HomeMy WebLinkAbout2001-02-07 Business and Economic Development Committee Minutes Business and Economic Development Committee
� February 7, 2001 at 5:00 p.m.
Minutes
Attendees: Councilor Baldacci, Committee Chair; Councilors Crowley, Blanchette,
Tremble, Palmer, and Farnham; Ed Barrett, Rod McKay, Stan Moses, TJ Martzial, Jeff
Russell, Rebecca Hupp, Mike Dyer
1. Consent Agenda
The following two items were unanimously approved.
a. Hammond Street Courtyard Request for Assent to Reciprocal Easement
Agreement
b. Foreclosure, 5 Nelson Street
2. Public Hearing: FY2001 Consolidated Housina and Community Development Plan
A motion was made and accepted to open the public hearing. Stan Moses
explained that it is the annual CDBG hearing. Last year the City submitted to HUD its
second five-year consolidated housing and community development plan and an annual
� action plan for the first year of that program. This year, the City will be submitting its
second annual action plan (he provided a copy to the committee). Two public hearings
are required prior to submission of the plan to HUD. This is the first public hearing
which has to occur prior to actual planning or development of the plan. The purpose of
the hearing is to cover the activities that may be funded with CDBG funds. TJ Martzial
provided handouts explaining the activities. In the fall of 2000, the HUD appropriation
bill included $5.1 Billion for the CDBG program nationwide. After plugging in the
formula for dividing the appropriated funds among the almost 800 cities and counties
that received the funds by entitlement grants each year, the City of Bangor's share was
set at $1,266,000 which is $4,000 less than last year. However, the City was notified a
couple of months later that there was an adjustment made in the formula calculation
which lowered our annual grant by $2,000 to $1,264,000. With HUD's approval of the
City's action plan, this amount will be received July 1, 2001. With these funds, the
typical ranges of community development activities can be carried out. In recent years,
typical activities have consisted of primarily: housing rehabilitation; loans and deferred
loans for housing owned or occupied by low to moderate income people (single or
multi-family dwellings); public improvements to streets, roads, parks in residential
neighborhoods; a public improvement program for the downtown area (i.e., the
sidewalk on the southwest side of Hammond Street adjoining the project to convert the
old Bangor Furniture building into housing and businesses); waterfront public
improvements including land acquisition of the Front Street and Railroad Street
� properties and the railyard; loans available for non-profit and for-profit entities for job
� creation activities, startup of expansion of businesses that will create or retain existing
employment primarily for low and moderate income people or to carry out project to
enhance accessibility for people with disabilities.
This year's annual action plan will be a continuation of those activities with
special emphasis on Union Place and the Waterfront.
Councilor Blanchette asked what type of future development could the City enter
into on the waterfront with CDBG funds. Moses indicated that in the past the City has
carried out activities in the waterfront area green space, used CDBG funds to fund the
supplies for the train station, to acquire property, demolition and clearance. Barrett
indicated that the.parks area could still continue as well as CDBG funds in areas that
result in job creation for low to moderate-income individuals. McKay indicated that job
, creation is the name of the game with CDBG funds in an economic development
' setting. The properties acquired will be paid off this year. Councilor Baldacci
mentioned a discussion last year centering around handicapped accessibility in the
downtown, and Barrett indicated it would be an eligible activity with CDBG funds.
Baldacci asked if anything had been done in terms of that discussion. Moses indicated
the sidewalk replacement on Hammond Street was justified on the basis of
handicapped accessibility because the previous sidewalk was not acceptable due to
surface deterioration. Barrett indicated that a hearing held with a group of disabled
individuals who had asked the City to do more in the way of handicapped accessibility
� for pedestrian purposes in the downtown. In the interim, the City has received a
complaint about the post office area and the City is going to be required to do some
modifications in that area both in terms of curb cuts and sidewalks. The post ofFice also
requested visual and auditory signaling systems. Barrett indicated it is on the list of
things that ought to be considered in providing some funds perhaps through CDBG
funds or fund balances to speed up the process. Baldacci asked for a checklist of what
is done from year to year with CDBG funds as well as through the budget process.
Barrett indicated that the Council has committed itself to do some projects in the
downtown. When a complaint is received from the post office area, the City is required
to do something. The budget for this specific request was $20,000 for ramps and
sidewalk adjustments.
Blanchette referenced page six, item 12 of the study distributed "private owned
utilities" and asked if the railroad relocation at the waterfront would fall into that
category. McKay indicated yes, if it could be tied into job creation. The City has
received grants for a lot of the infrastructure work that needs to be done and the City
Engineer and Community & Economic Development Director feel that the money
received is adequate enough to do the work this summer. McKay again stressed that
CDBG funds are tied to job creation. He further stated that over the years the City has
done downtown sidewalk improvements through the CDBG program due to building
improvements taking place that created jobs. Handicapped accessibility issues are
� eligible because the federal government considers the handicapped low to moderate
� income qualified by definition. McKay indicated it would be helpful to have ideas on
what the Council would like to see done with these funds and to provide those
suggestions to either him or Steve Bolduc. They in turn would work up some figures
and then the Council could decide whether to fund it through the Community
Development program or the City's budget. Barrett indicated the largest ongoing
priority is Union Place for next year's plan which is following Council direction.
Blanchette indicated that over the years the Council has talked about the
shortage of single, one-room efficiency apartments in the area for single people
working minimum wage jobs, who cannot afford to rent an apartment. The Director of
Health and Welfare has talked about this problem for years now. Blanchette asked if
this would fit in with the overall grand scheme of Union Place. Barrett didn't think the
area would be properly zoned for such a use. Moses indicated that this was an area
identified in the five-year plan as a critical area.
For the record, Councilor Baldacci, who had arrived late for the meeting, stated
that he would have had a conflict with item 1(a).
A motion was made and accepted to close the public hearing.
3. Bangor Area Children's Choir Request for Financial Support
� This item was discussed at the last Committee meeting and, after some
discussion, the Committee requested that staff obtain more information. Barrett
referenced his memo on page 73 of the committee agenda where he outlined three
options under the assumption that the Committee would recommend some form of
financial support. The Committee, of course, retains the option not to recommend
some form of financial support. The first option is that funding could be tied to the
Children's Choir committing to perform at City sponsored events at perhaps $500 an
appearance. The second option is to look at providing scholarships for Bangor resident
members of the choir who do not have the financial resources to provide the $600
amount requested of each family. The third option is to provide a challenge grant
towards the outstanding amount which is approximately $10,000.
Councilor Crowley made a motion, with Councilor Tremble seconding, not to
provide funding support. Crowley indicated it is a difficult motion because of the
excellent presentation made to the Council by the Choir. He feels it would set a
precedent to many worthwhile youth groups that are seeking to represent the Bangor
region in a contest setting whether it be performing arts or sports, and that it is not an
appropriate use of tax dollars. He further stated that the group is certainly worthy and
he would personally.help them at some level. Councilor Tremble expressed agreement
with Councilor Crowley indicating that he too supports them as an individual. Councilor
Blanchette agreed that financial support for this group would indeed set a precedent.
` The City receives a number of requests annually. She also stressed that some of the
� choir members are from the Bangor region, not just Bangor. She too would personally
support the group but was not comfortable using taxpayer dollars.
Councilor Palmer felt that by supporting the group financially the City would be
buying a service. He referred to Item 1 on the agenda, indicating "something for
something". He feels there's a tremendous advantage, realizing not all of the group are
Bangor based but they have worked hard. He too is concerned about setting a
precedent but he feels there is something about music that is positive. The things we
do for children are important, they are the future of the community. Palmer also
realizes there are many groups who have a need for financial commitment, and he
doesn't want to give this group something for nothing. Music has the value that the
. older he gets the more he appreciates it not only for the maker of the music but for the
listener and for that reason this request should not be underrated.
Councilor Baldacci recognized and supported Councilor Palmer's position
indicating that the City makes distinctions among various groups on various issues
citing the MPBN funding. A decision was made to support because of certain goals to
be reached in terms of development in that area of the City. He feels that the Choir's
request is a small amount, and he felt either option 1 or 2 would be appropriate. He
feels the benefit will outweigh the funding provided.
Bernie Kubetz spoke on behalf of the group indicating he had made a full
� presentation at the last committee meeting. Councilor Blanchette had previously
mentioned the Chamber of Commerce Annual Dinner at which the Youth Choir
performed. She has suggested to the Chamber leadership that��the hat" be passed for
a collection for the choir that evening and the idea was turned down. Mr. Kubetz stated
he also had asked the Chamber leadership for permission that evening to ask for
contributions and was not allowed as it is not a standard procedure.
Councilor Farnham asked if Mr. Kubetz had approached other cities where choir
members are from seeking support. Mr. Kubetz indicated there were not sufficient
numbers from any one particular community. However, businesses from some of the
communities have made significant contributions supporting children from their
respective towns.
Councilor Palmer complimented the City Manager for providing and explaining
the options available for review. There is a definite value for promoting the City of
Bangor while in youth choir is in Washington DC.
Councilor Baldacci asked Mr. Kubetz to explain again the national event at which
the choir will be performing. The Bangor Area Children's Choir has been selected to
represent Maine this April in Washington DC at the National Festival of States,
� celebrating America's heritage through music. Arrangements have been made for the
children to meet with their local Congressional Delegation and hopefully a White House
� tour.
Councilor Farnham explained her thoughts on the request. Recently one of her
neighbors approached the City for support for a softball team attending a national
event, and she voted no. She also recalls other requests which were denied by the
City. She asked if music stores, school department music program, other adult choirs in
the area were avenues that had been explored for sponsorship asking for individual
rather than organizational support. The Board of Directors of the choir has explored
the avenues suggested.
Councilor Blanchette asked if the Bangor Area Children's Choir is the only group
representing Maine. Kubetz indicated it is the only choral group but not certain of any
instrumental group involvement. Blanchette mentioned the three Congressional
representatives from this area perhaps being able to contribute. Baldacci indicated that
the Congressional Delegation does not have discretionary funds available but that
Representative John Baldacci did sponsor a spaghetti supper for this group.
Councilor Palmer asked the City Manager if drug forfeiture funds could be used
for this event. Barrett indicated it could be looked into. He did mention the possibility
of checking some of the City's Trust Funds which might be applicable but he didn't think
• there would be any available.
Councilor Baldacci suggested postponing the item again in order for the City
Manager to review the use of drug forfeiture funds and City Trust Funds. Councilor
Farnham thought a procedure should be in place for such requests. Either yes there is �
a fund to be tapped or there is no good way to handle. Councilor Baldacci felt in terms
of this group it provides an actual service back to the City and the type of event offers
educational value back to the kids versus a softball match.
Councilor Crowley indicated the Council needs to have a philosophical discussion
on what is appropriate for taxpayer dollars. He understands the need but it is a matter
of what this Council believes its' responsibility is to the taxpayers of Bangor. This cause
is worthwhile. The Council needs to be prepared for a variety of requests to come
forward and needs a strategy to be applied fairly to all requests from youth or adults.
Intellectual and emotional decisions need to be detached. He further stated that if the
City decides on the front end to support an event, issue a proclamation and let that be
used as a fundraising purposes, but to come in at the tail end of any event to try to pull
it together in the eleventh hour is not a comfortable position in which to be placed.
Councilor Baldacci asked the Committee to vote on the previous pending motion
to postpone. The Committee voted to table the item to the next meeting of the
Business and Economic Development Committee. The Council will then act upon the
. Committee's decision at their next Council meeting.
� Councilor Blanchette suggested and Councilor Palmer"passed the hat" around
the room for donations for the children's choir.
4. Penquis CAP Affordable Housinq Proposal — Union Place
City Manager Barrett indicated the purpose of the item was to discuss what the
City is interested in having done at Union Place. The City has received an expression of
interest and generally would go through the RFP process but as a part of that process
would be prepared to specify what we are most interested in for that area. McKay said
the request from Penquis was for an option on the Union Place property that they
needed before March 1� of this year to proceed with applying for low income tax credit.
The City doesn't control all the area property so could not comply with the request.
Penquis has withdrawn their request but does have an interest for next year. McKay
referred to a visual presentation outlining the area indicating which properties had been
acquired, which properties the City has made offers on, and the status of tenants.
McKay outlined several options.
Regarding the Penquis proposal, the staff didn't feel Council was ready to make a
commitment until the City has control of the properly to commit to low income or
market rate housing but recommended that the City determine types of uses it would
� like to recommend for that area and staff would make presentations for the Council's
consideration based on those initial recommendations.
Councilor Palmer raised a question on one building in particular. 251-253 Union
Street. TJ Martzial indicated the issue with that particular property is a major alleged
drug problem. Rehab of the building would lend itself to the entire area. Barrett
indicated that if the building were rehabed you would avoid the problem trying to find
something that stays within the character of that area. The building is a problem but we
could look at the possibility of rehabing and trying to leverage that properry into a
rehab as kind of a traditional front door.
Regarding the Penquis Cap proposal, Councilor Blanchette asked if the Council
should be making any decisions until acquisition process has been completed and
indicate that we are not ready at this point but interested parties could keep in contact .
with us. Barrett agreed that staff needs to come back with more proposals for the City
to look at in detail in a workshop session to discuss design criteria, options, RFP
language.
Councilor Crowley indicated he would like to follow up on Councilor Palmer's
suggestion to offer a formal motion to proceed with further acquisition to round off that
property. Palmer seconded the motion indicating the chances seem better to go up the
hill at this point rather than down. Councilor Baldacci supported it as well.
�
• McKay indicated staff needed a recommended from the Committee to place on
the Council Agenda authorization for the Committee to have the property appraised,
and make an offer and that would start the process. Councilor Blanchette said that was
the motion and she also seconded it. Councilor Tremble asked why the building was not
included in the original process. Marztial said because it appeared structurally sound.
McKay said he would prepare the Order.
5. Recommended Adjustment to Airport Food and Beverage Concession
Airport stafF inade presentation at the last Committee meeting. Rebecca Hupp,
Assistant Airport Director, indicated Airport staff had had discussions with Allon Fish.
Staff's recommendation is to waive the concessionaire's responsibility to reimburse the
Airport for fees for electricity for one calendar year up to a maximum of $27,000.
Electric rates last year were $25,000. Crowley asked if the agreement was date
specific and Hupp indicated it would be for the calendar year only. Palmer asked for
information on kilowatt-hour usage.
The Committee recommended approval.
7. Airport Report (taken out of sequence)
a. December pomestic Passenqer Summary
� Marketing Director Jeff Russell updated the Committee on domestic passenger
and cargo air trafFic. Councilor Palmer also asked if in the future the information sheet
provided to the Committee could be provided to Council in their Friday packet. Barrett
indicated it would be so done in the future, and indicated it had been his decision to
handout the info at the meeting. Palmer would like to review the numbers prior to a
Committee meeting to be more prepared. Russell indicated that Cargo number will be
added into future reports. Hupp also indicated that by the next committee meeting she
should have a yearend overview for last year ready. Baldacci also asked that goals for
this year be included in such a report with issues that need to be addressed by the City
and the Airport in terms of improving its position.
b. Review of Newly Approved AIP Five-Year Capital Program
Hupp discussed a handout included in the Committee's packet which outlined
BIA's 5-year Capital Improvement Program through year 2006 reflecting approximately
$2.5M of entitlement funds from the FAA. Most projects are related to runway, apron
improvements or purchase of additional equipment. The AIP's funding mechanism is
90% Federal, 5% State and 5% local funding. In response to a question from
Councilor Crowley, Barrett indicated that 5% is budgeted in the Airport operating
budget each year.
c. Other Business
Russell updated the committee regarding its relationship with Finnair on a
• package specializing in taking passengers on tours to the Caribbean. The Airport has
. finalized with Finnair their intentions for next year. Flights will be increased to 5 flights
per week. Seats all are full when arriving in Bangor. Seats are not being offered for the
winter program out of Bangor because the Florida section of the trip was canceled late
summer due to poor seat sales. Bangor is a technical stop for the airline. Flight crews
are Bangor based. From a marketing point of view, Crowley asked if the City did
anything to acknowledge its gratefulness to the airline for adding this extra flight.
Russell said that in person the Airport usually makes 2-3 appearances at the ��mother
ship" during the year. Finnair has had a very difficult year and it would be wonderful
for them know how much we appreciate its business. Councilor Crowley asked about a
sister city relationship. From an economic standpoint, Councilor Palmer mentioned
offering packages to bring the Fins to Maine for the winter season sports.
Doug Clendenning asked about the funds the Airport has invested. Barrett
indicated it was in the range of $16-20M. In response to a question from Clendenning,
Barrett indicated the city had looked into the issue and have reached a conclusion that
if Airport money is used for the placement of an auditorium at the Airport that the FAA
would require reimbursement for a similar amount of federal funds. It is a legal opinion
from the Legal Department. An auditorium could be placed there. If it is Airport owned
property, the FAA requires a market rate return on that property. It is a similar
situation as to when the City took over the armory from the Airport and gave them the
naval reserve center. The building had to be appraised and the cost difference between
the two had to be made up, with the City paying the difference over ten years. The
� City had to certify this to the FAA. Hupp stressed that in grant agreements with the
FAA there are certain assurances in the terms and conditions that have to be
guaranteed to insure the money in used for Airport projects only. Barrett cited a New
York airport that was considering using FAA funding to upgrade a subway transit
system, which would seem to make sense, but the.FAA disallowed it. The FAA has
become much stricter over the past six-seven years.
As a further update to the Committee, Russell mentioned a pending proposal
with Delta Airlines. The draft proposal arrived in his office today. A preliminary look at
the numbers was taken a couple of weeks ago and Airport staff notified members of the
Congressional Delegation and some have written letters promoting the particulars of the
proposal. The proposal will be to replace the coach air service that was lost and the
proposal specifically mentions the Bangor/Boston service with regional jets. A date has
not yet been secured. Because of shuffling slots at LaGuardia, instead of 4 planes
being made available for Logan, the Delta Connection carrier will have as many 17 by
August which greatly increases the probability that Bangor might be on the expansion
list.
8. Bass Park Report
a. Occu�ancy Graph Presentation.
Mike Dyer, Bass Park Manager, handed out a graph presentation to the
� Committee regarding occupancy data for the Auditorium/Civic Center. Once all the
� Bass Park computers are networked, he intends to have this information on the web
site. The Bass Park Committee had asked for a visual presentation. The information
will be provided to the Business and Economic Development Committee on a monthly
basis. The Committee approved the format. Councilor Crowley asked that all
Councilors receive the information even though not on this specific committee.
b. Fair Time Line Update
The Bass Park Committee established a timeline of things that needed to get
done including a draft schedule of information. Dyer gave the committee an updated
schedule. He reviewed some of the new entertainment scheduled with the idea of
keeping the public interested. Regarding the RV/camper show with Bangor News
Enterprises, Dyer indicated stafF had been looking into another similar type show that
would be run by the City. It is the concept of a "mature lifestyle show" giving seniors
free admission from noon to 6 p.m. on July 30th, gear up entertainment with a couple of
seminars, or hands on events to give insight to the fall show planned for seniors. All
participants on the 30t" would get a ticket to the fall show. Staff is obtaining
sponsorship now for not only this Fair segment but also the consumer show in the fall.
Staff has discussed foregoing any major country concert, but were able to secure Andy
Griggs for $10,000. A radio station has already committed to purchase $6,000 worth of
tickets. Baldacci asked if there were any non-country western entertainment.
Sponsorships are moving along well; contracts have been signed with two returning
sponsors at approximately $7,500, a verbal commitment from a third at $1,000, a
� verbal commitment from one of the big three car manufacturers for at least a $5,000
sponsorship for Jurassic Journey with negotiations on-going with their regional offices
on a $10,000 sponsorship for that exhibit which would include a 50x60 ft area to
display vehicles. At this point, it seems like a go. Dyer continued with discussions on a
"Naming" sponsorship at two levels — $30,000 for one year or two years at $25,000/
year. StafF is working on a poster pitch with them as well. They are very interested but
have not yet committed. He indicated he would let the committee know the name of
the company and status of discussions as soon as possible. Exhibitor contracts are out
with 30% back complete with deposits. Councilor Palmer asked about the possibility of
`�super"tickets with marketing on the front end. He also asked the goals for
attendance numbers and in terms of net revenue. Dyer indicated they always look to
go up in attendance numbers, were up last year from the year before but down from
the all time high of 72,000 from three years ago. The goal this year is to be above
65,000. In terms of revenue, looking at going from a $40,000 net from last year to a
$80,000 this year with a large part of that being tied in to raising the adult admission
price by $1.00. Blanchette asked about audio on the government channel and asked
about using Andy Griggs for background music. Dyer indicated that once the concert is
signed perhaps he will be able obtain rights to use the music as a promotion.
Blanchette also mentioned using the Sweet Adeline's.
c. Marketing Update — New Facilitv
�
� Dyer gave the committee a foider containing marketing update information. The
agency, Markits, plans to have a trade show type booth set up at events beginning with
the basketball tournament to draw facility users into the concept of replacing the
existing building. Joanne Gula, Steve Robbins and Mike Dyer have been working on
this booth's design and layout. There will be a two-part card at the booth which
individuals will be asked to fill out with questions to get people involved in what the
future building should be like. The bottom portion of the card will be for the individual's
name, address, etc. as well as a place to check whether they do or do not support
construction of a new facility and urging legislative and state consideration.
Councilor Palmer indicated a preference to see hockey and ice included on the
questionnaire and felt the card should also be on the Bass Park web site with an e-mail
address included.
Councilor Crowley suggested "new regional facility" in the wording. Perhaps
make clear the City is talking about the Bangor Auditorium/Civic Center to clarify it is
the entire complex. Another point on the card is to clarify is who is actually asking to
provide a new structure and suggested an official ballot addressed to the Bangor City
Council since the Council is in the forefront on their decision. Dyer asked if it would be
more appropriate to try to address the card to the State Legislature. Councilor Palmer
said people are confused about the term closing. He suggested "the old Bangor
. Auditorium is scheduled to close by 2004" or"decommission the Civic Center."
Councilor Blanchette cautioned that the City needs to look at the expense of
maintaining an ice rink. Barrett indicated the card is not a design tool for the
Auditorium but to encourage individuals to do more than be passively observing.
Attendance at the RV/Camper show was up 5%. Dyer also urged Council to
check out civic center lobby renovations.
Crowley also asked there was a need for a Bass Park Advisory Committee
separate from the newly revised committee structure. Baldacci suggested the issue be
discussed by the Council as a whole.
Barrett answered a question raised by Doug Clendenning regarding revenue
statements from Bass Park. It is a number the City takes "x" dollars put in as a subsidy
and put 1/12t" into the operation. Barrett suspected the previous year's numbers were
wrong. Councilor Baldacci asked that this issue be discussed at the next committee
meeting.
9. Committee went into Executive Session regarding land acquisition.
�