HomeMy WebLinkAbout2001-03-06 Business and Economic Development Committee Minutes Business & Economic Development Committee
Meeting Minutes
• March 6, 2001
Councilors Attending: Gerry Palmer, Dan Tremble, )ohn Rohman, Judy
Vardamis, Michael Crowley
StafF Attending: Edward Barrett, Mike Dyer
Others Attending: Doug Clenndenning
1. Director's U�date — Bass Park
a, Updated Bass Park Website
City staff Mike Dyer and Sally Brewer explained that the Civic
Center website has been brought more in line with the City's
website. The Committee was given a presentation showing the site
including the new Bangor State Fair site. The Committee thanked
staff for their work on this website.
b, Tournament Update
• Mike explained that through Saturday, February 24th, attendance
through the first 8 days was down approximately 8% (3,900). Last
year was a record setting year so the numbers for this year are
more in line with normal attendance. Staff is pleased that even
though numbers are down 8%, concession sales have remained the
same. The per capita sales per are approximately $1.60 compared
to last year at $1.48, with the pricing consistent with last year.
Product costs are approximately the same and labor rates are up
slightly, but Mike feels that they will still net out at approximately a
55-60% profit margin on this event.
Although staff is pleased with the concession numbers, if the
attendance continues to fall short of last year, facility rental will
approximate $17,000, about $1,700 lower than last year.
The ��A" teams have looked fairly strong and in total when this
event is over on March 17�', there should be good attendance
figures and a continued upward trend in concession sales.
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c, Summer Outdoor Concert Proposa/
• Staff explained that Mike Flanagan from Atlantic Music Productions
is proposing a two-day outdoor concert aimed at an audience of
15-30 year olds. The music is a new age fusion of blue grass and
jazz. The bands tend to be mellow rather than loud. The promoter
hopes to sell between 2,500 and 5,000 tickets per day and will
strictly enforce a performance curfiew of 11:00 p.m. on both Friday
and Saturday nights. Right now, they are looking at two weekends
in August as a possibility: August 17th & 18th or August 24t" and
25th. Staff notes that the latter date would impact on the ability to
host the flat track motorcycle races. The potential income from the
concert would easily exceed the amount received from the
motorcycle races. The show would cost the promoter in excess of
$200,000. Mike has seen the promoter's budget and it contains
more than sufficient money to adequately police the event from
clean up to crowd control, etc. Staff will continue to keep the
Council informed as planning progresses.
Committee commented that this is a great opportunity both for the
residents and for Bass Park.
d, lune Wrest/ing Show Proposa/ — Staff is exp/oring the
• option of p�oceeding with an "in-house�promotion of a
w�est/ing show given that the nationa/w�est/ing promoters
have not schedu/ed such an event for Bangor,
Staff explained that they are looking for the Committee's direction
to move forward and develop additional information on this item.
There has not been a wrestling event in Bangor since May 1998.
The Bangor Breakfast Rotary has canceled their ]une 9�' date for
the "Up With People" Concert because they no longer exist. StafF
has been exploring various options to fill in that date with an in-
house promotion. They contacted Northeast Championship
Wrestling with whom we have worked in the past because they
deliver a good product. StafF developed a budget with an
obtainable bottom line for this effort. For expenses, $13,000-
$18,000 for talent, transportation, ring, a referee, an announcer for
the 8-card match and Northeast Championship Wrestling's
commission on selling the show. Mike included a list of
professional wrestlers. There are several recognizable names. It
would be billed as the "Legends of Wrestling". $6,500 would be
budgeted for advertising. $1,000 for show staffing and box office
services. The State Athletic Commission charges 15% for wrestling
• and boxing shows. Ticket sales are projected at around $22,000.
Mike explained that some of the talent would need hotel rooms
over Saturday night. Smoke machines, special effects, etc., will
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also be needed. There is also a charge of $150 to give physicals to
the wrestlers, which is required by the state. The total expenses
• would be $28,225. On the revenue side, staff can realistically
expect to sell at least 1,500 tickets at an average ticket price of $15
per ticket. Staff is going to explore in-kind media trades and cash
sponsorships, which could generate approximately $7,500.
Concession receipts at $1.50 per cap for 1,500 with a gross of
approximately $2,200. This could generate approximately $32,000
in revenue. The show would pay for itself.
If Committee agrees to move forward, staff will come back with a
more concrete proposal including a tentative card in place and
some sponsorship opportunities.
Committee approved staff moving forward.
2. Presentation of Comprehensive Outbound/Inbound Advertising Campaign
bv Adrian Fox, Principal of BFT International
Mr. Fox was unable to attend the meeting due to the weather. Bob
Ziegelaar provided information to the Committee including playing the
new radio and N ads for the Airport. Staff suggests continuing this
discussion at the next meeting so that Mr. Fox and JefF Russell can attend
� to give more information.
3. Bangor International Airport Cargo Update
Staff explained that total domestic cargo shows a healthy trend. Staff is
unsure about the 1999 numbers because they have not seen Fed Ex final
number yet. The 2000 numbers are accurate and show an upward trend.
Bob showed a graph of what's coming in versus what's going out. The
inbound cargo is stronger than the outbound, which is traditionally the
case. With larger jets and regional jets, it is expected that the outbound
cargo will be increasing again.
International cargo is spotty. 2000 was not a very good year. StafF is
leaning towards trying to work a contract with a developer to develop a
cargo facility at the airport and take a role in the marketing of that facility.
This would be more productive than simply putting someone on the
payroll to sell cargo. Bob points out that there are not very many
airports in the Northeast that have done very well with cargo. They are
still developing the thinking on this and will come back to the Committee
with a proposal.
• Councilor Crowley asked if an east-west enhanced road connector would
strengthen BIA's position? Bob Ziegelaar indicated that it would. Montreal
is a strong cargo airport, which is one of BIA's main competitors as well as
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Boston and Kennedy Airport. To break into these markets, you're dealing
with very large cargo airlines. An east-west highway would definitely
• have a major impact on this and staff has discussed this with the East-
West Highway Committee.
4. Preliminary Discussion — Establishing Waterfront Tax Increment Financina
District — Item #4 and #5
To take maximum advantage of new tax revenues from potential new
development on the Penobscot Riverfront occurring after April 1, 2001, a
Penobscot Riverfront Tax Increment Financing District should be
considered for Council adoption prior to this April 1. StafF will review the
process with the Committee. The process would involve a public hearing,
which we propose to schedule for the March 26 Council Meeting.
Under the state statute, Tax Increment Financing, the City would establish
a waterfront development district, and designate new tax revenue from
that are raised for new development in that district back into supporting
infrastructure and other needs. The other aspect is the special
assessment district in this area. This makes sense to the Bangor Center
Corporation Board of Directors and stafF who want to integrate the
downtown area and the waterfront area and create activities. Staff wants
the waterfront pulling activities to downtown -- not away from downtown.
� The new development that would occur would be involved. It is
suggested to consider the designated district as a special assessment
district prior to future development.
The Committee had a brief discussion about what property should be
included in this district. Various opinions were given as to whether or not
the non-river side of Main Street should be included.
Sally Burgess explained that this proposal was presented and discussed at
the Bangor Center Corporation Board meeting and was approved. The
conclusion was that expanding as indicated in the proposal would
probably be a relatively easy sell to the community. If it were expanded to
the other side of the street, there would be issues that would come up
that may make it difficult. Ed Barrett commented that one thing that may
be considered is to go ahead on the riverfront side, keeping the possibility
of going across the street on Main Street in abeyance until such time the
Bass Park area study is done.
Sally Burgess asked if the Committee is requesting that Bangor Center
Corporation look again at the desirability of including the other side of
Main Street and simply afFirm or amend its recommendation. The
• Committee agreed that the Board should look at that aspect. Ed Barrett
pointed out that the Bass Park Study will be looking at land use away from
the river side of Main Street which will help with things such as where to
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establish the break between commercial and residential development,
what kind of development do you want to see, etc. It was suggested to
w take a look at the other side of Main Street prior to a recommendation.
Councilor Tremble commented that he is not in favor of seeing it
expanded to the other side of Main Street. There is such a mixed use of
businesses on the other side of Main. It is more of a neighborhood
service area than part of the downtown. Councilor Palmer indicated that
some of the lower end businesses will change significantly. Looking at the
future would be a good idea. Ed Barrett indicated that the first step
would be a plan for what economically would make sense in that area and
what, from a planning perspective, would make sense on that strip. It is
expected that this study will be done by the end of June.
5. Preliminary Discussion — Extending Bangor Center Development District to
Penobscot Riverfront Development Area
This topic was covered in the discussion under item #4.
6. Executive Session — Economic Development Proposal
7. Executive Session — Land Disposition
� Not needed.
With no further business to discuss, the meeting adjourned.
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