HomeMy WebLinkAbout1999-02-17 Community and Economic Development Committee Minutes COMMUNITY&ECONOMIC DEVELOPMENT COMMITTEE
Wednesday, February 17, 1999 @S:OOPM
• MINUTES
COMMITTEE MEMBERS
PRESENT: Councilor Joseph Baldacci
Councilor John Rohman
Councilor Judith Vardamis
Councilor Gerry G.M. Palmer, Jr.
OTHER
COUNCILORS
PRESENT: Councilor James Tyler
STAFF
PRESENT: Edward A. Barrett, City Manager
Rodney G. McKay, Director of Community &Economic Development
Stanley Moses,Asst. C.D. Director
T.J. Martzial, C.D. Housing Programs Manager
Stephen Bolduc, Economic Development Officer
Sally Burgess, Development Projects Coordinator
Peter D'Errico, Economic Development Officer
John Lord, Planning Officer
Jim Ring, City Engineer
Erik Stumpfel, City Solicitor
� Norm Heitmann, Asst. City Solicitor
Police Chief Don Winslow
OTHERS
PRESENT: Kerry Sack, DMHMRSAS, 176 Hogan Road, Bangor
Jerry Hogan,N.O.E, 29 Franklin Street, Bangor
Tamniy Hanson,N.O.E., 29 Franklin Street, Bangor
Bob Curtis, Old Town
Charles Birkel, 170 Randolph Drive, Bangor
Earle Rafuse, 181 Randolph Drive, Bangor
The meeting was called to order by Councilor Tyler, sitting in for Committee Chair,
Councilor Aube, at 5:00 PM.
Committee decided to consider the following first two items jointly:
ITEM#1 -Authorizing Grant Application to Bangor Savings Bank Foundation
Staff presented to the Committee a recommendation to authorize an application for a
$4,000 grant to partially fund the cost of developing the stories and sound system that will be an
integral part of the outdoor arts project titled"Kenduskeag Stream Trail Arts Project". The
project will be partially funded by the National Park Service, contributions collected by Bangor
Beautiful and sponsorships solicited by the Bangor Center Corporation.
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ITEM#2 - Authorizing Grant Application to the Maine Arts Commission
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Staff presented this item jointly with Item#1 for authorizing an application to the Maine
Arts Commission for a$2,000 Organizational Development grant to partially fund the cost of
organizing the collaborators, locating the materials, coordinating the resources, and managing the
Kenduskeag Stream Trail Arts Project.
A motion was made and seconded to recommend to the full City Council approval of
Items 1 and 2 as presented. So voted.
ITEM#3 - Request from Bangor Convention and Business Bureau-Meeting Connections
Campaign
Bangor Convention Visitors Bureau requested the second year of City sponsorship of its
three year Meeting Connections Campaign. The amount requested is $5,000,the same as
provided last year. The Economic Development Division and BIA would divide the $5,000
equally.
A motion was made and seconded to recommend approval of the $5,000 sponsorship for
the Meeting Connections Campaign as presented to the full Ciiy Council. So voted.
ITEM#4 - Amendment to Purchase Option Agreement with Eastern Maine Healthcare -Bangor
� Waterworks
Staff requested a further extension of the option period for this purchase option to
purchase and redevelop the Bangor Waterworks agreement beyond March 1 when it will expire.
The Natural Resources Protection Act permit has been applied for and approval from the Maine
Department of Environmental Protection is expected shortly.
Councilor Rohman abstained from voting due to a conflict.
A motion was made and seconded to recommend approval to the full City Council. So
voted.
ITEM#5 - Lease Agreement with PBB USA for 501 Square Feet of Office Space at 39 Florida
Ave.
Steve Bolduc, Economic Development Officer,presented to the Committee a lease
agreement with PBB USA. PBB USA is a customs broker and does significant business with
airport traffic; they employ two full time employees. This is a one year lease from 12/1/1998 -
November 30, 1999 for use of office space at 39 Florida Ave. The BanAir Board of Directors
has recommended approval of this lease agreement under the terms and conditions as presented.
A motion was made and seconded to recommend approval of this lease as presented. So
� voted.
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ITEM#6 - Authorizing Recording of Property Use Restrictions on a Portion of Bangor
. International Airport
This was tabled until the next meeting of the C&ED Committee.
ITEM#7 - Lease Agreement with Sea Dog Brewing Company for a Portion of Haxbor Master's
Building at Bangor Landing for River pog Ticket Sales
Staff presented this lease agreement to the Committee which would allow the Sea Dog
Brewing Company to use a portion of the harbor master's building in order to sell tickets for their
cruise boat,the River pog. The lease term would run from May 1, 1999 through October 15,
1999. The lease rate would cover this period plus utility costs. They agree to provide cleanup of
the area around the harbor master's building and to keep clean the restrooms and showers at the
facility. Staff recommends approval.
A motion was made and seconded to approve this lease agreement with the Sea Dog
Brewing Company as presented. So voted.
ITEM#8 - Lease Agreement with Acadia Hospital for Property on Indiana Avenue
This lease agreement relates to the land under the new building which is under
construction and being financed by the Maine State Housing Authority (MSHA). The MSHA is
� still reviewing the language in the proposed lease agreement. This will have to be continued to
the next meeting.
ITEM#9 - Option Agreement- Realty Resources Chartered (continued from meeting of 2/3/99)
Realty Resources has proposed to purchase and develop 32 to 34 two bedroom units of
affordable family housing on City development parcel behind St. John's Church on York Street.
The parcel of land is city-owned; it was left over from the Hancock-Curve Street Redevelopment
project which took place in the 1970's. The intent of the developer is to secure loan and tax
credits from the Maine State Housing Authority (MSHA)which require that they rent to people
with incomes below 50% of the median income. For example, a family of 4 not earning more
than$23,450 per year,the maximum rent would be $586 per month which would include all
utilities. As part of the option agreement,the City will receive $60,000 for the site. A recent
opinion of value sets it at$60,000. The Option Agreement is for 6 months with an option to
extend for a fiuther 6 months. All plans for this project are to be approved by the C&ED
Committee. The project is dependent on financing from MSHA.
A motion was made and seconded to recommend approval of this option agreement as
presented. So voted.
ITEM#10 - Public Hearing -Annual Consolidated Housing and Community Development
Staff reviewed the eligible activities and funds available for next year's City Community
� Development Program. Next year's program is expected to be $1,255,000. The public hearings
are required before the City's proposed use of Community Development funds is prepared and
presented for consideration. Committee then proceeded to open the Public Hearing for public
comments.
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Kerry Sack, of DMHMRSAS in Bangor, spoke to the Committee emphasizing the need
� for funds to continue supporting the Continuum of Care and Shelter Plus Care programs in the
local area. Jerry Hogan,N.O.E. of Bangor, added his support for this program as well as his
appreciation to those for all their work and support such as Mary-Anne Chalila of the Bangor
Health& Welfare Department and T.J. Martzial of the Community &Economic Development
Department.
ITEM#11 -Maine State Housing Authority New Neighbors Program
T.J. Martzial, C.D. Housing Programs Manager, reviewed the marketing plan for the New
Neighbors Program. In the State of Maine the Cities of Portland, Lewiston and Bangor are
eligible for this program. The intent of this program is to assist with revitalizing neighborhoods
and assisting potential home buyers with the opportunity to buy a home. The C&ED staff would
do the initial intake of the applicant, do a pre-application,making sure they are income eligible
and that the property they are interested in meets the guidelines. This program requires that the
property be a 1 to 4 unit building and that the owner must live in the property. So at the time of
purchase of an eligible property, relocation of existing tenants to make room for the new owner,
who must reside in the property, may be necessary. T.J. also reviewed the proposed eligible
areas in Bangor for this program. In order for an area to qualify, they have to be in a census tract
that's over 51% low& moderate income. T.J. will be setting up a meeting in March to meet with
representatives from MSHA to further discuss the implementation of this program in Bangor. If
this program receives positive interest from potential home buyers, then it will be necessary to
� hire extra staff in order to handle the implementation of the program.
ITEM#12 - Crosswalk at Post Office
Councilor Blanchette has raised a concern with a potential safety hazard at the crosswalk
in front of the Bangor Post Office on Harlow Street. She has suggested that one or two parking
spaces adjacent to the crosswalk be eliminated in order to provide drivers with a more adequate
sight distance as they approach the crosswalk. City Manager Edward Barrett added that Police
Chief Winslow will be looking at this area in light of the new parking that will be available at the
former Better Homes location to see if there are any suggestions that staff can come up. This
could potentially alleviate the pedestrian traffic that crosses to the parking lot across the street
from the post office. City Engineer Jim Ring is looking at some alternatives for improving
crosswalk visibility in this area. Ed Barrett suggested that staff ineet to come up with alternatives
that may improve this situation and come back to committee with something more
comprehensive.
ITEM#13 - Abbott Square/Library Parking
Discussion was held on the issue of complaints received regarding the new parking
arrangement at Abbott Square. Republic Parking manages this lot for the City. Councilor
Palmer stated that a program that will give the patrons a break, give them an hour or two of free
parking, would get them using the lot and learning the process involved.
� Committee directed Staff to bring back a more comprehensive approach to this problem.
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� ITEM#14 - Proposed Tax Increment Financing Program- Jordan's Meats
Staff reviewed the proposed tax increment financing program (TIF)to assist Jordan's
Meats in their effort to establish a deli meat slicing and packaging operation at its 216 Thatcher
Street property in Bangor. This new business will provide between 40 to 50 new full time jobs
with a projected $1 million annual payroll. Jordan's would invest an estimated $130,000 in new
real estate improvements and$1 million in machinery and equipment in order to establish two
production lines with another$1 million projected to be invested in machinery and equipment to
establish two additional production lines prior to April l, 2000. The City's assistance provided
through the Development Program is intended to help Jordan's be more cost competitive in a
very competitive market and is essential to attracting this new development to the District. The
proposed TIF assistance requires the creation of a Municipal Development District and Tax
Increment Financing District consisting of the property owned by Jordan's Meats at 216 Thatcher
Street in Bangor. Their investment in the District is anticipated to result in$48,000 in annual
new tax revenues to the City. Approval of the District and Development Program will not
involve any risk to the City and the City will not be required to borrow in order to support this
project. Existing tax revenues will not be affected. Staff recommended approval. This will be
on the Feb. 22 City Council agenda.
A motion was made and seconded to recommend this item as presented to the City
Council. So voted.
� ITEM#15 - Establishing Sale Prices for Randolph Drive Former Surplus Housing Units
Staff reviewed the proposed selling prices for each of the four types of housing that is
available to be purchased by first time home buyers and other eligible buyers. Staff recommends
establishing the sale prices of the units at the upper end of the range at fair market value as
submitted by the two appraisers (Ted Sherwood and Guy Chapman). Committee can adjust these
prices at any time. The homes will be made affordable by the financing mechanism which will
be available to potential home buyers through Maine State Housing Authority (MSHA). There
are 4 house types to choose from. The prices that have been established are as follows: Type 3 -
$67,500; Type 4 - $71,000; Type 5 - $67,000; and Type 9 - $65,000. The general's house at 11
Maxwell Lane is priced at$77,000.
ITEM#16 - Community Development Residential Rehabilitation Loan- 116 Fourth Street
T.J. Martzial, Housing Programs Manager, presented this loan request which has
previously been discussed with the Committee. Cost on this proposed loan has been reduced by
$9,000. A motion was made and seconded to approve this loan request at this time as presented.
So voted.
ITEM#17 - Community Development Residential Rehabilitation Loan- 173-175 Ohio Street
A motion was made and seconded to table this item at this time. So voted.
� ITEM#18 - Loan Subordination Agreement- 22-24 Ohio Street
A motion was made and seconded to approve this loan subordination agreement as
presented. So voted.
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• ITEM#19 - Conformation of Special Meeting Time to Review the City's Proposed Marketing
Strategy - Wednesday, March 3, from Noon to 3:00 PM
This special meeting has been scheduled to coordinate the marketing efforts and strategy
of the City with those efforts by other leading groups/businesses in Maine in order to avoid
duplication. Those who have been invited are: Maine& Company; the Maine Department of
Economic and Community Development; Eastern Maine Development Corporation; the Maine
Partnership and the Bangor Area Marketing Coalition.
ITEM#20 - Executive Session- Business Development Loan
A motion was made and seconded to table this item until the next meeting. So voted.
ITEM#21 - Business Development Loan- Committee Recommendation to the City Council on
above item.
A motion was made and seconded to table this item until the next meeting. So voted.
A motion was made to go into Executive Session. So voted.
ITEM#22 - Executive Session- Mortgage Foreclosure Sale, 167-171 Center Street
A motion was made to go out of Executive Session. So voted.
� Meeting adjourned at approximately 7:00 PM.
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