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HOUSING and COMMUNITY DEVELOPMENT COMMITTEE DATE: November 12, 2014 (Wednesday) TIME: 5:30-7:30 P.M

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HOUSING and COMMUNITY DEVELOPMENT COMMITTEE DATE: November 12, 2014 (Wednesday) TIME: 5:30-7:30 P.M HOUSING AND COMMUNITY DEVELOPMENT COMMITTEE DATE: November 12, 2014 (Wednesday) TIME: 5:30-7:30 p.m. LOCATION: Room 209, Second Floor Portland City Hall A G E N D A 1. Review and accept Minutes of previous meeting held on October 22, 2014. 2. Review and Recommendation to City Council approval of proposal for tax-acquired property on Cliff Island– See enclosed Memorandum from Greg Mitchell. a. Pursuant to 1 M.R.S.A. 405(6)(C) and (F) and 5 M.R.S.A. 13119-A, the Committee will go into executive session to discuss negotiations on this real estate disposition and provide direction to staff. 3. Review and Vote to Recommend to City Council to approve Establishment of a Downtown Transit Oriented Development TIF District – See enclosed Memorandum from Greg Mitchell. 4. Review and Vote to Recommend to City Council – Amendment to the Arts TIF District– See enclosed Memorandum from Greg Mitchell. 5. Update, Review and Approval of 65 Munjoy Street RFP – See enclosed Memorandum from Mary Davis. 6. Update and Review of Proposed Rosa True School Housing Transfer– See enclosed Memorandum from Mary Davis. 7. Review and Vote to Recommend to the City Council – Amendment of Federated Companies Midtown Project Partnership Documents Including Second Amendment of Guaranty. – See enclosed Memorandum from Greg Mitchell. 8. 2014 HCDC Work Plan for Review and Discussion – See enclosed Memorandum from Jeff Levine, Greg Mitchell and Mary Davis. Public Comment will be accepted on action items. Councilor Kevin Donoghue, Chair Next Meeting Date: December 10, 2014 Housing & Community Development Committee Minutes of October 22, 2014 Meeting A meeting of the Portland City Council’s Housing and Community Development Committee (HCDC) was held on Wednesday, October 22, 2014 at 5:30 p.m. in Room 209 on the second floor of Portland City Hall. Present from the HCDC was its Chair Councilor Kevin Donoghue, and members Councilors John Coyne, Jon Hinck, and Nicholas Mavodones. City staff present included Housing & Community Development Division Director Mary Davis, Acting City Manager Sheila Hill-Christian – only for Item #6 on the Agenda, Planning Division Director Alex Jaegerman, Planning and Urban Development Director Jeff Levine, Economic Development Director Greg Mitchell, and Senior Executive Assistant Lori Paulette. Item 1: Review and accept Minutes from previous meeting held on September 24, 2014. On motion made and seconded, the Committee voted unanimously to accept the minutes as published. Chair Donoghue indicated that the Committee would take up Item #6 on the Agenda first due to scheduling issues for the Acting City Manager. Item #6: Executive Session: Pursuant to 1 M.R.S.A. 405(6)(c) and 5 M.R.S.A. 13119-A, the Committee will go into executive session to discuss and give guidance to staff regarding real estate negotiations/pending lawsuit update for the Federated Companies Midtown Project. Chair Donoghue asked if there was public comment for this item. There being none, the public comment session was closed. 1 of 31 (w attachments) On motion made and seconded, the Committee voted unanimously at approximately 5:35 p.m. to go into executive session pursuant to 1 M.R.S.A. 405(6)(C) and 5 M.R.S.A. 13119-A to discuss and give guidance to staff regarding real estate negotiations/pending lawsuit update for the Federated Companies Midtown Project. At approximately 6:00 p.m., the Committee came out of executive session. Item #2: Review and Recommendation to City Council to Terminate the Fore/India/Middle Street TIF District Mr. Mitchell said that this TIF District encompasses the remaining land behind the Hampton Inn for redevelopment of the former Jordan Meats site. This TIF was established to pay for a portion of the actual costs of undergrounding overhead electric power lines and telecommunication services, together with public infrastructure investment. The project did not materialize, and the Credit Enhancement Agreement was not executed. This is an inactive TIF that can be terminated. Chair Donoghue asked if there was public comment for this item. There being none, the public comment session was closed. On motion made and seconded, the Committee voted unanimously to forward this item to the City Council with a recommendation that it authorize the termination of this TIF District as recommended by staff. Item #3: Review and Recommendation to City Council to Expand/Amend the Bayside TIF District Mr. Mitchell said that in the discussions with HCDC regarding the possible creation of a Downtown TOD/TIF District, staff was directed to work to expand the Bayside TIF (BTIF) District to align with the Bayside area in the Bayside Vision. This would allow for BTIF funds to 2 of 31 (w attachments) be used in the larger area of Bayside. This expansion needs the approval of the City Council and the Maine Department of Economic and Community Development. Mr. Mitchell noted that the State sets value and acreage limitations that a town/ municipality can TIF. As noted in the cover memo, with this expanded BTIF, the City is at 4.9% of value TIF’d, with 5% being the maximum allowed; acreage limits are fine with this expanded TIF. Mr. Mitchell said that the value limit would be fine, given the upcoming terminations of the Bay House TIF and Fore India Middle TIF, as well as the proposed reduction for the Riverwalk TIF and the Arts TIF. Chair Donoghue asked if there was public comment for this item. Tony Donovan asked for clarification as he thought that with the possible Downtown TOD/TIF, the BTIF would be part of it. Mr. Mitchell said that BTIF will remain and possibly be expanded if voted today to send to the City Council. The Downtown TOD TIF property lines are proposed to marry up to the BTIF and Waterfront TIF lines, so that there would be three area TIFs on the peninsula. Ron Spinella, Bayside resident, said that he supports this expansion which will allow for investment in infrastructure that is needed in Bayside for the long term. There being no further public comment, the public comment session was closed. On motion made and seconded, the Committee then voted unanimously to forward this to the City Council with a recommendation that it authorize the expansion of the BTIF as recommended by staff. Item #4: Review and Recommendation to City Council – Conditional Approval of Affordable Housing Development Application (AHDA) from Avesta Housing for 73 Powsland Street. 3 of 31 (w attachments) Ms. Davis outlined this item noting Avesta was the sole proposal the City received for the $225,000 of HOME funding available through the AHDA. Avesta is proposing to construct 34 units of rental housing for ages 55 and over, with incomes at or below 60% of the area median income, at 73 Powsland Street. The HCD staff has been working with a consultant to assist with the financial underwriting review, which consultant has indicated that the developer is financially sound for the project, with significant experience in developing these types of projects. Staff is recommending HCDC approval to provide a conditional commitment of funds for the project, which conditions to include: (1) compliance with all HOME Program regulations; (2) the environmental review process be satisfactorily completed, et al (see attached memo with all conditions listed). Mr. Levine added that a number of issues will be addressed during site plan review. Ms. Davis noted that she left copies of public comment via email she received on the Committee members’ desks, as well as some staff comments based on preliminary review of the proposed project. Chair Donoghue asked for clarification on pre-commitment, and Ms. Davis indicated that although Avesta’s application does not include an Affordable Housing (AH) TIF request, a commitment from the City will assist Avesta in securing other financial resources. Again, however, conditions would need to be met first. Chair Donoghue asked if the City Council would be seeing anything else from this project like, for example, a zoning change. Mr. Levine said that he is not aware of anything at this time. The project meets current zoning. Chair Donoghue then opened the meeting for public comment. 4 of 31 (w attachments) A.J. Hungerford, attorney representing Dale Holman, presented pictures of the area in question, particularly noting the water levels. The garage anticipated to be built is over the water he described in the pictures he displayed. Thousands of gallons of water channel into this area from the various streets surrounding the development site, particularly near the railroad. He noted that if this project were approved, the City would see litigation. Mr. Hungerford asked the City to shelve the proposal while City does it due diligence regarding these environmental issues. Charlie Pollock of Powsland Street said that he has lived on Powsland Street for 16 years, and he opposes the development based on the issues raised above. In talking with the neighbors, there is support for opposing the development. There are a list of issues he emailed (copy attached). Chair Donoghue noted that the Committee has that email. Jim Sloan, 60 Mitton Street, said that he has lived in the neighborhood 50 years, and there has always been water issues, traffic issues, and the sewer and water mains are under-sized. He opposes the development. Chair Donoghue, noting no further public comment, closed the public comment session. Councilor Hinck said that if this went forward with conditional approval, he questioned how these infrastructure/environmental issues would be dealt with, i.e., would this development project assist with those issues. Mr. Levine said that site plan review will address drainage, stormwater, traffic, with the goal to resolve issues.
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