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Home My WebLink About2009-03-18 Business and Economic Development Committee Minutes . � ,� BUSINESS AND ECONOMIC DEVELOPMENT C4MMITT`EE March 18,-2009, 5:00 pm � Minutes Councilors: Bronson,D'Emco, Gratwick,Hawes,Nealley,Palmer, Stone, Wheeler � Staff: City Manager Ed Banett,Kaleena Nakowicz,Asst. C.D. Director; Steve Bolduc, Economic Dev. Officer;Norm Heitmann,City Solicitor;Jim Ring, City Engineer Others: Attendees from the Public;Jake Ward and Rene Kelly,University of Maine; Kathy Baldacci,Bangor Development Associates � 1. Public Hearin�on the amount of Federal Community Development Block Grant � Funds expected to be available for the period July 1,2009 through June 30, 2U10 Asst. C.D. Director Kaleena Nakowicz reviewed the CDBG submission requirements for .� the City's Consolidated Plan. The plan is due to HUD by May 15,2009;this is the first public hearing,of the required two,to be�eld prior to this submission. The exact amount of funds to be received by Bangor will be similar to that received in 2008—but with the ,� current economic situation,we have not yet been advised of the actual amount. Eligible activities under the CDBG Prograzn must benefit low to moderate-income people(a minimuxn of 70%of the funds are required to be used for this}-they include � rehabilitation of housing that is owned or occupied by low to moderate income persons; American with Disability Improvements;activities that aid in the prevention of slum or elimination of blight; and improvements in the downtown&at the water&ont;also � property acquisition,demolition, disposition,relocation of displaced businesses and environmental remediation. Other possible projects include new streets, sidewalks in eligible neighborhoods and possibly a new play structure at the Broadway Pazk.Public � input may be presented in person at the public hearing or submitted in writing to the Community Development Office prior to the second public hearing tb.at will be held in early May,prior to the submission of the Consolidated Plan to HUD. With regard to the ,� stunulus package,Bangor is due to receive$278,574. The Recovery Act funds have a ' shorter time fiame in which they aze required to be spent—so they will take precedence over the normal CDBG allotment Bangor receives. .� As no one from the public came forward to speak,Councilor Palmer moved to close the Public Hearing. Seconded. So voted. City Manager Barrett added that suggestions for infrastructure projects,that the � Stimulus funds could be used for,are welcome. 2: University of Maine's Current Efforts in Reseazch � � Steve Bolduc introduced, from the University of Maine,Jake Ward, Asst. Vice President for Research,Economic Dev. and Governmental Relations and Renee Kelly, Director of Economic Development Initiatives. Both are involved.with Research and , Development activities at the University. Councilor Palmer invited them to address the BED Committee on those activities. Jake Ward reviewed U.M.'s current ei�orts in research stating that on an annual basis,the university conducts appro�mately$100 � million in research. They have several programs that will aid in the creation of new ideas,grow new companies and support Maine companies such as the Advanced � � � �� Engineered Wood Composites Center;the Food Science Pilot Plant;Pulp and Paper � Development Cenfer;Advanced Manufacturing Center and Laboratory for Surface• '�� Science and Technology. These programs help companies such as Jackson Laboratories,. and the Maine Institute for Hwman Genetics and Health,as well as private companies from local to national,with the development of prototypes,troubleshooting projects and �ti small-scale pilot production. Jake added that once a business becomes a company in this area,they hy to show them all of the options available in Bangor. They further discussed � Bangor's role in commercialization of reseazch that is being conducted at the University and the value of the research to the Maine economy. Discussion then focused on what it would take to perhaps establish a business . research/development park for tech based business in the Bangor Mall area. Jake stated �' it would requ.ire multiple buildings as well as knowing if the right kind of mix of anchor companies coulc�be attracted and if tech-based companies would come here. Another challenge is the cost of electricity and energy. Wheeler asked wha.t the possible timetable � would be for affordable energy. Jake replied we would have to get off the fuel oil piece of energy costs and get into a more sustainably priced heating system,whether it's � natural gas or an altemative use of electriciTy such as geo-thermal heat pumps. These are some of the things thax could be done now in order to bring things into alignment. To the longer-term vision we need to be lo.oking at our renewable resources. � 3. Request for Extension of Pazking Lease—Bangor Schoolhouse Apartment Building, 183 Harlow Street � Bangor Development Associates(BDA)is in the process of a loan modification with MSHA for The Schoolhouse Apartments which will extend their loan to 2039. A requirement of tlus modification is an extension from the City of Bangor to amend the � original lease dated August 31, 1984 which expires March 2015. BDA is requesting from the City approval to amend their pazking lease of 1984 to be co-terminus with the loan modification and extended to March 2039. They would like to remove the obligation to continue leasing the 8 spaces at upper Abbott Sq. pazking lot,but will continue leasing the 22 spaces at the Atler pazking lot. Staff recommends extendi.ng the Bangor Development Associates lease to 2039 that will provide for periodic rate increases based �, on#he going rate for the remaining term of the Atler lot and to remove the obligation to � lease 8 spaces at upper Abbot Square pazking lot. A motion was made by Councilor Palmer to recommend for approval to the City � Council the request from Bangor Development Associates as presented. Seconded by Councilor Nealley. So voted. . � 4. Approval of Annual Report for Volunteers of America Affordable Housing District Kaleena Nakowicz stated that this annual report is required by the Maine Housing _,. Authority and then has to be approved by the legislative body. It indicates that there are � 55 planned affordable units in the Volunteers of America Affordable Housing project on Hazlow Street in Bangor. City Manager Barrett added that this project will be assisted with funding from the Stimulus Bill. A motion was made by Councilor Stone and seconded by Councilor Nealley to approve the Annual Report for Volunteers of America Affordable Housing District as presented So voted. � � . � � 5. Extension of Loan with RCBH Corporation ' � Steve Bolduc stated that RCBH Corporation has requested an extension on the loan term with both the City of Bangor and the BanAir Corpora.tion for five(5)years under the sazne terms and conditions. Staf�recommends approval of extension of the loan agreement under the terms and conditions as presented. �� A motion was made by Councilor Nealley and seconded by Councilor Stone to recommend to the City Council appraval of the Loan E�ension with RCBH � Corporatiori as presented. So voted. 6. Landlord Waiver on Behatf of Northeast Bank for Hallowell International Lease � (110 Hildreth Street) City Solicitor Norm Heitmann reviewed this item stating that Northeast Bank has asked the City to provide a landlord waiver for personal property at 110 Hildreth Street, �� which premises are owned and leased to Hallowell International,LLC. The landlord waiver will allow the Bank to enter into the premises and remove property from the premises in the vent of a breach of a security agreement between Northeast Banlc and � Hallowell. The City retains the priority interest in the property. Staff recommends approval of the landlord waiver. A motion was made by Councilor Stone and seconded by Councilor Nealley � to recommend approvai to the City Council of the landlord waiver as presented. So voted. 7. Executive Session—RCBH Loan Extension—Economic and Community � Development—M.R.S.A. §405(6)(F) � No Executive Session required. � 8. Committee Action on Above Item � . No action required. ,� Meeting adj ourned. � � � � � �