HomeMy WebLinkAbout2002-07-16 Business and Economic Development Committee Minutes � BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE
TUESDAY, JULY 16, 2002
Meeting Minutes
Councilors Attending: Frank Farrington, Joseph Baldacci, John Rohman, David
Nealley, Gerry Palmer
Staff Attending: Jonathan Daniels, Rebecca Hupp, Mike Dyer, John Hamer,
T.J. Martzial, Rodney McKay
Others Attending: Doug Clendenning, Leanne Judd, Linda Packard
Meeting convened at 5:00 p.m.
1. Consent Agenda
a. Authorization to execute development agreement with John T. Karnes, III
for the development of 43 Division Street.
� The committee approved the consent agenda.
2. Bass Park Report.
Mike Dyer presented a schedule of events as they are through September. He
said things are shaping up to be a very good fall, following a very good spring.
He presented a copy of the official Bangor State Fair program that will be in the
Bangor Daily News this Thursday. Presale wristband promotion has 3 days left,
and sales are at 778 sold so far, ($10,000 in the bank right now for the fair).
Dyer said that sales of wristbands, typically double or triple in the last 3 days and
expects to see 2500 to 3000 total sales of wristbands. Brad Paisley, one of the
fair's paid concerts, now stands at 2,502 tickets sold ($49,000). He presented a
copy of Billboard magazine showing that Paisley is number one on the country
charts. He said that the show is in the moneymaking mode right now by $4,000.
Press conference and fair lunch will be held on Thursday, July 25, 2002, at 12
noon on the fairgrounds. The ribbon cutting will be Friday, July 26, 2002 at 6
p.m. when the fair officially opens. The Mayor, and Chiefs Cammack and
Winslow, will assist in the ribbon cutting. The Bangor State Fair will be honoring
Maine's everyday heroes, the police and firefighters on Sunday, August 4t", by
admitting the policeman or firefighter and their families for free from noon to
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� 6:00 p.m. on the final day. Channel 5 will be running some public service spots
to get the word out.
On Friday, July 19t", the last day of the fair wristband presale, Lynyrd Skynyrd
tickets will go on sale for a Wednesday, September 4th, concert. This fall is
shaping up good with a Kenny Rogers' concert and a potential Anne Murray
Christmas show. The World Wrestling Entertainment (WWE) has pulled their
November 3rd hold date for the auditorium. The June 29th date that we lost to
Augusta due to our lack of air conditioning sold only 2,300 tickets, and the
Portland show the next day sold 3,300. The WWE is reassessing their small
market strategy.
Councilor Palmer said that according to the map of the fairgrounds, the stage is
going to play to the grandstand, and wanted Dyer to note what is difFerent and
what is remaining the same for the fair this year. Dyer said that 2 Demolition
Derbies, July 26th and July 28t", would be in front of the grandstand, as well as
Monster Trucks, two shows on July 31�, Truck Pulls on July 27t" and Mini Tractor
Pulls on August 3rd. Dyer said that usually every evening, a local band of some
renown will play, for example on Saturday, August 3rd, the Kelly Parker Band will
play. Bass Park has rented Rick Bronson's new stage and is putting it on the
infield in front of the grandstand, to try to bring some shows back in which we
� do not have a lot of money invested. The Yankee Hitch has a hitch and show
every afternoon in front of the grandstand.
Palmer wanted to know if we were going to measure the size of the crowd for
the smaller acts. Dyer said that they could do some rough estimates.
3. Bangor International Airport Report.
Rebecca Hupp presented passenger statistics for June; the airport is up 22.6%.
Delta is up 100%, and the other airlines are down, due to the Comair strike in
June 2001. Capacity is up 30.8% and average load factors are respectable.
Turboprop capacity should increase next month with the Continental connection.
Rohman asked how the Jet Capacity Utilized and the Turbo Capacity Utilized,
62% and 63% respectively, compare to what we have had before. Hupp said,
the higher the number, the better. It really depends on two factors that airlines
use to determine profitability, one is the number of seats sold, and the other is
the price of the seats sold. You can have a lower utilization if you have a higher
yield, and you can have a lower yield if you have a higher utilization. The
Comair load factor of 87.1% and average of 78.9% is pretty high, PanAm is
down a little bit, but they are offseason. The load does not take into
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� consideration the yield, and the airport does not track yield, and the airlines do
not disclose the yield.
Palmer wanted to know if we were able to track round trips from Bangor versus
visitors who leave one-way from Bangor. Hupp said that we could track
seasonality from the fluctuations in what might be coming in the state versus
what is leaving, for various months.
Palmer suggested that the Council be invited out to the Airport to view the
runway construction, and the progress being made. Hupp said that any
councilor is welcome to come at any time to view the construction or the airport,
and to please call her ahead of time to ensure that she is available to give them
a tour.
Palmer wanted to know how the Airport was doing with operations versus
construction. Hupp stated that it was a challenge that they are losing some of
the heavy aircraft that they would normally have, because of the runway length.
Right now the runway length is 7200, and the other end would be 8200
depending on where they are paving. Then the middle will be done, and the
runway will be closed at night.
� Nealley said that the airport should capitalize on the good statistics of BGR in the
industry, by advertising it. Hupp said that they would be issuing a press release
on it, and the BDN may put in a column. BGR will also be issuing a press release
with some of the major accomplishments over the last year.
Farrington noted a 25% increase in the average daily sold, and a 35% increase
in the daily unsold, and wanted to know if there was a ratio and the cause of the
25% increase in average daily sold. Hupp said it was because we have more
seats available. Hupp said that they hope that sold would go up more than
unsold. Last year, ComAir was on strike and that would mean passengers were
lost, and we may have gained them back this year.
Palmer wanted to know if the senior citizen discount removal would impact our
numbers. Hupp didn't think so, because the majority of the trafFic is for those
people who fly several times a year, and some of the seniors fly once a year.
Even with the senior discount, which is taken off the full coach fare, the fare is
sometimes higher than some of the rates from the promotional fares. Palmer
said that he thought we should look at some other media outlets other than
Bangor Daily News, so that we make sure to "toot our own horn."
Baldacci said that we should make sure to utilize the government channel to
� capitalize on the good news of the airport.
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Farrington said that the airport should have a shot from the cockpit of a plane as
it approaches Bangor, because of the powerful impact of the scene. He said you
would be able to see the water tower, some churches, etc., pick the shot and
use it in an advertisement.
4. Rehabilitation and sale of 231 Randolph Drive.
Martzial noted that a council order of a couple months ago authorized the City to
acquire this property. The City has since acquired the properly, and we have a
rehabilitation estimate for approximately $5,�00, and it is appraised at
$75, 000. Martzial would like to get the committee's approval to repair the
property and put it on the market for $75,000 firm and advertise it in the Bangor
Daily News. This procedure is consistent with the other 51 properties the City
did on Randolph Drive.
The committee approved the request.
5. Discussion on proposed ordinance amendment to increase airport parking
penalties.
� Hamer as requested by Rebecca Hupp, presented a draft of an ordinance
amendment to increase the fines for illegal parking on airport property to combat
an increasing number of illegally parked vehicles. In addition to increased fines,
the amendment will give the police department the authority to immobilize or
impound any vehicle found marked in an area marked '�No Parking" or parked in
an off-street area without a valid permit if it is within 500 feet of the terminal to
assist the airport in complying with the Federal regulation requiring that no
vehicle be left unattended within 300 feet of the terminal. Hamer said that this
could have gone to First Reading by the Council, but they brought it before the
committee for their review and comments.
Rohman asked what the fines are at the moment. Hamer said that originally it
was $10 for parking too close, up to $25 and $50. Hupp said in front of the
terminal, it would be a fine $50. Farrington wanted to know if there would be
signage to explain the fines, and Hupp responded that there already are signs
and barrels in place. Currently we have the ability to boot or tow vehicles.
Palmer noted that this is a security issue, and we do not want to use the boot,
but should get the vehicles towed as soon as possible.
This was approved to go to full Council.
� 6. Assignment of lease from Acadia Hospital to Acadia Healthcare.
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Hamer presented the request of Acadia Hospital to assign their leasehold interest
in their facility formerly known as the Hope House on Illinois Avenue to Acadia
Healthcare, a related corporation, for the purpose of permitting Acadia
Healthcare to maximize its Medicare reimbursements.
The Committee recommended this to full Council.
7. Designation of Bangor Waterworks as a Community Revitalization Area
McKay stated that this is linked to the Shaw House application for housing at the
Waterworks. They have applied to the Maine State Housing Authority for a low
income housing tax credit. Previously, it was believed by the MSHA that Shaw
House would be the only applicant, however, Portland has applied for a tax credit
as well. If the City Council designates the Waterworks as a Community
Revitalization Area, it will give the Shaw House application an extra 3 points in
the scoring process.
Rohman noted that it was a 100-point scale, and that there currently is an 8-
point difference in our favor over Portland.
• Baldacci moved passage of the order, and asked if this designation as a
Community Revitalization Area is something that we should be doing in other
areas of the City. McKay said this only applies for low income housing tax credit
situations, and that state statute applies in other cases where we may need to
utilize eminent domain. McKay said the intent is that this shows the community
has a higher priority on the project and allows extra credit for the application.
Palmer seconded the motion.
Farrington wanted to know if there was anything the City would lose by doing
this. McKay said no, that this only helps the application.
The Committee recommended this to full Council.
Daniels introduced Leanne Judd and Linda Packard of Packard Designs; one of the two
firms selected to represent the City in the development of the new marketing plan and
its implementation over the next year up to three years.
Judd noted that the purpose of their attendance was to get a feeling of the people
involved in Business and Economic Development and to set up some meetings for
. strategic planning. Rohman noted that the whole Council should probably be included
� in the strategic planning stage. Daniels said that Judd could meet with stafF members,
and then meet with Strategic Issues committee for a couple of hours. Rohman asked
Daniels to discuss the issue with Mayor Crowley to determine which committee is best
able to meet with Packard Design considering her time frame of ineeting by August gtn
The meeting adjourned at 5:45 p.m.
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