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HomeMy WebLinkAbout2003-08-19 Business and Economic Development Committee Minutes BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE August 19, 2003 Minutes � Council Attendance: Rohman, Palmer, Nealley, Allen Staff Attendance: Daniels, McKay, Barrett, Hamer, Hupp, Weber, Bates, Dyer, Bilancia, Gastia Others: Ames, Fer, Casey, Dawson, Ladd, Massey 1. Consent Agenda —Agreement for hangar space rental with Telford Aviation. A motion was made and seconded to approve the Consent Agenda. 2. Presentation by Penview Associates regarding residential development on the Bangor waterfront. The property in discussion is on Railroad Street. Patrick Casey with Ames Engineering spoke and Mo Fer is President of Penview Associates presented a conceptual design plan for development of approximately 40- 44 condo units on the waterFront. The plans include a new formal entry, which is a circle front around and drop off point as well as parking spaces � and service entry, into the development while still providing access to the waterfront. A swimming pool is being planned. The building will be setting on two levels of parking with access at multi levels to provide efficient parking. The lobby will be on the upper parking level. The parking on the rear elevation of the building will be sloped due to the grading. On the front elevation, some areas will be filled in. There will be four levels of units made of brick, glass and wood construction. It is a • high-end quality and will fit in with the growth and development on the waterfront. McKay talked about the RFP process. There were two groups expressing . interest. The Perigren did not want to participate in the public process. The Committee needs to review the feasibility, the price range, the number of units, the type of units. McKay said that Penview needs to further develop their conceptual plans for City Council's eventual approval. McKay has spoke with the Hutchins' family, who feel condos at the proposed site will be good. Ames spoke about the necessity of sufficient pre-sales and felt a two-year development status period would be appropriate before the development commences. It would allow necessary time to obtain an investment team, condo owners and an association. Ames said the condo price range is $200,000+ average range. The development will be highly secured and will include various � amenities associated with condo living. McKay said that staff would most likely recommend a shorter tentative development period followed by an executed development agreement between the City and the developer. _ . _- _____ Nealiey suggested a certain time frame for the tentative developer status with a renewal based upon a certain amount of progress. With potential � contingencies and complications on the waterfront, Rohman suggested a longer tentative developer agreement might be appropriate. McKay said there is room to build condos on property controlled by the City and there may be a better way to accommodate by rearranging the properry lines. Rohman agreed a shorter tentative developer time period is more appropriate with other potential developers coming forward. Casey said that it is a seasonal project in a market sense. A lending institution will want a significant number of pre-sales. He would like to have a full year . of marketing, which he doesn't think will start until the spring of 2004. He . suggested an 18-month time period agreeing that something needs to be worked out to show the developer's good faith and ability to move the project along. Casey indicated that if they were to receive developer status by April of 2004, they would start negotiating with adjacent landowners, determine the actual site and develop final conceptual plans. Developer status could be finalized by April of 2005. Barrett suggested that Penview Associates work with City staff to put together an agreement in general along the lines discussed with some specific benchmarking. Rohman and Palmer agreed that the concept is exactly what the City wants to see on the waterfront. Palmer talked about possible amenities that would specifically tie the project to the river. � 3. Request by Hammond Lumber for the purchase of properry associated with the railroad spur adjoining their property on Outer Hammond Street. Hamer introduced Mr. Ladd, attorney for Hammond Lumber and Matt Massey, Operations Manager. When Hammond Lumber acquired the • Wickes' properly, research on ownership issues determined the City has final rights to the railroad spur that is adjacent. Ownership was granted to the City by the US Government. Hammond would like to purchase the property to allow heavy truck traff'ic to safely and efficiently enter and exit , the property. They plan to develop the undeveloped land behind the building to reroute the truck trafFic. Daniels said staff recommendation is not to sell properly and there are restrictions associated with the land relating to the US Government. He suggested an easement or lease basis. In terms of the proposed intermodal facility, the City is working with the state and this property would be rail access and egress. Staff's recommendation to the Committee is to authorize the Assistant City Solicitor and Community and Economic Development to work with Hammond Lumber to see if an operating agreement on a lease basis can be reached. It will be brought to the Committee for its final approval. A motion was made and seconded to proceed per stafF's recommendation. . 4. Bangor International Airport — passenger statistics. Hupp reviewed passenger statistics (per the attached sheet). Palmer asked how BIA compares with Portland, Manchester and Boston. Palmer asked about the status of PanAm. Hupp said there is an aggressive airline � recruitment plan in place, and stafF is reviewing Air Service Proposals. Palmer asked if the Airport tracked the corporate, private charter aircraft in terms of it being used rather than domestic flights. Hupp said that BIA is loosing the low fare passenger. The nationwide trend is to use charters for corporate travel. 5. Bass Park report— preliminary report on the Bangor State Fair. Dyer and Bilancia distributed and reviewed materials (see attached). 6. Discussion on parking issue — May Street. Gastia said there is currently unregulated parking on the west side of May Street through to Pleasant Street. On the U-Haul side of the street, there are six parking spaces, two-hour parking. Saliba's complained about their delivery vehicles not having enough turning space when U-Haul vehicles are parked on-street. Additional complaints were received from citizens about the difficulty of the narrow street with trucks parked on the street. Parking enforcement has been increased but vehicles are moved to avoid ticketing. Gastia suggested elimination of the six spaces, change the ordinance so that the parking on May Street is for non-commercial • vehicles only, or regulate the time of the parking from 8-5, Monday through Saturday. Bates indicated it is primarily a safety issue. The Police Department's recommendation was for non-commercial vehicle parking. Palmer encouraged the Economic Development Department to work with U-Haul to move to a different location with the proposed waterfront development. A motion was made and seconded to change � the parking to non-commercial parking. 7. Discussion on disposition of City owned property — Grant's Building. , The item was requested by Councilor Allen. Allen expressed the desire to see the building utilized in a manner that is productive for the downtown and for the surrounding area. Barrett said one of the recommendations in discussions with the City and County was the potential for the County to use the upper floors of the building. It never reached a detailed design level. The Court system did receive a $750,000 state appropriation for a feasibility study for the current County building. A firm has been selected for the study. The County is looking for a new space for its regional dispatch center and the City has proposed one floor of the Grant Building. The City has received some interest from other parties for use of the building. Lack of adjacent parking is a problem with the site. McKay said two unsolicited proposals were received in 2001. McKay felt it appropriate � at a future meeting to discuss the proposals. There is an RFP ready to go. Allen doesn't want to see the use of the building in limbo due to the state process. Barrett indicated that keeping in the Court system in downtown Bangor is not bearing to the key outcome of the property. Barrett will � check with the Court system to find out the status of their feasibility study process. He talked about a parking garage being constructed by the City, County and Court System. The Committee agreed that a time frame was necessary for the RFP process. 8. Executive Session — Land disposition and negotiations for property at the Maine Business Enterprise Park. A motion was made and seconded to go into executive session. 9. Discussion and action on land disposition and negotiations for the property at the Maine Business Enterprise Park. � � � BANGOR INTERNATIONAL AIRPORT Month: Jul-03 July July 2003 2002 % Change Monthly Passengers: 50,073 46,994 6.6% YTD Passengers: 216,528 234,001 -7.5% By Airline Delta 15,744 17,626 -10.7% American 14,966 18,798 -20.4% Pan Am 519 4,484 -88.4% USAirways 9,898 5,603 76.7% Continental 1,205 519 132.2% Northwest 7,711 N/A 100.0% . Average Daily Capacity: 2,256 2,058 9.6% Average Daily Sold: 1,614 1,516 � Average Daily Unsold: 642 542 Percent Unsold: 28% 26% Passenger Loads: CMR ACA AEJ PA BM 82.6% 81.6% 73.8% 28.9% 11.3% USE USJ NW CTA Market 69.3% 62.7% 82.9% 47.3% 71.6% Market Load Average Brand: DL AA PN US CO NW 71.4% 62.0% 19.4% 47.6% 35.3% 85.7% Market Share : DL AA PN US CO NW 31.4% 29.9% 1.1% 19.8% 2.40% 15.40% YTD Market Capacity Quality and Utifization Jet Capacity: 86% � Jet Capacity Utilized: 65% ! Turbo Capacity: 14% Turbo Capacity Utilized: 41% . , � f — i'� ` �� � I �, �,! : ��� ��,v' � � ,��✓ � � ��u� � � 2�03 Ra�r Report Money-Saviug�D� Dollar Day was a big hit this year, giving us a final-day aitendance of almost 10,000 people. '�ris is spc�cta.eular, considerin�that the Jast day of the Fair ha.s hi�torically low attendance. Dollat`D�.y ende�the Fair Qn a good note for e�eryone involved, Adding a thud V►Fristband Day was also a gaod move. VJ�were a bit concerned tha#adding the thii'd w4u1d only"�aread o�tt the wealth" of the Wristband Days, but we held otzr pwn at au attendanGe of over 7,�00 on�each WrisCband D�.y. Commercia.l Exhibits • '�e bad.41 commercia�exhibitors in our artea this year. The se�up worked well. We had on� "eoiridar"coming up from Main�treet and anotl�er heading toward the Civiq Center wi#h the Cr�eat Cats of the Wvrld exhibit on o�e s�de. The Cats rea,i].y helped revive�area xhat is historically slow_ In fact,I ha.d several e�ibitr�rs specifical�y request that we brirtg#he Ca.#s back ne�t year. Snonsorshit� - The�cor�omic c�i.ma.te_was nat good for�ponsorship sales t��is year. We did h41d our own on ix3- � kind�pc�nsorsl�i�ss,which are very valuable ir�of themselves by savi.ng us mnney. Ac�vertisin� As we did]ast�ear, we worked wi�.the Bangar Daily to prflduce a tab i�sert in the paper on Thursday,July Y 7�`. This insert eontai�s the full schedule,map and articles about various acts. " �e had less overruns��inted far ourselves this 3�ear and c�ose instead to ha�ve one-page � schedules(v�ri�li the map on�,he other sidej to hand out on site. Once people are at the Fair,they are not interested in reading articles—they j�st waut a sched.ule. Therefar,e,th�s type of hax�:dout �uoxks welL - � I�add�tion to�he an.sert,we purchased daily a.ds for the e�tire run of the Fair. In these ads, we � highlighted the major attractions and money-saving opportunities, along wifh the schedule of events for tb.e following day. All pririt ads bvere created in-house this year, saving us hundreds in graphic arts fees. T�ie Bangor Daily News did an in-kind �ponsorship for pollar Da�this year,providing nice, Iarge ads about this promotion for two solid weeks. Atfractions The Grreat Cats of the World were a huge hit this yea�. As� said above, it drew a good crawd to the coznm�rcial exhibit area. Although we tzy to rotate attractions and not keep the same one for several years, w� are strongly considering bringing the Cats back in 2�04 due to popular demand. I�Iad Mission to Mars 2025 was held 'm the Civic Center and was well attended at most performances. We heard m�ny positive comments about�his show. Center Stage was home to the Bravo Brofhers and Muttville Comix this year. The Bravo Brothers performed at the 2002 Fa.ir and were asked back#his year. They're fiinny g�ys who put on a great family-ariented show. Mu�1� Comix was a r�ew addition this year and u�i11 most likely be asked back next year. Johnny Peers ha.s�bou�fifteen"na�tts"�Ehat he res�ues from � animal shelters and trains for his acts (in�a.cf, he told me he had adopted another while he was he�e). They are obviously we11 cared for and loved by their Iohnny and his wife. Kids and pai�eats �1il�e were taken with this comedy act and the cute canines. �.-._.�.---.---- - - �� � � - e , .��_ `'�� �� , � _ I - - - '� -- - _;: '�'a= - - � ':4'�"r •,, - �;= . a�: _ , ..=a:c'. ��- . �'; �';�, - �:}.:,:� -: :-�',':,r` ,�' . _�� �S't�, _�."�II- As 3�ou krzow,this year we e�perimented with using�the valley between the Agricultural Area and t�e rest of the grounds as a na.tural amphitheater. � Overall the e�periment worked well. The smaller, local acts�vere not especially well atte�ded, but the better-l�own or more unusual acts were. Inkas Wasi did surprisingly well wi11 several hundred in attendance. Their Peruvian music was a nice cultural addition to the Fair. The Ailey Cats—a SO's Doo Wop a cappella group performed or�'�'oung at Heart llay. This cr�ncert was well attended,thanks in part to some promotional he�p by Magic 95.7. Not only are • these guys extremely talented, but�hey are ftanny and interact well with the audience. • I�icochet performed on Ju1y 30�to a good erowd. Ql Ob_5 spo�sa�ed this concert an.d did very well getting the word out to local fans_ Ricochet,with their five-part harmony and i„�trnmental vexsatili�y wsre vexy enterEaining. ;;� _;; - :��>:;:- ._,:�� Jalan Caffezty and the Beaver Brown Baud perfaxmed on August 2nd. �JK�T sponsarec�th3s cancert and did a wonderfui jo� (as always)of promating it. The crowd was exce�ient, despitte the threat of rain. �uring the third song, it sta�ted to mist, bttt neither the band nor t�ie audiezice seemed to care. Luckily it tapezed off and we were trea�ed tt� a great 9Q m�nute show. flne great thing about this banc�is their interaction with the Aud.ienee. Ca#�erty a�n.d his sa�player � "Tunes"jumped into the crowd and perFormed as they climbed the hill and shaok h�nds with fans. O�n the]�st Saturday of the Fair we alwa.ys have a�'ireworks show at 9:30pm. A.s the co�cert u�as abQut to wz�ap up,I gave the sig�al far the fireworl�s to comm.enee. The audie�ce w-as treated to ane of the best firews�rks shows we've had tivh�l.e listening to Cafferty sing "Wild Summer I�Tights"—a g�eat effect! � _ -�. :�� ' � ,� ,�: =;���:::;,, y�, -4:_�:;.:.. � :� ::.:,, .� -`��i��.. _ _ .� - ,F� il �. ��- --- . �: ,�_` _ .":F'.� "_ _ ;�h;-.; E `j�; F . � BANGOR STATE FAIR TOTAL ATTENDAN�CE " 1995 - 2003 1995 59,041 1996 65,362 1997 63,799 1998 70,456 1999 62,337 2000 66,601 2001 63,870 2002 60,208 2003 66,830 NINE YEAR TOTAL 578,504 NINE YEAR AVERAGE 64,278 2003 Attendance was up 11.0%from 2002 and perhaps more sinificantly up 4.5% over the previous eight year average! � * Includes concert attendances,group and pre sales and all special promotions. • Bangor State Fair Operational Revenue* 2003 2002 2001 2000 1999 1998 1997 CARNIVAL SPACE RENT $22,810.00 $23,500.00 $30,000.00 $27,500.00 $10,769.00 $26,000.00 $14,983.00 GATE ADMISSIONS $243,491.00 $231,416.00 $271,914.00 $233,500.00 $232,420.00 $265,651.00 $245,461.00 ENTERTAINTMENT SPONSORSHIPS $24,000.00 $28,600.00 $40,000.00 $38,000.00 $61,300.00 $35,500.00 $44,900.00 RIDE COMMISSION $123,758.00 $131,197.00 $111,759.00 $121,000.00 $102,219.00 $123,847.00 $86,117.00 INDEPENDENT MIDWAY $23,630.00 $25,037.00 $25,000.00 $27,000.00 $14,105.00 $12,762.00 $17,290.00 TRAILER HOOK-UPS $4,719.00 $8,378.00 $8,100.00 $8,700.00 $7,950.00 $7,700.00 $7,200.00 UTILITY SERVICE $4,600.00 $4,600.00 $4,350.00 $4,200.00 $4,000.00 $3,750.00 $3,500.00 WATER SERVICE $750.00 $750.00 $625.00 $600.00 $550.00 $525.00 $475.00 TELEPHONE COMMISSION $75.00 $95.00 $100.00 $100.00 $112.00 $100.00 $103.00 PARKING $24,517.00 $16,296.00 $17,187.Q0 $18,500.00 $18,678.00 $16,652.00 $13,202.00 EN'TRY FEES $355.00 $524.00 $228.00 $320.00 $505.00 $520.00 $634.00 POLICE $1,280.00 $1,350.00 $1,350.00 $1,520.00 $1,375.00 $1,350.00 $1,350.00 MERCHANDISE PERCENTAGE $293.00 $975.00 $229.00 $0.00 $2,100.00 $135.00 $1,995.00 REGULAR STIPEND $15,675.00 $16,500.00 $16,500.00 $17,000.00 $17,000.00 $17,589.00 $17,640.00 FACILITIES STIPEND $6,175.00 $6,500.00 $6,500.00 $7,000.00 $7,000.00 $7,381.00 $7,279.00 MISCELLANEOUS $2,320.00 $2,200.00 $3,500.00 $7,500.00 $1,500.00 $0.00 $630.00 CONCERT REVENUE $0.00 $70,750.00 $9,455.00 $48,000.00 $48,300.00 TOTALS $498,448.00 $568,668.00 $546,797.00 $560,440.00 $529,883.00 $519,462.00 $462,759.00 *Preli�ry figures. Not for publication. � • � Bangor State Fair Opera#ional Revenue* 1996 1995 $15,822.QO $22,950.00 $253,047.00 $237,997.OQ $40,800.00 $58,128.00 $82,415.00 $7$,539.00 $17,670.00 $15,283.Q0 $6,741.00 $7,065.00 $3,400.00 $2,808.00 $475.00 $450.00 $1'tO.OQ $9�.00 $14,186.00 $13,602.Q0 $353.00 $1,126.00 $1,170.00 $1,080.00 ��,��.ao, ���a.00 $18,895.00�' $20,447.OQ $7,789.00 $7,44Q.00 $1,914.00 $1,125.00 $466,241.00 $46$,350.00 *Preiiminary figures. Not for pub(ica#ion. � � � BANGOR STATE FAIR OPERATING PROFIT/LOSS 1995 - 2003 Revenue Expense Profit(Loss) 1995 $468,350.00 $403,471.00 $64,879;00 1996 $466,241.00 $444,904.00 $21,337.00 1997 $462,759.00 $444,649.00 $18.110.00 1998 $519,462.00 $444,446.00 $75,016.00 1999 $529,883.00 $485,837.00 $44,010.00 2000 $560,440.00 $520,330.00 $40,110.00 2001 $546,797.00 $488,203.00 $58,594.00 2002 $568,668.00 $537,503.00 $31,165.00 2003 $498,448.00 $447,228.00 $51,220.00 Average Revenue 1995- 1998 $479,203.00 Average Expense 1995-1998 $434,367.00 Average Profit/Loss 1995- 1998 $44,836.00 * Average Revenue 1999-2002 $551,477.00 ' * Average Expense 1999-2002 $507,968.00 * Average Profit/Loss 1999-2002 $43,509.00 * Paid concert years, therefore revenue and expense lines are significantly more � • .