Gardiner Economic Development Committee
Gardiner City Hall Council Chambers
Tuesday, August 13th, 2002, 8:00 a.m.
Minutes
Attending: Randy Clark, Kim Greenleaf, Glenna Nowell, Patricia Rideout, Anne Davis, Geri Robbins, Rebecca Colwell, Francis Grey, Chris Paszyc
1) Approval of Minutes from Previous Meeting
Chris mentioned that a reference to an applicant's personal information should be stricken from the minutes. Geri Robbins motioned; Glenna Nowell seconded, to approve the minutes as amended. Motion passed unanimously.
2) Economic Development Director's Report
Chris reported that a handshake agreement to sell a lot in Libby Hill to Purbeck Isle fell through. Downtown projects are going forward: Warren Construction and Royal River Masonry are on-site. Dunkin' Donuts has opened.
3) Loan Applications
a) Gardiner Board of Trade
Randy reported that the Board of Trade (BOT) has been considering purchasing the Riverview Credit Union (RCU) building. He expected to know soon if the Board of Trade would be selling the Arcade building. The BOT also paid $10,000 more for the Manson & Church building than it should have. Now that Cobbosee Leasing has purchased the Walker building, it clears the way for RCU to relocate. The BOT believes it would not be in the City's best interest for RCU to be sold to a speculator, who might never give it up or hold everyone hostage.
An appraisal is currently being done. Depending on the appraisal figure, a deal could be struck on very attractive terms. Ideally, there would be no cash out of pocket for the Board of Trade. This is where the City of Gardiner comes in. As the BOT took a loss on the Manson & Church/Arcade Building deal, and they are again taking a financial risk for the City's benefit, they are requesting assistance to minimize the BOT's risk on the RCU deal. There's no guarantee that anyone has any particular interest in this building, despite the fact that it is in such a key location. The BOT would be taking a chance that in 3 years we wouldn't have a buyer and it wouldn't be sold. If in fact the BOT did rent it in 3 years, they would work out the terms not to make any money on it, just
pay down the principal on the loan.
Kim asked what the eventual plan was for the property. Chris explained that the concept drawings that illustrate "the grand plan" were taken back by Gardiner Savings, but they show a proposed $2.25 million renovation of the block of buildings between 151 Water Street and Reny's, with a two-tiered parking deck from behind Reny's up to Gosline-Murchie. That's why the City encouraged the purchase of the Walker building to allow the "grand plan" to happen. Parking spaces could be leased to Reny's at a given price per spot. However, the realization of the plan becomes more difficult without their participation. Gardiner Savings plans to purchase Bailey's to create employee parking. Various concepts are possible for the present building site. The City owns the
adjacent shed. Steamboat Lane is to be re-opened to vehicular traffic, with the current vehicle access becoming a pedestrian access with an arched pergola. Bailey's present location is difficult to get in and out of now.
Randy said the BOT would need a maximum of $20,000 cash in order to do the deal. The BOT feels that the City needs to share the risk with it on this deal. The BOT shouldn't shoulder the burden by itself.
Randy proposed a loan for 25% of the agreed-on purchase price not to exceed $25,000 at 2% interest. This would be the least expensive loan the City would ever make. The deal would include a fair and equitable method of sharing income, if there were any. Kim commented that it was unwise to vote on something if the details were not all available on paper. Glenna suggested if a vote was taken on a capped amount, it might enhance the Board of Trade's negotiating strength. Randy clarified that what he was looking for was a preliminary show of support, with the understanding that the committee members may be convened for a special meeting to vote on a specific proposal now that they are aware of the situation. The committee agreed that they share a high degree of interest in Randy's
proposal, and plan to get together again for a final vote.
4) Other Business
It was noted that one of the committee members heard from a local waitress that there's a sign on the waterfront informing visitors about local restaurants, but it's ten years old. It was noted that this should be a "Gardiner Main Street" kind of thing.
A committee member asked if there were any developments with Maine & Company. Chris responded that there were lots of problems with the Gurin property behind Libby Hill, but all of them were surmountable. A feasibility study is being considered for another property along 201 so the City can be prepared if and when more land is needed for development.
Chris said that the first deliverable for the housing study is on the web site. It describes relevant statistics, demographic and economic trends. For example, Gardiner has a higher percentage of houses built before 1940 than any other nearby community does.
Representatives from Public Works, Wastewater, the Water District, and Economic Development met with officials from Rural Development to discuss the proposed coordinated joint infrastructure project in Gardiner's northwest quadrant. The housing consultant attended as well to offer his assessment of how well the projects all dovetail. The Rural Development officials seemed very pleased with the teamwork and coordination displayed by all the parties involved.
5) Regular Review of RLF Accounts
There was no RLF review.
6) Schedule Next Meeting
Scheduled for September 10th at 8 a.m.
Respectfully submitted,
Christopher Paszyc
Director
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