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HomeMy WebLinkAbout2005-03-16 Business and Economic Development Committee Minutes � ' BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE March 16, 2005 ' Minutes Councilor Attendance: Gratwick, D'Errico, Stone, Farrington, Allen ' Staff Attendance: Barrett, Martzial, McKay, Patterson Others: Dawn Gagnon, BDN � 1. PUBLIC HEARING — FY 2005 Five Year Consolidated Housing and Community Development Plan. The Committee conducted a public hearing to receive the input ' and comments of citizens, providers of assisted and special needs housing and related services, and other interested parties, relating to the FY 2005 Five Year Consolidated � Housing and Community Development Plan to be submitted to the U.S. Department of Housing and Urban Development in May 2005. � Martzial explained that CDBG funds are for entitlement communities. Bangor has been an entitlement community since 1982, which means that annually it is entitled to CDBG funds determined by a formula that factors in variables such as population, poverry, � � housing stock, and growth lag. The primary objective of the CDBG program is viable urban communities through the provision of decent, safe and sanitary housing; a suitable living environment; and economic opportunity, principally for low-and- � moderate income persons. Bangor has averaged $1.2M annually. In addition to the funds, Bangor receives program income. For example, payments received from monthly loans made by the City through CDBG funds. Since 1995, program income , , (repayment on loans) is $4,806,700. In the last ten years, the City has had a total of $17,650,776 available in CDBG eligible activities. ' In FY05, the City will receive $1,181,771. Martzial projected program income in FY05 to be $249,000. The HUD national objectives for the funds include benefit to low and � moderate income persons, to prevent or eliminate slums or blight, or for an emergency natural disaster. There are also eligible activities for use of CDBG funds including real property and housing related activities, public facilities and improvements, public ' services, and economic development. The City is required to submit a consolidated plan every five years and annually a DAPER. The consolidated plan addresses housing, social services, infrastructure needs, the goals and eligible activities that the City ' intends to fund with CDBG funds. One of the critical parts of the consolidated plan is receiving citizen participation by way of two public hearings. The hearings are advertised in the BDN two weeks prior. Gratwick questioned the low public ' attendance. McKay said that the City runs a good program that is not often criticized. After the consolidated plan is in place, the City has to submit a consolidated annual � performance and evaluation report. The eligible activities in Bangor that have been chosen are housing related, residential rehab loan program, public improvements and services, some social services, some property acquisition, demolition, relocation, � ' . , disposition of property and business development assistance. The housing rehab loan ' program is low interest financial assistance for owner occupied property. For renter occupied property, it is eligibte as long as 51% of the units are occupied by low and � moderate-income persons. In the last ten years, the rehab loan program has assisted 442 units, has closed 212 loans for a total of$4,386,000. Mar�ial said that for every dollar of CDBG funds that were invested, $6.13 of private investment was leveraged. , The majority of the loans are at 3%, investor loans at 6%, some at 5%. Martzial indicated that CDBG funds have also been used for downtown revitalization. The Freeses Building was one of the first projects using CDBG funds. The Hammond Street � area rehab with the Kelleys was another project. The Cyrus Clarke house is a CDBG project with 12 residential units plus commercial space. Martzial also provided rehab ' , information on the Paramount Building on Harlow Street. He also spoke of the Bangor Furniture building on Hammond Street and the Courtyard project as well as 72-80 Columbia Street. The former Standard Shoe building is also in progress for residential � and retail rehab. Martzial also stated that the residential rehab program is available throughout�the City to low to moderate-income homeowners; i.e. Randolph Drive, Maxwell Lane area. He talked about a Division Street properry rehabilitation. Martzial � explained the funding structure for the Waterworks project is currently being held up by legal issues. .� Martzial indicated that CDBG funds are also used for public improvements; i.e. street, � water, sewer lines, neighborhood recreational facilities, parks, playgrounds. Ineligible use of funds include maintenance and repair of public facilities, potholes, repair of � sidewalks, mowing grass, and operating costs for City Hall. Projects that have been undertaken are accessibility modifications, repairs to streets and sidewalks in , neighborhoods that are predominantly low to moderate income, neighborhood parks, business enterprise parks, other downtown revitalization work, and the waterFront. Some of the accessibility modifications made have been at the Parks and Recreation � building, Bangor City Hospital, Health and Welfare, Civic Center/Bangor Auditorium, City Hall, Parking Garage, Wastewater Treatment Plant, Fire Station, Abraham Lincoln School, and Grants Building. Eligible neighborhoods required 51% or more of which , are low and moderate income. The SeaDog and Viner Shoe Company were CDBG partially funded projects. In response to Allen, McKay explained that the bulkhead financing came through a State bond issue. CDBG funds are used to support 1.5 , employees at Park Woods for social services. Union Place is another property acquisition project through CDBG funds. CDBG funds are not allowed for new construction but can be used to acquire properly ' where affordable housing is constructed; i.e., Penquis Family Housing Associates on the Griffin Road. Stone asked about landscaping around the project. Martzial offered , to check into the plans. Martial updated the Committee regarding upcoming or current projects for which CDBG , funds will be used including: � � ' , - Essex Street Naval Reserve Center. Funds wili be used for acquisition of the City-owned property and a loan of $250,000 to assist with the project moving 1 forward. The funding is in place but the project hasn't received final approval from the Planning Board. McKay spoke about potential changes to the proposed project. In response to Gratwick, McKay indicated that the Committee has ' _ design review approval. The CDBG program is used to provide business development assistance to local businesses that might be expanding or new business. Criteria requires the ' creation and maintenance of jobs for low-to-moderate income persons. In the past ten years, the City has used $511,000 of CDBG for such a purpose. - In response to All�n, McKay said there is a proposal by the Bush administration � to consolidate several federal programs basically to eliminate the CDBG program and would place it into a new program called Strengthen Americas Cities. In a � recent meeting with the Congressional Delegation in Washington, Allen and McKay were able to secure strong support for the CDBG program. Because Bangor is an entitlement community, �t receives a certain amount of CDBG funds annually based upon a formula. The City Council has the flexibility of identifying �_ local problems, coming up with a solution, and having the funds available to take � _ � care of the problem. McKay reviewed a long list of projects and improvements � made in Bangor over the years which never would have taken place without the CBDG funding. In response to Stone, McKay indicated the funds are drawn down as they are used and cannot be used for a rainy day. � A motion was made and seconded to close the public hearing. ' 2. Departmental Review- Community Development. ' This item was included as part of the public hearing. 3. Executive Session — Economic Development Proposal Involving Land Disposition — 1 , M.R.S.A. § 405(6)(C). A motion was made and seconded to go into executive session to discuss negotiations / for the disposition of properry in adjacent to Bangor International Airport related to an economic development proposal. The Committee took no action. ' ' ' , �