HomeMy WebLinkAbout2002-11-05 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMI7TEE
TUESDAY, November 5, 2002
Meeting Minutes
Councilors Attending: Frank Farrington, Gerry Palmer, John Rohman
Staff Attending: Ed Barrett, Jonathan Daniels, Mike Dyer, Dave Little, T.J.
Martzial
Others Attending: Douglas Bouchard
Meeting convened at 5:02 p.m.
1. Bangor International Airport Report.
a. Agreement between City of Bangor, Airport Department and Champlain
Enterprises, Inc., d/b/a/ CommutAir for Utilization of Dock 12.
Daniels presented a request by Champlain Enterprises, Inc., d/b/a CommutAir
� (UCA) for use of Dock #12. This would be a month by month agreement and
either party may cancel this agreement with written notice 30 days prior to
cancellation. The rent will be $2,000 per month. The space is to be used as
storage for one aircraft.
The committee approved the item to the full council.
2. Bass Park Report.
Dyer presented a summary of the concerts and shows that they have had. The
Penobscot County Kennel Club had a great year this year and will be back next
year. The Kenny Rogers concert and Newsboys were successful. The MMA
Convention may not be back next year due to their growing event and the need
for more space. World Wrestling attendance was down from last year, however
attendance has been down nationwide. The Anne Murray Christmas show is
selling very well and will be close to selling out.
Bass Park's receivables are 15% ahead of last year. The budget for this year's
heating oil was 80,000 gallons at .75 per gallon. The first delivery of oil was at
.91 per gallon, and if this continues we will be facing a $12,000 shortfall.
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� Rohman commented that the MMA was very pleased with the staff, food, and the
way in which things were handled.
3. Discussion on Sale of 231 Randolph Drive.
Martzial recommended that the Committee approve canceling an agreement with
Judy Glover and return her $1,000 deposit, and further recommended that the
Committee approve the sale of 231 Randolph to Joyce E. and Jerald K.
McKenney.
The Committee approved Staff recommendation. Martzial presented the
Committee with two resolves, one to cancel the contract and another for the new
contract.
4. Update and Discussion on Shaw House —Waterworks Project.
Rohman noted that he had a conflict on this issue. Palmer motioned that
Rohman had a conflict, and it was seconded.
Daniels introduced Douglass Bouchard, the Executive Director of the Shaw
House, who he has been working with for some time on this issue. He asked
� Bouchard to give an update to the committee on where the process stands.
Bouchard said that the project has been in front of the committee since
January/February 2001, to get site control to move forward. The site is going to
take a little bit more to renovate than originally thought $5.7 million as opposed
to $5.2 million. The Shaw House is now looking at as many as five contractors
to take a good look at the prints and give us their best price. We are still trying
to gain five difFerent funding sources for this project. The lions share of the $5.7
million will come through the low income tax credit. There is a cap of how many
dollars worth of tax credit that we are allowed to buy in a year. In order to gain
the $.5 million, we are looking for a waiver from the Maine State Housing
Authority to up the amount of low income tax credits. Other sources of income
include a grant from the State, approximately $600,000, the rental loan program,
the developer's fee for the project would go back into the project, approximately
$350,000, and through the Federal Home Loan Bank of Boston, grants in the
amount of $313,000. The answer to the $313,000 will come on November 22,
2002. The last piece of funding is from the City of Bangor, and there is a
question as to how much this would be. The target price is somewhat evasive
due to the fact that we are not yet sure how much the project is going to cost
and the Shaw House organization would like to see that the City's contribution is
as small as possible, which is contingent on our other funding sources and the
final price to build.
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� Nealley wanted to give credit for the creative potential solutions for the properry.
He asked about the Maine State Housing Authority tax credit waiver and how this
materializes for cash. Bouchard said that there is a cap of $400,000 per year per
10 year span, or $4 million, and we put it out to bid. If we were to get the
waiver, we could go after $450,000 per year for 10 years. Nealley asked if they
had roughly one million in donations from developers as well. Bouchard said
that they need a bank to front them a construction loan, and the low income tax
credit over 10 years pays back the construction loan. If the $313,000 doesn't
come in, then we are going to be ��scrambling." We will know more on
November 22"a
Farrington wanted to know what the ultimate amount that the City of Bangor
would be responsible for, and had we sold it to a private entity we would be
getting money for land. However, since we did not sell it to a private entity, we
end up donating the land and property, and now there is an additional undefined
amount that the City may have to donate. He wanted to know if the City has a
limit on the amount that the City will be responsible for in the worst case
scenario.
Shaw House has tentative developer status and we have not made a final
commitment as to the amount the City would provide, nor we have we decided
� where the funding will come from. Farrington asked if the $800,000 is cash or
land/property. Barrett replied that this is a cash contribution to subsidize the
costs of construction/demolition. The current property does not have much
value and the estimated cost for demolition is $800,000, which the City would
rather contribute to enhancing the property. Palmer expressed his pleasure at
having a tentative developer for this property, and is hopeful that this will allow
Shaw House to continue to do the good work that it has done in the past, as well
as preserve the history of the properry.
Bouchard said that Shaw House is appreciative that the City of Bangor is so
cooperative in working with them to make this project successful. Martzial
reminded the committee that this project is not necessarily for the homeless, but
low-income housing.
The committee went into executive session.
5. Executive Session — Sea Dog Brewing Co., Legal Advice Regarding Bankruptcy
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