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HomeMy WebLinkAbout2025-08-11 City Council Minutes (4) S MINUTES OFREGULAR MEETING BANGOR CITYCOUNCIL—AUGUST 11, 2025 Meeting called to Order at 7:00 PM Meeting chaired by Council Chair�'elletier Councilors Absent:Hawes Meeting adjourned at 7:40 PM PUBLIC COMMENT Scott I'ardy spoke of the City's successes regarding housing but was also concerned with the delay of openin�of Theresa's P[ace. Jamie Beck asked what the City's short and long-term plans were regarding the unhoused � CONSENT AGENDA ; ASSIGNED TO ITEMNO. COUNCILOR � *Explanatory Note:All items listed in the Consent Agenda are considered routine and are proposed for adoption by the City Council by one motion without discussion or deliberation. Any member of the public may request that the Council remove an item from the Consent Agenda for discussion. An item will only be removed if a City Councilor requests its removal to New Business. MINUTES OF: Bangor Ciry Council Meeting of Ju y 28,2025 and Finance Commitlee Meeting of August 4, 2025 Action: Approved 25-247 ORDER Authorizing the City Manager to Ex�scute a Contract with FOURNIER Eocene Environmental Group,Inc. For the Creation of an Urban Forest Management Plan Action: Passed 25-248 RESOL VE Ratifying Staff Action of Applying f�r a CAREs Grant to TREMBLE Support the One Stop Shop Prograrn in the Amount of $75,000 I I Action: Passed i � 25-249 RESOL VE Ratifying Staff Action to Apply for a Homeland Security LEONARD Grant to Purchase Security Keys for Computer Logins in the Amount of$29,250 ; Action: Passed 25-250 RESOLVE Ratifying StaffAction to Apply for I�rant Funding through BECK a Homeland Security Grant Progra�n via the Maine Emergency Management Agency in the Amount of $103,000 for the Purpose of Enhanced Training and Equipment for Police and Fire Action: Passed Page 1 MINUTES OFREGULAR MEETING BANGOR CITYCOUNCIL—AUGIIST Il, 2025 REFERRALS TO COMMITTEE AND FIRST READING ASSIGNED TO ITEMNO. COUNCILOR 25-251 ORDER Authorizing Issuance of$70,000,000 of the City's General DEANE Obligations Bonds for a Consolidated Parks and Recreation Facility and a Tax Levy Therefor Action: Motion made and seconded for First Reading Motion Doubted Vote:4—4 Councilors Voting Yes:Deane,Fish,Leonard,Pelletier Councilors Voting No:Beck, Fournier,Mallar, Trer�zble Motion Failed UNFINISHED SUSINESS ASSIGNED TO ITEMNO. COUNCILOR 25-244 RESOL VE Accepting and Appropriating an Airport Improvement FISH Program Grant in the Amount of$4,275,136 from the Federal Aviation Administration and$112,503 from Maine Department of Transportation for the Airport Runway Action: Motion made and seconded for Passage Passed 25-245 RESOL VE Accepting and Appropriating an Airport Improvement DEANE Grant Under the Bipartisan Infrastructure Law Program in the Amount of$3I,605 from the Federal Aviation Administration and$831 from Maine Department of Transportation Action: Motion made and seconded for Passage Passed NEW BUSINESS ASSIGNED TO ITEMNO. COUNCILOR PUBLIC HEARING: Application for Special Amusement License Renewal of HAWES Timka,Inc., d/b/a Geaghan's Pub and Brewery, 570 Main Street Action: Motion made and seconded to open Public Hearing Public Hearing Opened Motion made and seconded to close Public Hearing Public Hearing Closed Motion made and seconded for Approval Approved Page 2 _ MINUTES OF REGULAR MEETING BANGOR CITY COUNCIL—A UGUST 11, 2025 NEW BUSINESS ASSIGNED TO ITEMNO. COUNCILOR 25-252 ORDER Authorizing An Award of Opioid Settlement Funds to HAWES Bangor Public Health & Community Services for the Creation of an "Intensive Case Manager"Program for Individuals Diagnosed with HIT�in the Amourtt of $550,200 Action: Motion made and seconded for Passage Passed �J � ATTEST: t' �� _,�1 Lisa J. Good in,MMC, City Clerk Page 3 � b� � � �' ir -�v�:�� l� t C.. L>����'►1 2 v� August 11, 2025 Good evening, City Councilors and City Staff, My name is Jamie Beck, and I live in Bangor. The renovations to City Hall are beautiful and will hopefully serve staff and residents well for years to come. The new HVAC system, which the previous council chose to bond out specifically for "life and health reasons", seems to be working well. The A/C feels wonderful given the dangerous heat warnings we are experiencing today. However, Bangor's most vulnerable residents, our unhoused neighbors, have limited options to seek the same refuge from the heat. With winter rapidly approaching,the urgency to protect all residents from climate extremes intensifies. It's alarming that the Bangor Area Homeless Shelter won't be opening a warming center this winter. As the state RFP closes August 29th, what is Bangor's immediate plan to offset this critical loss and prevent deaths from exposure this winter? We cannot allow preventable deaths due to systemic inaction. It is painful to witness nearly 100 unhoused individuals congregated downtown, suffering in plain sight. These are our neighbors, continually shuffled around the city, like those displaced from the Hope House encampment this spring with unfulfilled housing promises. This constant displacement and lack of genuine solutions only prolong suffering. Where is the city's concrete plan to create housing for chronically unhoused people? I want to acknowledge efforts to adjust zoning and create pre-approved housing designs as positive steps to encourage housing construction. However, a recent BDN article confirmed that developers aren't interested in building truly "affordable housing" due to lack of profit. The article stated it's "impossible"to make units affordable for those earning less than $35,000 annually, despite our Housing Study identifying a need for 700 such units. Furthermore, abhorrent national trends, like recent actions in Washington D.C. where federal law enforcement are ordering unhoused individuals to "move out immediately;' exemplify a punitive approach. This focus on removal from sight over genuine support sets a dangerous precedent, underscoring our city's need to champion compassionate, effective strategies for human lives. Bangor is better than that. So, I ask the City Council directly: What is Bangor's short and long-term plan to ensure no one dies on our streets from exposure and that everyone has housing?We must shift from poorly managing this crisis to solving it, with genuine compassion. We need concrete action—like an affordable housing bond, leveraging CDBG funds, seeking matching grants from the state and federal governments or providing tax incentives for land owners to donate space for housing construction—with transparent timelines and a true commitment to this humanitarian crisis. Thank you for your time. Opinion: How for-profit developers in � Bangor made the case for public housing Cthan Strirnlir7g �.;i.�i;=?�; 7�'�:. Sometimes capitalists are the best at making arguments for socialists. Case in point: A recent r�art commissioned by Bangor's city leaders found the city currently needs 700 units of housing affordable to those making $35,000 or less a year. So,for a recent starv,the Bangor Daily News' new housing reporter Kathleen 0'Brien asked three for-profit housing developers how they would solve the problem, if they had all the money they needed, and no major bureaucratic or NIMBY-related hurdles. Would they build a skyscraper? Would they build a series of smaller buildings?A community of single family homes?Would they bring in other partners to meet the diverse needs of these populations?The only requirement was they needed to build 700 units for people making $35,000 a year. Their answer?"Sorry. Can't do it" In short,they said they couldn't (or wouldn't) do it, because there's no way they could make enough profit. Dev�:�lop�rs C;oll<akaorrative owner Kevin Bunker said, "If I could make a return by building those 700 units,they would've already been built by someone else.,, Jack Soley,founder of Domos Dwellinas, rejected the whole premise of building 700 units at that level of affordability: "The premise doesn't even work" The Boulos Company's John Finegan described building housing that someone making a "modest wage,or on a fixed income"could afford, as 'impossible."` Now,these guys aren't new to the game. Domos and Developers Collaborative build affordable and mixed housing as part of their work. Boulos is a commercial realtor, but presumably was included because the company is a major player in Maine. And,although we might not agree about a lot of things,these guys are making exactly the point I have been making for years. We can't rely on the private sector to build our way out of this crisis. They won't do it. Private developers cannot and will not be the ones to solve our housing crisis for those who most need housing, because solving our housing crisis for that population is not profitable. They will build housing for the upper middle class and the wealthy. No doubt. Give them subsidies and they will build mixed use (some units for the rich, a few for the poor). But in both instances,at the end of the day,they will only do it if they can make a profit. Because that's how capitalism works (it's not a bug, it's a feature!) But when you serve the people who need it most,there's no profit to be made in supply-side economics. And that's why, if Bangor wants to solve its housing crisis,they need to stop asking private developers to solve the problem, and start focusing on implementing two policies — rent control in the short run and social housing in the long run. Citywide rent control will immediately stabilize the housing problem for Bangor tenants and prevent the situation from getting worse. As we have seen in Portland, rent control ends rent gouging overnight (except by those landlords who try to break the law),stabilizes increases going forward,and creates community stability as turnover drops due to predictability in cost. That predictability has also meant that Portland has seen record numbers of new units approved and built since rent control went into effect. Once rents are stabilized, Bangor should implement social housing, injected with a $50 million housing bond. Social tiousinU is a non-market solution to our housing crisis. A better version of public housing,social housing can be owned by public entities, residents, or mission-driven nonprofits. The difference is that this housing is not built to turn a profit. The rent is only what's needed to pay expenses and maintain the property. That means it can be deeply affordable to everyone who rents there (no one pays more than 30°io of their income in rent) and it remains affordable permanently. Led by City Councilor Kate Sykes, Portland is looking seriously at this model to help solve our supply issue (now that we already have rent control). Once we realize the current model of solving our housing crisis through a market-based solution by looking to for-profit developers to build the housing we need, has failed us, perhaps then we can begin implementing solutions that will actually work. Maine Beacon: https�//mainebeacon com/opinion how-�for-�rofit develo�ers-in-banraar�-made the-case for-public-housina/ � F Here are big ideas for building more affordable housing in Bangor by Kathleen 0'Brien �July 15, 2025 Bangor needs 700 more housing units for people earning less than $35,000 annually, but is building those homes �VBtI �}4SS1�1��? The Bangor Housing Study, commissioned by city leaders and released in February, determined that the region's shortage of affardable housing leads many low-income renters to pay mare than they can afford. We asked three Maine housing developers how they wouid choose to create those 7Q0 units if they had unlimited money and resources with no restrictions, Then, we asked those same people to pick apart their ideas and explain why they're not possible today. All three developers struggled to imagine a hypothetical world in which those apartments could even be created, and were unable ta pravide specifics for their plans,such as locations. And while they aii agreed on rou�hiy the same idea,each of the deve(opers focused heavily on the barriers to development— primarily cost--and struggled to imagine a world in which they didn't exist. Nere`s what they said. A variety of deveiopments The visian: If Kevin Bunker,faunder and principal af Developers Collaborative in Portland, needed to build 700 units in Bangor, he wouid spread them out in smaller developments thraughout the city. This could be best achieved by multiple developers working together ta bring different types of housing to Bangor. This means same developments could offer smaller apartments for� single person while others could hold townhouses or condos for families or seniors. Confining all units to one towering building anywhere in Bangor would be"poar planning," because of the diverse needs and desires of those who mcast need affardable housing, according to Bunker. "The rnarket is varied,so you need a variety of builders, ideas and product types," Bunker said. "That goes against the idea of one massive development° Why it doesn't work: Land availability and zoning aren't hindering the creation af housing, as there's plenty af available space a�ound the state, B�anker said. Additionally,many metrapalitan areas ar�adjusting tl�eir zoning policies ta allow housing to be created in more places. The reai issue,according to Bunker, is a developer's ability to make money from creating housing that someone making $35,000 could afford. "If I could make a return by building those 700 units,they wauld've already been built by someane else," Bunker said. Most housing and financial advisors recommend a person spends no more than 30 percent of their annual income on housing. if someone is earning 535,000 annually,that means they can spend only$10,500 — or$875 each month —on rent. Rent that low is difficult if nat impossible to achieve, Bunker said, because hausing costs must be high enough to create a profit for the developer. Eacn month, Bunker said his company,which aiso manages properties, pays $600 ta$700 to caver the utility and maintenance expenses for one housing unit.This rneans the rent for each unit has to be higher than that to pay aff debt he incurred to build those praperties. 8angar hired Bunker's campany ta build 75 housing ur�its an Grandview Avenue that's affordable for people who make 80 to 120 percent of the area median income. That income bracket is often called "the missing middle," because they earn toa much to qualify for subsidized housing �ut don't make enough to afford a market rate home. The city gave away the 10-acre 1ot the development land for free and chipped in$2 million in federa( pandemic relief money to he(p fund the project. That money paid for bringing utilities and road infrastructure ta the undeveloped site. "That helps, but it's still hard ta make the numbers wark," Bunker said. "Ef you need $2 millian and free fand to make housing for working folks and you can only barely make the numbers work,that's telling.,, Low, wide building� thraughout the city The vision: Numerous lawer,wider buildings would be the best option for building hundreds of new housing units in Bangor without restrictior�s,accarding to John Finegan,assaciate braker at the Bouios Company in Portland. Lower buiidings are cheaper to build and match the general appearance of Bangor, as the city doesn't have many buildings tailer than a few staries, he said. Buiiding or�e large development in downtown Bangor would be costly,gives peap€e only one option far hausing and would likely receive strong pushback from the pubiic, Finegan said. "If you only have ane-bedraom units in a 20-story high-rise and iiving in a high-rise isn't what peopEe want,yau anly have one praduct to offer;' he said. "If you smack a super tall building in the middle of downtown Bangar, it'll look ridiculaus fram a skyline perspective" Finegan said imagining creating hundreds of units without restrictions "made my brain shart-circuit" because developers are always "solving for scarcity"and working backwards from things working against them. This could be lirriited land availability,a tight budget or even pubfic oppositian. Why it doesn't work: In recent months and years, labor and canstruction costs have risen to a point where buifding housing someane making a modest wage or on a fixed income can affard is impossible withaut government subsidies. Today,each square foat of a cheaper housing unit costs a developer roughly$290 per square faat to build, not inciuding the price af purchasing the land ar ather wark on the site,according ta Finegan. Five years ago before the pandemic,a housing unit cast about$2Q0 per square foot to create, meaning canstruction casts have risen by roughly 50 percent in the last five years. However, Finegan believes the economy will eventually stabilize when wages increase enougl�to compensate for the rising costs of everything, making it easier to build and afford housing. "Even though GOVfD was five years ago, it takes a long time for these ecanomie disruptions to ripple aut before everything hits equilibrium again,° Finegan said. "'Inflatian has impacted everything, and it starts at the top of the supply chain and trickles down° � ., � 50-unit buildings with diverse tenants The vision: Jack Soley,who founded Portland-based Domus Dwellings, believes a rash of new housing should be scattered through Bangor to avoid bringing unnatural density to one area of the city. Additionally,those housing developments,which could hold roughly 45 to 50 units each, should welcome tenants of various ages and income levels,as that's what makes an area healthy, diverse and exciting to live in. "People living and working all over a city is what creates vibrancy;' Soley said. "You don't want to have a massive concentration of housing in one area" Why it doesn't work: What's holding developers back from building housing that people making $35,000 or less can afford is the high cost of construction materials and labor. When those prices rise, it drives up what units have to be sold or rented for in order to turn a profit. Because of this,Soley said there's no possible way to create units that could be rented at a price that people earning $35,000 or less could afford. "The premise doesn't even work," Soley said. It costs roughly$240,000 to build a unit in Maine now because of high building, land and labor costs,according to Soley. If a developer creates housing at that price and rents it to peopie who make less than the area median income,that guarantees the developer loses money. Someone making $35,000 falls just below 50 percent of the area median income for Bangor, which the Department of Housing and Urban Development sets annually. State, federal and local subsidies help developers create affordable housing, Soley said, but those come with requirements and restrictions. To further complicate matters, subsidies only go so far, Soley said. "You would have to build something for roughiy$100,000 per unit and need another$100,000 per unit in subsidies to make that work," Soley said. "You can't build units for people making under$35,000 without a huge amount of subsidies, and there aren't enough subsidies to pay for more than half of the cost of a unit" Bangor Daily News: https�//www banqordailvnews com/2025/07/16/business/bangor-needs-700-affordable-homes-how-3-develope rs-would-build=them-joam40zkOw/