HomeMy WebLinkAbout2001-06-05 Business and Economic Development Committee Minutes f \
� BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE
�une 5, 2Q01 @ 5:U0 p.m.
Minutes
Present: Councilars Baldacci, Crowley, Palmer, Tremble, Ed Barrett, Norm
Heitmann, Mike Dy�r
1. Consent Agenda
a. License Aareement— Maine Shakespeare Festival
b. Northwest Occupational F�cchange -- �icense Agreemen�
Councilor Crowley moved the consent agenda, including items a and b. It
was second and approved with no abjections.
2. Bass Park Report
a. Report on New Facility Surveys. Mike Dyer brought everyone up to
date with the new facility surveys they`ve had out since February
tbasketbaN season). One side is a questionnaire to the public
asking what is impartant to them in a new faciiity. The other side
is what they're collecting ta present to the legislature at some
• point, which urges them to consider any and all funding efforts that
are presented to them on behalf of building a new auditorium�civic
center in Bangor. The packet alsa includes a zip code listing of
where the surveys came from. A total of 538 surveys were
received, there is an additional 40 percent of that number that
were collected during the basketball season, yet those surveys
were not something we would use to turn into the legislature. The
kids had a `field day'with their suggestions ar�d results. During the
Garden Show and the Y fair some good information was received.
Durin� the fair, we hape to man a booth sa that we may have a
little more interactian with folks on the issues. What's important is
that we have had peaple respand from 1Q9 of the 357 zip codes in
the state. This shaws that nearly 1/3 of the state uses the Bangor
facility, which shows that it really is a regional facility.
Councilor Crowley asked if there was ar� opportunity to change
some of the language on the next version of the survey. The
committee has been asked by the Bangor Symphony to include
classical as a form of entertainment in order to influence the
committee`s thinking as they look at a multi-purpase use af the
new structure.
�
� The Internet version could be changed easily to da so. Other
council members suggested that special ir�terest groups`
suggestions continue to be fielded when considering the new
facility, The spor�s group market, including ice hockey and ice-
skating, should alsa be considered. It was suggested that a new
card be made up for the surveys being given out afi the State Fair,
including the most recent group considerations.
It was asked if perhaps we could have a clip-out suggestions form
in the city's newsle�ter. �oanne Gula has been contacted about
that. Ad placement was discussed with her.
b. Energy Surchar�e Propasal. Also in the packet there was a memo
from Mike Dyer, His stafif had been talking about laoking at re-
cooping some of the increased cost of electrical and fuel oil
expenses. The staff has proposed budgeting for 30,OOa more in
FY02 for electric and fuel costs. The stafF discussed and came up
with a plan to recover approximateiy 50% of the projected eosts
from �✓endors through a 5% surcharge an the base-rent per day
per buiiding, not to exceed $50 per day per building. There was a
concern about some of the bigger events being charged
� excessively, thus the cap. The committee discussed the surcharge
and said they felt it was a good idea and felt it was fair to pass the
charge on to the users to cover the additional costs. They wanted
to make sure samething in writing wauld go out to the potentia!
and past users to let them knaw the changes.
Usage was discussed, including the structural limitations,
conservation effarts and policies.
e. Event Comparisan: Northeast Lo�gers, �ynyrd Skynyrd Especially
when we are looking at building a new facility and looking at the
market, we need to remember the diversity af the uses of our
facility. The expenses have been tracked; shawing the Northeast
Logger's Show was quite an expensive event to run, We're not
able to recover the total amounts for electrical services. We charge
services aut at $3SJhr. We get many complaints from shows that
they don't pay that much for an electrician in big cities. On the
revenue s�de, we get back an incredible amount of money in foad
sales, especially with the Logger's show. Our figures dan't show,
however, the amount of revenue the community gets in hotel
rentals, restaurants and services. Both events are good for the
� community. The Logger's shaw brings 6500 people into the
comrriunity to spend their maney. The concert is a goad base-rent
� event for the building. It was noted that many of the multi-day
events that happen at the complex are not moneymakers for the
building, but are important for the local economy.
There was a question on the Lynyrd Skynyrd concert—the event
was set up and c�rried out in one day. The rent seems to be a lot
higher on other events. It was asked if a rent breakdown could be
made. The Lynyrd Skynyrd show was 10% of the gross ticket
sales, capped at $5,000. On the other event, it is $1000 dollars a
day per building, amounting to $2100 per day for two days,
equaling $4200 for the event--the rest of the final rent costs being
grounds rent and move-in rent. On the electrical, a public works
employee does the $35/hr work. It was asked if we ever
contracted out the electrical work. We have on occasion, for
example with Disney on Ice. The problem with those buildings is
that it is hard to get any one civilian electrician familiar with the
electrical set up enough to make it worthwhile. The best people to
deal with the electrical are those hired by us on events like the
Trade Show.
d. Other Items/Discussions. There were none.
� 3. AIRPORT REPORT
a. Update on Upcoming Airport Events. The Airport folks were at the
New England Tourist Meeting representing the Airport. There are a
few things. Rebecca Hupp sent an e-mail inviting council members
out for Airport tours. There is an update of the upcoming events
included in the meeting packet on page 19.
b. Word on the Comair Strike is that there does not seem to be any
significant progress. The airline has now canceled flights 60 days
out. We don't know when or if, or what the eventual outcome of
that situation will be. We are continuing to talk to other potential
carriers. We don't have the statistics on May, but our statistics
show us up in April. We are holding our own with the number of
passengers. However, we continue to be concerned about not
having the Cincinnati destination or the alternative carrier that we
would like to see at the airport. We are continuing to work with
Delta and with other Delta carriers to try to interest them in coming
into the Bangor market. We expect that this will be up to what
Delta decides to do with the Comair situation.
�
We have been working on trying to get tour packaging together,
� with Bar�gor as an endpoint destination, There have been a
number of efforts undertaken in Europe with various carriers and
various tour-packaging graups ta try to do that, There has also
been an effort to try to do something with winter ski tours. The
problem is that the capaeit}r on Narth Atlantic routes to Baston in
the wintertime is such that tour operators can hardly compete with
scheduled airlines, VIle've been working an summer tours.
Hopefully we'll be able to charfier tours into Bangor for Eco-tourism
, tours—which would include Acadia Park, Ba�er Park and trying to
get people out into the Maine woods.
4. PROPOSED GRANT APPLIGATION — Maine Products Assn.
For severa! years, the City of Bangor has not been eligible to
participate in the Ecanomic Development Administration Grant Program
because of their program requirements. But, with the recent population
loss, the city is teetering of the edge of qualification. An appiication was
submitted last year. Mike Aube of the Economic Development
Administration left his position; however, before doing so he invited his
boss up to meet with our representatives. At fihe meeting, the
development along the waterfront was discussed. The discussion turned
� to the idea of applying for a grant for the Maine Praducks Center. The
Hunter plan recommended a Maine products center for a portion of the
Front Street area. The concept for having a Maine Praducts Center goes
back to the Bangor Center for Develapment Association. The City was
laoking for a use for the then vacant 140,040 sqfk Freese's Building,
The idea is to display Maine made products and make them
available for parties interested in buying them wholesale for resale. There
would also be a component in the plan for a retail shop for tourists on the
waterfrant to buy Maine made products. There were concerns about
competitian with the mall and downtown, The cost af the pavilion is
arour�d $3.7 miflion. Vtte do have $1.5 millian in grant funds available for
an intermodal transportatian facility, and the hope was that we could
cambine facilities into one space, So what we're proposing to da if the
council approves it, is to submit the application for the Maine Products
Center asking for $1.8 m�llion in Ecor�omic Development Administration
Grand Funds and combine it with the $1.5 million for the intermodal
transportatian facili�jr. Sandy Blitr, whfl deals with the Economic
Development applications, suggested this appraach as well as Mike Aube.
If there are no objeetions to the praposal, we'11 be invited to submit a full
application, and we'll certainly do that.
�
A question was asked by the council about who would operate the
� Maine Products Center. It would be a private operation and the city
would lease the space out.
There was another question about the facility. It is a 36,000 sq. ft
building and the concept plan targets around $100 per sq. ft. That is a
little high, but Maine construction materials (i.e. slate, granite) are desired
so that the building wou�d have some relevance to Maine. John Rohman
was contacted about the costs and what is trying to be done with the
grant combination. It was asked if it is known what is needed to
constitute an intermodal facility and if, in fact, this project would work.
The Intermodal facility is where you switch from one form of
transportation to another. This facility would include the harbormaster's
office, a dock for some of the coastal cruise boats to come in, a place for
the coastal ferry service to port, the station for the train service coming
from BIA to Acadia.
It was asked if there was a local share for this. It is envisioned
that $200,000 will be the local share. The matching funds for this could
be taken from the other infrastructure grants the City has received.
There was a motion to go into executive session and it was seconded.
5. Executive Session — Property Disposition — Grant's Building
� 6. Executive Session — Property Acquisition/Disposition
7. Executive Session — Economic Development Proposal
8. Executive Session — Personnel Issue
�