Loading...
HomeMy WebLinkAbout2008-06-04 Business and Economic Development Committee Minutes ' BUSINESS AND ECONOMIC DEVELOPMENT COMMIT�EE , June 4, 2008 Minutes , Councilors: Palmer, Wheeler, Blanchette, Farrington, D'Errico Staff: McKay, Barrett, Nicklas, Dyer , Others: Jon Johnson, Ray Bolduc, Bob Kelley 1. Replacement of Barns and Paddock at Bass Park ' During negotiations with Penn National, Barrett said there was some discussion about the future of the barns and has been a continuing discussion with Penn and the City. In May of 2007 Penn presented their plan to replace the paddock ' and the two barns at$1.2M-$1.5M estimated cost. Penn approached the City because they needed Committee approval to make physical facility changes and to request that the City assist in some of the costs. In particular, Penn was , asking the City to support replacement of one of the two barns in the range of $600,000. At the time the Committee seemed to support the approach but did want the issue to go before a full Council Workshop. The workshop was never ' held because stafF was trying to finalize the numbers for project costs. Bangor Historic Track has been working to come up with a project budget at $5.6M. The plan had been for Penn to do the paddock, phase 1, and they are interested in , starting soon; phase 2 would replace the first bam at$1.6M and the second at $2.2M (phase 3) and the primary difference is simply an estimated increase in construction and material costs. Barrett suggested that the Committee needs to , review and approve the plan for phase 1, discuss the City's financial participation in the project, discuss Penn's request for a waiver of the LEED requirement. When the City financially participates in any major construction project, the ' project must be energy (LEED) certified. The nature of the project would make it difficult to qualify for LEED certification. � Jon ]ohnson introduced Ray Bolduc of WBRC Archite� and asked him to make , the presentation for the paddock and barn replacement. Bolduc said the project will consist of three phases. The first phase will consist of demolition of a , number of structures adjacent to the grand stand where the new paddock will be placed. The area will be graded after the demolition. There will be associated underground utilities and storm drainage associated with the paddock, which will include 96 stalls, drug testing stall, veterinary offic�, lockers, bathroom, showers, � driver's lounge, 12 foot doors on each end of the paddock for the horses to travel from within the facilities to the track. Once the paddock is built, other ' structures will be demolished, the area graded and made into trailer parking for the horsemen. Planning Board approval and DEP permits have been obtained and legal agreements with the City and BHA need to be worked out. The tentative schedule would be to demolish during the month of June and in August , along with the construction of the paddock and next spring the other two buildings will be demolished and the grading completed. Wheeler disclosed that for the past 14 years he has been the contractor for � musical services at the Bangor Raceway. He asked if the committee considers this to be a confliGt of interest. Farrington made a motion that this does not � constitute a conflict and the Committee members agreed. Construction would . not affect the racing dates. � ' ' Bolduc discussed phase 2 whereby the paddock is constructed and the trailer parking area as well. It will include demolition of three additional structures, ' grading pad for the new bam and then barn construcaon along with underground utilities with the barn. The barn will have approximately 100 stalls and toilet facili�ies. The paddock and the barn will be a pole barn construction ' with metal roofs and siding and the interior will be clapboard type construction, insulated, associated lighting, etc. Also a buffer will be constructed along the property line that will screen the proposed improvements of phase 2. Palmer ' asked the type of buffer, and Bolduc said it is a planted buffer following the City's Ordinance. Responding to Palmer, Bolduc said the buffer will assist with knocking down headlights for the neighbors. He said there had also been � discussion from the neighbors about fencing. Bolduc then discussed phase 3 which will include demolition of two additional � structures and construction of another bam, with 100 stalls and toilet facilities, maintenance shed and another location for dumpsters of manure and shavings, additional grading, and supporting utilities. The visual screening along Buck ' Street will be enhanced with additional plantings. Blanchette asked about the construction material and horses eating through the ' wood. Johnson said horses like to chew wood, which is part of the ongoing maintenance program. He presented and discussed photos of the proposed plan. Blanchette said she un�lerstands the concept of a lean-to building but � didn't understand how the various horsemen will be able to keep their products � separate. Johnson said there will be petitions. ]ohnson said details on the about of sawdust and bales of hay for each lean-to have not yet been ironed out. ' Blanchette said it is important to the horsemen. Johnson guaranteed that Blanchette's concerns will be ironed out. Johnson continued with discussion of . the barns, the design and construction. They will be designed for Maine winters. , Blanchette asked if tack rooms will be in the bams, and Johnson said yes. BHA will be responsible for organization �f use as well as maintenance. The public areas would be taken care of by the Bass Park stafF— mowing and trimming. ' Wheeler spoke about improving the cosm�tic appearance of the structures and mentioning the building that formally housed the para-mutual betting windows. � Johnson said the building in front of the open paddock will be demolished. Blanchette asked if there will be f�cilities in the wash stations or the tack rooms for laundry purposes. Johnson said in the current drawings there is not a ' designated site; however, Corey 5mith, D9rector of Racing Operations, and Johnson have been discussing a laundry area. At this point, he is not positive as to its location. Blanchette suggested coin-up machines in the blacksmith ' building. Johnson said it is a detail to he worked out. Rather than the blacksmith having his own bullding, he will have one of the work areas in the barn. The barn color will match the colors currently at the track. Blanchette asked about moisture in the trusses; i.e. dehumidifier. Cola and Cola � (spelling????) have been in the barn business for many years and �ohnson is sure it has been worked out. Bolduc provided more technical details in response to Blanchette's questions regarding condensation and vapor barriers. � ' Farrington said that the City and Penn need this facility in conjunction with the racino. He spolce about Penn, the City, the horsemen and the customers and ' how the participants share in responsibility for maintenance and cost. Johnson , said the need is more than cosmetic. The bams need replacing. Two , engineering firms have looked at it and agreed that the current structures are not repairable. In terms of maintenance, Johnson met with the MHHA several , months ago and they agreed that when the new barns are in place they would have to pay rent. The rent would be increasing each year over a three year period beginning at$50/month to $75/month and year three to $100/month. It ' is a reasonable rate. In terms of maintenance, Penn would absorb them. Palmer asked about fire safety in the barns. Barrett said it is not required by , code. Johnson said the current plan is to have a standard fire pull box. Palmer and Johnson discussed security. Penn is currently providing security�for the paddock and the barn area. , Barrett said the next step would be for the Committee to approve the plan. A motion was made and seconded to recommend approval of the plan. Blanchette � said it is not required by code to have a sprinkler system but asked Johnson if portable heating devices will be allowed in the bam. Johnson said it would have to be discussed with the horsemen but it is his preference to not have them in ' the bams. If the Committee votes to financially participate in this process, as landlord the City would have some say in that matter, ]ohnson said. Wheeler spoke about this year's serious problems with the track. He asked if that is ' expected to be a one-time event and asked the long-range view of the viability of harness racing at Bass Park. Johnson said there will not be any manmade reason why the track would be in the kind of shape that prevented racing. The � drainage issues have been taken care of with the City's assistance. If a long hard Maine winter causes problems, it is be�rond their control. Next year, they plan to open racing in the last week of April. They are looking for a fulltime , track individual whose job will be to maintain the track, )ohnson said. Regarding the long-term viability of hamess racing, as long as the slot proceeds support it, it will continue, he said. Palmer noted there was no objection to the previously � ' motion and seconded it. Regarding the cost sharing of the project, Barrett by way of background said originally the plan Penn was required to present was for the barns by March ' 2007. The original pi�n was to transition Bangor Historic Track to a ship-in track. It was opposed by the horsemen. The plan was revisited and a similar � plan as to what was presented today was presented. A significant portion of the barn costs deals vyith sit� conditions. The potential funding sources are the racino fund or the possibility c�f the d�wntown TIF. The arena is not included - now but possibly could be if the State would agree and approve the amendment. ' The Finance Director would need to review it. There is no legal requirement for , the City to participate, Barrett said. Farrington asked about the ship in only track. Johnson explained that it means � that the horsemen trailer-in their horses and there is no barn. Blanchette spoke about the importance of the Bangor track as a training track. � Palmer asked about in-kind services on the City's part. Barrett said the City would be better to provide funding. The first of the two bams is $1,577,000 and ' the second is $2.2M. Penn asked the City to underwrite the cost of one of the two. Johnson said the request was to participate at half of the total cost. Farrington talked about the two funding options. The TIF district would be ' ' � takin mone awa from other beneficiaries. Barrett said Downtown TIF District 9 Y Y � includes a capital and funding plan to reinvest in the downtown and waterfront area. Funds to support the new arena are one of the projects included in the capital plan for the Downtown TIF District. The City has also hoped that it would ' be necessary to do so. Using the arena fund has implications in terms of a start date for the project. Barrett said a full Council Workshop is needed regarding _ the funding sources and the impact of using the sources. Farrington spoke about the concern of taking funds from the arena fund. Barrett said there is ' currently close to $3M in the arena fund. Responding to Wheeler, Barrett said the cost of the new arena would range from $60M-$120M. The estimate for next year's arena fund revenue is in the range of$1.6M. Wheeler said he would not � be opposed to tapping the arena fund to a moderate extent. Barrett suggested that it is not necessary to this committee to reach a firm recommendation today as it involves the participation of the entire Council. He asked C�rr to work out � some more detailed funding information. . A motion was made and seconded to explore funding mechanisms for the City's , participation in the bams and paddock project. Farrington suggested that it include sources of participation other than the City; i.e., participants and beneficiaries. Palmer said a Council Workshop Session is also implied in the ' motion. Blanchette asked that the Workshop be sooner rather than later. McKay asked for a set of the plans approved by the Committee. � Regarding the third question to waive the LEEDS requirement, Barrett provided background surrounding the City's policy, which contains a waiver clause. Waiver is not a`free pass'as the project is still required to take energy efficient ' steps. The nature of the project would make it difficult to achieve LEEDS certification. Palmer asked if any areas would qualify for LEEDS. Barrett mentioned water conservation, drainage improvements, energy efficient lighting ' and electrical appliances. Johnson pointed out that LEEDS will be achieved tl-i�ough drainage but it is a barn for anima�s. Btanchette asked if track lighting is included in the expense. Barrett said that Bass Park is in charge of the lighting. , Honeywel! has looked at a number of outdoor lighting situations but Bass Park was not included due to the City's desire to replace the facility. At this point, there is not a quality type of energy efficient lighting for race tracks. Responding � to Blanchette, Johnson said that use of heated water is very limited. A motion :vas made and seconded to waive the LEEDS certifications. , 2. Development Proposal — Request for Ass�stance in Developing 125 Fern Street, the Former New Franklin Laundry, as 15 Residential Units � This i�em was discussed out of sequence as item #2 on the agenda. McKay explained that Bob Kelly, the developer, plans to renovate the former New Franklin Laundry into 15 residential units with no fewer than eight of these units . affordable to.low and moderate income tenants. The total cost of the project is � estimated to be at least$1,850,000. The developer will secure not less than $1.6M in private financing and equity for the project. Because of the high cost of � rehabilitation, the developer has requested a Community Development loan from the City as well as tax increment financing. As proposed, this loan would not exceed $250,000 and would be amortized over thirly years with a 3% interest rate. The City would also agree to annually apply 50% of the new real estate ' taxes paid by the project to repay this loan during the first twenty years of its ' term, not to exceed $13,000 in any year. Completing this project will remove � neighborhood blight, provide affordable housing opportunities, and enhance the , City's tax base. Kelly ou�ined the project in detail with some background information as well. The project will be green and LEEDS certified. A motion was . made and seconded to recommend approval to the full Council for their action at its upcoming meeting. Palmer and Wheeler compared this proposed project with ' the Union Place Neighborhood. 3. Essex Street Properly— Former Naval Reserve Center ' McKay said the airport owns this 3.2 site on Essex Street through an exchange of properly on the Airport with the Reserve Center. In 200???, the City received � one proposal 32 units of housing. It received Planning Board approval but to the neighborhood concerns regarding traffic it did not materialize. The City Manager has suggested that a neighborhood meeting be held to see what they would like � developed on that site. There has been some recent interest in the site. Blanchette asked how many houses could be placed on the site: McKay said probably six to eight. Blanchette supported the neighborhood meeting. Barrett ' said a good portion of the property is not open because it is fenced. Palmer asked about the soils and brownfield. McKay said it has an ash base, which is a geo-technical issue. Another area has several remedial issues. Barrett said soil ' conditions are a big problem at the site. Blanchette suggested that the neighborhood be invited to submit their comments by e-mail, by letter, or by calling in their comments as opposed to a neighborhood public meeting. Palmer � suggested self-addressed, stamped envelopes. 4. Executive Session - Economic Development— Negotiations for Assisting the ' Development of 125 Fem Street, the Former New Franklin Laundry—M.R.S.A. § 405(6)(C) 5. Committee Action on Above Item ' No action was taken. ' � � � , , . '