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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. � 2/ ITEM#2 - Authorizing Grant Application to the Maine Arts Commission • 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. 3/ 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. � 4/ 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. 5/ � 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. 6/ • 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. �