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HomeMy WebLinkAbout2003-11-04 Business and Economic Development Committee Minutes • BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE TUESDAY, November 4, 2003 Meeting Minutes Councilors Attending: John Rohman, Frank Farrington, Gerry Palmer, Richard Greene, Dan Tremble, Nichi Farnham StafF Attending: Jonathan Daniels, Rebecca Hupp, Rod McKay, Stan Moses, Jim Ring, Steve Bolduc, Kate Weber, Ed Barrett Others Attending: Mark Torres, Bob Guerette, Reg Milley, Jerry Staples, Habitat for Humanity of Greater Bangor The meeting convened at 5:00 p.m. 1. Consent Agenda a. Amendment to Lease Agreement with Rallor, Inc. b. Resolution of Condemnation of Property Located at the Union Place • Conservation Project. c. Approval of Contract with NASA. The Committee approved the consent agenda. 2. Presentation and Discussion on Pre-Clearance. Rohman said that visitors from Halifax International Airport are here for a presentation regarding pre-clearance. Hupp said that pre-clearance relates to two distinct items. One is that originating passenger trafFic pre-clearance will allow Halifax to preclear passengers that originate in Canada to enter the U.S. as a domestic flight, and the other part is intransit preclearance, which will allow passengers that are transferring through Halifax come into the U.S. as a domestic flight. Hupp said that the intransit traffic is critical to Bangor International Airport's business, and we want to come to an agreement that would be beneficial to both parties. Daniels introduced Reg Milley, President and CEO of Halifax Airport. Milley introduced his team including the marketing director and consultants. Milley said that all other Canadian airports have preclearance, so this will ensure continuity in airports. He said that this has been a 30-year process and the biggest issue has been the lack of transborder traffic. He said that most people have to fly 2-3 � hours west for preclearance if they fly south of Atlantic Canada. � He noted that there are approximately 140,000 travelling to the U.S. each year and another 35,000 that travel throughout Canada to other preclearance sites. He noted that they are interested in working with Bangor International Airport to address any concerns. He said that their application for preclearance will meet or exceed all criteria for a preclearance facility. He said that their relationship with Bangor is a partnership. He said that Bangor's concerns are as follows, intransit preclearance, diversion of general aviation traffic from Bangor, and diversion of technical stops from Bangor. Milley said that the only flights eligible for Halifax preclearance are flights that are commercially scheduled or passenger chartered flights. Ineligible flights are general aviation flights, private aircraft flights, air taxi operations, state aircraft and aircraft landing for refueling or technical sto.ps. Milley said that intransit preclearance could be permitted under certain situations, however that is not something that they want to pursue. He noted that Vancouver was the only airport with intransit preclearance, although six others are eligible for it. Some of the benefits of preclearance are traffic growth stimulation in both countries, which will bolster future air services. He said that U.S. Federal officials like the idea of preclearance at Halifax because it relieves pressure and improves . customer service. He said that Halifax Airport has supplied an indemnity clause for any losses to Bangor Internationally Airport. Milley invited the Mayor and Council to Halifax for a brainstorming session to determine how they can work together to develop the economic development of both regions. Rohman asked Hupp to share some of her issues. Hupp said that Bangor International Airport's concern is the impact this will have on Bangor and the region. Hupp said that preclearance in and of itself usually means intransit • preclearance, and there is concern where Halifax will stand on this issue in the future. Hupp said that the regulatory security requirements and compliance are stricter in the U.S. than in Canada. Farrington inquired about the security requirements in Canada versus the U.S. Milley noted that they can not receive preclearance authority unless they meet the U.S. security requirements. The consultant said that people working in preclearance are U.S. citizens, and preclearance enhances security by eliminating problems before they reach U.S. soil. . � . Farrington wanted to know what BIA gains and what does BIA lose if Halifax gains preclearance. The consultant said that BIA loses nothing. 3. Discussion on request for proposals — City owned property located on Essex Street. McKay said that the City would like to issue requests for proposals for the site of the former Naval Reserve Center on Essex Street. McKay said that stafF recommended that in addition to this 3.22 acre parcel, Lots 63A and a portion of Lot 58A be included for redevelopment. StafF further recommended that the zoning remain as Government and Institutional Service District, and that either taxes are paid or a payment in lieu of taxes is made. McKay said that staff also recommends that the property be zoned as Urban Residence-1 District or Urban Residence-2 District if necessary. Weber discussed the permitted uses of the lot in the Government and Institutional Service District. Tremble wanted to know if we had access to environmental studies that had been done on the land. Heitmann said that there had been an environmental study done, and that there were no problems with hazardous materials. He indicated that there was ash buried on site. Tremble said that he would like to see more residential uses on this site. • Palmer said that he hoped that the Pine Street pool would be addressed in the RFPs. The Committee approved staff recommendation. 4. Challenger Learning Center Lease Amendment (information to be provided at meeting). Heitmann said that the Challenger Learning Center had concerns regarding the use of the building when the Center was no longer there. The proposed additional language will make clear the proper uses for the property as zoned for the Maine Enterprise Park. This will clarify uses for the lending institution in case of future tenants. Heitmann presented a draft amendment. The Committee approved this amendment to the full Council. 5. Discussion on the terms of the Penobscot Theater Company Loan Request— Continuation from meeting on October 21, 2003. McKay said that the subject of a loan for Penobscot Theater came up at the October 18t" Business and Economic Development Committee meeting. He said that the request for $155,190 in Community Development Block Grant for � handicap access improvements for the Main Street property. The City of Bangor � CDBG loan program funds to non-profits at 2% for 20 years. McKay said that the Theater has requested a grant in place of a loan and McKay said that we are proposed to consider this. He said that the loan would be a 20-year deferred payment schedule with 0% interest, with 5% principal forgiven each year as long as the building is used for public performances. Daniels noted that the loan request had been referred to the full Council at the last meeting, and that further discussion on the request for a grant was needed. Farrington wanted to know in a development loan, what happens if the loan is in default. McKay said that just as a private lender can, the City could foreclose on the property. Farrington wanted to know the amount of financial contribution that the City has made on behalf of the Theater. It was discussed that $10,000 was donated to fund the Shakespeare Program, and a matching grant of $30,000. Farrington wanted to know what future financial requests might be. Torres said that the Theater will always be fundraising and seeking support from the community. He briefly discussed the future plans for the theater and Opera House. Farrington commented that a loan's burden is on the business owner, however a grant's burden is on the taxpayer. Farnham asked how the grant program works. McKay said that the City Council decides how the funds are to be used. He noted that 70% of the grant funds � from the federal government need to be used for people with low or moderate income, including those with disabilities. McKay said that the Bangor Council has traditionally issued loans versus grants, however it is up to the Council. Torres said that the Theater's objective is to prioritize needs, such as the structure of the building. He said that the safety of the patrons and the actors are a high priority, and that is why he has come to talk about a grant versus a loan. Guerette, of the Penobscot Theater Board, said that the Board has given a lot of • thought to the Theater's future. He said that the structural improvement needs are huge, and there has been talk of a capital campaign to raise the funds. Palmer said that the Committee is not prepared to address the grant request versus the loan request. He wanted to know the time frame for pursuing the grant process. Farrington requested that Torres provide a total cost estimate of the renovation project and the need for funds for the Council to review during the annual budget review. Farrington moved that this item be postponed to the spring budget session until more information was available to make an informed • � decision. Torres said that he could provide the master plan tomorrow, however the sketch for the capital campaign has not yet been drawn up. Barrett noted that the first thing we need to know is how big is the bill to renovate the building, next how much of this is eligible for Community Block Grant funding, because not all of it is, and lastly is that the block grant funding is on a difFerent cycle than the City's. Daniels recommended that Penobscot Theater return to the December 2"d Business and Economic Development Committee meeting with the requested information so that a decision regarding a loan versus a grant could be made by the Committee. The Committee approved this recommendation. 6. Discussion on properry issue for Habitat for Humanity. Tremble introduced the President of Habitat for Humanity. The President noted that a block of land between Fifth St. and Third St. is one that Habitat for Humanity would like to develop into five house lots. He gave a brief history of houses that have been built in Bangor. He further indicated that the five homes would generate $30,000 in tax revenue. Daniels said that]im Ring has worked with Habitat for Humanity on the design of � the project. Habitat has indicated that cost estimate for the project is $110,000, with a request from the City to fund $60,000 in addition to the deed for the property. A representative from Habitat commented that they do a lot of fund raising for their projects, but noted that they do give back to the community with property taxes. Ring said that the Committee needs to decide whether they want the City to do something with this particular property. He said that we should let the neighborhood know that we are intending to have this type of project. He said that we have had interest expressed by at least one other party for this parcel of land, and the Committee needs to decide whether to issue a request for proposal. Heitmann said that we did receive a written request from a developer. Tremble said that if we were to fund the portion of the infrastructure support, would funds be available from CDBG? Daniels reptied that they would. Daniels said that staff recommendation is to take a look at the RFP process. Palmer asked the audience to indicate their support and opposition to this project. Tremble moved that we move forward with the proposal and a neighborhood • meeting. Palmer seconded this motion. The Committee approved the item.