Loading...
HomeMy WebLinkAbout2002-04-02 Business and Economic Development Committee Minutes - BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE '� APRIL 2, 2002 MINUTES Councilor Attendance: Palmer, Baldacci, Nealley, Farrington, Allen, Tremble Staff Attendance: Barrett, Daniels, Heitmann, McKay, Dyer, D'Errico Others: Buckley 1. Request for Subordination Agreement- Bangor Development Associates - Schoolhouse Baldacci expressed a possible conflict of interest. After deliberation, a motion was made and seconded to not excuse Baldacci from discussion since the Committee felt there was not a conflict of interest. Heitmann indicated that BDA had requested that the City subordinate its mortgage on 183 Harlow Street, similar to the 1993 request at which time the City approved the subordination agreement. The City holds a deferred mortgage on the property and it is subordinate to a first mortgage held by the MSHA. BDA's current loan with the MSHA is $2.4M and they wish to borrow another $190,000 for the installation of new windows in the apartment house complex. � Farrington asked if the City is likely to continue with subordination as future needs arise, and Heitmann said it is not likely. The project has been going for 17 years. Farrington stated that BDA would be required to pay $160,000 to the City at the end of 30 years and felt that at some point future Councils should be more constrained as the 30-year mark approaches. McKay said that the City had received in excess of$300,000 under the HUD programs when the project needed parking for that area. The leases those spaces to the project at the market rate. In addition, HUD required that the $160,000 be repaid without interest. McKay indicated that any improvements to the project improve the City's security in the building, and recommended Council approval. A motion was made and seconded to approve staff's recommendation. 2. Discussion on Agreement with University of Maine Art Museum In October of 2000, the Council adopted a resolve authorizing a challenge grant to the U of M to locate the Maine Museum of Art in downtown Bangor. The deadlines outlined in the resolve were not met; however, the University has now reached its goal and is out for bid. Given that the original dates were not adhered to, staff felt it appropriate for the Council to authorize a specific � agreement with the University which would call for the University to perform � improvements by December 31, 2002 and open the facility operating at 60 hours per week; offer other classes and workshops at the facility; University will pay for the operating costs plus funds for fixtures for the building; University will provide ten annual full tuition scholarships for resident Bangor students for a period of not less then ten years. A motion was made and seconded to approve stafF's recommendation with the suggested agreement. Nealley suggested that a proclamation be issued for Ted and Sandra Leonard and their efforts on this project. Barrett suggested it would be appropriate to do so at the ground breaking or ribbon cutting ceremony. Baldacci also suggested recognizing Mr. Couri. 3. Request for Use of City Property A motion was made and seconded to grant Mr. Corcoran to use a metal detector at the Maine Business Enterprise Park. If any items are found, he will put some items on display at City Hall. The City Solicitor will prepare a license agreement. 4. Discussion on Maine Aviation Museum Loan � Ed Armstrong, Chair of the Board for the Maine Aviation Historical Society, was present to discuss the item. Heitmann indicated the Council approved a loan for the Maine Aviation Museum conditioned upon an agreement such as with the Children's Museum, Challenger Learning Center, with certain benchmarks to be met during a timeframe. The roof has been put on the building for $33,700, and the City has the invoice. The group is working with Code Enforcement to open the museum on a part time basis from Memorial Day through Labor Day, Saturday and Sundays, 4 hours each day. The main problem is with parking. Armstrong said that all financial goals have been met to date. Nealley asked if there was an active fundraising committee, and Armstrong said they do but most of their efforts have been focused on opening the building. Farrington asked how crucial the parking is to the success of the museum project and is there a code requirement on the Airport premises that cannot be controlled by the City in terms of security. Daniels indicated there is a problem with the fence line parameter, which are beyond basic code issues. Armstrong said the Board has assumed parking could take place on the grass area. In response to a question from Farrington regarding fundraising, Armstrong indicated the group would not be coming back to the Council for future support. Between now and 2004, the group will raise $55,000 and $945,000 in the second two years. Baldacci asked that a benchmark for each year be included in the agreement. Armstrong wants S to run this by the Board of Directors and will get back to the City Solicitor with a • number of 2005. A motion was made and seconded to approve staff's recommendation. 6. Discussion on Authorization for Emergency Residential Rehabilitation Loans Martzial reviewed this proposed policy with the Committee. Approval of the recommended Order would allow for authorization from the City Manager, the Business and Economic Development Director, and the Community and Economic Development Director to initially approve the emergency portions of a rehab loan prior to coming to the BED Committee. A $3,000 limit will be included. A motion was made and seconded to approve the Council Order that will appear on an upcoming Council agenda. 5. Emergency Residential Rehabilitation Loan — 236 Falvey Street -Sewer Line Replacement Marizial described the needed work to be done at this location and asked the Committee for final approval for the sewer line repair. He indicated he would be back to the Committee in a few weeks regarding a rehab loan for the property. � A motion was made and seconded to approve the emergency loan. 7. Discussion on Request from Beal College and Executive Session if Necessary McKay introduced two representatives from Beal College. McKay came before the Committee last fall with a proposal from Beal College with a need for additional classroom space (10-12,000 sq. ft.) and were interested in the City's property behind the parking adjacent to the Main Street facility extending along Farm Road (approximately 2.7 acres of vacant land). The Parks and Recreation Director has no objection to Council's consideration for Beal's use of the property. In the fall, staff ofFered Freese Building space to Beal, who decided it would not meet their needs. Beal's Chair of the Board said the Board has done a strategic plan for the School, which has been in Bangor since 1891. The current building is difficult to renovate due to prior renovations and built prior to the handicap accessibility issues. Beal proposes to purchase or lease the land from the City to construct a new academic center which would include classroom space, student lounge, computer labs, and wired for internet access needed to expand some of the current programs. Some preliminary work will be done on the current building this spring on the outside of the building. Beal would like to be able to create an alliance with the Parks and Recreation Department. McKay and Daniels concurred it would be a good use of the properry if the � Council were to authorize use by Beal College. Barrett said the Armory continues � to need updating and there is insufficient parking at the location. Barrett expressed support for the proposal and felt the two properties can work better together. Staff and Council discussed the concern of students crossing the Farm Road and safety issues. A motion was made and seconded to authorize staff to negotiate a development agreement with Beal College to set forth the City's disposition of the parcel in terms of what will be developed on the parcel. Staff will come to the committee with the detailed agreement. Farrington expressed support for a lease agreement. 8. Discussion on Proposal to Bangor Target At the Committee's previous meeting, Daniels indicated that staff Mas been asked to make a presentation to the Bangor Target Board for the development of a shared technology commercialization center at the Maine Business and Enterprise Park. Staff met with representatives from the U of M, Bangor Target and EMDC to discuss the proposal. Currently there is a bill pending before Congress for up to $60M for development in incubator style development in conjunction with University systems throughout the US. Using Bangor Target's money as seed money for development to use that to leverage additional money in partnership • with the U of M, Bangor Target and the City, Daniels thought it could leverage more money from the bill as it comes out of Congress. Depending on the quality of the building, staff is recommending lots on either side of the Chancellor's Office or near the Challenger Center. As this was an informational item only, no � action was required by the Committee. 9. Executive Session — Property Acquisition — Union Place A motion was made and seconded to go into executive session. 10. Discussion on Property Acquisition — Union Place A motion was made and seconded to offer the fair market value as indicated by the appraisal to the owners of property on 251 Union Street. �