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HomeMy WebLinkAbout2001-04-17 Business and Economic Development Committee Minutes BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE MEETING MINUTES APRIL 17, 2001 � Councilors Attending: Joseph Baldacci, Dan Tremble, Michael Crowley, Gerry Palmer, Judy Vardamis Staff Attending: Edward Barrett, Rodney McKay, Sally Burgess, T..7. Martzial Others Attending: Charles Birkel Meeting convened at 5:00 p.m. 1. Consent a. Randolph Drive Sale: 49 Randolph Drive — full price offer b. Randolph Drive Sale: 37 Randolph Drive — full price offer c. Request to Assume Rehabilitation Loan, 62-64 Center Street . Committee Chair Baldacci indicated that item (c) is being removed from the Consent � Agenda. It will be considered later in the meeting. The Committee approved items (a) and (b). 2. Downtown Development District Boundary Discussion Sally Burgess appeared before the Committee. Several meetings ago, the Committee reviewed a recommendation from the Bangor Center Management Corporation Board of Directors regarding the expansion of the District. The Committee requested that Board of Directors take another look at the size of the expansion that they were recommending; specifically, that they consider the other side of Main Street as well as the river side of Main Street. At a special Board meeting since then they have decided not to change their recommendation. However, they are still talking about expanding the District at this time to include the river side of Main Street down as far as I-395. The reasons for not adding the other side of Main Street are that there is a mixed bag of uses. In addition, the amount of revenue that would be raised for Bangor Center Corporation, assuming that the assessment rate stays the same, is so small that it would not make a meaningful difference in terms of that section of the city. Now the initial recommendation made by Bangor Center Corporation is before the Committee. Ms. Burgess noted that there is a triangular piece of land bordered by Main, Cedar, � Summer and Railroad Street which was not included in the original district, and which is recommended for inclusion now. Rod McKay stated that the Bangor Center Corporation Board of Directors is recommending the area that is outlined on the plan before you. (A map indicating the • area was on display during the presentation). However, he suggests that that area be adopted with the exception of the privately-owned properties on lower Main Street on the river side, which includes several hotels and residences. Eventually once development starts, these properties will benefit; but until there are activities there which are supported by.the Bangor Center Corporation to demonstrate to those properry owners that they're going to benefit from this, he would recommend excluding this area. This would mean that the area from the Penobscot Inn to Gosselin's would not be included at this time. Ms. Burgess read a list of the properties he was recommending be excluded. Rod McKay also added the Shrine property and Barrett Paving. The block between Main and Summer and Cedar and Railroad is currently excluded and is now recommended to be included. Rod mentioned that this is just for guidance because they would be coming back to the Committee for readoption of the Bangor Center district assessments and amendment to the district boundary. A motion was made and seconded to accept Mr. McKay's recommendation. The Committee then went on to discuss item 1 (c). Councilor Baldacci abstained from this item because he is working with this individual on a legal matter to avoid the appearance of a conflict. 1. c. Request to Assume Rehabilitation Loan, 62-64 Center Street Rod McKay informed the Committee that the owners of the property at 62-64 Center � Street have an agreement to sell the property, and the new owners would like to have the City subordinate its loan. The current owner is H&F, Charlene & Paul Herrick and Alton & Roberta Frost. A loan was made to them in 1990 to rehab the property and another loan was made in 1996 to further rehab. T.J. Martzial explained that it was on the Consent Agenda originally because it appeared that the new buyers had met all the criteria. He learned today that there is a first mortgage above what our guidelines allow. When the loan was made in 1996, the first mortgage balance was $38,400. The new buyers propose a first mortgage for $47,000. T.J. said that he had asked the new buyers if they could get the first mortgage down to $38,000, but they said that it needed a new boiler and foundation work and they would rather take that $8,000 and put it into the boiler and foundation rather than bringing down the first mortgage. The new buyers also own 148 Union Street, and Code Enforcement is satisfied with how that properry has been maintained. After questions about the assessed value of the house and the remaining term on the City's loan, Rod McKay indicated that it was the City Council's policy that we can subordinate new financing as long as we don't release our security position from what it was when we made the initial loan. Staff recommended the Committee accept the proposal as outlined. Committee agreed to approve stafF's recommendation. 3. Executive Session — Land Dis�osition, Sale of Properly on Randolph Drive � A motion was made and seconded to go into executive session. 2 4. �en Session to Take Action on Above Item • T.J. Martzial stated that Kevin MoncriefFe was interested in buying the vacant parcel next to his property at 253 Randolph Drive. The property has been appraised for $2,024, and this price is acceptable to Mr. MoncriefFe. Mr. Moncrieffe was also in agreement with the fact that the deed would contain a restriction that no buildings or structures could be placed on the lot. Councilor Crowley moved to dispose of this property to Kevin Moncrieffe as outlined in the proposed document. Motion seconded. Committee recommends approval to full Council. At this point in the meeting, Charles Birkel asked permission to speak to the Committee. Mr. Birkel wanted the five councilors who were present today to know that what has happened in his neighborhood is a success story that started eight years ago. Eight years ago at a neighborhood meeting, Ed Barrett, Mary-Anne Chalila and all of the people in his neighborhood sat down and established goals that they wanted to achieve to save their neighborhood. The military was expected to be leaving within a couple of years and the neighborhood was afraid of what would happen with those 50+ homes. Efforts were made over the next 4 years to secure those homes, and in 1999 the City Council agreed after the City staff had done their work in dealing with the GSA to get the price down from a $1.8 to $1.3 million. The Council voted unanimously to buy the property. In May of 1999, a program was started that hope of sell one house a month for the next four years. And now, one month before two years is up, all 51 of these homes will be sold. Mr. Birkel indicated he wanted to come down and personally thank the City Manager, the Community & Economic Development, and especially, T.J. � Martzial, for their efForts, as well as the realtor, Penquis CAP and the financial institutions, to make a real success story out of this eight-year project. He concluded by saying that Bangor should be promoted on how they took already paid U.S. taxpayer dollars and alleviated a disaster happening with vacant military housing. 5. Executive Session — Land Disposition, Waterfront A motion was made and seconded to go into executive session. Committee Chair Baldacci indicated that he had to leave and he was turning the remainder of the meeting over to Councilor Vardamis. Charles Birkel indicated he had a couple of other matters to talk about. He mentioned a recent report he heard on FOX National News that the drug Oxycontin is rampant in Bangor, Maine, and other parts of this country. Other members of the Committee responded that they had seen similar newscasts about other towns. The City Manager informed Mr. Birkel of upcoming meetings on the status of the drug situation in Bangor and invited him to attend the meetings. The second matter was his concern over the article in the paper about the possible increase in property taxes, and the big difference between the City side and School side � of the proposed budget. Mr. Birkel thought it was time that the City Charter be rewritten and that the School Department should seriously adjust their budgets like all of the City departments have. Councilor Palmer said that other communities across the 3 State face the same situation, and that Mr. Birkel was free to attend any of the School Committee meetings. Councilor Crowley thanked Mr. Birkel for his input and advice. � A motion was made and seconded to adjourn the meeting. � � 4