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Home My WebLink About2009-11-18 Business and Economic Development Committee Minutes � � BUSINESS AND ECONOMIC DEVELOPMENT COMMITTEE Wednesday, November 18, 2009, 5:00 PM � City Council Chambers � MINUTES Councilors: Bronson(Alte�nate Chair for Councilor Hawes), Blanchette, Nealley, Palmer, Weston,Wheeler � Staff: Barrett, McKay, Hupp,Willette, Inman � 1. 81A Lease with Omni Air International Airport Director, Rebecca Hupp reviewed this item stating that Omni Air International,one of � BIA's major tenants,would like to lease additional space and would like to enter into a one-year agreement with options to renew for 2 additional 1-year periods.They operate some of the military transit flights through Bangor and currently lease an office space on a month-to month basis.The � monthly rate for 1 year will be$784 for an annual rate of$9,414. BIA has a standard rate they use for lease agreements based on replacement cost, utilities,operating costs. The proposed lease complies with these; it has been reviewed and approved by the City attorney. Staff requests Committee's � authorization for BIA to enter into a (ease agreement with Omni Air International as presented. A motion was made by Councilor Nealley to allow the Director of BIA to enter a contract � agreement with Omni Air International for the lease of a hangar space for 1 year at a monthly rate of $784 for an annual rate of$9,414,with the opportunity of renewal for 2 subsequent years. Seconded by Councilor Palmer. So voted. � 2. Proposal to Change Bangor Municipal Golf Course Membership Structure Parks&Rec. Director,Tracy Willette presented this item to the Committee on the subject of golf course memberships for the 2010 season. The concern has arisen with regard to non-resident membership revenue—which has shown a decrease over the last two to three seasons. With the local � market becoming more competitive along with the instability in the local economy,they find that the current membership structure and pricing is discouraging potential non-residents from becoming members. They are proposing to change the current resident/non-resident membership structure to � one overall annual membership fee of$630;this would be consistent with other local golf courses and will reflect a saving of$260 for a non-resident. Staff feels this change will increase the overall membership revenues by encouraging more people to become members at the Bangor Municipal Golf Course. The Parks and Recreation Advisory Board have reviewed this proposal and feedback from them �� has been in favor of the change. Brian Inman,Golf Professional at Bangor Municipal, has also received favorable comments from their membership regarding this change. The golf course is self-supporting;it � does not rely on Bangor tax dollars and also has a reserve fund as a backup for shortfalls. Improvements to the Bangor Municipal Golf Course over the last couple of years include a new double row automatic irrigation system; new sand in all of the bunkers;opened a short-game facility(for short wedges)this past summer;also have putting greens and a driving range,along with 27 holes of good golfing. A new � maintenance facility was also opened a couple of years ago. Membership is promoted through advertising in magazines,newspapers and television. � � ' � Councilors Weston and Nealley stated that they would have also liked to have seen information � on profit/loss for this year versus last year, and overall financial information as to how this decision will affect the status quo,goals and how the extra memberships will be gained. They are, however,glad to ' � know financial assistance is not coming from taxpayer's dollars. Councilor Palmer made a motion to postpone this discussion until the next regularly scheduled � meeting of the Business and Economic Development Committee in order to obtain the financials to base a rationale decision on. Seconded. Councilor Blanchette added that before this item comes back to the next BED meeting that staff � go back and pull the figures on exactly what Bangor taxpayers invested in the golf course over the years. She added that the Council needs to be aware that if the golf course is becoming such a burdensome � problem to fund that we've got to drop membership fees to non-residents in order to attract membership,then perhaps it's time for the City to look into going out with RFP's to privatize the golf course. � Councilor Palmer added that privatization is an interesting concept and that as the City looks at professional management for the new arena that putting the Bangor Municipal Golf Course under that � same umbrella be considered. Having more financial information is necessary before committee can make a decision on the subject of resident/non-resident membership structure. C&ED Director, Rod McKay sated that he had received a phone call today from former Councilor ,� Dan Tremble who asked that Rod pass on his comments to committee on this subject as follows: Mr.Tremble favors maintaining a differential between the resident and non-resident rates for the golf � course; he feels that the fee could be raised a little, perhaps by as much as$20. Councilor Bronson added that maybe the proposed resident/non-resident differential is too � great but perhaps a different structure like a single fee structure with a discount for Bangor residents should be considered. He agrees that staff should bring back another proposal to the next BED Committee meeting. � A motion to postpone this item passed by 5 to 0. � Tracy Willette and Brian Inman stated that they will come back to Committee with the � information that Council has asked for. � � � � � �