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HomeMy WebLinkAbout2007-03-21 Business and Economic Development Committee Minutes � �. Business and Economic Development Committee � March 21, 2007 _ Minutes r� Councilor Attendance: Farrington, Hawes, D'Errico � Staff Attendance: McKay, Moses, Barrett Others: Springer CONSENT AGENDA � A motion was made and seconded to approve the Consent Agenda. � 1. Extension of Bangor Savings Bank land lease — 203 Maine Avenue REGULAR AGENDA �� 2. PUBLIC HEARING on the amount of Federal Community Development Biock �, Grant funds expected to be available for the period ]uly 1, 2007 through June 30, 2008 and the eligible uses of Community Development funds. McKay said each year the City � receives an entitlement grant from the US HUD due to its status as a central city of a . metropolitan statistical area. The amount varies annually depending on the number of communities fit into that qualification. As of July 1, 2007, it is anticipated to receive a � grant award of $1,066,117 with program income anticipated of $400,000 making a total of $1,466,117 available. This Committee is responsible to hold a public hearing to make the public aware of the monies available and to outline the range of activities that � may be funded with the CDBG funds. Traditionally the funds have been used for low-to- - moderate income neighborhood revitalization. It includes public improvements, infrastructure, streets, sidewalks, lighting, and esplanade improvements. Handicapped access improvements are an approved activity. McKay reviewed further uses as � described in a booklet provided to the Committee members as well as a chart outlining the funds received since the CDBG's inception in 1974. At its first meeting in May, the ,� City Council will need to approve the proposed use of CDBG funds to be submitEed to HUD. Above normal funding requests this year, include Penobscot Theater on a renovation project and would like funding from the City for handicap accessibility �� related items in the amount of $155,000; the Bangor Center and Museum for History would like $300,000 for the handicap accessibility issues related to their proposed � building renovation; Parks and Recreation would like funding to replace the Second Street Park playground equipment; Public Works has put together a list of projects � wi�hin eligible neighborhoods which total $379,000; and $300,000 for the waterfront. � The funding requests surpass the amount of dollars available by approximately a half- million dollars. � Farrin ton noted that Councilors Allen and Palmer 'oined the meetin . '� g 7 9 . �� � '� Allen asked about sidewalks. McKay said typically asphait is used in residential areas. � . Brick pavers are used in the downtown but there are no restrictions. It is up to the Council. She asked if Main Street is part of the CD funding. McKay said from Cedar to Union Street is in the current program. Allen talked about improvements to Davenport Park. McKay said they are not included in the proposed list. Allen asked if they could �� be included. Moses said it is in an eligible area. McKay said another source of funding for public improvements in the downtown and waterfront area is the TIF District. It �i takes all the new tax revenues and redirects them into supporting infrastructure development. That is a potential source of funds for Davenport Park. Responding to Allen, McKay said that under the TIF District it allows the City to take 20 years of new � tax revenues and dedicate them to projects undertaken within the first five years of the � District adoption. This is the second year of that five-year period. A project would be funded either from the new revenues or from borrowing which is then paid ofF by future �; year's tax revenues. �� Responding to Gratwick, McKay said if the committee uses the list as activities to be _ funded and there isn't enough CDBG fur�ds, other funding sources need to be identified or the project doesn't get done. Gratwick asked if the Seminary is in the CDBG and � asked how to proactively look at the complex redevelopment. McKay said he has been wc�rking with the Seminary and its representatives. The City has prepared a marketing package for them to attract developers. It depends on what the Seminary decides as a � use for the complex. If it is not economically feasible to convert the buildings back to apartment use, the City could assist through CDBG funding or the TIF District. �' Stone talked about the projected income of $400,000 and future year projections with the decrease in CDBG funding. McKay said that in recent years the whole program has � been threatened to be eliminated at the Federal level. The only way to keep the level of monies up to speed is through loan money and use the repayments to refund the program each year. It is also done through investments, which are loans and not grants. McKay said he would be recommending a reduction in staffing levels. The �� regulations stipulate that no more than 20% can be spent on administration and planning activities. �' Res ondin to Allen McKa said brick sidewalks over as halt would hold u better than p 9 , Y P P brick pavers and sand. The brick pavers are approximately $28/sq ft., concrete would . . � be around $19/sq. ft. and asphalt slightly over $2/sq. ft. ^ Farrington closed the public hearing. � 3. Review and consideration of Bangor Waterfront Master Plan � Originally Pam Shadley had presented a proposed revision to the master plan � relating to the open space area between the Railroad Tracks and the river. There was � concern expressed about the revision. In January, two public meetings were held to solicit public comment, and were made available to the Committee as part of their agenda. McKay said there were two plans: Plan A and Plan B. One was a very informal � plan with open space and the second plan with more public facilities. Individual � � Councilors had various concerns about the revised plan, and recommended that the plan come back to the Committee for its review and consideration again. � Ailen said she is concerned about the actual image of the fencing along the railroad track. She thought mixing it with the railroad provided an unattractive view. ,� She would like the fence eliminated from the plan. Heitmann said the 1966 agreement with the City and Railroad provides that the Railroad can request a fence or barrier. To � date, the request has not been made by the Railroad which has the right to do so. Allen again asked that the fence be removed from the plan. Allen asked Palmer to follow up. Farrington asked McKay what the Committee should do at this meeting. � McKay said there is a current Waterfront Master plan. From Railroad Street between the track and the river, staff would like to replace it with a new concept plan. If adopted, the design process would proceed with preparation of construction � documents, etc. In that process, a design development phase would prepared to about 30% of project completion and the design developer would further refine their cost estimates for the actual construction work. It would then be reviewed and approved by '� th� City and would move to the 60-70% completion of the design work. Then it would come back to the Council again for completion. At this stage, McKay said stafF is more � concerned about the concept contained in the plan and not the appearance of the �. fence. That will be decided later on in the design process. Staff is asking for the Committee's approval of the revision to the Master Plan. Allen said she feels the fence � is part of the concept plan. Palmer agreed with Allen in that the fencing and the railroad need to be ;� addressed as it is the frame of the waterfront park. He said that the Railroad over the r� past years has not been a good steward of their ownership and property in the community. He stated that chain link fences would destroy the concept of what the City is trying to accomplish at the waterfront. Palmer said this is not about parking but about a park with parking attached to it. He said he is perturbed that the local cruising individuals are going to be attracted to the waterfront with a large parking area. � Regarding the concept of the build out, he thinks there will be a strong push from . traffic from the racino area to the center of the park. 4. Development Proposal - Front Street — Larry Springer is seeking an option for a �� parcel of City—owned land on Front Street. McKay said that Springer has proposal to � develop a minimum 2�/2 story, 25,000 sq. ft. mixed use building on Front Street at the _ . end of Railroad Street. Last year, the Committee voted to designate Mr. Springer as tentative developer with an option agreement approved by the City Council. The development was never executed due to additional design work, etc. There were ��� delays due to the Folk Festival. Springer is requesting another option agreement with the same terms and conditions but it would be extended for one year. The Committee has discussed this on previous occasions. Some concerns expressed by staff and � Council related to: the project should be designed to be compatible with the proposal residential condo project; use of the building after its construction and future tenants; � reimbursement provision of the option agreement which presently specifies that to the extent Mr. Springer incurred additional development costs over and above what could � be expected to be incurred on a �green' site (not on pilings as needed on the '� � � waterfront) that the City would reimburse for that extra cost up to the full purchase � price of the development. Springer said he was surprised about some of the concerns especially relating to the design. The reason he could not work with the original option agreement was that he didn't receive the flood plain information until late last summer and then had to redesign the height of the roof accordingly. Also, starting development � during the winter months, is not conducive. In terms of changing his design to coincide with the proposed condo project, Springer feels it is a bit late for him to make the � change. He also stated the there is no conceptual design in place at this time for the condos. He would like to be a part of the City's waterfront development. Springer said he needs direction from the Council. �' ' x n s e t the n ture of D Errico said it is very reasonable that unknown e pe se du o a the site should be reimbursed. It is not a new concept and it has been done in the past. � D'Errico said he understood that Springer looked at the City's first plan for the waterfront and then asked his architect to be compatible with the plan. He thinks it only fair that the City stick with that situation. � . Stone asked about the proposed restaurant for the waterfront. He is concerned � that a fast food restaurant might become a tenant. Heitmann said there are several alternatives, and one size doesn't fit all. Initially, he said there could be a provision in the development agreement that the restaurant tenant need to receive approval of this � Committee and/or the Council. There could be a provision that there would never be a drive thru, and limits on the percentages on meals taken out. Responding to Stone, Heitmann stated that the Committee does have the design review authority to address �` concerns about consistent commonality. There could also be a provision to line the � timeline up with any potential condo development. It would provide continuity between the two developments. � � Hawes said the design by Mr. Springer last year followed very much the plan the � Committee had asked him to follow. She thinks the Committee is being very unfair in now asking him to change. She said the Committee needs to go back to what was architecturally approved by the Council at the time and allow that design to stand. She �~ is also concerned that this is a family oriented area for the waterfront. She also ref�erred to the Committee on Bangor's Architectural Design. Stone said he wasn't . asking Springer to redesign. Hawes said she felt it was leaning toward that end. � Gratwick said he doesn't feel the design elements should be in question. He said that Springer will have some of the best property in the City and the City needs to make � certain of the waterfront's future. He stressed that he is not questioning Mr. Springer. Gratwick said he does like Springer's design. � Allen agreed with Hawes. She is concerned about the nature of the future restaurants address the activity of the waterfront. � After further discussion, the Committee decided a tour of the Waterfront be scheduled before taking further action. � � - � �` � � 5. Executive Session - Economic Develo ment— Ne otiations for Dis osition of � P 9 P Waterfront Property — Springer Development, Front Street— 1 M.R.S.A. § ,;; 405(6)(C) (Information to be provided at meeting) �( A motion was made and seconded to go into executive session. � 6. Committee Action on Above Item Following the Executive session, a motion was made, seconded and passed to � recommend to the City Council that a Development Agreement with Larry . Springer be granted as recommended by City staff. �_ �. � �. �: � . � � �, � � � �