HomeMy WebLinkAbout2002-12-17 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMIITEE
TUESDAY, December 17, 2002
Meeting Minutes
Councilors Attending: Frank Farrington, Gerry Palmer, John Rohman, Dan Tremble,
Nichi Farnham, Michael Crowley
Staff Attending: Ed Barrett, Jonathan Daniels, Rebecca Hupp, Rod McKay,
Mike Dyer, John Hamer, T.J. Martzial
Others Attending: Buddy Murray, Sonny Miller, Earl Black, Snow, Kiser
Meeting convened at 5:00 p.m.
1. Bangor International Airport Report
a. November Statistics
b. Acceptance and appropriation of state funding.
• c. Airline Leases.
Hupp presented November statistics, noting that monthly passenger service was
up 3.5% over October, well ahead of the national average. This is in spite of a
reduction in capacity. The majority of passengers are carried either by
American Eagle or a Delta connection carrier. U.S. Airways and United have filed
for bankruptcy, and we are watching them closely. Although United is not in
Bangor, U.S. Airways is and anytime a major carrier goes through a liquidation it
will affect our service. �
Tremble asked if we would have over 400,000 YTD passengers cleared this year,
and Hupp replied it is possible. Tremble asked about the new TSA regulations
for parking and the reassignment of spaces. Hupp said that we received final
ruling from TSA today and we will be reconfiguring our parking. Curbside
parking will not be allowed.
Hupp presented a request for additional funding for the Runway Reconstruction
Project. This project is funded through the Airport Improvement Program with
90% federal dollars, 5% state dollars and 5% airport revenues. The additional
amount of $333,334 brings the total state contribution to $500,000. This
request needs Council approval for a grant amendment authorizing the Airport
. Director/City Manager to accept and appropriate these funds.
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Palmer moved Staff recommendation. The motion was seconded. The
committee moved this item to full council for consideration.
Hupp presented a sample of the proposed lease agreements for our airline
tenants. This lease has a three-year term, and is contingent on review and
approval by the City's Legal Department.
Palmer asked for Legal's opinion on the lease. Hamer said that the lease should
be ready by the end of the week.
Tremble asked how we stood on our lease rates as compared to similar sized
airports, and Rohman wanted to know if the rates included utilities. Hupp said
the rates do include utilities, and we do compare our rates with comparable sized
airports. We are less than Portland, but are very competitive. Tremble wanted
to know how well the airlines were in paying their bills. Hupp said that we do
have one carrier that we have expressed concern about in the past, and we have
a payment arrangement with them.
The item was approved to full council.
� Hupp added that the December 31� deadline for TSA checked baggage screening
is approaching and we are working with TSA to meet the requirements.
2. Presentation by Packard 7udd LLC on new marketing identity for the
City of Bangor.
This item has been tabled until January.
3. Review of plans for Grotto Bay Realty Trust development on Telcom
Drive.
McKay said that the City Council has an agreement with Grotto Bay Realty Trust
for development of a 9,000-sq. ft. 2 �/z story ofFce building on Telcom Drive. He
noted that the development plan calls for the sale of a lot to Grotto Bay Realty
Trust for development of the building, subject to this Committee's approval of
the building plans. Staff has reviewed the site plan and recommends approval.
Rohman said that he can see that Grotto Bay Realty Trust made changes to the
site plan based on recommendations that the Committee had previously made.
McKay said that the only change not made based upon recommendation was to
include shutters, however the appearance of the plan looks acceptable to Staff.
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� Crowley said that he was not at the last meeting, however, this plan appears to
be very stunning and congratulated the engineers on the proposed building
design. Rohman agreed that the products and elevation would be fine.
Farrington asked McKay to draw a diagram of the building on the map.
Farrington noted that the design was intriguing.
Jim Kiser presented a three dimensional drawing of the building plan. Palmer
wanted to know what the window treatment was. Kiser explained that they did a
picture frame around the windows and carried the header to mimic some of the
other treatments on the fa�ade.
Crowley moved to accept the plan and Farrington seconded the motion.
The Committee accepted the plan to move forward to the Planning Board for
review.
4. Discussion on Union Place.
McKay showed a map of Union Place and discussed the properties that the City
has acquired. Except for the properly owned by the Newmans, the City has
acquired all the property in the area. We need to negotiate some exchange of
. land for to acquire the Newman's land, due to them not wanting to sell their
interest in Union Place for capital gains reasons. The Newman property has a
deeded right of way across Union Place for access to their property. Martzial
presented two options, giving a small piece for the driveway or a larger piece to
bring it close to compliance for our zoning regulations. Rohman asked if we
have considered the opportunity to keep the right of way and have their
entrance to the driveway be the right of way, and keep Union Place as a street.
McKay said with separate ownership, the Union Place developer is separate from
Mr. Newman, and these probably wouldn't pass the zoning requirement. McKay
said that this is a good suggestion, and under this scenario would the Committee
be willing to deed the Newman's more land? Palmer said that even with parking,
this area would need some attention to attract a developer. Tremble agreed that
we should be concerned about the overall look of the project and commended
Staff for being able to acquire this properly with willing sellers. The key is the
Dave's Video parcel which could be an integral part of the redevelopment of this
area. Palmer agreed with Tremble's comments. Farrington said that if we could
make the building disappear, how would this change the development of the
area. McKay said to keep in mind that we are not designing the project, just
making the land available. There would be additional opportunities if the video
store building goes away. Rohman said that we have made offers to David
Lawler before and we couldn't come to an agreement as well as with the
• Newmans. Rohman suggested having one curb cut instead of two. Crowley said
� he supports this and is reluctant to enhance the Newman property at the
expense of the City. Palmer wanted to know if there could be further
negotiations with the Newmans, and the possibility of eminent domain. Martzial
spoke with Mr. Newman today, and he is still not interested in selling the
property. We will have the planning department review the site plan with
Rohman's suggestions included. We have spoken with City Solicitor Heitmann
about eminent domain and it isn't possible for various reasons. The property is
in compliance with code regulations. Rohman said if the building was enhanced
it could fit very well into future development plans.
5. Executive Session —Tentative Developer Status—Capital Seven L.L.C. —
Redevelopment of Bass Park.
The Committee went into executive session.
6. Discussion on Tentative Developer Status— Capital Seven L.L.C. -
Redevelopment of Bass Park.
Barrett said our recommendation is that the majority of the property be of mixed
residential development. Crowley said that he had no interest in pursuing
harness racing for this property. He said that we have some obligation to what
� the land was originally intended to be used for.
Palmer said that depending on what perspective you are looking at the land,
Buck Street you would prefer housing, Main Street a hotel, would determine
what your preference was for development of the properry. Harness racing has
been there for a long time and recreational park or open space would be a good
idea. Tremble said that it is important to realize that someone has come forward
to develop the property. Barrett discussed the location options for a new
Auditorium/Civic Center with or without harness racing. Rohman noted that
Tremble had previously mentioned that we have not had request for proposals to
develop this land. He asked Barrett to discuss the history of our quest to build a
new auditorium.
Barrett said in the early 90's the City went out for proposals for private
management of Bass Park Complex. In 1991 we received two proposals, one
from Center Management and the one from Erin Corporation. After a lengthy
process which started with the Council selecting Erin Corporation, it resulted in a
referendum in which the Council's action was overturned. We ended up with two
referendums. Center Management was selected, and we negotiated with them
to run Bass Park. We were relatively close to Center Management taking over
the management of the complex, however the economy went into recession
• nationally, and Center Management changed their proposal and asked for a
� larger City subsidy. The Council then decided to not proceed with the deal.
Waterfront development request for proposals netted one proposal, but it never
resulted in a development agreement. We need to examine the economic
returns for properry before requesting proposals for development. The harness
racing issue is a break even proposition. The likelihood of finding a developer to
do something along these lines in a request for proposal process, would be less
than optimal.
Crowley said that over five years, we have not received any proposals. We now
have a proposal before us, and we have businesses on that end of town that are
marginal and looking for an opportunity. This project could reinvent this
entrance to the City, and as much as he is not passionate of harness racing,
Crowley said that there are a lot of people who want to see harness racing
survive. It has a rich history in Bangor. This project could have an impact on
refinancing the replacement of the Auditorium/Civic Center, with the revenue
that it would generate.
Farrington said that the future of harness racing is something that we need to
take into consideration. Another issue is can this facility survive without video
lottery gambling? Would this type of development include any other opportunity
that we might use for this area? What happens if it doesn't work, who picks up
! the pieces? As we move forward we need to assess these questions.
Nealley said that this project could make up for jobs lost at Bangor Hydro,
Sylvania, and various other businesses. We need to have a plan in mind for
lowering property taxes in Bangor. One way is to expand the tax base by
bringing in new businesses, and here we actually have someone coming to us.
Let the residents make the decision about whether to have slots. Nealley made
a motion to grant tentative developer status to Capital Seven.
Hamer determined that the regular members and present members are voting
members.
The motion was seconded. Farnham said that if we go forward with this we
need to learn to separate ourselves from the developer and keep the best
interest of the City in mind. Tremble said that we should not look a gift horse in
the mouth, however we many businesses on Main Street who do not share the
excitement that we have around the table.
Rohman clarified that this would go before the full Council and public comments
would be welcome at that time.
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� Barrett explained that tentative developer status means that the City has made a
determination that there is one parry that the City will negotiate with about a
particular project for a given period of time. Crowley asked what Barrett thought
the minimal amount of time we need for development status to get through this
discovery process. Barrett said three months.
Farrington wanted to know how much tentative developer status would limit our
overall responsibility. Barrett said that these issues would be part of the
negotiating contract.
Farnham said it would be helpful for the citizens of Bangor to know what is
required by the taxpayers, what would change or what would we be giving up.
Dyer said that a lot of the excitement around the table was due to the
anticipated revenues and resulting payment to the City from video slots
operation, approximately $80 million. Dyer urged the Council to review these
numbers and make sure these are something we can "hang our hat on."
Barrett said that we can get into these types of issues if the Council decides to
go forward. Hamer said that we should make a condition that this company
show that it has a license to do business in Maine.
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Palmer said that Mainers and Bangor residents tend to be a very reserved group
when it comes to inviting people in from outside with an idea of how things
should happen. It is certainly a risk, however in fairness we should at least listen
to new ideas and concepts.
Farrington called for the vote. Rohman noted that all five committee members
voted to send this to the full Council.
Palmer stated that anyone in the listening public with economic development
ideas should contact)onathan Daniels.
Crowley respectfully suggested that we not have this on the December 23ra
Council Agenda due to the holiday. Barrett suggested that it could be on the
agenda for January 13th. Rohman asked if we have enough information to
review and make a recommendation. Daniels said that there should be with the
information that has been provided, however Councilors should bring forth
questions if they have them. Nealley said that there are a few Councilors that
will not be at the meeting due to vacation or prior commitments.
The meeting was adjourned.
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