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HomeMy WebLinkAbout2006-10-18 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE October 18, 2006 - Minutes Councilor Attendance: Greene, Allen, D'Errico, Hawes, Stone � Staff Attendance: Barrett, McKay, Bolduc, Martziai Others: 1. Lease Agreement with FGS/CMT, Inc. - Building#97 at 136 Maine Ave. � Bolduc indicated that FGSlCMT is an environmental testing and consulting firm and has been � a tenant since 1996. This agreement would increase the size of the area currently being lease, extend the terms of the lease for one year with two options for annual extensions, increase the rate per month to $800, transfer the responsibility of utilities from the landlord to __ the tenant, and the City and Airport have agreed to replace all exterior windows. Responding � to Stone, Bolduc said that at the time of the initial lease there was a smaller square footage being leased and hence the $148/month. A motion was made and seconded to approve staff's recommendation. � 2. Extension of Lease Agreement with L&S Enterprises d/b/a Bangor Office Machines at 39 Florida Avenue � Bolduc said that L&S Enterprise is a sales and service operation and have been a tenant for one year. L&S wishes to extend their lease. The rent will increase to $178/month for approximately 200 sq. ft. All other terms are standard. The lease will extend through the end � of 2006. A motion was made and seconded to approve staff s recommendation. 3. Authorizing a Development Agreement with North Side Family Housing Associates L.P. � In November of 2005, McKay said that the City approved a development agreement with North Side Family Housing which is a development entity set up at Penquis CAP for 22 2-bedroom and 6 3-bedroom units on Griffin Road behind the Airport Mall. Tax credits have been received from the Maine State Housing Authority. The 2005 agreement expired on June 30"' and North Side is asking that it be extended through the end of 2006. Planning Board approval and site plan approval are in place. North Side plans to start the project in mid November of this year to be completed within 18 months. The agreement with the City was to � provide 50% of tax credit not to exceed $24,500 for a period of 15 years. Hawes spoke about tax increment housing for various affordable housing projects in the City. She asked about the � next level of individual who are looking for affordable but they are not low income. Martzial explained that at this point it is barely profitable to purchase property, construct a multi-family project, keep the rents affordable for the moderate income level tenant and still receive a return on investment. Allen made a motion to move staff recommended. It was seconded and � received unanimous Committee approval. 4. Executive Session—Economic Development—Negotiations for Purchase Option Agreement— � Unit 1 in 6 Central Street Condominium— 1 M.R.S.A. § 405(6)(C) A motion was made and seconded to go into Executive Session. � 5. Committee Action on Above Item No Committee action was taken. � � �