HomeMy WebLinkAbout2002-01-22 Business and Economic Development Committee Minutes BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE
/ � MEETING MINUTES
�- ]ANUARY 22, 2002
Councilors Attending: John Rohman, Gerry Palmer, David Nealley, Nichi Farnham,
Frank Farrington, Dan Tremble, Joseph Baldacci, and
Michael Crowley
Staff Attending: Ed Barrett, Mike Dyer, Jonathan Daniels, Kate Weber,
Penelope Olson, Rebecca Hupp, Norman Heitmann, Dan
Wellington, and Jim Ring
Committee Chair Rohman opened the meeting by saying that because there is a quorum
only the regular members (Rohman, Farrington, Nealley, Palmer, Baldacci) will be voting
on agenda items.
1. ConsentAgenda
a. Approval of Lease - Lease of ofFice space at the General Aviation Terminal
\� for a period of one (1) year to Penobscot Aviation Services.
b. Approval of Lease - Lease of ofFice space at the General Aviation Terminal
for a period of six (6) months to Bangor Ground School.
c. �Approval of Lease - This is ultimately an extension of a previous lease that
ran out. Execution is between the City of Bangor and the United States of
�America, Department of the Army, Corps of Engineers, New England
District. The lease is for 0.189+/- acres for government purposes
including the construction, operation and maintenance of a temporary
building.
d. Order, That Edward and Kelcey, Inc., on behalf of the City of Bangor,
be authorized to apply to the United States Government, Federal
Aviation Administration, for a grant for the purchase and utilization
of an electronic fingerprinting machine.
e. Order, That Rebecca Hupp, Airport Director, on behalf of the City of
Bangor, be authorized to apply to the United States Government,
Federal Aviation Administration, for a grant for reimbursement of
additional security costs imposed by new, additional or revised
regulations.
Chair Rohman then indicated that items 5 and 6 on the former published agenda
have since been moved to the Consent Agenda; therefore the new Consent Agenda
� has items (a) through (e).
The Committee approved the Consent Agenda as presented.
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`� � 2. Discussion on the Utilization of City Owned Properly Located at 57
New York Street.
Chair Rohman acknowledged the large attendance and assumed it was because of
them receiving a letter that this was an informational session for the Council.
However, Chair Rohman commented that various stafF members had been asked to
address a number of issues, and therefore, this would not be a public hearing.
Initial comments have already been received and there will be a second public
hearing. The purpose of tonight's meeting was for staff to put together a package
so that more information will be available for the next public hearing. It was
indicated that the public hearing should be within the next month or so, will be
advertised, and everyone notified.
Kate Weber, Planning Officer, said that she would start first, then Jim Ring could
talk about related issues on the engineering side, and Dan Wellington could talk
about the water pressure issues. She referred the Committee to her prepared
Memorandum in the agenda packet, dated January 18t", addressing the 8
categories of issues based on the comments heard at the January 2nd Strategic
Issues Committee meeting. These issues have been separated into: 1) housing
types and densities, 2) traffic, 3) congestion, 4) water pressure, 5) continued public
� access across the property, 6) wetlands, 7) loss of trees and vegetation, and 8)
park designation. She reiterated to the Committee that this properly is zoned
Urban Residence 1 that permits only one-family detached residences on minimum
of 10,000 sq. ft. lots. She said she did have a conceptual idea of what 15 house
lots would look like on this properly, that being a realistic way the property could
be subdivided. Ed Barrett added that technically the density could be 4.35 per
acre, but in reality by the time you get access and other considerations, this would
bring it down to a smaller lotting plan in the range of 14-16 lots. Kate said she
would first summarize the high points from her Memorandum, and then would
highlight a revised draft Request for Proposals based on the conditions from the
January 2�d discussions.
To summarize traffic and congestion, the trip generation based on the
transportation standard would be in the neighborhood of anywhere from 100 to 200
trips per day depending on the number of houses which was estimated to be in the
range of 2% to 4% of the current traffic generated in that area. Jim Ring added
that he thought the traffic increase in this development would be about 2�/2%
which is considered natural growth that would be seen on any given year on any
given street in Bangor because people are making more trips.
To summarize water pressure, Kate said that City staff had found indications of
. pressures ranging from 34 psi in the Webster Avenue area to 40 psi (pounds per
square inch) in the Silver Road area. Although this is adequate and within the
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allowable range of a low pressure service area as 20 psi, she felt it not stellar and
� � the Water District has indicated that it is their opinion that the addition of 15 to 20
new homes would not have a negative impact in the area. At this point, Dan
Wellington added that the limiting factor is the difference between the area and the
Thomas Hill Standpipe. It is the Fairmount area and there is plenty of water, and
unless modifications are made in the individual homes there is very little that the
District can do. However, the pressure may not be as good as it is in other parts of
town by virtue of elevation relative to the Thomas Hill Standpipe.
At this point, Committee Chair Rohman stated that Councilor Baldacci has joined
the meeting.
Kate Weber then addressed the need for neighbors to access the golf course and to
walk stating that review of any development proposals would take into
consideration the installation of regular city streets and other needs of access
across the properly from surrounding areas as part of the site design process. She
said that staff would not recommend that the property be dedicated as another City
Park as the City already has 42 City parks and forests, or 1,200 acres, but it is an
option for the Council to consider. Also as part of the site planning process,
consideration to existing vegetation and working around the natural components
with preference to be given to any proposal that would consider conservation an
important element.
�-� Kate then distributed a revised RFP draft to the Committee members. The two
areas which were very carefully looked at again was the Statement of Purpose and
the background and then the specific conditions which she wanted to quickly
highlight. The Statement of Purpose/Background does emphasize that the proposal
would be looking for residential development very consistent and compatible with
the existing Fairmount neighborhood and that it would stress a low-density and
integrate into the existing neighborhood and provide opportunities for pedestrian
travel and enhance the characteristics of traditional neighborhoods as we think of
them in Bangor. Kate then read from Specific Objectives: `�The overall objective of
this proposed project is to provide an opportunity for a developer to create high
quality housing for Bangor that complements the established Fairmount
neighborhood. The City's expectations, criteria and conditions for developing this
properry are defined in this Request for Proposals. Conceptual designs must
demonstrate a high level of aesthetic interrelationship among the site plan
components, and a high degree of compatibility of the overall development with the
existing land uses in the area." For Conditions, she went on, "development of
attractive low-density residential houses compatible with adjacent neighborhood
uses based on average densities, lot sizes and house sizes" and that the zoning
requirements must meet or preferably exceed those of the URD-1 zoning which is
there. Developments that would include expanded buffer yards, landscaping within
� the development and the perimeter of the development. A design to the extent
possible respects and conserves the natural vegetation, wetlands and other natural
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features of the site must include sidewalks and public access paths to the golf
course within the development. Inclusion of a landscape design for the open space
`-� in the development. Inclusion of Bangor International Airport, noise easements on
the property itself and vehicle access limited to New York Street. She said she tried
to take into account the comments from the January 2"d meeting and use them in
terms of conditions, and sought feedback from the Committee. Committee Chair
Rohman suggested that questions be taken first on the initial list and then save the
RFP for final discussion.
Councilor Baldacci said in terms of housing types and density if we go forward with
any kind of development he would be against anything other than single-family
development. To allow any other kind of development would not be conducive to
the neighborhood. Councilor Baldacci also felt that it may be in the City's best
interests long-term to set aside a large chunk of this property for open space, and
only develop a certain portion of it.
Councilor Farrington asked if the existing neighborhood had an average size of
10,000 sq. ft., and Ed Barrett said no, the lots in that neighborhood tend to be on
average in the range of 7,500 sq. ft. The City's prior Zoning Ordinance had a
minimum lot size requirement of 7,500 sq. ft. This was increased in 1990 to 10,000
sq. ft., and although there is some variation in the neighborhood, some of the lots
are below 7,500 sq. ft. Councilor Farrington wanted to express two concerns: the
� first being the Bangor taxpayer. He feels we need to do everything we can do to
�- encourage development that will add tax base to our rolls because taxes per person
will go down if we're able to do this. His second concern is that we keep the quality
of the neighborhoods as they are.
Councilor Nealley agreed with Councilor Farrington to keep the neighborhood and
the way it is now, and keeping the lots at 7,500 sq. ft. wouldn't allow for open
spaces but 10,000 sq. ft. lots would. He also suggested the RFP address the issue
of open space and who would be responsible for it because anything that is done
tastefully in this area will actually help with the appreciation of the entire
neighborhood. He also felt that creativity in the development might be important to
accommodate some people that are in that neighborhood.
Councilor Tremble asked what the wetland situation is and how much of the 5.7
acres is buildable. Kate responded that an in-depth survey of the area has not
been done. It is known that there are topographic changes on the land and that
there is a swale that goes through the property. However, exactly how much of
that would affect the developable area would be looked at by the developer and to
the extent possible maintain the natural features and work around them. Councilor
Tremble then commented that he was not sure that single-family detached
dwellings belong in that neighborhood because it doesn't really complement the
established neighborhood. It might fit in with that area and serve a need but he
� didn't think it complemented the neighborhood. When this property was acquired
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there was discussion about what types of housing needs we had, we had single
i � family and the $150-200,000 range, there was a high demand, so he had a problem
- with number 2 of the objectives.
Committee Chair Rohman indicated he was a big believer in some of the cluster
housing and some of the ways that we can maximize some densities, but his fear in
this area is very much that we have one of the larger single-tract parcels within the
City, and you've got the Fairmount neighborhood and the Little City neighborhood
and other than that until you get into the newer ones out on Essex Street, most of
them contain a lot of multi-family and cluster housing like Orchard Hills. He stated
that Orchard Hills is a perfect development for that parcel of land near the High
School, but as much as he likes that kind of development for its maximization of the
space, he doesn't see it compatible with this area. This kind of parceling is much
more compatible with Silver Road and Royal Road and those areas. In addition to
building up our tax base and our opportunities, we want to make sure that the
existing tax base stays strong and stable and Chair Rohman thought this makes
Silver Road and Royal Road and those areas that much more stable. Rohman said
that the reason he brought this up was that he had a reservation about number 2
on the RFP where it states we would consider things other than that. But, if we're
going to make modifications to the RFP and take it to the full Council and to let the
public see, then it should be better clarified. Councilor Farnham thought cluster
type housing would be great on the waterfront, and with development on both of
� these properties we could meet more than one need.
Councilor Palmer thought that much of the success realized by Orchard Hills was its
location adjacent to a major thoroughfare, Broadway. In this area, there is no such
luxury and he doesn't think it would support this kind of development. This type of
housing would probably take away from what people in the neighborhood envision
and it certainly will increase the traffic on other roads. Councilor Palmer concluded
by saying that he would support the single-family as opposed to multi-family which
will afFect the quality of the existing neighborhood.
Chair Rohman asked the other members of the Committee how to handle item
number 2 on page 3, either recommend for or against, so that the full Council and
the public knows where we stand. Councilor Baldacci made a motion to
recommend against number 2 on page 3, that it should be single-family only. His
motion was seconded by Councilor Nealley. Councilor Farrington doubted the
motion because he didn't want to limit the development possibilities in the RFP.
Motion to recommend to the full Council to strike item number 2 on this proposal
page passed 4-1.
At this point, Committee Chair Rohman stated that Councilor Crowley has joined the
meeting.
� Jim Ring said that if you look at the shape and geometry of the lot and try to lay
out lots, one of the ways to preserve open space or at least have a feeling of open
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space, is to require an additional setback around the rear yard, and there is land
� � enough to do that here. This would also provide buffering to the homes along
�- Silver Road.
Committee Chair Rohman asked if there were any questions on traffic. Councilor
Palmer referred to the statement in Kate Weber's Memorandum '�that most of the
travel from New York Street to destination points such as Interstates 95 and 395,
Bass Park, the Mall and Downtown would use Webster Avenue, Hammond Street
and Buck Street, and not the side streets in the Fairmount neighborhood."
Councilor Palmer said he would take issue with that to some degree, and probably
so would Councilor Farnham, particularly Royal and Norway are speed zones for
people to cut through the neighborhood. This is problematic because it's highly
residential and Fairmount Park is on each side of that. Councilor Palmer believes
that this would significantly increase the traffic on those two roads which will
impact on the neighborhood as a whole.
Ed Barrett said that part of the problem on Norway and Royal and Buck is that the
streets are too wide and should be narrowed down. At the last meeting there was
some discussion of stop signs at the Park, but putting stop signs there will not help
because people don't see it because they don't expect it there. But by narrowing
the street down at both locations and start angling it toward a pinchpoint that
would slow the traffic down. This is something that can be considered. A lot of the
� traffic in that neighborhood is thru-traffic, i.e., someone coming from outside the
immediate neighborhood up Buck and then down one of the streets to get to I-95.
He commented that Jim's trafFic counts were based on the number of residences in
the area, and did not take into account thru-trafFic. Jim responded that he looked
at the number of houses, similar distances from Royal/Webster and then counted
those, but there probably are people beyond that area and just based on 15-20
new residences here it would be on the lower end of 2% to 4% increase. Referring
to Mr. Barrett's use of the term `�pinch points" Jim said they are called ��traffic
calming measures" by engineers and are somewhat efFective. He gave an example
of a mid-block to reduce the length of pedestrian crossings like in parks, which is a
visual barrier as opposed to narrowing up the entire street which would be more
expensive and by using these long blocks at intersections the residents would still
feel the spaciousness of the big street.
Committee Chair Rohman asked Jim Ring if there were any average daily traffic
figures available and Jim said no because they usually have them only on arterials.
Chair Rohman asked if there were figures available on Hammond Street and Jim
said yes, but not on Webster. Rohman then asked Jim to bring any information on
traffic figures in the area to the public hearing. Councilor Palmer also pointed out
that in addition to the golf course drawing a lot of traffic, there is increased traffic
from the basketball tournaments and fireworks. He was very much in support of
� looking at some ways to slow down the traffic in that area. Chair Rohman asked
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Jim if the golf course people could supply any information on how many golfers per
I � day they have.
�
Committee Chair Rohman asked if there were any questions on water pressure. A
representative from the Water District, David, suggested that the only thing that
could be done other than raise the height of the standpipe is to add a pressure
pump inside the house or make the pump a little larger. Rohman asked if
information could be provided on the pressures at the hydrants in that area for the
upcoming meeting.
Councilor Farrington asked if the additional houses would make the water pressure
worse, and the District representative replied no that it was just the function of the
altitude of the tank. The tank runs between 35 and 48 feet at the high low levels
so it depends at what level you're on. If you're at the 35 foot level at certain times
of the day you're going to have lower pressure.
Councilor Crowley asked the Water District representative why it wouldn't consider
putting in a new tank to serve that neighborhood, or a pumping station of some
kind, to accelerate the pressure whether or not we build these lots. The response
was that it would be a problem to find land with enough height to erect another
tank. Another possibility that could be looked at is a raised tower. Jim Ring said if
you put a tank here, unless it's higher than the level at Thomas Hill, it's not going
• to do anything. He said volume is not the issue because the lines are large enough.
�
Councilor Palmer felt that because the addition of 15 or 20 houses will not have any
impact on the pressure that maybe the individual homeowners should buy special
equipment to put in their own homes to increase their pressure. At this point, Jim
referred to an e-mail in the packet from Wayne Rogalski at the Water District for
people to contact him if they have specific problems or concerns and they would be
glad to look at things and make suggestions.
Committee Chair Rohman asked if there were any questions on the issue of public
access.
Councilor Tremble asked if the City owned any lots on Silver Road or if there are
any easements. Kate responded that we do not own any lots, but there is a utility
easement. Ed Barrett thought maybe we could try to get a pedestrian access
easement from the owner of that property so that it could be connected into a
walkway system, but that would be up to the respective property owner.
Councilor Baldacci expressed his opinion that it would be more prudent to develop
only a portion of this property because this development has the potential to alter
the character of the neighborhood, and concerns have been raised by the
neighbors. By developing a portion of the property first they could see how the
� development goes. He would be against the wholesale development. The City
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should look at the property more intensively, and the Committee should determine
� � before it goes out to RFP which portion should be left open and not leave that up to
� - a developer. He said he is not comfortable with a developer making those
decisions because of how it would afFect the neighbors and the community. He felt
that it would also be in the City's best interest to make those decisions before it is
put out for development. Because of the permanent effect that this will have on
the neighborhood, Councilor Baldacci felt we should take our time and make sure
we're making a prudent decision. He would, however, support development of a
portion of it and not the whole 5.69 acres.
Ed Barrett commented that the Committee should also keep in mind the upfront
capital costs associated with that development, which unlike rural communities,
includes both the necessity of putting in a road and extending utilities and providing
utility services. If you overly restrict the percentage of what can be developed too
much, you may find yourself in a position where its not economically feasible for a
developer to do something.
Committee Chair Rohman said he thought it would be helpful to get a tax map of
the area so the Committee can get a sense of scale of how large these 15 to 20 lots
would be relative to the rest of the area. Rohman also said he would disagree with
Councilor Baldacci because 15 to 18 or 20 lots in this area of 10,000 sq. ft. could
easily be handled by this entire space. Councilor Farrington felt since this is the last
segment in that neighborhood he would like to have a proposal from someone who
'� would take a look at the whole thing. We may not choose to do the whole thing
now, but --- (end of Side 1 on Tape 1) we can decide at a later point how far we
want to go, but he said he would hate to preclude our decision-making by only
saying so much now because he would like to see the whole area looked at.
Councilor Nealley said the minimum 10,000 sq. ft. lot, and some being larger,
leaves significant open spaces but by going with Councilor's Baldacci's approach not
only limits the creativity of the developer but if it is done piece-meal or partial
development you restrict the potential for the neighborhood and it's unfair for those
that would buy lots or that will buy into this housing project because they're not
sure what's going to happen with the additional 2 acres or whatever is put on hold.
He said that he feels the Council would be selling the private sector short if we
don't think that they wouldn't put together a quality development. He didn't think it
made sense to refine the RFP too much now.
Councilor Palmer thought there was some merit to what Councilor Baldacci said and
we can put anything in the RFP, and one of the things that could be put in is how
would you roll out this development, how do you envision this as a developer, how
would you do this so it would have the least amount of impact on the neighborhood
and see what creativity is out there. Committee Chair Rohman asked for a motion.
• Councilor Baldacci said he wasn't sure how the process was going to work out but
still felt the City should look at it more closely before the RFP is put out to see how
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we would like to see things arranged because we are going to have to vote yes or
i � no on the developer's proposal.
�_.
Committee Chair Rohman asked if there were any other issues that needed to be
discussed. He then asked if there was anyone in the audience that would like to
see anything addressed.
Charles Eames, 47 New York Street, told the Committee there was a lot of wetland
down there, because of a pond and a spring, and no one has looked at the land.
Chair Rohman responded that the wetland issue will be addressed.
An unidentified speaker said he agreed with the Council and everything that was
brought up, both the pros and the cons, but he would classify Hammond Street,
Norway Road and Royal Road as an extension of Speedway 95. Chair Rohman
responded that his concern about the traffic issues will be brought up as well. He
also mentioned there is a stream that runs down through there that he objected to
before the golf course was built, and the golf course said they would put that
underground. That stream runs above the ground, there's gasoline and oil that
runs through there and he has had cats die from that stream and it's going to
increase because you're going to have more runoff. Chair Rohman responded that
the stream issue will be looked at.
• Ed Barrett indicated that as soon as the public hearing is scheduled everyone will
be notified.
3. Discussion on the Creation of Additional Development Districts.
Ed Barrett told the Committee that he had put together a Resolve that was
previously requested on the downtown area, and it was just distributed. Councilor
Baldacci made a motion for this item to be continued to the next meeting because
he would like to have time to review it with staff. His motion was seconded. Chair
Rohman thought it could be discussed now. However, Councilor Palmer concurred
with Councilor Baldacci because this came to us late and we haven't had a chance
to look at it.
4. Bangor International Airport Report.
Rebecca Hupp informed the Committee that there was a significant amount of
material in the agenda packet. Considering all of the events and challenges of the
past year, BIA finished down 3.4% from last year which she thought was very
respectable. She felt the biggest significant improvement in air service was the
Delta jet service to Boston, followed closely by the Pan Am nonstop jet service to
Baltimore. San ]uan and St. Petersburg Clearwater were added. In response to
the Delta flights, American Eagle has started adding in the regional jet on select
� Boston flights when there's one available. The bottom line is we would have had a
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very successful year had it not been for the September 11�" tragedies and the
f • Comair strike. On the positive side, the market loads and yield are increasing and
�- improving. Although BIA experienced capacity decreases since September 11�' ,
last year at the beginning of the year jet capacity was 33% and now it is 66% and
we will be adding two more jet flights. This means that there is a definite trend for
regional jets in this market and that will continue to transform our market and the
way people view our market.
She also commented that the advertising and promotional programs that were
developed were very successful, and there is a copy of a presentation by Mike Boyd
highlighting the effectiveness of the campaign.
Rebecca said they are always working on improving air service and the primary
approach is to work with existing carriers to improve existing service and have
existing carriers to add additional destinations, with the secondary approach trying
to recruit new carriers with new destinations. She then read from her report on
what proposals are pending and what she has in the process. She mentioned
briefly the Marketing Incentive Program formalized by the Council and indicated
that it has been very successful. Details on this program are also included in the
agenda materials. The Airport's web site has been changed since the first of the
year and is a little more user-friendly.
`• Rebecca then stated the biggest disappointment this year was all the near-misses,
what we would have seen if it hadn't been for the Comair strike, we would have
been up 12% had it not been for September 11t", etc. There were other items of
frustration such as the US Airways downsizing and the Philadelphia service.
Rebecca then pointed to pages 47 through 49 in the packet which gives difFerent
scenarios that Mike Boyd sees developing within the industry and suggested that
the Council take time to read them.
Councilor Palmer asked if the material relating to the Community and Regional
Outreach could be broken down quarterly as opposed to annually, and then asked
what she knew about Margarita's full moon madness and how it impacted First
Blush. Rebecca responded that on pages 79 and 80 is a full list of the Community
Outreach Activities which had been distributed to the Council to let them know of
upcoming events. Rebecca said that they are in the process of putting together a
future calendar of upcoming events for the Airport. The Margarita's full moon
madness was back in March and was a cooperative thing they did with Pan Am by
providing stafF assistance and flyers. Pan Am provided free airline tickets which
were part of the giveaway to promote traveling on spring break for a college
student using Bangor International Airport.
• Councilor Farrington asked Rebecca how much BIA is losing because of Manchester,
and Rebecca responded that she could get the information for the Council, but the
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last time a leakage analysis was done most of the leakage goes to Boston. This is a
r � little difficult to track because Southwest does not participate in some of the
'- booking systems that the other airlines use and it's real hard to tell how much of
our traffic they're actually pulling away. She anticipates that between Portland,
Manchester and Boston we're losing over 20% of our traffic. Rebecca added that
when people drive to the other airports, they don't take into consideration their
time, parking costs, mileage, or the overnight hotel room. She feels that 8 times
out of 10 it would be conservatively less expensive to fly out of Bangor. There was
a brief discussion about giving parking incentives. Rebecca added that other than
grants, parking is the airport greatest revenue. A suggestion was also made that
future advertising could get the message out that it's cheaper to fly out of Bangor.
Councilor Palmer commented that parking is one of the assets of Bangor
particularly the proximity to the terminal, and in terms of car rental if you're coming
into Bangor and you're new to the community, the rentals are easily accessible.
7. Bass Park Report Including Event Schedule through February 2002.
Mike Dyer appeared before the Committee. In the agenda packet he referred to a
schedule of events for this month and next, highlighting Bass Park's first shot at
two days of MPA sponsored state wrestling championships. The MPA state
cheerleading championships was done that weekend and they were under some
pressure to share that event with Augusta and decided to put the State wrestling
�� championships in Augusta and Bangor in alternate years too. It will be a 2-day
event. They want to get five mats on the floor and will be set up similar to a
Roman Coliseum where everyone will be sitting upstairs and looking down on the
wrestling. From their viewpoint, it's as well attended as the State cheerleading
championship and the fans are very enthusiastic.
Mike next briefed the Committee on the financial picture by stating that they had a
very busy fall concert-wise. There were actually 6 shows and concerts, the
highlight being the return of the World Wrestling Federation on November 10t". On
the expense side of the ledger, total expenses for FY 02 are up about $32,000 over
FY 01. Most all of that is budgeted and is due to fringe benefit increases and
$12,000 in temporary payroll costs. Approximately a third of the $12,000 was
budgeted for in the implementation of the new concierge service which has met
with a lot of positive comment. This had been talked about for a year-and-a-half
and it was finally put into effect. It basically puts somebody at the beck and call of
the Event Coordinator the day of the event to make sure that everything is taken
care of and saves her from having to run around looking for an operations person.
This is not done on all events, but has been very well received on the events it has
been used so far. On the revenue side, labor reimbursement is up $6,300.
Electricity expenses are running 6% for this year compared to last, and based on
� the current usage trends he is projecting as much as 9% down from the budgeted
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figure. He contributes these savings to factors such as the use of exhaust fans in
� • the Civic Center and the new membrane roof and insulation on the office area.
�-� Heating oil expenses are currently down 49% due to the mild Fall and conservation
measures.
On the revenue side total revenues are up about 8% or about $13,000 FY 02
compared to FY 01. He mentioned the Billy Gilman and BB King concerts have not
been factored into this figure. Concession sales are up 74% or $13,000 over the
same time period and the profit margin has increased by approximately 10% from
40 to 50%. During tournament time, the profit margins are even better than that
because more is being sold per man hour. So to have concession sales in the 50%
range during "off times" he is very pleased with. The second half of the fiscal year
is the busiest time of the year and accounts for up to two-thirds or more of all
revenues and about 50% of all expenses.
There was brief inention of the markup in concessions and Mike said normally they
try and maintain 300% and gave the example of going to a new hot dog which is 6
to a pound. They went up a $1.00 on that price while their cost is about 72 cents
and they charge $2.50. Mike said he feels they are at the margins they can be on
those items. They monitor what Cumberland County and Augusta does also and
we're at the high-end of prices. Right now we have the most expensive hot dog in
the State. He concluded by saying that instead of relying on one part-time
`� manager, he is using a full-time staff member to oversee the concession sales and
ordering which has cut down on waste and cut back on inventory.
8. Discussion on the Development of an Integrated Marketing Approach
for the Bureau of Economic and Business Development.
Jonathan Daniels distributed materials to the Committee and said that one of the
things he talked about with the City Manager upon his arrival was the ability to
develop an integrated marketing approach and bring together three very visible
components of the City's economic development effort, that being Bangor
International Airport, Bass Park and the Community and Economic Development
portion. He said he has spent the last couple weeks meeting with the individual
staff inembers going through what we currently have and he referred to various
materials he received from Rod McKay with the Committee. Regarding Bass Park,
the agency contract expired on December 31� with both Steve Robbins and the
State Fair. The prior approach developed individual parts of their marketing
programs purely for the Civic Center, the Auditorium or the State Fair, not really
bringing in any other aspect associated with the City's development itself. As far as
the City itself, he said there is a lot of good material and information but as soon as
it went out the next day a tenant for one piece of property was found and the
information was outdated. Therefore, 7onathan feels that each of the departments
• should look at an integrated marketing approach. Oversight and integration of that
will be through the Bureau of Economic and Business Development.
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[ � He referred to the materials distributed to the Committee. Under the identity or
� brand of the City, or a particular component you're trying to market, would be a 3-
phase approach: the City Web Site, which contains a lot of information and is
constantly updated. However, it could be reconfigured into a very concise format.
Ed Barrett said that the front end of the web site will be redone to make it easier
for people to get into the web site and go where they want to go. The home page
will contain four buttons: Bangor City Government, Visiting Bangor, Living in
Bangor, and Doing Business in Bangor. By setting it up this way, we will be able to
tell where people are going from the home page. (end of Side 2 on Tape 1)
(beginning of Side 3 on Tape 2) Committee Chair Rohman asked Jonathan if he
was going to develop an actual plan and Jonathan responded that this should be
done within the ne� month or so. He said this is not a singular approach. He will
talk with each department to get their input and come to an understanding of what
components each one has, and how that will fit in. The Airport and how they are
currently doing their advertising right now has been extremely effective. We as a
Bureau can work upon their momentum and begin to move forward but right now
his concern is that there's not much for continuity among the messages, and it's
very fractured.
)onathan said he is putting together the basis of an RFP for the development of at
`� least a few components of this specifically going towards Bass Park and City
Economic Development, that we can draw upon a few general ads to serve as the
basis for a larger campaign. After we get the general ads, over about a two-year
period, we will try and come up with individual focus points that tell a complete
story.
Councilor Tremble asked what the agency contracts cost, and Mike Dyer responded
regarding the Auditorium/Civic Center the retainer fee was $10,000 and for the
State Fair the retainer was $9,000, and this does not include the printed materials.
Jonathan added that this gives us an additional $20,000 for those two parts of the
marketing budget that we can utilize for additional materials.
Jonathan said he would leave all of the materials with the Council for them to go
over. during the next couple of weeks and allow them the opportunity to come back
and discuss any issues anyone has.
9. Executive Session -- Sale/Lease Options for Property Located within
the BIA Commercial Industrial Park.
A motion was made and seconded to go into executive session to discuss the last
item on the agenda.
�
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