into the new units to � . � avoid relocation issues, and then renovate the existing property. Allen t asked about the compatibility of manufactured homes. McKay said that the existing design in the neighborhood would be recognized to fit into the neighborhood. Martzial said that temporary relocation isn't as expensive � as a permanent relocation. Barrett said the options are very clear. An approximate cost of constructing a duplex is $130,000-$140,000. Staff � could prepare a proforma for the site; i.e. costs, project design. It would be marketed through a real estate agent to the private market. A new RFP would generate proposals from interested individuals. A third option �' is to market it and remain open to proposals on how to use the properly. Tremble talked about town house construction. Barrett said it would require a zone change. Barrett talked about the difficulty of private � developers and the relocation costs of approximately $14,000 per unit. Barrett suggested that relocation fees could be a part of the purchase price. The Committee agreed to issue another RFP but wants to look at � the issue of zoning prior to the issuance. Tremble asked that the RFP process be simplified in terms of developer's upfront architectural design i �. . costs.. Barrett said stafF will meet with Planning on various planning � .� scenarios and then come back to the Committee with a draft RFP. 7. Executive Session — Negotiations for Property Disposition - Development �_ Proposal — Union Street— 1 M.R.S.A. § 405(6)(C) A motion was made and seconded to go into Executive Session for items � 7, 8and9. � 8. Ex — _ � ecutive Session Negotiations for Property Disposition Development Proposal — Maine Business Enterprise Park— 1 M.R.S.A. § 405(6)(C) � � 9. Executive Session — Negotiations for Property Disposition - Development Proposal —Waterfront— 1 M.�.S.A. § 405(6)(C) � No Committee action was taken on Items 7, 8, and 9. _ � �� � ;� � �