Northern Maine Development Commission Executive Board Meeting Minutes of February 11, 2010
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1 Northern Maine Development Commission Executive Board Meeting Minutes of February 11, 2010 PLACE: Northern Maine Development Commission DATE: February 11, :00 p.m. Attendance: Chair Ray Mersereau, Don Adams, Tom Cannon, Denis Gagne, Don Guimond, Charles Harris, Doug Hazlett, John Herold, Max Lynds, Jeff Packard, Patricia Pelletier, Paul Soucy, Christina Therrien, Jim Tweedie and Paul Underwood. Excused Absences: Scott Allen, Karla Bell, Norm Fournier, Walter Fournier, Jim Gardner Others Present: Phil Bosse-Senator Collins Office, Barb Hayslett-Congressman Michaud s Office, Robert Clark, Duane Walton, Alain Ouellette, Mike Eisensmith, Judy Dinsmore, Denis Berube, Walt Elish, Brian Longstaff, Ruby Bradbury and Aroostook Republican. 1. Call to Order and Introductory Remarks: Chair Mersereau welcomed everyone in attendance. He opened the meeting by reading a letter of resignation from Ryan Pelletier indicating that he is resigning from the Executive Board and Northern Maine Finance Corp. due to professional reasons. MOTION: Motion made by Mr. Tweedie, seconded by Mr. Harris to accept the resignation of Ryan Pelletier from the Executive Board and Northern Maine Finance Corp. with regret. Motion voted on and passed. 2. Approval of Executive Board of Directors Meeting Minutes of January 14, 2010: Chair asked for any errors or corrections to the January 14, 2010 Executive Board meeting minutes.
2 It was noted that on page 7, agenda item 8 Authorizing NMDC to be the Fiscal Agent/Grant Sub-recipient for the Local Area 1 Workforce Investment Act Program the amount for WIA funding should read: $1,216,580. MOTION: Motion made by Mr. Harris, seconded by Mr. Packard to approve the Executive Board of Directors meeting minutes of January 14, 2010 as amended. Motion voted on and passed. 3. Acceptance of the Agencywide Revenue and Expenditure Statement for the Period Ending January 31, 2010: Benchmark for the period ending January 31, 2010 was 58.3%. Federal grants is below budget. NMDC was not awarded the EPA CARE grant or the USDA Farmer s Market Grant. These two grants were budgeted at $100,000 each. We also budgeted for another Brownfield grant in the amount of $100,000 which will be announced in April. State grants is over budget. The large amount is due to us now being able to invoice for the SBDC program. We have done so for the last 6 months and have had two drawdown requests for programs that are invoiced whenever funds are needed. Municipal dues is at %. The town of Orient has become a dues paying member again. Total revenue for the period is $1,751,741 representing 54.97% or 3.4 percentage points below the benchmark. Other income is over budget. The Tourism program did not budget for this line item in the amount of $14,200. Also the Household Hazardous Waste and Small Business Energy Cost Reduction Programs were not budgeted in this line item. NMDC cash contributions shows an amount of $1,098 which is for the Brownfield s program. Supplies and equipment is at 94.81%. $5,615 of the $6,242 is for the new video conferencing system that was recently installed in the boardroom. The Microloan Technical Assistance Grant will pay for this equipment. The other half is on NMDC s books as an asset.
3 Insurance is over budget and will be approximately $3,365 by the end of this fiscal year. This is due to billing issues as NMDC did not receive the bill for the quarter ending June 30, 2009 until after the books were closed, thus there was an additional quarterly payment this year. NMDC s building value was also increased. Total expenditures for the period are $1,694,396 or 53.09% of the budgeted expenses or 5.24 percentage points below the benchmark. Agency balance is $57,345. Total combined cash for operations and APP is $517,309. Combined accounts receivable are $372,800 resulting in available resources of $890,109. Operating and equipment lines of credit are at $0. MOTION: Motion made by Mr. Harris, seconded by Mr. Packard to approve the Agencywide Revenue and Expenditure Statement for the period ending January 31, 2010 as presented. Motion voted on and passed. 4. NMDC Loan Review Committee Report: Mr. Walton presented the report to the Board indicating that the following loan was closed under staff authority as of February 11, 2010: Lori Brown in the amount of $21,000 to purchase equipment, medical supplies, start up cost and working capital for a pet veterinary home service. KBS Enterprises, Inc. extension on two loans that closed in January of 2005 approved. Hilltop Lanes, Inc. in the amount of $10,000 for working capital approved. Stan Harris for bathroom renovation at Winnies Dairy Bar declined. Mr. Walton discussed the Resolution restating lending authority to NMDC Director of Business Finance not to exceed $100,000.
4 MOTION: Motion made by Mr. Tweedie, seconded by Mr. Harris to accept the Loan Review Committee s recommendation on loan requests in excess of the Committee s lending authority and the Resolution restating lending authority as presented. Motion voted on and passed with Mr. Underwood abstaining. 5. Ratification of Service Contracts: There were no contracts to be ratified this month. 6. Report on Economic Development Incentives in the Unorganized Territory: Mr. Clark gave the report discussing the legislative resolve focus areas. Focus Area 1: Consider the process of promoting and approving ED incentives in the Unorganized Territory (UT) and recommend the appropriate role of state, county and regional organizations in the decision making process. He explained that the findings for this area are: The current UT TIF process works well Maine legislature not necessary in the approval process There is satisfaction with the DECD oversight during approval process No changes recommended in current law related to role of County Commissioners Focus Area 2: Review the legal issues surrounding TIF in the UT and the legally acceptable methods of identifying special benefits from property tax incentives in that jurisdiction. He explained that the findings for this area are: AG Opinion TIF proceeds from the UT can t be spent without providing special benefit to the UT No definition of special benefit provided in the Maine Constitution, however, concepts were discussed County Commissioners to approve TIF s in their county and spend TIF revenue within that county Create Multi-County TIF s spend TIF revenues across county borders
5 Developer to fund countywide ED projects rather than through TIF (TIF proceeds to developer) Exempt wind turbines from property tax and excise tax exempt property reimbursement production based tax Authorize PILOTS Change method of calculating UT mill rate avoiding a shift in tax burden for residents in the UT who do not reside in the county where a TIF project is located Focus Area 3: Consider the role of TIF in shifting the property tax burden throughout the UT and evaluate the potential for alternative tax mechanisms such as a wind power excise tax to provide support for ED infrastructure. He explained that the findings for this area are: Agencies and counties submit UT budgets (Taxation Committee) MRS assesses and collects UT property taxes Currently a moratorium on TIF s in the UT as of July 1, 2008 UT mill rate has 3 components *County taxes *County services *State services Tax shifts be contained within the county UT (no conclusions divided report, Number 9 Mountain project $300-$400 million to fund rail) 7. Montreal, Maine and Atlantic Rail Abandonment Update: Mr. Berube stated that on January 26, 2010, Senator Sherman s bill was read which was supported by LEAD, APP, Presque Isle Area Chamber of Commerce, Southern Aroostook Development Corp., Louisiana-Pacific, Irving via s, and letters of support. On February 4, 2010, MM&A announced their intent to file for abandonment. MM&A also met on February 9 & 10 with the Executive staff of MM&A. Mr. Berube stated that on Friday, February 12, MDOT will be meeting with Ed Burkhardt, Chair of MM&A. On February 17, the results of the TIGER grant will be announced. On February 18, LD 1748 Rep. Theriault s bill will be read which will indicate a $20 million bond to purchase lines and LD 1678 Sen. Sherman s bill to study the fiscal impact of rail on the State will be read. There will also be a work session where the Railroad Industries, Inc. report will be released to the Transportation Committee.
6 On February 24, MM&A plans to file for abandonment. Mr. Berube indicated that: 45 days for injured customers to submit documentation/information opposing abandonment 110 days of STB hearings (possibly less) Final announcement will take place mid to late spring Mr. Berube stated that MM&A is currently still willing to work with any alternative process other than abandonment. He stated that following the official filing, the nature of the relationship between the state and MM&A will change by default (issue becomes legal). 8. Mobilize Maine Energy Cluster Analysis: Mr. Elish announced that the Energy Cluster focuses on opportunities to use energy that is here in order to attract people to our area. He explained the Renewable/Alternative Energy Market Segmentation: Solar Wind Hydro Ocean Hydrogen Geothermal Bio Based Energy from Waste Preliminary Niche Markets: Excess Energy/Greenhouse Agriculture Cellulosic BioMass Community Wind Power The teams focus is around biomass and wind energy. Mr. Elish explained the Renewable Energy Industry Vision: Become the Maine leader in utilizing wind/wood/steam for energy production Be the leader in New England in training technicians in wind power technology Develop 1000 MW of wind and 500 MW of biomass energy produced by 2015 Develop an electrical engineering program in Aroostook County
7 Establish research capability for biomass energy in the region 9. Workforce Investment Act Program Transition: Mr. Clark stated that at the January 14, Executive Board and January 15, LWIB Board meeting it was voted to support the CLEO s position to designate NMDC as the fiscal agent and sub-recipient. This was based on a 5 opposed, 6 in favor and 3 abstentions vote. This was non-binding as the CLEO s have that authority. He stated that Norm Fournier, County Commissioner is one of the CLEO s. Mr. Clark announced that NMDC will execute contracts with MDOL next week totaling $784,927, plus an additional $500,000 for the Health Care Training Earmark for a combined total of $1,285,000. He stated that we have received 12 applications and will begin interviews next week and are hopeful to have someone on board by the second week in March, Mr. Clark stated we need to complete a cash audit of the County financial statements, which will be done by Chester Kearney. He also stated that we are in the process of transferring all files and equipment, setting up financial systems and controls. The contracts with MDOL will become effective February 15, Trade Adjustment Assistance for Communities Grant Application: Mr. Clark referred to the Commerce News news release stating that EDA has announced that nearly $37 million in grants is available to help communities suffering from the adverse effects of import competition and to develop ways to more effectively compete in the global economy. He indicated that the funding is available under EDA s Community Trade Adjustment Assistance (Community TAA) Program, which was created in the American Recovery and Reinvestment Act of The application Review Criteria consists of: Communities impacted by trade adjustment Communities of 100,000 or less Most severely impacted communities High return on investment Regionalism, innovation and entrepreneurship Global trade and competitiveness Growing the green economy
8 Industry cluster areas: Market Development Workforce Improvements Infrastructure Entrepreneurship Proposal: Purchase and installation of equipment o Distance learning capabilities o Occupational therapy o Wind technology Request: $1.5 to $2,000,000 Determination of eligibility: February 1, 2010 Due Date: April 24, 2010 Mr. Clark stated that we have contracted with Vital Economy to help develop the application. MOTION: Motion made by Mr. Harris, seconded by Mr. Soucy to authorize the submission of the TAA for communities grant application as presented and further authorize the Executive Director to execute all documents pertaining thereto. Motion voted on and passed. 11. St. John Valley Cultural By-way Project Application: Mr. Longstaff reported that the application is approximately 95% complete and will be submitted next week. The proposed byway includes segments of State Route 11, 161 and 162 and US Routes 1, 1A. Mr. Longstaff stated that the St. John Valley Cultural Byway is a working, cultural Byway where communities still celebrate their ancestry, from the Maine Acadians to the Scotch-Irish settlements; from the Native American tribes of the Wesget Sipu, Maliseet and Mi kmaq to the French-Canadian or Quebecois.
9 The initial goals of the Byway are: To protect, maintain, preserve and enhance the intrinsic resources that exist along the St. John Valley Cultural Byway Corridor to enhance the experience of the Byway traveler Preserve and improve the function of transportation infrastructure, access and safety for the traveling public on the St. John Valley Cultural Byway Corridor Foster community support for, recognition of, and participation in Byway activities Educate residents and visitors on the importance and significance of Byway resources Foster sustainable economic and tourism development through Byway activities to create opportunities for an improved local and regional economy that benefits Byway travelers, local residents and businesses in the Byway corridor and beyond. MOTION: Motion made by Mr. Packard, seconded by Mr. Harris to approve the submittal of an eligibility application to the Maine Scenic Byways Program proposing to designate the St. John Valley Cultural Byway as a state byway. Motion voted on and passed. 12. Federal and State Legislative Updates: Mr. Clark gave the updates to the Board. A. Senators Snow and Collins letter requesting funding for the Northern Border Regional Commission (NBRC): Mr. Clark announced that Sandy Blitz has been nominated as Federal Co-chair of the NBRC B. Madawaska EDA Project: Mr. Clark stated that Madawaska received 80% grant rate for a $2 million waste water project due to the flooding that Madawaska experienced a couple of years ago. C. Northern Maine Medical Center Earmark for new boiler $1.2 to $1.4: Mr. Clark announced that NMDC is preparing an earmark application for Northern Maine Medical Center for earmark monies to replace their boiler in the amount of $1.2 to $1.4 million. Denis Berube of NMDC is preparin the application.
10 D. Statewide Earmark for $500,000 to match an EDA Grant for $1,000,000 and a $500,000 match from FairPoint to implement Mobilize Maine on a statewide basis: Mr. Clark indicated that the $500,000 is needed in order to match the $1,000,000 that Mobilize Maine will receive over the next two years. Meetings with Congressional Delegation will take place in DC on March 2, E. Redrawing EDD Boundaries: Mr. Clark reported that the Economic Development Districts have met to redraw the boundaries. Penobscot Valley Council of Governments has ceased their operations and the EDD s will pick up their function. F. LORAN C Station: Mr. Clark informed the Board that the City of Caribou wishes to take control of the Loran C Station and has asked NMDC to assist them with funding and project development. G. Aroostook Day at the Legislature: Mr. Clark reported that the event was successful with all of the Legislators and some of the leadership in attendance. On Wednesday night a dinner and reception took place at the Senator Inn. The next morning LEAD met with the Delegation regarding the rail and north/south highway issues. A record of decision was rendered on the Caribou portion of the n/s highway. Groundbreaking will take place in October with construction starting the next year. H. FAME on ARRA Recovery Zone Bonds: Mr. Clark stated that these are private and public act bonds with $800,000 in private and $1,000,000 in public. I. Assisting Loring Development Authority with an EDA application for infrastructure: Mr. Clark announced that NMDC will be assisting Loring Development Authority with an EDA application for infrastructure.
11 13. Other Business: A. Maine Technology Institute Grant Application: Mr. Clark announced that NMDC is subcontracting with CAM Manufacturing, Maine Department of Inland Fisheries and Wildlife, Northern Maine Community College and Gil s Sanitation in developing and manufacturing a latch system designed to keep black bears out of dumpsters. This spring, the device will be tested to determine if it is effective at preventing bears from entering the dumpsters. If the final product is successful, sanitation companies may purchase and install these devices at their own facilities. It is also envisioned that this system can be patented and will be sold on the open market. Funding request: $8,000 Amount of match: $8,172 Timeline: Notification of award: March 9, 2010 with project completion by September 30, MOTION: Motion made by Mr. Packard, seconded by Mr. Harris to authorize the submission of the MTI grant as presented and authorize the Executive Director to execute all documents pertaining thereto. Motion voted on and passed. 14. Executive Directors Report: Twenty2 Vodka: Mr. Clark announced that a couple from Houlton started this company from a college project and quickly turned it into a family business. The business has been awarded the bronze medal for Vodka in the 2009 World Spirits Competition. US Dept. of Energy Newsletter: Mr. Clark brought the Board s attention to the newsletter which featured the wind farm in Mars Hill. Executive Board Member and Town Manager of Mars Hill spoke with Wind Powering America in late 2008 about Mars Hill Wind Farm and its economic development benefits for the town. Maine Center for Economic Policy State of the State TV Show: Mr. Clark stated that Mark Ouellette, Director of Business Development for the State of Maine has been corresponding with the Maine Center of Economic Policy about appearing on their program. He has suggested that he appear with an Economic Development District Director and a local business that has gotten engaged in Mobilize Maine. Mr. Clark suggested it be an investor of Aroostook Partnership for Progress (APP) along with Walt Elish, President/CEO of APP.
12 At this time Mr. Clark provided photos from Aroostook County Tourism s tradeshow booth at the Maine Tourism Conference which was held earlier this month. 15. Adjournment: There being no further business to conduct, Chair Mersereau adjourned the meeting at 4:32 p.m. Respectfully submitted, Don Guimond Secretary DG/jd
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