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Home My WebLink About2007-05-09 Business and Economic Development Committee Minutes � � BUSINESS AND ECONOMIC DEVELOPMENT COMMI fTEE .Wednesday, May 9, 2007 Minutes S Councilors: Gratwick D'Errico Greene Farrin ton, . , , 9 Staff: McKay, Bolduc, Moses � CONSENT AGENDA � A motion was made, seconded and passed to approve the Consent Agenda items. 1. Amendment to the Lease Agreement with Michael J. Fori and Ronald J. LaVallee � d/b/a Econo Storage 2. �ultural Commission Grant Request from.Bangor Public Library to Fund a Year of Free Daily Passes to the Maine Discovery Museum � 3. Cultural Commission Grant Request from Robinson Ballet for Partial Funding of 2007 Annual Dance Pertormance � REGULAR AGENDA � 4. PUBLIC HEARING - City's Application for Federal Community Development � � Block Grant funds for the period July 1, 2007 through June 30, 2008 McKay said that since 1974 the City has received entitlement funds from the US HUD under the CDBG Program. The funding is based on a formula amount and the � number of cities that meet the qualifications as a central city in a Standard Metropolitan Area. This year the amount is $1;066,000. In addition to the funds, the City also has revenue funds coming back through several loans the City has made to properly owners � for rehabilitation and business loans where new jobs are created approximating � $600,000. The total amount available will be approximately$1.6M. The City has to submit to HUD the Council's planned use for the funds for July 1, 2007 to June 30, , 2008. After the submission, the Council has flexibility throughout the program in changing the amount of funds for each activity as long as the activity is eligible under the Community Development program. Staff is proposing two different things this year. � The Committee has recently been approached by the Bangor Museum and Center for History for financing for their project of restoring/rehabilitation their new property in the amount of$300,000. It does qualify as an eligible activity. The Penobscot Theater is � seeking $285,000 for rehabilitation/renovation of their Main Street property. StafF proposed amounts in the American Disabilities Act line item that would accommodate both projects. The amounts normally made available in other areas would be � decreased. Staff proposed $50,000 be allocated for business development assistance and loans; Park Woods $84;000; $493,000 for residential property rehab loans; $2,500 for property disposition; street and sidewalk public improvements $379,000 (broken into three years). McKay said that some street and sidewalk public improvements would be '_ deferred to another year as well as playground equipment replacement in the Second Street Park. McKay indicated that $265,000 would be used for program administration � and $15,000 to reimburse the Planning Department for its services. With the resignation of Marfzial and the upcoming retirement of Moses, McKay plans to combine the two positions. � � � . � Gratwick noted that Farrington has joined the Committee and would be taking the Chair once this item was completed: Gratwick spoke about the need to continuing � efforts to keep the CDBG program in effect. He also spoke about the need to discuss the two major projects—the Museum and the Theater. D'Errico indicated his pleasure with the City's approach regarding the projects. � Penobscot Theater board and stafF members attended. Durell Buzzini and Scott Levy approached the table. The current opera house needs repairs for life safety and for visibility purposes. The requested City funds would be use for safety related issues, � ADA compliance and accessibility. Levy said the building is in a state of severe disrepair. The historic building needs to be preserved. Responding to Greene, Levy said the total project cost is $498,000. The remaining amount would be comprised of private � donations, matching grants, pledges and fundraising. The Theater has undertdaken projects and improvements on their own as well. Greene talked about$198,900 in internal funds on the balance sheet provided. Levy said that amount represents the � amount of monies within the reserve accounts of the Theater. Gratwick asked for a larger comprehensive plan for internal improvements for the upcoming years. Levy said the importance of this phase is tantamount. His goal is to restore the opera house to its � grandeur of 1920. Responding to Gratwick, Levy said that any space could be turned . into a theater. No theatrical building is flawless. Kay Lebowitr of Bangor spoke in favor of preserving cultural art organizations in Bangor. Bob Guerette spoke as a Theater � Board Member. The face of Bangor is in large part represented by its Main Street. The theater fa�ade needs repair. Sara Martin, architectural historian, spoke in favor of the project. � Terry Garner, Executive Director of the Bangor Museum and Center for History, presented her request. She introduced Ed Clift, a Board member. The Arata's donated � the building to the Museum and it needs to become ADA accessible. The funds requested from the City will be used in that capacity. The building will be used to represent Bangor's history, to partner.with the Discovery Museum, and to reach children � over the age of 12. The $300,000 request from the City will be matched by an anonymous donor providing $600,000 towards the project. A million dollar challenge has been offered. The Museum has also applied for federal grants through the National � Endowment for the Humanities for $750,000 in two individual grants. If received, those grants are matching as well. The entire project is $2.9M. $1,440,000 has been raised to date in cash and pledges. Ed Clift spoke of the monies raised. Evelyn Silver spoke in � favor of the project. Gratwick said he is supportive of those involved with the projects and with City staff's creative involvement. The public hearing was concluded. A motion was made and seconded to accept � � � the report as presented by Rod McKay. . 5. Lease Agreement— Maine Governmental Facilities Authority Leaseback of B-13 to � City for Parking McKay said there are two orders on this issue for the Court system's proposed � building on Exchange Street. The leaseback of B-13 to the City will allow the City to continue using it for parking until it is needed by the court system to begin site � � � � development. The court will provide the City with a 60-day notice. The court wants to obtain title for the site in order to bond the project. A motion was made and seconded � to approve stafYs recommendation. 6. Drafit Lease Agreement— Lease of Kenduskeag Plaza Parking Area adjacent to B-13 to Maine Governmental Facilities Authority � McKay said this is a lease agreement with the court system. In trying to comply with the Court's desire to close the legal loose strings prior to May 24th so that their project can go for bonding. The court has some concerns with the draft lease. McKay � recommended that this be continued until after the stafF meets with the court system tomorrow. He also recommended a pre-Council meeting on Monday evening at which time staff will bring Council up-to-date. Barrett said the court system is in a huge hurry � before selling the bonds. A motion was made and seconded to approve staff recommendation. Responding to Gratwick, Bates said the court is planning for an early fall project start date. She is not aware of any other impediments. The fa�ade will � meet the City's guidelines and standards. 7. Penobscot Theatre Request for Funding of Building Renovations � The Committee considered this request as part of Item 4, recommending it be � approved by the full City Council. � 8. Executive Session - Economic Development— Negotiations for Amendment of Financing Agreements — 1 M.R.S.A. § 405(6)(C) � A motion was made and seconded to go into executive session. No Committee action was taken on this item � , � � � � � � �