Economic Development Committee

ECONOMIC DEVELOPMENT COMMITTEE DATE: February 20, 2018 (Tuesday) TIME: 5:30 – 7:30 p.m. LOCATION: Room 209 Portland City Hall 1. Review and accept Minutes from previous meeting on February 6, 2018. 2. Review and Discussion of the 2018/2019 Work Plan of the Portland Economic Development Vision and Plan (“Plan”) and vote to forward to the City Council as a communication. a. See enclosed memo from Greg Mitchell with 2018/2019 Work Plan, and Plan. 3. Communication: Review of FYE2017 Annual Tax Increment Financing Report and vote to forward to the City Council as a communication. a. See enclosed memo from Greg Mitchell with FYE2017 Annual TIF Report. 4. Discuss Draft 2018 Work Plan for the Economic Development Committee. a. See enclosed memo from Greg Mitchell with updated work plan. 5. Executive sessions: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee will go into executive session to discuss real estate negotiations and provide guidance to staff, per the enclosed memos, for the following: a. Proposed Amendments to the Bay Ferries, Ltd. Lease; b. Proposed Amendments to the Ready Seafood Company Lease; c. Proposed sale of City owned Riverside Street property; and, d. Proposed Waterfront TIF District Credit Enhancement Agreement request. Councilor Justin Costa/Chair Next Meeting Date: March 6, 2018 CITY OF PORTLAND/ECONOMIC DEVELOPMENT DEPT./389 CONGRESS ST./PORTLAND, ME 04101/(207) 874-8683  Minutes Economic Development Committee February 6, 2018 A meeting of the Economic Development Committee (EDC) of the Portland City Council was held on Tuesday, February 6, 2018 at 5:30 p.m. in Room 209 of Portland City Hall. Present from the Committee was its Chair Councilor Justin Costa and members Councilors Nicholas Mavodones and Spencer Thibodeau. Also present from the City Council was Mayor Ethan Strimling. Present from the City staff were Associate Corporation Counsel Michael Goldman, Assessor Chris Huff, City Manager Jon Jennings, Economic Development Director Greg Mitchell, Senior Executive Assistant Lori Paulette, and Parking Manager John Peverada. Chair Costa welcomed everyone to the first meeting this of the EDC, and introductions were then made. Item #1: Communication: Minutes of previous meetings held on October 3, 2017, October 24, 2017, and November 28, 2017. Because the EDC members have changed from last year, with the exception of Councilor Thibodeau, Chair Costa said that these meeting Minutes have been forwarded to the Committee as a communication and for the record. Mayor Strimling asked about the costs for an Employment Disparity Study, and Mr. Mitchell said that the study scope and costs are being formulated and expected to have this to the Committee for its meeting on February 20th. Item #2: Public Hearing and vote to recommend to the City Council a lease at 94 Free Street and Spring Parking Garage Revenue Sharing Agreement to support the Eastern Conference Hockey Team League. 1  Mr. Mitchell said that the lease is for the office space formerly occupied by the Portland Pirates, and the Parking Garage Revenue Sharing Agreement (PGRSA) is for the Spring Street Garage on game days. Both are for a term of 15 years to coincide with Portland Hockey LLC’s agreement at the Cross Insurance Arena. Mr. Mitchell then described the staggered lease rental rates. Mr. Jennings said he was part of the negotiating team with Cross Insurance Arena and with Spectrum Venue Management when they were selected. The intent is to grow with the team for both Cross Insurance Arena and the City. The lease terms may not seem like much revenue to the City, but the first years associated with establishing a sports team can be difficult. Mr. Mitchell said the office lease is for approximately 2,400 sq. ft. of space that has been vacant for over 20 months with little interest, and there is no parking included as part of the Lease. In addition, the City will be provided with four season tickets annually at no cost. Regarding the PGRSA, Mr. Mitchell said that years 1 through 7 will have the parking garage revenues go to Portland Hockey LLC, less the City’s costs for staff and security. Beginning with year 8, game day revenue will be the lessor of the average revenue sharing for the sixth and seventh year, or all parking garage revenue minus security and City staff expenses. Councilor Thibodeau said that he is excited to have hockey back in Portland, and then suggested that section 5(c) of the lease have further clarification, and that the default section include a rent section. Mayor Strimling requested that the prior PGRSA be emailed to him, and discussion then followed on the revenue sharing. Mr. Goldman provided this example as what could happen at year 8: If the average revenue share for years 6 and 7 was $20,000, for example, then in year 8, if parking revenues for game nights are $15,000 (after deducting City expenses), then the team 2 would get $15,000. But, if parking revenues for game nights are $25,000 (after deducting City expenses) in year 8, then the City would get $5,000 and the team would get $20,000. Councilor Mavodones said that if there is further discussion on the revenue sharing, which appears to have been negotiated, the Committee should consider going into executive session. Councilor Thibodeau said that he was involved with prior executive sessions was fine with the PGRSA as presented. Chair Costa asked if there was any public comment on this item. Adam Goldberg of Spectrum Venue Management and representing Portland Hockey LLC thanked the Committee for taking this up. They have been working closely with Mr. Mitchell and looked forward to branding the space and coming back here in 15 years to renew. Seeing no further public comment, Chair Costa closed the public comment session. Councilor Mavodones made a motion to forward the Lease and PRSGA in substantial form as presented to the City Council for approval; Councilor Thibodeau seconded the motion. Councilor Mavodones wished Portland Hockey LLC all the best and was not surprised that there was very little interest in leasing that office space. The structure of both documents make sense in the overall scheme of things. Councilor Thibodeau said that will support this being moved forward to the City Council for approval, noting that there has been no lease income from office space for almost two years, and this kind of activity during the Winter months is just what is needed in that area. Chair Costa agreed; this is a great opportunity for Portland and is hopeful for a successful franchise. 3  Mayor Strimling, regarding the tiered rental, suggested that the math be re-checked, and Mr. Mitchell noted that the annual rent in his memo does match the annual rent in the lease. However, the per square foot charge in his memo is incorrect in the second tier where it should be $5 psf and not $6 psf. Seeing no further discussion, Chair Costa asked for a vote on the motion and it passed unanimously. Item #3: Public Hearing and vote to recommend to the City Council adding additional properties to the City Waterfront Tax Increment Financing (WTIF) District. Mr. Mitchell displayed a map showing the TIF Districts on the peninsula now, and then where the two additional properties are proposed to be added to the WTIF. These two properties are where the construction is taking place for the Wex Development at Hancock and Thames Streets, and the construction project at Union Wharf. These two development projects are estimated to increase the tax base by $20 Million, which would increase municipal TIF revenue for various projects in the District, and also result in additional tax sheltering savings of approximately $145K per year. Mr. Mitchell then described the history of the WTIF being first approved as a ten-year TIF, and then amended to add an additional 20 years for the maximum allowed at 30 years, and also approved at a 100% capture rate. Mr. Mitchell closed saying that this Committee will also review other properties to be added to this TIF District during 2018, but these two properties standout for adding, particularly to have this amendment to MDECD by the first of March, which is their deadline prior to the start of the April 1, 2018 Tax Year. He also noted a typo in the middle of p. 2 of his memo 4 where the total of the estimated tax sheltering benefits should be $366,643 annually, and not $269,571 annually. Mayor Strimling asked about the impact on the General Fund, and Mr. Jennings indicated annual tax sheltering savings of $145K, as well as using the municipal TIF revenue funds for various CIP projects that would not need bonding for 20 years. Chair Costa asked if the tax sheltering benefits affected the FY19 School budget, and Mr. Huff indicated that it would not; any sheltering benefits would begin FY20. Discussion then followed on tax sheltering benefits and TIF revenues not in the General Fund and dedicated to the Waterfront TIF, with Councilor Mavodones suggesting that a hypothetical TIF example be provided to the Council to illustrate how it works. Chair Costa asked if there was any public comment; there being none, the public comment session was closed. Councilor Mavodones made a motion to forward the proposed amendments to the Waterfront TIF, as presented, to the City Council with a recommendation for approval; Councilor Thibodeau seconded the motion. Mayor Strimling expressed concern about revenue spent only in the Waterfront TIF District and not anywhere else in the City and the impact on the General Fund. Councilor Mavodones said that TIFs are a great economic tool, and Portland has a TIF Policy in place and this is consistent with that Policy. Mr. Jennings said that staff will draft a memo to the Mayor and Council to clarify sheltering values, as well as TIF revenues and how they could be spent based projections, versus using General Fund revenue. 5  Seeing no further discussion, Chair Costa asked for a vote on the motion, and it passed unanimously. Item #4: EDC Work Plan Accomplishments during 2017, and Highlighted Items for possible carryover to 2018 for review and discussion. Chair Costa said that the Work Plan in the backup includes accomplishments of the EDC in 2017 and items pending for 2018. Councilor Mavodones suggested that the EDC needs to be strategic in its goals for the year, noting that the backup has many items and perhaps some could be deleted from the last page. Councilor Thibodeau agreed, noting that the Maine State Pier, Impact Fees, PILOT and SILOT fees should be on this year’s Work Plan, as well as outdoor seating establishments and open forum for restauranteurs. Mr. Jennings noted that, regarding outdoor dining, there is a bill at the Legislature now to allow the use of a parking space for outdoor seating. Regarding Broadband in the City, Mr. Jennings said there is a company now who may want to do this on their own at no cost to the City. The Maine State Pier/POT continues moving forward on public/private partnerships, including CBL. In addition, PILOT and Impacts fees are being working on and the Committee will be briefed as staff feels they could be phased in over time. The Chapter 14 Land Use Ordinance re-write is under way. Regarding a new Convention Center, Mr. Jennings said that he does not expect too much movement on this this year. Chair Costa also noted adult education/workforce development is longer term and costly, and Mr. Jennings said that there can be research done on what others are doing with adult education. 6  Mayor Strimling noted that some items would have a lot of impact on the Committee, like the Maine State Pier/POT, and then the Employment Disparity Study would not as once the Committee reviews the scope and costs to complete it, a consultant would do the study. Mr. Jennings said that a revised work plan will be presented to the Committee for its prioritization. Item #5: Executive session: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee will go into executive session to provide City staff general policy guidance regarding the following: a. Proposed 44 Hanover Street Purchase and Sale and Lease Agreements; and, b. Possible sale of City property located adjacent to the Maine Turnpike and Westbrook Street. A motion was made by Councilor Mavodones, seconded by Councilor Thibodeau to go into Executive session pursuant to 1 M.R.S.A. 405(6)(C) to provide City staff general policy guidance regarding the proposed 44 Hanover Street Purchase and Sale and Lease Agreements. Chair Costa asked if there was any public comment about going into executive session. There being none, the public comment session was closed. Chair Costa then asked for a vote on the motion and it passed unanimously at 7:00 p.m.; at approximately 7:25 p.m., the Committee came out of executive session. A motion was then made by Councilor Mavodones, seconded by Councilor Thibodeau to go into Executive session pursuant to 1 M.R.S.A. 405(6)(C) to provide City staff general policy guidance regarding possible sale of City property located adjacent to the Maine Turnpike and Westbrook Street. Chair Costa asked if there was any public comment about going into executive session. There being none, the public comment session was closed. Chair Costa then asked for a vote on the motion and it passed unanimously at 7:25 p.m.; at approximately 7:35 p.m., the Committee came out of executive session and the meeting adjourned. Respectfully, Lori Paulette 7  Economic Development Department Gregory A. Mitchell, Director TO: Economic Development Committee FROM: Greg Mitchell, Economic Development Director Nelle Hanig, Business Programs Manager DATE: February 15, 2018 SUBJECT: 2018/2019 Work Plan Associated with Portland’s Economic Development Growth I. SUMMARY OF THE ISSUE In an effort to support collaboration of many partners involved in supporting Portland’s economic growth, the 2018/2019 Work Plan is presented for discussion. Partners working the City include: - Creative Portland - Portland Community Chamber of Commerce - Portland Downtown - Visit Portland Also, attached is a copy of past Work Plans associated with the original 2011 Portland Economic Development Vision and Plan adopted by the City Council to show the continuity of partner work over time. It is recognized that the City Council adopted an updated Comprehensive Plan, which sets directions for community land use and growth. II. REASON FOR SUBMISSION This is being submitted to the EDC for its review and recommendation to the City Council to receive it as a communication. III. INTENDED RESULT The intended result would be for the Portland City Council to receive the updated 2018/2019 Work Plan as a communication to be aware of the list of activities to be undertaken to support Portland’s economic growth. The 2018/2019 Work Plan includes many items, for example, supporting public policy initiatives and identify funding opportunities which address substance use disorder, panhandling, housing insecurity, ADA compliant infrastructure; creation of ‘mini-score card’ to provide limited set of metrics on important economic indicators; review ordinances related to outside seating, street vendors, sound, trash storage; continue to educate the community on the “Case For Growth”; engagement with academic institutions for business and career opportunities; engage CITY OF PORTLAND/ECONOMIC DEVELOPMENT DEPT./389 CONGRESS ST./PORTLAND, ME 04101/(207) 874-8683 1 of 27 immigrant community in existing business networking opportunities; and support the growth of the City’s Office of Economic Opportunity. Other areas of emphasis include workforce development, business recruitment, transportation opportunities, and tourism. IV. FINANCIAL IMPACT By forwarding this to the City Council, there will be no financial impact. There are public infrastructure/transportation projects in the Work Plan which will require a mix of Federal, State, and City funding. This funding will be gathered as the projects move forward. V. STAFF ANALYSIS AND RECOMMENDATION Staff recommends that the EDC vote to forward the 2018/2019 Work Plan to the City Council as a communication. Attachments: - 2018/2019 Work Plan - 2011 Portland Economic Development Plan and Vision with past Work Plans CITY OF PORTLAND/ECONOMIC DEVELOPMENT DEPT./389 CONGRESS ST./PORTLAND, ME 04101/(207) 874-8683 2 of 27  2018 and 2019 EDSC workplan in support of the City of Portland's Economic Development Vision & Plan Project/Program/Activity Category Lead Organization(s) Actions/Strategies to Support Initative EDSC* Organizations Involved Community Partners -Business Recruitment & Retention - Create a 'mini-scorecard' that will provide a limited set City of Portland, Portland Track and report important economic indicators Chamber of Commerce GPCOG, MEREDA, Commercial Real Estate Brokers, USM -Tourism of metrics on important economic indicators Downtown, Visit Portland - Support public policy initiatives and identify funding -Business Recruitment & Retention Portland Downtown, opportunities which address: substance use disorder, Amistad, Milestone, Preble Street, Spurwink, Opportunity Advocate for public health and safety initiatives City of Portland -Tourism Chamber of Commerce panhandling, housing insecurity, ADA compliant Alliance, and cultural orgs infrastructure, etc -Business Recruitment & Retention Visit Portland, Chamber of Assist local policy-makers with improvements to - Review ordinances related to: outside seating, street -Tourism Portland Downtown Commerce, City of Portland, Creative existing ordinances vendors, sound, trash storage, etc - Workforce Development Portland -Build community-wide coalition City of Portland, Portland Continue to educate the community on the 'Case -Business Recruitment & Retention Portland Buy Local, Greater Portland Landmarks, Portland Chamber of Commerce - Host public forums Downtown, Visit Portland, Creative For Growth' -Tourism Society for Architecture, et al. - Create newsletters Portland - Engage local middle school, high school, colleges, and -Business Retention - Chamber of Commerce, Portland universities in business & career opportunities (ie. Portland Public Schools, Junior Acheivement, MECA, USM, Engagement with academic institutions Tourism - All EDSC Organizations Downtown, Visit Portland, Creative internships, special projects, advisory council, youth SMCC, UNE Workforce Development Portland engagement, etc) Catholic Charities Maine Office of Refugee Services, New -Business Retention & Recruitment Chamber of Commerce, - Engage immigrant community in all networking Mainers Resource Center, Community Financial Literacy, Engage immigrant community in existing -Tourism - Creative Portland, City of opportunities Visit Portland Greater Portland Immigrant Welcome Center, Maine business networking opportunities Workforce Development Portland - Gateways for Growth Initiative Access Immigrant Network, Maine Immigrant Rights Coalition; Empower the Immigrant Women, StartSmart New Mainers Resource Center, Catholic Charities Maine -Develop new initiatives to advance education, -Business Recruitment & Retention Chamber of Commerce, Portland Office of Refugee Services, Community Financial Literacy, Support the Growth of the City's Office of entrpreneurship, and workforce goals - -Talent Attraction - City of Portland Downtown, Visit Portland, Creative Greater Portland Immigrant Welcome Center, Maine Economic Opportunity Develop entrepreneur workshops for Workforce Development Portland Access Immigrant Network, Maine Immigrant Rights immigrants/refugees Coalition; Empower the Immigrant Women - Improve Ocean Gateway and Jetport facilities - Repair & improve existing wayfinding signage - Repair sidewalks in downtown -Business Recruitment & Retention - Add signage at gateways & beautify City of Portland, Portland GPCOG, Portland Pollinator Project, Portland Jetport, GP Physical improvements & beautification -Public Infrastructure - - Addition of public art to parks Visit Portland, Creative Portland Downtown METRO, Portland Public Art Committee Tourism - Revitalize parks - Addition of recycling in downtown public spaces - Improve public restroom facilities - Bus stops & shelters (ugrade & ADA compliance) -Provide events, explore projects (ie. calendar/app), -Business Recruitment & Retention Visit Portland, Creative Improve Visitor Experience programming, and marketing to attract visitors to Portland Downtown, City of Portland Arts & cultural partners, Higher Education institutions -Tourism Portland Portland -Business Recruitment & Retention Improve knowledge of multi-modal -Public infrastructure City of Portland, Portland Chamber of Commerce, Visit Greater Portland METRO, Portland Jetport, Bicycle -Multi-modal trasnsportation marketing campaign transportation opportunities -Tourism - Downtown Portland, Creative Portland Coalition of Maine, NNEPRA, et al. Transportation -Business Recruitment Market Portland Technology Park City of Portland -Market remaining three sites to high tech companies Chamber of Commerce Real Estate Brokers -Talent Attraction -Continue visiting Portland businesses to better Continue Business Visitation Program -Business Retention City of Portland EDSC orgs (as needed) Community partners (as needed) understand their needs and challenges -Business Retention Small business community and property owners in Round Three of Facade Improvement Program City of Portland -Targeted to Washington Avenue and St. John Street Creative Portland -Tourism designated areas -Business Recruitment -Matching grants for startups and existing businesses SBDC, SCORE, New Ventures, CEI, Portland Development Administer new round of Job Creation Grants -Business Retention City of Portland EDSC orgs (as needed) to create jobs for low/moderate income individuals Corporation -Workforce Development 3 of 27  -Business Recruitment & Retention -Foster/enhance local innovation and global Facilitate development of broadband City-wide City of Portland Chamber of Commerce -Public infrastructure collaboration MDOT, Maine Port Authority, other State Agencies, MITC, -Creation of new opportunities for business growth and Creative Portland, Chamber of Facilitate construction of Cold Storage facility -Business Recruitment & Retention City of Portland Portland Fish Exchange, marine/agriculture/food & exports Commerce, Visit Portland beverage/processors & exporters -Business Recruitment & Retention Harbor Commission, MDOT, City of South Portland, Pier Dredging & Environmental maintenance of Environmental assessment, preliminary design, -Public infrastructure - City of Portland Friends of Casco Bay, Casco Bay Estuary Project, private Casco Bay stakeholder engagement, funding strategies Tourism pier owners, lobster industry -Public infrastructure - MDOT, Portland Trails, Community boating orgs, Portland Develop Portland Landing at Amethyst Lot City of Portland -Berthing, community boating and open space Creative Portland Tourism Parks Commission -Business Recruitment - Increase usage of Portland Ocean -Full utilization of second floor and increased tenants Visit Portland, Chamber of Public Infrastructure - City of Portland Casco Bay Island Transit District Terminal/Maine State Pier on first floor Commerce, Portland Downtown Tourism Regional and International Business Recruitment -Business Recruitment City of Portland -Strategic marketing nationally and internationally Chamber of Commerce MITC, GPEDC -Business Recruitment & Retention City of Portland, Creative -Increase national and international recognition of Chamber of Commerce, Visit Develop & market Portland's brand & image -Talent Attraction - Community partners ( as needed) Portland Portland Portland, Portland Downtown Tourism -Enrich Creative Economy -Investigate opportunities for: (1) arts, culture, and City of Portland, Visit Portland, Update City's Cultural Plan -Tourism - Creative Portland humanities center, and (2) Congress Street Arts & cultural partners, et al. Downtown Portland Talent retention enhancements and experiential design City of Portland, Portland Develop Relocation Packages for individuals and -Business Recruitment - -To assist businesses and individuals moving or Visit Portland Downtown, Chamber of Commerce, GPCOG businesses Talent Attraction thinking of moving to Portland Creative Portland -Tourism Convention Center Development (may include Chamber of Commerce, City of Portland and other EDSC orgs -Business Recruitment -Work with development community Community partners ( as needed) innovation/arts/cultural components) Visit Portland (as needed) -Talent Attraction *EDSC (Economic Development Stakeholder Committee) members include: City of Portland, Creative Portland, Portland Community Chamber of Commerce, Portland Downtown, and Visit Portland Acronyms: CEI/Coastal Enterprises, Inc. EDSC/Economic Development Stakeholders Committee GPCOG/Greater Portland Council of Governments GPEDC/Greater Portland Economic Development Corporation MDOT/Maine Department of Transportation MECA/Maine College of Art MEREDA/Maine Real Estate Development Association MITC/Maine International Trade Center NNEPRA/Northern New England Passenger Rail Association PPAC/ Portland Public Art Committee SBDC/Small Business Development Center SCORE/Service Corps of Retired Executives SMCC/Southern Maine Community College UNE/University of New England USM/University of Southern Maine 4 of 27 ECONOMIC DEVELOPMENT VISION + PLAN PORTLAND MAINE August, 2011 5 of 27  Contents 1 Introduction Core economic development focus 3 Grow the economy 7 Enrich the creative economy 9 Support business 11 Appendices 12 Appendix A: Task Force Members + Support 13 Appendix B: Listing of Past Reports Reviewed 14 Appendix C: Outreach Meetings + Presentations Completed 15Appendix D: Description of Economic Development Plan Components 16 2011 + 2012 Work Plan 6 of 27 ECONOMIC DEVELOPMENT VISION + PLAN PORTLAND, MAINE The following is an economic development vision and The vision and plan presents three primary plan for the City of Portland, Maine. It has been created areas critical to long-term success in Portland’s in acknowledgement that economic development in economic development. These core areas of general, and business retention, expansion, and attraction focus include: in particular, are vital to the growing prosperity and improvement in the quality of life of Portland’s citizens. 1. Grow the economy 2. Enrich the creative economy This vision and plan provides a roadmap for success in 3. Support Business Portland’s future economic development. It draws on the previous and current work of the City, its citizens, To support these core areas of focus the City must take action businesses, and stakeholders. The vision and plan was to coordinate, communicate, and measure progress. Additionally, accomplished through a collaboration of the City of as part of this plan and vision and to enable its success: Portland, Portland Community Chamber, and the Creative Portland Corporation. To guide the process and compile Portland will work in collaboration with the results, the City and Chamber engaged the Economic the communities and stakeholders of Development Plan Task Force. A list of Task Force members the Greater Portland Region to not only grow the City’s is provided in Appendix A. economy, but also the economy of the region; together we will work to make the Greater Portland Region a Rather than recreate the many recent efforts regarding great place to work, live, and grow a business. components of the City’s economic development, this plan draws from several recent reports that provide information Portland will participate in regional efforts at relating to the economic development process. A listing of industry tradeshows and through external these reports is provided in Appendix B. The plan is also advertising, including specifically working with based on input obtained through outreach to citizens, the Greater Portland Convention and Visitors workers, and stakeholders through a coordinated social Bureau and Greater Portland Economic media strategy including a project web page, Facebook Development Corporation page, and Twitter updates. Finally, it incorporates input received through outreach meetings and presentations, a Portland will adhere to the regional economic listing of which is provided in Appendix C. development protocol agreed to by the Greater Portland Communities, and will participate in a Using information gathered from these collaborative marketing and business attraction resources, an economic development vision program for the region and strategy has been developed that consists of the following components: Portland is committed to regular and systematic economic development • Guiding Principles + Vision Statements strategic planning and evaluation, • Goal Statements including monitoring progress of its • Implementation Strategies plan and activities, measuring progress A description of these components is provided in and impacts, and making strategic Appendix D. changes as warranted. This includes maintaining and reporting through the Chamber’s annual Economic Scorecard. The process will engage key stakeholders and include regular communications with the businesses, citizens and taxpayers of the City. 01 7 of 27  This vision and plan is meant to be a living document to guide policies, programs, and actions within the City. It should be stressed that this is not a “City Government” only plan. It was developed by a collaborative effort between the City, the Portland will utilize the latest Portland Community Chamber, and the Creative Portland technologies, including web and social Corporation, with significant engagement from the Task media, to communicate and market Force; input from the public, private and not-for-profit Portland both inside and outside the sectors; and guidance from many past collaborative efforts. region, and to deliver its economic and It is therefore a “community-wide” economic vision and business development services and plan to be utilized and implemented by those willing to communications. participate and move forward into the future. Rather than being the sole document or effort related to economic and community development, this vision and plan is meant to provide a specific focus on the City’s economic development vision, goals, and strategies. Other efforts and By adhering to this vision and plan, Portland documents address closely related issues such as housing, will achieve its economic development goals, infrastructure, services, and neighborhoods. Some of creating economic prosperity through growth these issues are referenced in this vision and plan, but this of the City’s tax and employment base. document is not meant to cover those issues in detail. Portland’s greatest strength is its underlying quality of life and unique character, contributing to its continuing Throughout the plan the term “business community” is national recognition as a highly desirable community used to represent the private sector. For this plan the in which to live and work. It is especially important “business community” is meant to mean all businesses in for Portland to recognize, support, and enhance the Portland, large or small, as well as any other stakeholders fundamental qualities of place that make Portland unique who have a vested interest in the economic growth and well and desirable for investment and growth; these include being of the City of Portland. education, parks, waterfront, downtown, neighborhoods, cultural diversity, and the geographic and architectural Why a vision and plan? The purpose is best heritage of the City. These assets enable Portland’s summarized in the following statement: economic development efforts to attract and grow “Creating economic prosperity through businesses and support residents and workers. In turn, a growing the City’s tax and employment base.” strong economic environment enables the City to support The economic recession has called out for the City to start and sustain these quality of life assets. considering “what’s next” in terms of how we can grow wealth. Portland, along with other partner communities in Economic development planning is an South Portland, Scarborough, Falmouth, Cape Elizabeth, integral part of Portland’s Comprehensive and Westbrook, plus the Portland Regional Chamber Plan, so this strategy document can be seen as a guiding and a regional education alliance, have incorporated policy and action plan in concert with other planning a private/public non-profit organization to support initiatives. The inter-relatedness of all elements of the regional approaches to economic development, including plan are exemplified by the Sustainable Portland plan, marketing/branding. This vision and plan for Portland will which recognizes that the future health and prosperity help ensure that these regional efforts reflect the City’s of Portland depends on stewardship of our environment, needs and strategies for economic development. our community, and our economy, the three fundamental components of future sustainable communities. For Strategies are the economic development priorities (or example, the City has adopted a Housing Plan that sets work plan) over the next 6-12 months starting in the forth policies that will ensure that we can house a growing summer of 2011. Appendix E outlines the assignment of population, critical to building a workforce to engage in the work plan activities, budget resources and timeline. jobs that will be created. Another example would be the Community Vision, which emphasizes the importance of The Plan’s implementation will be monitored by the existing quality education to ensure that the population possesses Task Force which has agreed to meet periodically to make sure the skills needed to succeed in the modern economy – the Plan is implemented and to recommend Plan revisions. from skilled labor to high tech and innovation industries. It is understood that this Economic Development Vision and Plan for Portland does not itself address every component needed for future prosperity, but depends on the coordinated and comprehensive plans and policies that function together to secure our future well being. 02 8 of 27 CORE ECONOMIC DEVELOPMENT FOCUS GROW THE ECONOMY Guiding Principles + Vision Support industry sectors that are innovative and have high The City is committed to creating economic growth/high value potential to provide future opportunities prosperity through growing its tax and for economic development (Relevant Scorecard Indicators: employment base. S&E Occupations, Private Sector Employment Growth, Regional Earnings per Employee, Value of City Imports & Goals + Implementation Strategies Exports per Capita, Regional Venture Capital Investment, Understand the needs and concerns of existing businesses Regional Patents Issued). Added to these Scorecard to support their retention and expansion Indicators will be employment growth and earnings per (Relevant Scorecard Indicators: none) worker in targeted sectors. Work Plan: This goal shall be accomplished through business Develop and sustain a visitation program to retention and expansion efforts, as well as obtain regular feedback from the business through a regional attraction effort coordinated community with areas of concern addressed in a with the Greater Portland Economic Development timely manner. To implement this, the City should Corporation and Maine and Company. Based on follow the detailed steps outlined in the MIT past analyses and current data, sectors to target Report, with the major steps of the program being include: business outreach, information gathering, and most importantly, follow-up. The Mayor shall be • Finance and insurance involved and be the face of this program. • Life science – including bioscience, Action | Measurement: healthcare, and medical • A business visitation pilot program will be established • Food production/food service – including fishing and seafood • Feedback from the pilot visitation program will be used to adjust economic strategies • Marine and marine related – working and activities, and results of the visitation waterfront, port related, and cargo program will be communicated to the City’s business community • Arts and culture • The results of the pilot program will be used • Creative enterprise to refine and implement an ongoing program • Visitation, tourism, and entertainment • Business will be better informed of economic development resources and • Support redevelopment of the Civic opportunities in the City, and will feel that Center as a destination for visitors and their concerns are being heard and residents alike acted upon • Professional, technical services and Develop non-visitation methods to enable additional business services communication and feedback from business by utilizing social media, surveys, and events • Information Technology (IT) and IT-related services Utilize marketing and communication to promote, maintain and expand commercial loan and other • Manufacturing in niche areas including business financial incentive programs that but not limited to food, chemical/ leverage and support business retention, biological, and nano-electronics expansion, and attraction 03 9 of 27  Work Plan: Increase awareness among businesses, workers, Form working groups to develop specific strategies and residents regarding the benefits to the local for each targeted sector, and for life sciences and economy of supporting Portland businesses food production services include in those strategies (Relevant Scorecard Indicators: None) the recommendations from the MIT report. • Bring together Portland businesses and Work Plan: residents through marketing, Produce additional analysis to further prioritize communication and networking to and develop sector/cluster strategies based on increase sales at those businesses opportunity and analysis. Action | Measurement: • Form at least 3 working groups to develop Sustain economically vibrant neighborhoods strategies in three of the targeted sectors (Relevant Scorecard Indicators: None) • Identify and conduct further analysis to • Work with the City’s neighborhood liaison support strategy development in the three to regularly engage businesses and initial targeted sectors residents in the environment and culture of Portland’s neighborhoods • Develop implementation strategies in the three targeted sectors • Support the growth of local neighborhood business and promote the benefits they In addition to the above targeted sectors, the City will value, provide to the neighborhood’s residents support, and market green initiatives and businesses that operate in “green” markets Support efforts for a vibrant and attractive downtown Work Plan: (Relevant Scorecard Indicators: Downtown Vacancy indicator) Coordinate business and higher education needs to support regional workforce development • Recognize the Portland Downtown District (Relevant Scorecard Indicators: Educational Attainment) as the entity to lead Downtown economic development efforts Advocate for workforce training and the education needs of Portland businesses to service providers and the regional higher education coalition Support a working waterfront, recognizing the Central Waterfront as an urban maritime district Participate through the Greater Portland promoting traditional and emerging waterfront Alliance of Colleges and Universities to uses – a careful balance of mixed uses to help strengthen alliances and opportunities finance the marine infrastructure; the State Pier for workforce education, training and and Ocean Gateway, dedicated to passenger development with the organization’s ferries, cruise ships and facilities; and the Western regional institutes of higher education Waterfront, Portland’s essential deep water port edge and acreage. Expand and encourage the availability of (Relevant Scorecard Indicators: Value of City Imports & Exports) higher education scholarships provided by private businesses within the community • Provide continued support for Ocean Gateway’s use as an international Action | Measurement: passenger cruise ship terminal. •Conduct initial meeting between Greater Portland businesses, economic • Provide continued support for the development representatives and International Marine Terminal (cargo representatives of the Greater Portland shipping) Alliance of Colleges and Universities; develop an ongoing process to increase • Continue to monitor the effect of recent advocacy, planning, and programming in changes to zoning ordinances – allowing support of workforce development non-marine businesses on the water- front – on the growth and development of marine industries and quality of marine infrastructure in the zone. 04 10 of 27  • Provide continued support for the Portland Attract and support entrepreneurs as a means Fish Pier and the infrastructure to of growing and diversifying the local economy support the fisheries industry. (Relevant Scorecard Indicators: Regional Venture Capital Investment) Add to Scorecard Indicators: Business • Prioritize attention and funding to dredge Start-ups and Business Churn Portland’s harbor (federal channel and private shores), and encourage investment • Coordinate entrepreneurship services to in other marine infrastructure as a mean to ensure Portland entrepreneurs are provide continued access to and functional supported for start-up, retention, and utility of private and publically owned piers. growth • Support efforts to increase minority entrepreneurship and the entry of Support and market Portland’s distinct urban minority populations into business and commercial targeted growth districts, encouraging the workforce a mix of housing and commercial development to create 24/7 activity and vitality. Each district will • Develop a “Portland Host” program to have capitalize on its unique strengths to maximize the existing businesses and professionals employment and tax base, channeling growth into welcome new business to the City and emerging districts and established employment be available to help recruit new areas. These districts include: Bayside, an extension businesses. This program will include of downtown, featuring transit-oriented, high representatives of the Portland Community density modern mixed use along the new Bayside Chamber, the City and others as trail and a new front face to the city; Downtown, appropriate. an historic main street, Arts District and Old Port, the center of finance, law, and commerce that capitalizes on its historic fabric and cosmopolitan feel; and Eastern Waterfront, an urban redevelopment Recognize that infrastructure – be it roads, district in a new street block grid on the scenic sewer, water, energy, communication networks or waterfront, situated at the hub of ferry terminals, transportation – is the underpinning of economic the Eastern Prom Trail, and flanked by the charm growth and development. It must be maintained of India Street and Munjoy Hill neighborhoods. and improved to support the goals and strategies (Relevant Scorecard Indicators: None) contained in this plan. (Relevant Scorecard Indicators: Visitors to Region, Enplanement, Value • Develop a Capital Improvement Plan (CIP) of City Imports and Exports Per Capita) for commercial growth areas to address physical infrastructure needs • Portland will plan for future transportation and infrastructure needs and prioritize • Include information about business and improvements to be implemented within growth opportunities for these targeted a reasonable timeframe, in order to commercial areas within business support economic development and expansion and attraction marketing and growth communication efforts • Portland will provide a transportation system which encompasses all modes, balances competing objectives, and Continue to develop and promote Portland’s promotes the economic vitality and commercial and industrial districts, including quality of life in the Portland community Riverside Street, the Rand Road Technology Park, and other locations suited for cutting edge • Portland will support a network of airport, business and industry. rail, ports (cargo and passenger) and highway infrastructure to compete in • Develop a Capital Improvement Plan (CIP) the global economy for commercial growth areas to address physical infrastructure needs • Portland will continue to attract passenger airline carriers to the Jetport • Include information about business and in an effort to lower ticket prices and growth opportunities for these targeted offer greater choices for travelers commercial areas within business expansion and attraction marketing and communication efforts 05 11 of 27 • Portland will encourage the development and maintenance of telecommunications infrastructure, including broadband service, to support opportunities arising from digital technologies • Portland will support improvements and maintenance of environmental infrastructure (i.e. combined sewer overflow infrastructure to support a healthy harbor) to foster further growth 06 12 of 27 CORE ECONOMIC DEVELOPMENT FOCUS ENRICH THE CREATIVE ECONOMY A great growth potential for Guiding Principles + Vision Portland’s creative economy lies Value innovation, entrepreneurship, creativity, arts, culture, and entertainment to improve within the creative enterprise cluster. the economy and enhance Portland’s The creative enterprise cluster uniqueness and diversity includes trades and professions that are built upon the translation Goals + Implementation Strategies of creative expression and talent Increase collaboration, coordination, and communication along with application of innovation among those involved in the arts, cultural, creative and innovation sectors into profitable products and (Relevant Scorecard Indicators: None) services. Examples of the creative enterprise cluster include the design Work Plan: arts, the culinary arts, textiles Recognize and utilize the Creative Portland and furnishings, media, fashion, Corporation (“Creative Portland”) as the lead writing and publishing, advertising, organization to drive strategies and implementation music, innovation and knowledge for Portland’s creative economy efforts based enterprises, and other such Work Plan: enterprises. Entrepreneurs building Inform the public on what the creative economy creative enterprises are attracted to encompasses and its importance to the local cities like Portland, Maine that have cultural and economic environment the magnetic qualities of a vibrant and well known creative spirit, and Action | Measurement: a rich physical, social and cultural • The Creative Portland Corporation will develop an operative definition and environment. Therefore, to foster baseline metric of the existing creative growth of creative enterprises first enterprise economy in Portland, and requires maintaining and enhancing periodically update this metric to assess the presence of arts and cultural progress in order to revise strategic organizations and individual artists, initiatives and grow this sector. and the protection and enhancement of the community cultural, environmental, architectural and Market Portland to increase recognition nationally and internationally that this is a natural assets. The affirmative action City where arts, culture and entertainment, required to attract, nurture, and grow innovation, and creativity thrive creative enterprises is to get the word (Relevant Scorecard Indicators: Visitors to Greater Portland/Casco Bay Region and out nationwide through community Regional Food Services & Drinking Places Sales Growth) branding and marketing that Portland has what it takes to sustain Work Plan: Creative Portland will convene a meeting of all and support these enterprises to entities involved in marketing and branding capitalize on this growth industry Portland to collaborate on message and for Portland. strategy implementation, determine roles and responsibilities, adopt a common brand and related sub-messages, and adopt a process for moving forward and implementing the strategy 07 13 of 27  Work Plan: Action | Measurement: Take Creative Portland’s web platform, • Creative Portland to assess City loan and LiveWorkPortland, and develop a web and social assistance programs and propose revisions media plan on a national level; make sure that all related organizations’ (City, Chamber, Greater • CP will assess the feasibility of Portland Economic Development Corporation, establishing a facility to house artists Portland Downtown District, Convention and Visitors Bureau, and Creative Portland Corporation) marketing and messaging align Support individuals, workers, and businesses that are Action | Measurement: innovative, creative and entrepreneurial as a means of • Creative Portland will convene a meeting growing and diversifying the local economy of all entities involved in marketing and (Relevant Scorecard Indicators: None); add Business and Employment Growth in branding Portland to collaborate on Creative Sectors message and strategy implementation and determine roles and responsibilities Research best practices among cities nationally to support the arts, entertainment, creativity, • A marketing strategy with a common brand entrepreneurship, and innovation, and and related sub-messages and a incorporate into Portland’s strategy for creativity, process for moving forward and entrepreneurship, and innovation implementing will be developed Obtain additional research/information regarding • Citizens, businesses, and those involved in what drives creative persons and entrepreneurs to economic development services will choose Portland by interviewing recent in-migrants easily recognize and utilize a united brand and messaging to promote Survey creative economy businesses and ask business and economic development what they need to grow their businesses, then develop action steps Include within business attraction efforts a targeted strategy to attract creative and entrepreneurial individuals Action | Measurement: and businesses • Conduct initial research Include in attraction efforts targeting visitors to Portland • Track inputs, outputs and outcomes on specific programs and services established, including dollars spent to support, entities supported, dollars Create incentives to establish and grow Portland’s creative leveraged, satisfaction with the enterprises programs, and impact of funding (Relevant Scorecard Indicators: Venture Capital Investment indicator); add Business and Employment Growth in Creative Sectors Work Plan: Recognize and support individual artists, and arts and Provide assistance to secure funding for organizations cultural-related venues and organizations that support creativity, entrepreneurship, and (Relevant Scorecard Indicators: None) innovation Develop a “how to” online city resource to get Develop creative financing mechanisms, such as events approved by the city tax increment financing, which can help support major new, expanded, or rehabilitated cultural Feature one creative economy business per facilities month on the City’s eco-development web platform Work Plan: Propose revisions to the City’s creative economy Coordinate entrepreneurship services to ensure revolving loan fund program to meet market demand that Portland entrepreneurs are being supported for start-up, retention, and growth Work Plan: Create incentives to attract and retain artists and entrepreneurs for development of live/work residences or common workspace and housing 08 14 of 27 CORE ECONOMIC DEVELOPMENT FOCUS SUPPORT BUSINESS Action | Measurement: Guiding Principles + Vision • The City will put in place by July 1, 2012 a Portland will be recognized as a city where customer service feedback system to obtain the business community is valued and feedback from those clients served by the nurtured through support services which are City’s business and development- relevant, helpful, welcoming, and delivered related programs and services. in a timely manner with superior “customer service” The City will continue to strive towards a Work Plan: more simplified and streamlined process The Development Review process will be clear, of interacting with all current and future consistent, predictable and timely. businesses in Portland (Relevant Scorecard Indicators: None) Goals + Implementation Strategies Action | Measurement: Interactions with City departments, agencies and staff will • The 2010 updates to the City’s Development be handled with accuracy, timeliness and a positive customer Review process are intended to fulfill the service attitude. goal expressed above. The Chamber and (Relevant Scorecard Indicators: None) the City will undertake an annual review of development applications to verify that Work Plan: the updates are achieving their intended The City will produce an updated “Doing Business purpose, and will make recommendations Guide” to assist businesses with obtaining services, for further refinement if so warranted. including, for example, a timeline describing the process for approval and associated fees when licenses and permits are needed. The business community, in partnership Work Plan: with the City, will nurture the growth and The City will maintain a “Hotline” and focused web prosperity of Portland businesses. services/pages for business assistance, to connect (Relevant Scorecard Indicators: Private Sector Employment Growth, Regional businesses with needed services. Earnings per Employee, Gross Metro Product Growth) Specific assistance to be offered includes: Work Plan: Computer software will be implemented to improve • Workforce Development – Align education and communication, tracking, and follow-through among trade skills with business needs City departments and those seeking planning, development, licensing, codes, and permitting • Visitation – Support visitation programs Work Plan: • Marketing – Promote Portland as a place to High level of accessibility will be maintained through work, play, shop and conduct business all aspects of communications, included web and social media • Networking – Support Portland business-to- business interactions Work Plan: City staff that are interfacing with business will be • Advocacy – Through regular briefings of elected provided additional customer service training officials, strengthen the voice of Portland businesses at all government levels, including those that have a regulatory impact and those that affect resource allocation 09 15 of 27 Utilize Federal, State and Local support to help Portland businesses of all sizes grow, add employment, and generate new net tax revenue as well as attract new businesses (Relevant Scorecard Indicators: Employment Growth, Property Tax Rate, and Property Valuation) • The City will review and revise its Tax Increment Financing Policy, as needed, to support the goal of expanding jobs and the municipal tax base associated with targeted economic and business development • Maintain adequate funding for City-sponsored commercial and industrial loan and grant programs, and market the availability of such programs to the business community • Monitor State and Federal business assistance programs and communicate with Portland businesses about those programs, advocating for program changes as needed • Promote availability of all tax credit programs (Federal and State), including use of Historic tax credits for building rehabilitation in Portland’s historic commercial districts 10 16 of 27 Appendices 11 17 of 27 APPENDIX A: TASK FORCE MEMBERS + SUPPORT Members Support Richard Aronson Greg Mitchell and Nelle Hanig Century Tire Co. City of Portland Economic Development Division Ed Bradley Alex Jaegerman Vessel Services, Inc. City of Portland Planning Department Roxane Cole Jack Lufkin Roxane Cole Commercial Real Estate Portland Community Chamber Corson Ellis Jim Damicis Kepware Technologies Project Consultant, Camoin Associates Fred Forsley Jeff Breece Shipyard Brewery Project Consultant, Camoin Associates Brenda Garrand Jennifer S. Muller Garrand Marketing Graphic Designer Gary Goodrich Andy Graham BioProcessing, Inc. Portland Color Andy Graham Laurie Banks Portland Color & Creative Portland Perry & Banks Joseph Gray City of Portland Chip Harris Kilbride & Harris Insurance Gerard Kiladjiian Portland Harbor Hotel Gary Koocher Applicator Sales & Services Jack Lufkin Gorham Savings Bank & Portland Community Chamber Gregory Mitchell City of Portland Paul Peck Drummond & Drummond Brian Petrovek Portland Pirates & Portland’s Downtown District Charles Poole Proprietors of Union Wharf Nathan Smith Bernstein Shur Paul Stevens SMRT 12 18 of 27 APPENDIX B: LISTING OF PAST REPORTS REVIEWED “Knowledge in Cities” by Todd Gabe, University of Maine, et al, September 2010 - Portland has a “thinking” economy. Memorandum from the Metro Coalition Subcommittee regarding the Greater Portland Economic Development Corporation Formation - June 22, 2010 MIT Master’s Class in Economic Development Planning Spring 2010 Report Portland in Focus – a Demographic/ Economic Profile Portland’s Downtown District (PDD) Strategic Plan – March 2010 (Portland’s Downtown District) Portland’s Economic Scorecard 2010 (Portland Community Chamber in partnership with Portland Regional Chamber) Development of a Regional Economic Development Organization for the Greater Portland Region – October 2009 (PolicyOne Research, Inc.) Creative Economy Steering Committee – Report of Recommendations to the Portland City Council - October 2008 Looking Out for Portland and the Region 2007 (Portland Community Chamber) Portland’s Creative Economy Summit Report – May 31, 2006 (City of Portland) A New Vision for Bayside, Book One: The Plan – April 2000 (City of Portland) A New Vision for Bayside, Book Two: Implementation – April 2000 (City of Portland) A Plan for Portland’s Arts District – Executive Summary Prepared by the City of Portland Planning Division January 1996 (from the November 1995 Report just below) A Plan for Portland’s Arts District – November 1995 (Herbert Sprouse Consulting and The Wolf Organization, Inc.) Downtown Vision – March 11, 1991 (City of Portland) Vision 2000 – A Vision for the Future of the Greater Portland Region, c1989. City of Portland’s Comprehensive Plan 13 19 of 27 APPENDIX C: OUTREACH MEETINGS + PRESENTATIONS COMPLETED MIT Graduate Class stakeholder meetings and business interviews held during January to April 2010. December 1, 2010 Creative Portland Corporation Board meeting – Reviewed the Draft Creative Economy Section. January 20, 2011 Downtown Portland Corporation Board public meeting - Reviewed January 10, 2011 Draft Portland Economic Development Plan for input. January 26, 2011 Community Development Committee public meeting - Reviewed January 10, 2011 Draft Portland Economic Development Plan for input. February 9, 2011 Creative Portland Corporation Board public meeting - Reviewed February 8, 2011 Draft Portland Economic Development Plan for input with emphasis on the Creative Economy Chapter. March 8, 2011 Portland Business Advisory Council meeting – Reviewed February 14, 2011 Draft Portland Economic Development Plan for input. March 10, 2011 Portland Mayor’s Local Cable TV Call-in Program – Greg Mitchell, Jack Lufkin and Andy Graham were interviewed by Portland Mayor Mavodones to discuss the Draft Portland Economic Development Plan. 14 20 of 27 APPENDIX D: DESCRIPTION OF ECONOMIC DEVELOPMENT PLAN COMPONENTS Guiding Principles + Vision Statements Economic Development Plan Components These are high level statements designed to guide policy, ordinances, and activity, by the City and stakeholders. They represent what Portland stands for and wants to achieve 50,000 feet and/or become over the long term. Goal Statements These are primary economic development goals to be Principle & Vision achieved over the next three years and beyond – They Statements provide more detail for the vision statements. Multiple Broad statements that guide goals should be identified for each vision/principle and policy, ordinances and activity address specific subject areas such as: planning & development process, regional cooperation, targeted industries, infrastructure, and quality of place. Implementation Strategies These are specific tactics that will be undertaken to achieve goals, including who has primary responsibility, timeframe, estimated costs, and how progress will be evaluated. Goal Statements provide more detail for the vision statements regarding what is to be achieved Implementation Strategies Ground level- specific tactics to achieve goals including who has primary responsibility, timeframe, estimated costs, and how will progress be evaluated. ground level 15 21 of 27  PORTLAND, MAINE ECONOMIC DEVELOPMENT PLAN 2011 + 2012 WORK PLAN The 2011 + 2012 WORK PLAN is the document which will guide the economic development activities to be undertaken over the next twelve to eighteen months. The full list of strategies and goals can be found in the ECONOMIC DEVELOPMENT VISION + PLAN for Portland Maine, August 2012. The WORK PLAN is intended to be revised annually as goals are accomplished and new priorities arise. The ECONOMIC DEVELOPMENT VISION + PLAN provides a shared vision for guiding Portland’s future economic prosperity. It was prepared under the direction of the Portland Economic Development Task Force, and lead partners involved with its creation include the City of Portland Economic Development Office, Portland Community Chamber, Portland’s Downtown District, Downtown Portland Corporation, Creative Portland Corporation, Convention and Visitors Bureau, and others. The Portland Economic Development Task Force will oversee the WORK PLAN activities; and annual measurement of progress towards the ECONOMIC DEVELOPMENT VISION + PLAN will be accomplished through the Portland Community Chamber’s annual Portland’s Economic Scorecard. For more information regarding the WORK PLAN, the ECONOMIC DEVELOPMENT VISION + PLAN, or Portland’s Economic Scorecard, please contact the City of Portland Economic Development Office or the Portland Community Chamber. GROW THE ECONOMY Principle and Vision Statement: The City is committed to creating economic prosperity through growing its tax and employment base. Goals: 1. Understand the needs and concerns of existing business to support their retention and expansion. 2. Support industry sectors that are innovative and have high job growth, high value potential to provide future economic development opportunities. 3. Coordinate business and higher education needs to support regional workforce development. Activities: Budget/Resources: Responsibilities: Timeline/Measurement: Business Visitation Program Development $8,000 direct expenses and in-kind. City + Chamber Design and complete program by Nov., 2012 Industry Sector Research $15,000-20,000 for consultant and in-kind. City + Chamber Form working groups, select industry sector focus and complete research by Dec., 2012. Workforce Education Advocacy + In-kind City + Chamber Work through the Greater Portland Economic Coordination Development Corporation. 22 of 27 16  PORTLAND, MAINE ECONOMIC DEVELOPMENT PLAN 2011 + 2012 WORK PLAN ENRICH THE CREATIVE ECONOMY Principle and Vision Statement: Value innovation, entrepreneurship, creativity, arts, culture, and entertainment to improve the economy and enhance Portland’s uniqueness and diversity. Goals: 1. Increase collaboration, coordination, and communication among those involved in the arts, culture, creative and innovative sectors. 2. Market Portland and increase recognition nationally and internationslly that Portland is a City where the arts, culture, entertainment, innovation and creativity thrive. 3. Create incentives to establish and grow Portland’s creative enterprises. Activities: Budget/Resources: Responsibilities: Timeline/Measurement: Creative economy education Annual TIF funding Creative Portland On-going Develop Portland Marketing + Branding $25,000 CP, City, PDD, Chamber and CVB Convene meeting and complete Program by Dec., 2012. Create incentives to retain and attract artists In-kind CP, City and Chamber Complete program evaluation and and entrepeneurs. propose action by Jan., 2012. SUPPORT BUSINESS Principle and Vision Statement: Portland will be recognized as a city where the business community is valued and nurtured through support services which are relevant, helpful, welcoming, and delivered in a timely manner with superior “customer service”. The City will continue to strive towards a more simplified and streamlined process of interacting with all current and future businesses of Portland. Goals: 1. Interactions with City departments, agencies and staff will be handled with accuracy, timeliness and a positive customer service attitude. 2. The Department Review process will be clear, consistent, predictable and timely. Activities: Budget/Resources: Responsibilities: Timeline/Measurement: “Update Doing Business Guide”, maintain Annual appropriations City ED Staff Update Guide by Winter 2012. business assistance services, improve use of Remainder activities are on-going. web/social media and commit to customer service” training. Review 2010 Site Plan Standards In-kind City + Chamber Chamber and City staff to meet annually. effectiveness 23 of 27 17  PORTLAND, MAINE ECONOMIC DEVELOPMENT PLAN 2014 & 2015 WORK PLAN GROW THE ECONOMY Principle and Vision Statement : The City is committed to creating economic prosperity through growing its tax and employment base. Goals: 1. Understand the needs and concerns of existing business to support their retention and expansion. 2. Support industry sectors that are innovative and have high job growth, high value potential to provide future economic development opportunities. 3. Coordinate business, higher education, and research and development needs to support regional workforce development. Activities Responsibility/Lead Org. First * Status/Details Business Retention and Attraction - Business Visitation Program City, Chamber, GPEDC Ongoing/Retention, wkforce dev. & expansion, grow global exports, incl. food sector - Growing Portland Initiative GP, City, Chamber, CP, GPEDC Ongoing/"Research Triangle" rollout & sector work groups deployment - Industry Sector Research Chamber, GP, City, GPEDC Ongoing/Growth Strategy for specific industries in Portland Region - Portland Technology Park City, Chamber, GPEDC Ongoing/Market park to businesses and plan for future phase - PDC Commercial Loan and Grant Programs City, PDC Ongoing/Assistance to new and growing businesses - Minority and Women-Owned Business Development City, Chamber, CEI, and USSBA Proposed/Inventory businesses, clarify growth challenges, incl. creative eco.; business forums incl workforce dev/industry-sector partnership opportunities; promote current financial and business development offerings; provide managerial, technical, and business consulting assistance; create connections to entrepreneurial and vocational training. Workforce Development - Overcoming Barriers to Employment: Develop strategies, programs, and GP, CVB, Chamber, City, PAEd Proposed/Convene working groups to coordinate specific strategies. services to support workforce entry - Utilize CDBG resources for workforce development City, Chamber Implement new CDBG program Tourism - Raise Tourism Awareness CVB, City, PDD, ME Office of Tourism Proposed/Jetport; Cruise Portland, ME; cultural heritage; global mkts -Create a cultural heritage tourism initiative CVB, City, ME Office of Tourism Proposed/Inventory and market cultural heritage projects, sites, and educational programs; identify cultural heritage tourism projects ready for marketing; include the cultural history of Portland on City website with links to CVB/tourism opportunities. - Summit on Convention Center and Funding Sources CVB, Civic Ctr., City, Hospitality Ind., ChamberProposed/ - Collaboration on People and Business Relocation Package(s) CVB, Chamber, CP, City Proposed/To assist businesses and individuals moving to Portland Public Infrastructure/Transportation - Re-Establish Ferry Between Portland & Yarmouth, NS City, State, MITC Ongoing - Extend Rail to Support Eimskip & Growth of Int'l Cargo Shipping ME Port Authority, MEDOT, City Ongoing/Strenthen partnership with Eimskip; State Bond Issue support - Intermodal Planning and Infrastructure at Thompson's Point MEDOT, EDA, City Ongoing/State Bond Issue support - Harbor Dredging City, MEDOT, Wharf Owners Ongoing/State Bond Issue support - Establish a TIF strategy for transportation and downtown public City Proposed/Discuss establishment of a downtown transportation oriented TIF district. infrastrucuture Metrics - Portland's Economic Scorecard Chamber, City, CP, PDD, CVB Ongoing/Enhance Integration with ED Plan * Lead organization has primary responsibility for resources and implementation. 24 of 27 Economic Development Vision and Plan 1 Portland, Maine - 12/31/13  ENRICH THE CREATIVE ECONOMY Principle and Vision Statement : Value innovation, entrepreneurship, creativity, arts, culture, and entertainment to improve the economy and enhance Portland’s uniqueness and diversity. Goals: 1. Increase collaboration, coordination, and communication among those involved in the arts, culture, creative and innovative sectors. 2. Market Portland and increase recognition nationally and internationslly that Portland is a City where the arts, culture, entertainment, innovation and creativity thrive. 3. Create incentives to establish and grow Portland's creative enterprises. Activities Responsibility/Lead Org. First * Status/Details Portland Marketing & Branding Program: Advance Implementation CP, City, Chamber, PDD, CVB, WAC Ongoing/Increase nat'l & int'l recognition of Portland, ME Refine Recruitment Strategies & Programs for Creative Entrepreneurs CP, City, Chamber Ongoing/ Creative Space Development CP Ongoing/Inventory, database, additional space dev. SUPPORT BUSINESS Principle and Vision Statement : Portland will be recognized as a city where the business community is valued and nurtured through support services which are relevant, helpful, welcoming, and delivered in a timely manner with superior “customer service”. The City will continue to strive towards a more simplified and streamlined process of interacting with all current and future businesses of Portland. Goals: 1. Interactions with City departments, agencies and staff will be handled with accuracy, timeliness and a positive customer service attitude. 2. The Department Review process will be clear, consistent, predictable and timely. Activities Responsibility/Lead Org. First * Status/Details Update City Website as Customer Service Portal. City Ongoing/December 2014 Review 2010 Site Plan Standards Effectiveness City & Chamber Ongoing/Chamber and City staff meet annually Streamlining Permitting City Ongoing * Lead organization has primary responsibility for resources and implementation. Acronym Definitions: CDBG = Community Development Block Grant CP = Creative Portland CVB = Convention and Visitors Bureau EDA = U.S. Department of Commerce/Economic Development Admin. GP = Growing Portland GPEDC = Greater Portland Economic Development Corporation MEDOT = Maine Department of Transportation MITC = Maine International Trade Center PAEd = Portland Adult Ed. PDC = Portland Development Corporation PDD = Portland's Downtown District SMCC = Southern Maine Community College USM = University of Southern Maine USSBA = U.S. Small Business Adminiatration WAC = World Affairs Council 25 of 27 Economic Development Vision and Plan 2 Portland, Maine - 12/31/13  PORTLAND, MAINE ECONOMIC DEVELOPMENT PLAN 2016 & 2017 WORK PLAN GROW THE ECONOMY Principle and Vision Statement : The City is committed to creating economic prosperity through growing its tax and employment base. Goals: > Support industry sectors that are innovative and have high job growth, high value potential to provide future economic development opportunities. > Coordinate business, higher education, and research and development needs to support regional workforce development. > Recognize that infrastructure - be it roads, sewer, water, energy, communication networks or transportation - is the underpinning of economic growth and development. It must be maintained and improved to support the goals and strategies contained in this plan. ACTIONS Responsibility/Lead Organization Listed First* STATUS/DETAILS Business Recruitment Planning for Arctic Council Forum in October MITC, City, CP, CVB, Chamber, PD Ongoing Industry Sector Research Chamber, City, GPEDC, MITC Proposed/TBD Invest in Maine International Business Recruitment Program GPEDC, City and Partners (Scarborough, Ongoing/Focused on biosciences, food sector manuf. and advanced manuf Westbrook, South Portland, Falmouth, Cape Eliz.) Market Portland Technology Park City Ongoing/Marketing and planning for future phase Educate Community on Case for Growth of Portland Chamber, PD, CP, CVB, City Ongoing Workforce Development and Talent Attraction Evaluate Development of Office for New Americans City Ongoing/Research into facilitating existing and new programs/services Overcome Barriers to Employment with Strategies, Programs, and Services Chamber, City Ongoing/ Utilize CDBG Resources for Workforce Development City Ongoing/Jobs for immigrants, low income individuals, single head of hshd., homeless Administer Business Assistance Program for Job Creation City, PDC Ongoing/Business grants for creation of jobs for low/mod income Portlanders Talent Attraction CP, Chamber, Business Community Ongoing Tourism Develop Tourism Awareness Campaign Directed to Citizens, Students and CVB Proposed Area Businesses Support Tourism Education Programs at Colleges and Universities CVB, Chamber, City, PD, CP, USM, SMCC Ongoing Pursue Development of Convention Center CVB, Chamber Proposed Metric: Survey of Visitor Experience CVB Proposed Public Infrastructure Expand Portland Transportation Center City, MDOT Proposed Enhance Service at Portland Jetport City Ongoing/Maintain and improve passenger service Facilitate Broadband Access City, Chamber Proposed Support Cold Storage Distribution Facility at International Marine Terminal MPA, City Ongoing/Americold, the company that will build the facility, is in the design phase Support Harbor Dredging City, Harbor Commission, MDOT Ongoing/Assessment Study and Design/Permitting Eastern Waterfront > Increase Usage of Portland Ocean Terminal/Maine State Pier City, CBITD Proposed/Reconfigure waterfront property located between Ocean Gateway & Pier > Redevelop Amethyst Lot With Open Space Development City, MDOT, Portland Trails, Sail Maine Proposed > Plan and Construct Thames St. Extension and new Fore St. Connector City, Private Property Owners Ongoing/Preliminary Design Underway > Maintain and Improve Ocean Gateway for Cruise Ship and NS Ferry Srvc. City Ongoing/ Improve Public Parking Downtown PD, City Proposed Strengthen Public Transit Downtown PD, City, METRO Proposed Metric: Portland Economic Scorecard Chamber, City, CP, CVB, PD Ongoing/Enhance Presentation/Layout 26 of 27 Economic Development Vision and Plan Portland, Maine  ENRICH THE CREATIVE ECONOMY Principle and Vision Statement : Value innovation, entrepreneurship, creativity, arts, culture, and entertainment to improve the economy and enhance Portland’s uniqueness and diversity. Goals: > Market Portland and increase recognition nationally and internationslly that Portland is a City where the arts, culture, entertainment, innovation and creativity thrive. > Support individuals, workers and businesses that are innovative, creative and entrepreneurial as a means of growing and diversifying the local economy. ACTIONS Responsibility/Lead Organization Listed First * Status/Details Promote Portland's Brand - Portland, Maine: Yes. Life's Good Here CP, City, Chamber, PD, CVB Ongoing/Increase nat'l & int'l recognition of Portland, ME Update City's Cultural Plan CP, CVB, DP Proposed Develop People and Business Relocation Package(s) CP, CVB, Chamber, City Proposed/To assist businesses and individuals moving to Portland Metric: Remote Worker Survey CP Ongoing Metric: Survey of Economic Impact of the Arts CP Ongoing SUPPORT BUSINESS Principle and Vision Statement : Portland will be recognized as a city where the business community is valued and nurtured through support services which are relevant, helpful, welcoming, and delivered in a timely manner with superior “customer service”. The City will continue to strive towards a more simplified and streamlined process of interacting with all current and future businesses of Portland. Goals: > Interactions with City departments, agencies and staff will be handled with accuracy, timeliness and a positive customer service attitude. > The business community, in partnership with the City, will nurture the growth and prosperity of Portland businesses. ACTIONS Responsibility/Lead Organization Listed First * Status/Details Business Permitting Streamline Permitting Process and Strengthen Customer Service City Ongoing/Creation of new department for licensing and permitting. Business Retention Sector Specific Business Visitation Program City, Chamber, GPEDC Ongoing/Workforce development & export growth for biotech, food sector manufacturing Launch Round Three of Façade Improvement Program City, Chamber Proposed/Targeting Washington Ave. and St. John Street Metric: Measure Success of Business Visitation Program City, Chamber Proposed * Lead organization has primary responsibility for resources and implementation. Acronym Definitions: CBITD = Casco Bay Island Transit District CDBG = Community Development Block Grant CP = Creative Portland CVB = Convention and Visitors Bureau GPEDC = Greater Portland Economic Development Corporation MDOT = Maine Department of Transportation METRO = Greater Portland Transit District MITC = Maine International Trade Center MPA = Maine Port Authority PDC = Portland Development Corporation PD = Portland Downtown SMCC = Southern Maine Community College USM = University of Southern Maine 27 of 27 Economic Development Vision and Plan Portland, Maine  Economic Development Department Gregory A. Mitchell, Director MEMORANDUM TO: Chair and Members of the Economic Development Committee FROM: Gregory A. Mitchell, Economic Development Director DATE: February 15, 2018 SUBJECT: Communication Item – FYE2017 Tax Increment Financing Annual Report I. SUMMARY OF ISSUE City Tax Increment Financing (TIF) Policy requires the preparation and presentation of an annual TIF district activity report. The FYE2017 TIF Annual Report represents the fifth year of reporting. Highlights of this year’s Report notes City Council TIF actions during FY2017. This includes: - Approval of the ImmuCell TIF District for a term of 12 years in support of its expansion at 45 Evergreen Drive to construct a two-story, 12,625 sq. ft. production facility for its Mast Out drug development for treatment of mastitis in lactating dairy cows; - referring possible TIF Policy amendments to the Economic Development Committee for review and recommendation back to the Council (post FYE2017 – the City Council approved the amended TIF Policy at its November 20, 2017 meeting, which Amended TIF Policy is an attachment to the FYE2017 Report); and, - authorizing the assignment of the McAuley Place TIF District CEA from McAuley Place at Baxter Woods to Retirement Community, Inc., to Sea Coast at Baxter Woods Associates, Inc. and Motherhouse Associates, LP. The Report also has a table showing the past five-year trend, as well as an Appendix which lists all the current TIFs and the activity numbers associated with them. II. REASON FOR SUBMISSION It is being submitted to the Committee for discussion and to forward to the City Council as a communication. III. INTENDED RESULT The intended result is for the entire City Council to keep up-to-date on TIF Districts. 1 of 32 IV. FINANCIAL IMPACT There is no financial impact with this item. V. STAFF ANALYSIS AND RECOMMENDATION Staff recommends the Committee vote to forward the Report to the City Council as a communication. Attachment: - FYE2017 TIF Annual Report 2 of 32  Tax Increment Financing Fiscal Year End (FYE) 2017 Annual Report (July 1, 2016 through June 30, 2017) Prepared by the Economic Development Department (Report prepared 2/2018) 3 of 32  Table of Contents 1. Introduction ................................................................................................................... 3 2. Definitions ..................................................................................................................... 3 3. Tax Increment Financing Overview and Value ............................................................ 4 4. TIF District Approval Process ..................................................................................... 5 5. City Council Action During FY2017 ............................................................................ 5 6. Statutory Limitations for TIF Districts ......................................................................... 6 7. Tax Sheltering Benefits ................................................................................................. 7 8. TIF Districts in Portland ............................................................................................... 7 9. TIF District Financial Overview for Fiscal Year End 2017 .......................................... 9 10. Examples of a Performing TIF and a Non-Performing TIF ........................................ 10 11. Strategies and Recommendations to Optimize use of TIF Districts ........................... 12 12. Summary ..................................................................................................................... 12 13. Appendix: a. TIF Policy Adopted November 20, 2017 (Post FYE2017) b. Summary of All Approved TIF Districts c. Map Highlighting Current TIF Districts d. Spreadsheet Showing Individual TIF Districts and Area Wide Amounts 4 of 32 1. Introduction On February 4, 2013, the City Council adopted revised City Tax Increment Financing (TIF) Policy (Item A in Appendix) in support of investment in municipal economic development programs and infrastructure investment. Revised City Policy favors area-wide TIF Districts to support investment in public infrastructure and economic development programs versus individual site TIF Districts for private project financing needs. City TIF Policy requires an annual report, to the City Council Committee and full City Council, regarding TIF District activity. This Report provides an overview of the TIF District Program, Portland’s utilization of TIF Districts to date, and TIF District financial value impacts. NOTE: Pursuant to City Council Order 61 passed September 19, 2016, the City Council referred to the Economic Development Committee (EDC) consideration of amendments to the current TIF policy, including, but not limited to provisions for: A. Local Hire; B. Ethnic and Gender Diversity; C. Economically Disadvantaged Participation; D. Veteran Preference; E. Adherence to State or Federal Prevailing Wages; and, F. Participation in a Job Training or Apprenticeship Program. The Order further requested the EDC report their findings and recommendation on amending the current TIF Policy to the City Council. The EDC began its review for possible amendments to the current TIF policy April 2017. By the end of FY2017 (June 30, 2017), that review was ongoing, with expectations to bring its recommendations to the City Council in November 2017. (Post FYE2017 Note: The City Council approved the amended TIF Policy on November 20, 2017, and this is included as Appendix A of this Report.) 2. Definitions Commonly used terms, included in this Report, include: “Captured Assessed Value” means increased assessed value retained in a TIF District each year during its term. “Credit Enhancement Agreement (CEA)” means the agreement between the City and the site specific TIF District Developer whereby it includes the terms under which the City will provide a portion of the Retained Tax Increment Revenue back to the Developer. “Current Assessed Value” means the then current assessed value of the property located in the TIF District to be determined by the City Assessor as of April 1 of each year during the term of the District. 5 of 32  “District” means that portion of property depicted on a map to apply to the TIF. “Increased Assessed Value (IAV) ” means the valuation amount by which the Current Assessed Value exceeds the Original Assessed Value. If the Current Assessed Value is less than or equal to the OAV, there is no Increased Assessed Value in that year. “Infrastructure” is defined, but not limited to: traffic upgrades, public parking facilities, roadway improvements, lighting, sidewalks, water and sewer utilities, storm water management improvements, and placing above ground overhead electric and telecommunications lines underground. “Non-Captured Value (NCV)” means the value over and above the OAV (defined below) that is not captured by TIF percentage capture rates, with associated taxes from NCV returned to the General Fund. “Original Assessed Value (OAV)” means the assessed value of the property in the TIF District as of March 31 of the year that it was created. For instance, if a TIF District was approved as of the date of this report, or November 2017, the OAV would be the assessed value of the property on March 31, 2017. All taxes from the OAV go into the City’s General Fund for any City use. “Property Taxes” means any and all ad valorem property taxes levied, charged or assessed against the property by the City or on its behalf and actually paid to the City, but excluding any county, state, or special District taxes that are separately levied, charged, or assessed against the property. “Retained Tax Increment Revenues” means that portion of the Property Taxes paid with respect to the Captured Assessed Value. “Tax Year” means April 1 to March 31. 3. Tax Increment Financing Overview and Value Tax Increment Financing (TIF) is the most flexible economic development program available to municipalities. TIFs support municipal investment, as well as can be associated with private sector or affordable housing investment. TIFs are flexible municipal financing tools to fund the following types of activities to support public and private sector investment:  public infrastructure projects;  economic development programs, including municipal marketing and staff; and,  support of individual private commercial and affordable housing project financing needs. The two property tax components associated with TIF Districts include: A. New Property Taxes. TIF revenue is generated from new increased municipal assessed value and associated new property taxes. TIFs can be established for up to thirty (30) 6 of 32  years and new or “captured assessed value” in the TIF District can range from 1% to 100% of the amount of new property taxes. B. Original Assessed Property Value (OAV). The taxes from property base or “Original Assessed Value” reverts to the municipal general fund and is not captured in a TIF District. C. Flow of TIF CEA Funds: The flow of taxes to return to the developer through a CEA is as follows. i. The City sends its yearly tax bills for payments due in September and March of each fiscal year; ii. Developer pays the taxes; iii. In April and May of each year, for each CEA, a check is made to be sure the Developer’s taxes are current. If current, the Economic Development Department proceeds to process that fiscal year TIF payment to return a portion of the taxes to the developer according to the CEA. If not current, the Economic Development Department will not move forward with the payment until current. 4. TIF District Approval Process There is a three step process to approve establishment of a TIF District. The three steps include: A. Economic Development Committee recommendation for approval to the City Council for commercial TIFs, or Housing Committee for affordable housing TIFs; B. City Council approval; and, C. State of Maine Department of Economic Development Department approval for commercial TIF districts or Maine State Housing Authority approval for affordable housing TIF Districts. 5. City Council Actions During FY2017 City Council actions taken during FY2017 include: A. On September 19, 2016, the City Council reviewed and approved a TIF and CEA for ImmuCell for a term of 12 years, and percentage capture back to ImmuCell as 65% years 1 through 11, and 30% year 12; the NCV goes into the City’s General Fund, as does the taxes from the OAV. This TIF and CEA supported ImmuCell’s expansion near its 45 Evergreen Drive facility to construct a two-story, 12,625 sq. ft. production facility for its Mast Out drug development for treatment of mastitis in lactating dairy cows. 7 of 32  B. As noted earlier in Section I, Introduction, at the same September 19, 2016, meeting the Council referred possible TIF Policy amendments to its Economic Development Committee. That review remained on going as of FYE2017, with expectations of a recommendation to the City Council in November 2017. (Post FYE2017 Note: The City Council approved the amended TIF Policy on November 20, 2017, and this is included as Appendix A of this Report.) C. On November 21, 2016, the City Council authorized the assignment of the McAuley Place TIF District CEA from McAuley Place at Baxter Woods Retirement Community, Inc., to Sea Coast at Baxter Woods Associates, Inc. and Motherhouse Associates, LP. 6. Statutory Limits for TIF Districts There are two State statutory limitations which include: A. Acreage: No single TIF District, including Affordable Housing Districts, can be larger than 2% of a municipality’s total acreage, or in the case of Portland, 2% of Portland’s 12,386 acres is 247 acres. Also, all active TIF Districts have to be less than 5% of a municipality’s total acreage, or in the case of Portland, 5% is 619 acres. Based upon active TIF Districts, including Affordable Housing TIF Districts, as of FYE2017, Portland has the ability to include 470 additional acres in TIF Districts. B. Value: i. Commercial/Area Wide TIF Districts: The OAV of all these TIF Districts in a municipality cannot be more than 5% of its total aggregate value (FY17 aggregate value: $8,501,550,000, or in the case of Portland, 5% is $425,077,500. Based upon active TIF Districts as of FYE2017, Portland has the ability to include an additional $291.7 Million of property value in TIF Districts. ii. Affordable Housing TIF Districts: The OAV of all Affordable Housing TIF Districts cannot be more than 5% of the total aggregate value (FY17 aggregate value: $8,501,550,000), or in the case of Portland, 5% is $425,077,500. Based upon active Affordable Housing Districts as of FYE2017, Portland has the ability to include an additional $423.5 Million of property value in Affordable Housing TIF Districts. It is noted that the amount of acreage and value to include in TIF Districts fluctuates as TIF districts are created, expired, and/or terminated. There are exemptions from State limitations for Transit Oriented Development (TOD) and Downtown TIF Districts, for which Portland now has two: Thompson’s Point TOD TIF, and the Downtown TOD and Omnibus TIF, the latter created in FY15 and activated in FY16. 8 of 32 7. Tax Sheltering Benefits Municipalities realize “savings” from the tax sheltering effect of TIF Districts. The following direct financial impacts occur when municipal valuation increases: A. State Education Aid is reduced, B. State Municipal Revenue Sharing is reduced, and C. A municipality pays a higher percentage of the County budget. This amount of “savings” is significant and one of the most important benefits of establishing TIF Districts. For Portland, tax shelter savings is conservatively estimated at 30%, meaning that for every new tax dollar, Portland saves 30 cents which would otherwise be lost for property tax value not included in a TIF district. Portland’s estimated total tax shelter savings for all active TIF Districts is just over $829,000 for FYE2017. 8. TIF Districts in Portland A listing of all approved TIF Districts is provided as Item B in the Report Appendix. This listing includes four expired TIF Districts – Auto Europe, Shipyard Brewery, Nichols Portland, and UNUM. This listing also includes two TIF Districts which were terminated by the City Council during FY15 – those being the Village at Oceangate (Bay House), and the Fore India Middle LLC TIF District. It is noted that after expiration and termination of the above TIF Districts, 100% of their property tax revenue reverts to the City’s General Fund. Also, this listing provides the following information for each TIF District: A. TIF District duration; B. percentages of taxes allocated to the Recipient/Developer, City, and General Fund; C. TIF District location; and D. brief description. Item C in the Appendix provides a map showing the location for each active TIF District. A listing of approved active individual site specific TIF Districts, area-wide TIF Districts, Downtown TOD TIF, Thompson’s Point TOD TIF, non-active TIF Districts, and terminated TIF Districts by name are provided below. Active Approved Individual Site Specific TIF Districts As of FYE2017, the City has eight, single site active TIF Districts with associated CEAs, namely: 9 of 32   Holt Hall  Riverwalk/Ocean Gateway  PowerPay/Portland Public Market  Baxter Library  Avesta/Pearl Place Affordable Housing TIF  409 Cumberland Avenue Affordable Housing TIF  134 Washington Avenue Affordable Housing TIF  17 Carleton Street Affordable Housing TIF Active Approved Area Wide TIF Districts and Associated CEAs The City has two active area wide TIF Districts, for which the City retains a portion of the TIF funds for public infrastructure projects, with a portion of the TIF funds targeted to CEAs within those Districts, namely:  Bayside o Capital LLC CEA o Bayside Student Housing CEA  Waterfront (Appendix D and E) o Waterfront Maine CEA Approved Downtown and/or Transit-Oriented Development (TOD) TIF Districts  Downtown TOD TIF The City retains a portion of the TIF funds for public infrastructure, Creative Portland, and transit projects for the Downtown TOD TIF. This Downtown TOD TIF was approved during FY2015 and was activated with FY2016. There is no CEA associated with it at this time.  Thompson’s Point TOD TIF and CEA For the Thompson’s Point TOD TIF, the City retains a portion of TIF Funds for transit projects. This TOD TIF also has an associated CEA with Thompson’s Point Development Company, Inc. for development of Thompson’s Point, which is not yet active. Activation of this TIF CEA will occur when the Increased Assessed Value is at least $5 Million. Non-Active Approved TIF District In FY09, the City Council approved the McAuley Place TIF District, which has been non- active until this fiscal year 2017. As noted previously, on November 21, 2016, the Council approved the assignment of this TIF. It is expected that this TIF will be active within the next year or two as development plans proceed for a senior housing project. 10 of 32  Terminated TIF Districts The City Council has terminated two TIF Districts, namely:  Fore India Middle LLC – This TIF project had not come to fruition and, therefore, was terminated by the City Council in November 2014; and,  The Village at Oceangate, LLC (Bay House) – This TIF District was also terminated by the City Council in November 2014 due to this District’s use being converted into residential condominiums which is not an allowable TIF District use. 9. TIF District Financial Overview for FYE2017, including FY2013, FY2014, FY15, and FY16: See below for financial comparison of FYE2017, FYE2016, FYE2015, FYE2014, and FY2013 for then active TIF Districts: FYE2013 FYE2014 FYE2015 FYE2016 FYE2017 City General Fund-Taxes from OAV $5.8 Million $6.1 Million $6.3 Million $22.8 Million $23.38 Million City General Fund-Taxes from Non-Captured Value $1.1 Million $341,000 $720,000 $2.4 Million $2.2 Million Total TIF Taxes From Captured Value $2.7 Million $3.5 Million $3.2 Million $1.8 Million $2.09 Million - TIF Taxes to CEAs $1.9 Million $2.0 Million $2.0 Million $1 Million $1.08 Million - TIF Taxes to Public Infrastructure/Arts $.8 Million $1.5 Million $1.2 Million $.8 Million $1.01 Million Total Tax Sheltering Value $143 Million $180 Million $160 Million $87 Million $99.6 Million Estimated Annual Average Tax Sheltering Savings $1.3 Million $1.6 Million $1.3 Million $.7 Million $.831 Million Table Explanations: City General Fund-Taxes from OAV - The above table shows a yearly increase in taxes from the OAV into the General Fund. For FYE 2013 through FYE2015, this is based on increases in tax rates. FYE2016’s higher increase is due to the Downtown TOD TIF Activation, where the OAV is just under $1 Billion, and associated taxes with that OAV at $20 Million. As noted earlier in the definition section, all taxes from the OAVs go to the General Fund. City General Fund-Taxes from Non-Captured Value – The number fluctuates based on each CEA, as well as the City’s budget needs for public infrastructure/Economic Development Department staff salaries/debt service. The captured value percentages for the area wide TIF 11 of 32  Districts - Bayside and Waterfront - are adjusted yearly based on those needs. The captured value percentage for the Downtown TOD TIF was set at 12% for the first year (FY2016) and then set at 22% for years 2 through 30. The decrease in this table for FYE2017 is due to capturing 22% from the Downtown TOD TIF and having the remaining non-captured 78% go into the General Fund. Non-captured increased assessed value taxes flow into the General Fund. Total TIF Taxes From Captured Value – The percentage of captured value varies yearly based on CEAs and the City’s financial needs. This TIF Revenue is then allotted to the various CEAs, and then to the City public infrastructure projects/arts. Total Tax Sheltering Value – This number represents the total percentage of the increased assessed of value (IAV) all TIF Districts that has been captured. This value increased from FYE2016 largely due to the to the increase of the capture rate for the Downtown TOD TIF form 12% in FY2016 to 22% in FY2017. It is also noted that the captured value percentage for area TIFs is adjusted yearly based on City use of TIF funds needed for public infrastructure projects, as well as debt service for payment of the Bayside HUD loan and for Ocean Gateway associated debt expenses. Estimated Tax Sheltering Savings – This number increased by just over $100K from FYE2016. This is due to the Downtown TOD TIF increased captured value from 12% in FY2016 to 22% in FY2017. Appendix D is a spreadsheet showing the FYE 2016 TIF Districts funding allocation and individual CEA annual payments. 10. Examples of a Performing TIF and a Non-Performing TIF Examples will be provided annually. Performing TIF District: Nichols Portland (Expired FY14) Duration: 20 year term (FY95 through FY14) Percentages: Years 1 to 5, 90% to Recipient, 10% to City General Fund; years 6 to 10, 75% to Recipient, 25% to City General Fund; years 11 to 20, 50% to Recipient, 50% to City General Fund. Location: 2400 Congress Street An example of a performing TIF District would be the very first TIF District approved by the City Council and the Maine Department of Economic Development and Community Development, that being Nichols Portland at 2400 Congress Street. This TIF District was created to support Nichols Portland expansion of its existing manufacturing facility at 2400 Congress Street and to retain 450 jobs. At the time, Nichols had outlined a ten-year capital investment plan totaling $29.7 Million and requested the 20-year TIF District to help facilitate the expansion. Nichols Portland was established in 1968 manufacturing precision parts for the automotive industry. Its parent company at the time of the creation of this TIF District was Parker 12 of 32 Hannifin Corporation, which had 143 manufacturing facilities and 26,000 employees worldwide. Nichols Portland was competing with other subsidiaries of Parker Hannifin for capital investment funds. This TIF District helped to convince its parent company that the investment was worth making in the Portland facility. Nichols Portland needed to add an additional 38,000 sq. ft., to its 160,000 sq. ft. at 2400 Congress Street for expanded manufacturing facilities, as well as enhanced shipping and receiving, automation, and upgrading equipment. New equipment purchases in the coming years were part of the financial picture, as the personal property value outweighed the real estate value and this continued throughout the life of the TIF District. See below chart for the Original Assessed Value (OAV) at the start of this TIF District, and the assessed values every 5 years throughout the TIF: Real Estate Personal Total Assessed Property Value (TAV) OAV 4/1/1992 $5,646,870 $12,754,650 $18,401,520 TAV 4/1/1998 $7,394,490 $15,364,860 $22,759,620 TAV 4/1/2003 $8,627,220 $27,033,280 $35,660,500 TAV 4/1/2008 $7,427,030* $27,701,940 $35,128,970 TAV 4/1/2013 $6,824,930** $19,664,260 $26,490,190 *Result of Revaluation **Partial Abatement As of the current FY2017, its assessed value for Real Estate: $ 6,804,300 Personal Property: $20,161,340 TAV: $26,965,640 Regarding jobs, Nichols had an estimated 350 jobs in 2017. Over the life of the TIF, TIF revenues to Nichols were $2.8 Million, and the City’s General Fund realized just under $9.7 Million. This TIF District provided economic stability in a local manufacturing business as it expanded, improved, and automated its business and continues to do so today. Example of a Non-Performing TIF: Fore India Middle, LLC (former Jordan’s Meat Site) (Economic Development TIF) Duration: 4 year term (FY14 through FY17) Percentages: Years 1 and 2 – 50% to Developer, 10% to City TIF Project; 40% to City General Fund; Year 3 - 40% to Developer, 10% to City TIF Project; 50% to City General Fund; Year 4 – 40% to Developer, 60% to City General Fund. Total revenue to developer is capped at $650,000 over the term of the District. Location: Portion of block surrounded by Fore, India, and Middle Streets. 13 of 32  This TIF district was created to support the development of a portion of the former Jordan’s Meats site. This development project included a five-story, approximately 180,000 sf. of mixed-use consisting of 12,300 sf. of retail space on Middle Street, 9,800 sf. of retail space on Fore Street, three levels of office space comprising 63,900 sf. on Middle Street, and 18 residential condominium units along Fore Street and India Street. In addition, there would be two "internal" parking garages behind the retail spaces (not visible from the street), one 110- space garage at the Fore Street level, and another 63-space garage one story above at the Middle Street Level. The Developer expected to have an urban grocery on Middle Street with a variety of produce, meats, food, and household items, with an emphasis on natural, organic and healthy items. The other retail users and the office users have not been identified yet. Use of TIF proceeds was directed to support public infrastructure investments. This TIF was terminated by the City Council on November 3, 2014 due to the project not coming to fruition. TIF Districts perform when value is added over and above the OAV. If no development occurs, it is a non-performing TIF. 11. Strategies and Recommendations to Optimize use of TIF Districts  Future public infrastructure investment. Align the City’s future Capital Improvement Program investments, including utility and transportation investment; and,  Future Growth Areas. Decide where the City wants to direct investment by location and type (i.e. commercial and affordable housing). 12. Summary TIF CEAs are driven by development occurring and increasing the assessed value. With no development, the assessed value remains the same and no TIF dollars are returned to the developer. On the other hand, when the development moves forward and the assessed value increases, that is when TIF dollars can be returned to the Developer. It is performance based. 14 of 32  Appendix A PORTLAND TIF POLICY November 20, 2017 I. INTRODUCTION Tax Increment Financing (TIF) is an economic development program authorized under state law to support municipal projects. The TIF program allows municipalities to provide financial assistance to local economic development projects and programs – from infrastructure, municipal economic development programs and staff, to business expansions - by using new property taxes that result from new commercial or residential investment associated with the corresponding increase in property value. Portland TIF Policy supports investment in municipal economic development programs, infrastructure investment (which is generally through the establishment of area wide or neighborhood TIF districts) and individual project site specific TIF districts to support either infrastructure or individual private project financing needs. The City is committed to invest in infrastructure located within the public rights-of-way that encourage economic development. Use of TIF investment to invest in infrastructure recognizes the savings which occurs through the TIF Program tax sheltering benefits. “Infrastructure” is defined, but not limited to: traffic upgrades, public parking facilities, roadway improvements, lighting, sidewalks, water and sewer utilities, storm water management improvements and placing above ground overhead electric and telecommunications lines underground. II. STATE TIF LIMITATION There are acreage and value caps limitations for municipalities to establish TIF along with term limits. Term limits include bonds which may be issued for a maximum of 20 years (anticipation notes for three years). TIF districts may be designated for a maximum of 30 years. III. PURPOSE The primary purposes of the TIF Policy include: A. To support Portland Economic Development and Housing Plans and Policies; B. To stimulate expansion of the City’s commercial and industrial tax base; C. To stimulate new affordable and market rate housing investment; D. To retain and create quality employment; E. To support Portland’s Capital Improvement Plan; and, F. To establish standards upon which the City Council will authorize TIF. 15 of 32  IV. GENERAL PRINICPLES The three primary general principles for the City Council to establish TIF districts include: A. Investment Minimum Real Property Investment. A minimum of $1 million in new taxable investment property value for commercial and industrial development and $500,000 for affordable housing development is needed to qualify for a TIF. This is the minimum amount which makes practical sense to consider use of the TIF program due to the amount of new municipal property tax revenue generated from new private investment. B. Jobs Associated with Commercial and Industrial Development Applicants for TIF participation will be required to provide a plan outlining the number and quality of jobs retained or created associated with each TIF district. While there is not a specific formula for the numbers of jobs associated with the amount of TIF financial assistance, the number and quality of the jobs will be taken into consideration for each TIF district. It is recognized that housing projects do not create many permanent jobs. C. Maximize Tax Sheltering Benefits A municipality’s total equalized assessed value is used to calculate General Purpose Aid to Education (subsidy), State Revenue Sharing (subsidy) and County taxes (expense). When a municipality’s equalized assessed value increases, State Aid for Education decreases, municipal revenue sharing decreases, and the municipality pays a greater portion of County taxes. TIF allows municipalities to “shelter” new value resulting from private investment from the calculation of its State subsidies (education and revenue sharing) and County taxes. In other words, specific municipal shelter benefits, for the term of the TIF, include: 1) No reduction in State aid for education, 2) No reduction in municipal revenue sharing and 3) No increase in County taxes. Annually, the Council Committee with jurisdiction over housing and community development and City Council will evaluate available TIF district capacity related to State acreage and value limitations to determine whether existing TIF districts need amending and/or new TIF district establishment. Scheduled public infrastructure investments included in the City’s Capital Improvement Plan will inform decisions about adjustments to existing TIF districts or establishment of new TIF districts. 16 of 32 V. APPROACH, POLICY, and TERM REQUIREMENTS Must meet or exceed the below requirements. A. Approach There are three approaches to consider establishing TIF districts. They include: 1) Municipal Economic Development Programs funded directly through a pay-as- you-go approach. Examples of municipal economic development programs include paying for economic development staff, annual funding to Creative Portland for city marketing/branding, and other TIF law allowable activities. 2) Area wide TIF districts financed by City Bond/Debt Issuance Issuance of municipal general obligation bonds or limited obligation bonds is a mechanism that may be used to fund a TIF district program. Allowable uses are spelled out in state TIF law. Generally, municipalities will issue debt to cover the cost of infrastructure investment. 3) Individual Site Specific TIF districts utilizing Credit Enhancement Agreements (CEAs) A CEA is a contract between a municipality and developer to assist an individual development project by using a percentage or all of the tax revenue generated by the investment to pay certain authorized project costs which could include site specific infrastructure or private individual project financing needs. Allowable project costs are spelled out in state TIF law. B. Policy for the Three Approaches 1. Policy for Municipal Economic Development Programs. Requires annual review and City Council financial appropriations. 2. Policy for Area wide TIF District Locations (for City Bond/Debt Issuance) a) Area wide TIF will be established for infrastructure investment which has applications beyond one individual project. b) City TIF emphasis will be placed upon the following general “Priority Revitalization Areas” to support commercial development, housing development, redevelopment, or to support buildings in need to redevelopment, address blight or historic preservation: 17 of 32  o Affordable housing projects off peninsula; o Riverside Street commercial and industrial zoned areas; o Forest Avenue corridor from I-295 to Woodfords Corner; o Washington Avenue corridor from Congress Street to I-295; o Portland Technology Park ; o Areas in which future significant wastewater and/or stormwater infrastructure investments are planned; o West Commercial Street vacant property; o Libbytown; o St. Johns Street Valley; o Other areas based upon scheduled public infrastructure investment included in the City’s Capital Improvement Plan. The above list of general priority revitalization areas serve as guides to establish specific boundaries for TIF districts at time of district establishment. c) Market Rate Housing. Market rate rental housing projects must be located in priority revitalization areas to stimulate housing investment for the purpose of attracting 24/7 pedestrian activity. Pursuant to State Law, TIF for condominium projects are not allowed. d) Affordable Housing. Affordable Housing TIF (AHTIF) may be designated on an area wide or site specific basis. The relevant City Council Committee will complete an annual assessment of housing needs and priorities. This assessment will include a determination regarding designation of an area wide AHTIF. Site specific AHTIF requests submitted by developers will be considered on a case-by- case basis. Area wide or site specific AHTIF designations must address an identified community need. State law requires that at least 25% of the district area must be suitable for residential use, development must be primarily residential, and at least 1/3 of the units must be for households at or below 120% of area median income which allows for individual mixed income projects or area wide affordable housing TIF districts. Allowable uses of AHTIF revenues are defined by State law. e) City preference is to invest in area wide public infrastructure TIF districts versus establishing individual private site specific TIF districts. 18 of 32  f) Area wide TIF districts also should seek to maximize the benefit of downtown and transit oriented development (TOD) districts which are exempt from State TIF law for acreage and value limitations. g) Terms for area wide TIF districts will be considered for up to 100% of new tax revenue and upwards of thirty (30) years, the maximum allowed by State law, due to the long-term need to invest in neighborhood infrastructure. NOTE 1: As of this Amended TIF Policy date, there are two existing area wide TIF Districts, i.e., Bayside and Waterfront TIF Districts. NOTE 2: As of this Amended TIF Policy date, there also exists two Transit Oriented Development (TOD) District, namely the Thompson Point TOD TIF District and the Downtown TOD TIF District to support new or expanded transit services and improved transit connections between the Portland Transportation Center, Jetport and Downtown. 3. Policy for Individual Site Specific TIF Districts Utilizing Credit Enhancement Agreements (CEAs) a) CEAs for individual site specific TIF districts will be considered for investment in infrastructure or project financing need and cannot be applied to any agreed upon public infrastructure improvements associated with a City Council approved conditional rezone agreement. Additional provisions related to CEAs include: i) City Green Building Code Compliance with the City’s Green Building Code is required when TIF assistance is provided to individual private project CEAs. ii) Affordable Housing Affordable Housing TIF (AHTIF) may be designated on an area wide or site specific basis. Developments are encouraged to promote economic diversity. The City Council Committee will complete an annual assessment of housing needs and priorities. This assessment will include a determination regarding designation of an area wide AHTIF. Site specific AHTIF requests submitted by developers will be considered on a case-by- case basis. Area wide or site specific AHTIF designations must address an identified community need. 19 of 32  State law requires that at least 25% of the district area must be suitable for residential use, development must be primarily residential, and at least 1/3 of the units must be for households at or below 120% of area median income which allows for individual mixed income projects or area wide AHTIF districts. Allowable uses of AHTIF revenues are defined by State law. (iii) State Prevailing Wage Requirement Any firms employed in the construction phase of a TIF-assisted project must compensate all employees the current wage rates and fringe benefits as required under applicable state prevailing wage law under 26 M.R.S.A. §1306, or Portland City Ordinance Ch. 33, §33-1 to 33-12, whichever is greater. City staff shall provide to the relevant City Council Committee an annual update on: a) the impact of this prevailing wage requirements on CEAs; b) feasibility of construction firms to pay prevailing wages and benefits; and c) compliance with this section. (iv) Equal Employment Opportunities and Nondiscrimination The developer and its contractors employed in the construction phase of a TIF-assisted project shall adhere to a policy of non-discrimination in all employment actions, practices, policies, procedures, phases, and conditions of employment. All employment-related decisions (including but not limited to hiring, discharge, transfers, promotions, discipline, training, job opportunities, and wage and salary levels) will be made without discrimination based on an individual’s race or color, religion, age, sex (including pregnancy), sexual orientation, gender identity or expression, ancestry or national origin, physical or mental disability, veteran status, genetic information, previous assertion of a claim or right under Maine’s Workers’ Compensation Act, previous actions taken protected under Maine’s Whistleblowers’ Protection Act, or any other protected group status as defined by applicable law. Provisions in applicable laws providing for bona fide occupational qualifications, business necessity, or age limitations will be adhered to by the developer and its contractors where appropriate. This policy shall not be construed to prohibit any employment action or policy which is required by federal law, rule or executive order. 20 of 32  b) Applicants for CEA participation must demonstrate and pay the following: i) Financial Necessity. The applicant must demonstrate the City’s participation is financially necessary in order for the project to proceed. ii) Financial Capacity. The applicant must demonstrate financial capacity to support their project. iii) Fees A financial underwriting analysis will be conducted by a third party on all projects requesting CEA participation. Applicants for CEA assistance will be responsible for reimbursing the City for all project third party legal and financial underwriting costs. C. Terms for CEA Projects 1) Maximum Percentages. A maximum average percentage of 65% for the entire term associated with individual project CEA’s. Notwithstanding the previous sentence, the maximum average percentage for the entire term associated with individual project CEAs for affordable housing shall be 75%. For the purposes of this policy, the term affordable housing shall be defined as in “V. Approach, Policy, and Term Requirements” Section B(2)(d) (Affordable Housing) of the Portland TIF Policy. 2) Maximum Number of Years. Up to twenty (20) years to match individual private sector commercial financing terms; for Affordable Housing projects, up to thirty (30) years. The term of a TIF may start upon agreed trigger event, such as an increased assessed value. This would be included in a CEA on that negotiated triggering event. 3) Use of Maine Services for CEA Projects Encouraged. 21 of 32 VI. TIF APPLICATION AND ADMINISTRATION PROCESS A. Application Information and Contact. The Economic Development Department and the Housing and Community Development Division (for affordable housing projects) handle all TIF inquires and processes requests for TIF. An applicant must submit a letter to either the Economic Development Department for commercial projects or the Housing and Community Development Division for affordable housing projects outlining the proposed project, including TIF project financial information, a plan outlining both the number of permanent and construction jobs associated with the proposed project, as well as a demonstrated ability to meet the requirements under Section B(3)(a) of this policy. B. Approval Process. There is a two step approval process which includes obtaining a recommendation from the City Council Committee and City Council approval. Two meetings (or readings) by the City Council are needed. The City Council vote on the TIF occurs at the second meeting. C. Post-Construction Report to City Council. The Economic Development Department and the Housing and Community Development Division shall provide a post-construction report to the City Council Committee and City Council regarding each TIF-assisted project which shall include, but not be limited to, an analysis of the adherence to Section (V)(B)(3)(a) of this policy. D. Annual Report to City Council. The Economic Development Department and the Housing and Community Development Division shall provide annual reports to the City Council Committee and City Council regarding TIF district activity. 22 of 32  Appendix B SUMMARY OF ALL APPROVED TAX INCREMENT FINANCING (TIF) DISTRICTS IN THE CITY OF PORTLAND A/O FYE2017 (June 30, 2017) This provides an overview of tax increment financing districts (TIF’s) approved by the City of Portland. Please note that the City approved fifteen TIF’s, with three of these TIFs having separate Credit Enhancement Agreements (CEA) for various projects included in the respective TIF Districts. These three TIF Districts are the Bayside TIF, Waterfront TIF, and Creative Portland Development and Arts TIF District. The separate CEAs are detailed in the listing below. 1. Nichols Portland (Economic Development TIF) (Expired FY14) Duration: 20 year term (FY95 through FY14) Percentages: Years 1 to 5, 90% to Recipient, 10% to City General Fund; years 6 to 10, 75% to Recipient, 25% to City General Fund; years 11 to 20, 50% to Recipient, 50% to City General Fund. Location: 2400 Congress Street This TIF was created to support Nichols Portland expansion of its existing manufacturing facility at 2400 Congress Street and retain 450 jobs. 2. Shipyard/Longfellow (Economic Development TIF) (Expired FY07) Duration: 12 year term (FY96 through FY07). Please note this TIF has expired and the City General Fund is receiving 100% of the real estate taxes. Percentages: 50% to Recipient; 50% to City General Fund Location: Newbury Street This TIF was used to transform the former Crosby-Laughlin site on Newbury Street into the Shipyard Brewing Company. 3. Auto Europe (Economic Development TIF) (Expired FY11) Duration: 15 year term (FY97 through FY11). Please note this TIF has expired and the City General Fund is receiving 100% of the real estate taxes. Percentages: 75% to Recipient; 25% to City General Fund Location: Commercial Street across the street from Casco Bay Lines, former Galt Block building. 23 of 32 This TIF was used to renovate the former Galt Block Building into the headquarters for Auto Europe. The Galt Block Building had been vacant for over 10 years. 4. Bramhall/Holt Hall (Economic Development TIF) Duration: 20 year term (FY00 through FY19) Percentages: 75% to Recipient; 25% to City General Fund, plus a Payment in Lieu of Taxes (PILOT) associated with first floor space. Location: 794 Congress Street This TIF was used to renovate Holt Hall, built in the 1860’s, and then vacant in excess of 10 years, into 36 market rate rental apartments and office space on the ground floor at a cost of almost $4 Million. 5. UNUM (Economic Development TIF) (Expired FYE15) Duration: 15 year term (FY01 through FY15) Percentages: 100% capture of increased value with 75% going to the Recipient, and 25% going to economic development projects for the City. Location: Outer Congress Street. This TIF was utilized to support expansion of UNUM offices and to build a 1,200 space parking garage. 6. Waterfront TIF (Economic Development TIF) Duration as originally approved March 18, 2002: 10 year term (FY03 to FY12) Duration Extended as of June 7, 2010 for a 30-year term: FY03 to FY32 Percentage: 100% TIF capture. Annually, the City Council has adjusted this TIF capture rate to place property tax revenue in the City General Fund. Location: Selected waterfront properties. This is a municipal TIF to be used for waterfront projects. 6a. Waterfront Maine LP (Cumberland Cold Storage Building) on Commercial Street (Economic Development TIF) Duration: 20-year term (FY12 through FY31) Percentage: 63% years 1 through 5; 64% years 6 through 10; 55% years 7 through 15; 45% years 16 and 17; 40% years 18 and 19; and, 35% year 20 – with a maximum cumulative TIF payment numeric cap not to exceed $2,870,058. Location: 252 Commercial Street on the Portland waterfront. The City entered into the TIF in order to support the renovation of the Cumberland Cold Storage building into a Class A office building, with continued marine uses on the first floor and berthing according to zoning regulations. The reuse of this building will accommodate the relocation of Pierce Atwood, bringing its 175 employees to the Portland waterfront. 24 of 32 7. Bayside TIF (Economic Development TIF) Duration: 30 year term (FY04 through FY33) Percentages: 100% TIF capture. Annually, the City Council has adjusted this TIF capture rate to place property tax revenue in the City General Fund. The geographic area of this TIF District was expanded by City Council vote on November 17, 2014, expanding it from 62 acres, to 129 acres, to align with the area of Bayside contained in the Bayside Vision Plans I and II. This is a municipal TIF to be used for public infrastructure improvements, relocation of the one remaining scrap metal recycling facility and acquisition of the scrap metal yard site, business recruitment marketing for the Bayside area, pledging TIF revenue as a repayment source to HUD or any other agency or entity that finances Bayside investment, and administrative and staff costs for the Economic Development Department. Investments from this TIF also include two Credit Enhancement Agreements (CEA’s) with the following: 7a. Capital LLC (Intermed Building) on Marginal Way (Economic Development TIF) Duration: 15 year term (FY09 through FY23) Percentage: 100% to return, to Developer, to an annual maximum cap of $355,000 and annual debt service threshold test. Location: Bayside next to I-295 The City entered into the CEA in order to assist with the development of a parking structure in connection with the office building. 7b. Southern Maine Student Housing on Marginal Way (Economic Development TIF) Duration: 11 year term (FY08 through FY18) Percentage: 100% to return, to Developer, to a maximum annual cap of $120,000 and annual debt services threshold test. Location: Bayside next to I-295 The City entered into the CEA in order to assist with the development of a parking structure in connection with the student housing development. 8. Riverwalk/Ocean Gateway (Economic Development TIF) Duration: 13 year term (FY07 through FY19) Percentages: Formula based percentages in Credit Enhancement Agreement Location: Hancock and Fore Street area 25 of 32 The TIF was entered into to assist with the construction of a parking structure for the development plan for the area adjacent to Hancock Street. 9. Avesta/Pearl Place (Affordable Housing TIF) Duration: 30 year term (FY08 through FY37) Percentages: Various percentages captured value to return to Developer based on Maine State Housing Authority Certificate of Approval, to a maximum of $22,000 annual cap. Location: Oxford and Pearl Streets This TIF is an affordable housing TIF to assist in the creation of affordable housing in the City’s Bayside area along Oxford and Pearl Streets. 10. Creative Portland Development and Arts (Economic Development TIF) NOTE: This area wide TIF District was reduced/renamed by the City Council on February 19, 2015, reducing the geography to just the Baxter Library property (see #10a below), and renaming it the Baxter Library TIF District with the term ending FY19; this will take effect with FY16). Original Duration: 15-year term (FY10 through FY24); Term amended as noted above to end FY19. Original Percentages: 100% capture; annually, the City Council may adjust this TIF capture rate to place property tax revenue in the City General Fund; Percentage amended to reflect the 65% capture for the Baxter Library project. Original Location: Multiple properties included in the Downtown Area; Location amended as noted above to be only the Baxter Library property. This TIF was originally created to assist in maintaining the creative economy businesses through the creation of the Creative Portland Corporation and TIF funds to assist in funding its administrative personnel and program of activities up to a maximum of $100,000 annually. This element of the original TIF District is now included in the recently created Downtown Transit Oriented Development (TOD) TIF District – See Item #18 below. 10a. Baxter Library LP at 621 Congress Street (Economic Development TIF) Duration: 9-year term (FY11 through FY19) Percentage: Lesser of annual 65% to return to Developer or amount necessary to service project debt. Adjustments to annual payment if project refinancing occurs. Location: 621 Congress Street The City entered into the CEA in order to assist with the reuse, redevelopment, and preservation of a hallmark downtown building built in 1888, where adaptive reuse of this former library is challenging and expensive. This Project will add $2.5 Million in new municipal assessed commercial valuation and generate an average of $16,000 annually, in funds, to support the Creative Economy TIF Program or 26 of 32  the City’s General Fund as directed by the City Council. The reuse of this building will accommodate the relocation of the VIA Group, bringing its 64 employees to this upper area of downtown Portland. 11. McAuley Place (Economic Development TIF) Duration: 30 year term (FY10 through FY39) Percentages: 60% to Recipient; 40% to City General Fund. Location: 605 Stevens Avenue This TIF was created to assist in the renovation of the former Mother House/Convent (built over 100 years ago) on Stevens Avenue into a market rate independent senior living community, including 45 to 50 apartments in the renovated Convent; 25 to 30 apartments (new construction) in an addition to the Convent; and, 36 units (new construction) located in three townhouse/cottages adjacent to the Convent. 12. PowerPay/Portland Public Market (Economic Development TIF) Duration: 30 year term (FY11 through FY40) Percentages: Years 1 through 8 – 75% to Developer, 25% to City General Fund; Years 9 through 30 – 50% to Developer, 50% to City General Fund. Location: 25 Preble Street This TIF district was created to support the retention and expansion of PowerPay along with redeveloping an important asset in Portland’s Downtown that was formerly known as the Portland Public Market. Because of the complex renovation issues and the high cost associated with redeveloping the Portland Public Market property, PowerPay requested TIF assistance to cover the Project financing gap. PowerPay renovated and moved its headquarters to this location with well over 150 employees. 13. Thompson’s Point Development Company, Inc. (Transit-Oriented TIF) Duration: 30 year term (FY15 through FY44). Percentages: Phase One of Project: Years 1 through 10 – 75% to Developer and 25% to City transit- oriented projects; years 11 through 15 – 60% to Developer, 25% to City transit-oriented projects, and 15% to City’s General Fund; years 16 through 20 – 50% to Developer, 25% to City transit-oriented projects, and 25% to City’s General Fund; years 21 through 30 – 40% to Developer, 25% to City transit-oriented projects, and 35% to City’s General Fund. Phases Two and Three of Project: Years 1 through 30 – 0% to Developer; 25% to City transit-oriented projects; 75% to City’s General Fund. Location: Thompson’s Point This Transit-Orient Development (TOD) Tax Increment Financing (TIF) District was created to support Thompson’s Point Development Company Inc.’s redevelopment of 27 of 32 Thompson’s Point into the Forefront at Thompson’s Point. Additionally, the TOD will assist to expand and improve transit connections between Thompson’s Point and key commercial locations within Portland (i.e. Jetport, Portland Transportation Center and Portland’s Downtown) and around the region. Thompson’s Point consists of approximately 30 acres of real estate adjacent to the Portland Transportation Center that is home to the Northern New England Passenger Rail Authority, which runs the Amtrak Downeaster and Concord Trailways bus company. The Forefront at Thompson’s Point is a proposed mixed-use development that will transform a blighted and grossly underutilized 30-acre parcel located along Interstate 295 into a highly visible gateway destination event center that is expected to generate significant economic activity within the District and throughout Portland. The Company plans to redevelop Thompson’s Point in a manner that includes a substantial investment in public infrastructure, including construction of an above-ground parking garage with approximately 700 spaces, road extensions and widenings, rail crossings upgrade, utility investments, and expanded walking and biking trails. 14. The Village at Oceangate, LLC (Bay House) (Economic Development TIF) This TIF was terminated by the City Council on November 3, 2014 due to the conversion of market rate apartments into condominiums which is not allowable use of TIF funds. Duration: 11 year term (FY14 through FY25) Percentages: Years 1 through 5 – 75% to Developer, 25% to City General Fund; Years 6 through 10 - 65% to Developer, 35% to City General Fund. Total revenue to developer is capped at $647,971 over the term of the District. Location: Hancock Street, between Newbury and Middle Streets. This TIF district was created to support the development of The Bay House Project. The Project includes the construction of two new buildings that will contain ninety-four (94) market rate apartments, a parking garage, and approximately 5,700 square feet of commercial retail space. Use of TIF proceeds is directed to support public infrastructure investments. 15. Fore India Middle, LLC (former Jordan’s Meat Site) (Economic Development TIF) This TIF was terminated by the City Council on November 3, 2014 due to the project not coming to fruition. Duration: 4 year term (FY14 through FY17) Percentages: Years 1 and 2 – 50% to Developer, 10% to City TIF Project; 40% to City General Fund; Year 3 - 40% to Developer, 10% to City TIF Project; 50% to City General Fund; Year 4 – 40% to Developer, 60% to City General Fund. Total revenue to developer is capped at $650,000 over the term of the District. Location: Portion of block surrounded by Fore, India, and Middle Streets. 28 of 32 This TIF district was created to support the development of a portion of the former Jordan’s Meats site. This development project includes a five-story, approximately 180,000 sf. of mixed-use consisting of 12,300 sf. of retail space on Middle Street, 9,800 sf. of retail space on Fore Street, three levels of office space comprising 63,900 sf. on Middle Street, and 18 residential condominium units along Fore Street and India Street. In addition, there will be two "internal" parking garages behind the retail spaces (not visible from the street), one 110-space garage at the Fore Street level, and another 63-space garage one story above at the Middle Street Level. The Developer expects to have an urban grocery on Middle Street with a variety of produce, meats, food, and household items, with an emphasis on natural, organic and healthy items. The other retail users and the office users have not been identified yet. Use of TIF proceeds is directed to support public infrastructure investments. 16. 409 Cumberland Avenue (Affordable Housing TIF) Duration: 22 year term (FY14 through FY35) Percentage: 50% to Developer; 50% to City Housing Affordable Housing Revolving Loan Fund Location: 409 Cumberland Avenue This Affordable Housing TIF District supports the development of 46 affordable units and 11 market rate units of rental housing. TIF revenues will be used by Developer to pay operating costs for the project; City TIF revenues will be used for the establishment of an affordable housing revolving loan fund. 17. 134 Washington Avenue (Affordable Housing TIF) Duration: 20 year term (FY15 through FY34) Percentages: 50% to Developer; 50% to City General Fund. This Affordable Housing TIF District supports the development of an 18-unit residential rental project. TIF revenues will be used by Developer to pay for operating costs for the project. 18. Downtown Transit Oriented Development (TOD) TIF (Economic Development TIF District) Duration: 30 year term (FY16 through FY45) Percentages: 12% Year One; 22% years 2 through 30; 88% to General Fund Year One; 78% to General Fund Years Two through Thirty. This Downtown TOD TIF will support various municipal and other development projects, including sidewalk and pedestrian enhancements, streetscape, lighting, yearly funding of up to $100,000 for Creative Portland to assist in funding its administrative personnel and program of activities (see Item #10 above), street alignment, utilities, bicycle improvements, public transit, wayfinding, and administrative and staff costs for the Economic Development Department. 29 of 32 19. 17 Carleton Street (Affordable Housing TIF) Duration: 22 year term (FY16 through FY37) Percentages: Years 1 and 2: 0% to Developer; 100% to City. Years 3 through 22: 65% to Developer; 35% to City General Fund. This Affordable Housing TIF District supports the development of a 37-unit residential rental project. TIF revenues will be used by Developer to pay for operating costs for the project. 20. ImmuCell (Economic Development TIF) Duration: 12 year term (FY18 through FY29) Percentages: Years 1 through 11: 65% to Developer, 35% to City General Fund; Year 12: 30% to Developer, 70% to General Fund. This Economic Development TIF supports ImmuCell Corporation’s expansion from its existing facility at 56 Evergreen Drive to a new two-story, 12,625 sq. ft. (est.) production facility on Caddie Lane off of Riverside Street. ImmuCell Corporation is a growing animal health company that develops, manufactures, and sells products that improve animal health and productivity in the dairy and beef industry. Over the last nearly 16 years, the Company has invested in excess of $11 Million in the R&D of a product that addresses mastitis, the most significant cause of economic loss to the dairy industry. This lead product in development is Mast Out, a novel, ground-breaking treatment for mastitis in lactating dairy cows. Completion of construction of this new facility is expected in 2017. 30 of 32 Appendix C 31 of 32  Appendix D FYE2017 Report FY 17 Tax Rate: 0.02111 TIF Name Starts/ TIF PLAN TOTAL ORIGINAL Increased PERCENT Total Cpt. PROCEEDS City TIF City General Fund (OAV and Non- Captured Taxes SITE Specific with CEA: Ends-FY TERM YEAR ASSESSED ASSESSED Assessed value APPLIED Value TO OWNER Funds from IAV) HOLT HALL 00/19 20 YEARS 18 4,956,760 349,110 4,607,650 67% 3,070,538 64,819 0 39,818 - FY17 Taxes 104,637 7,370 97,267 64,819 Baxter Library (f/k/a Arts) 11/19 9 YEARS 7 2,502,600 0 2,502,600 65% 1,626,690 34,339 0 18,490 - FY17 Taxes 52,830 0 52,830 34,339 AVESTA/Pearl Place 08/37 30 YEARS 10 3,581,560 646,050 2,935,510 35% 1,027,429 21,689 0 53,918 - FY17 Taxes 75,607 13,638 61,969 21,689 OCEAN GATEWAY/Riverwalk 07/19 13 YEARS 11 13,319,200 1,085,550 12,233,650 52% 6,410,433 117,443 0 163,725 - FY17 Taxes 281,168 22,916 258,252 135,324 PowerPay/Ptld Pub Mkt 11/40 30 YEARS 7 6,259,500 1,862,600 4,396,900 75% 3,297,675 69,614 0 62,524 - FY17 Taxes 132,138 39,319 92,819 69,614 McAuley/Inactive 10/39 30 YEARS 8 0 0 0 60% 0 0 0 0 Thompson's Point TOD 15/44 30 YEARS 3 8,434,470 4,970,470 3,464,000 25% 866,000 0 18,281 159,770 - FY17 Taxes 178,052 104,927 73,125 18,281 409 Cumberland Ave. AH 14/35 22 YEARS 4 3,717,960 470,200 3,247,760 100% 3,247,760 34,280 34,280 9,926 - FY17 Taxes 78,486 9,926 68,560 68,560 134 Washington Ave. AH 15/34 20 YEARS 3 1,079,400 155,600 923,800 50% 461,900 9,751 0 13,035 - FY17 Taxes 22,786 3,285 19,501 9,751 17 Carleton St. AH 16/37 22 YEARS 2 261,600 261,600 0 0% 0 0 0 5,522 - FY17 Taxes 5,522 Area-Wide TIFs, with CEA BAYSIDE 04/33 30 YEARS 14 192,439,970 122,318,180 70,121,790 55% 38,552,960 463,749 350,104 3,248,555 FY17 Taxes 4,062,408 2,582,137 813,853 - CEA/Atlantic Bayside Trust 09/23 15 YEARS 9 29,268,370 0 29,268,370 Formula 355,000 - CEA/Blue Atlantic 08/18 11 YEARS 10 16,320,830 0 16,312,380 Formula 108,749 WATERFRONT 03/32 30 YEARS 15 41,626,840 7,667,340 33,959,500 66% 22,576,276 192,339 284,246 402,157 FY17 Taxes 878,743 161,858 476,585 - CEA/Waterfront Maine 12/31 20 YEARS 6 15,187,300 950,930 14,236,370 64% 9,111,277 192,339 DOWNTOWN TOD TIF 16/45 30 YEARS 2 1,052,229,450 968,136,850 84,092,600 22% 18,500,372 390,543 21,822,021 FY17 Taxes 22,212,564 20,437,369 1,775,195 390,543 Total Value: 1,311,149,460 1,107,923,550 203,487,510 99,638,032 Total Taxes: 27,678,365 23,388,266 4,295,621 2,103,359 1,008,023 1,077,454 25,999,463 32 of 32  Economic Development Department Gregory A. Mitchell, Director MEMORANDUM TO: Economic Development Committee FROM: Greg Mitchell, Economic Development Director DATE: February 15, 2018 SUBJECT: 2018 Draft Economic Development Committee Work Plan As a follow-up to the February 6, 2017, EDC meeting discussion, the Draft 2018 Work Plan includes: Broadband Access (2017 Mayor and City Council Goal). High speed infrastructure; broad band. IN PROCESS AND NEXT STEPS. At the July 26th, 2016, EDC meeting, staff provided a summary of a proposed Master Lease Agreement with Verizon to support small cell technology investment in Portland. The City Council approved this Master Lease on August 1, 2016. Also, it is noted the City issued a News Release on July 19th, 2016, with the topic “City Seeks Citizens to Complete Internet Services Survey” and noting “Selects SiFi Networks to explore potential citywide fiber network”. Staff continues to work with SiFi Networks to move forward with a public-private partnership. A City Council workshop was held on December 12, 2016 with Council direction to refer negotiations to the EDC to finalize partnership documents for recommendation to the City Council. At the February 6, 2018 EDC meeting, Jon Jennings updated the Committee that a company is looking to do this on its own at no cost to the City. Updates will be provided as they become available. Eastern Waterfront Public Infrastructure Investment/Increase Utilization of the Portland Ocean Terminal (POT) (2017 Mayor and City Council Goal) Establish direction on the future of the Portland Ocean Terminal, including waterfront concerts and Compass Park. With as much as 70,000 square feet of vacant space, the Portland Ocean Terminal on the Maine State Pier needs a plan for investment and optimized utilization. Existing uses, including City cruise ship port of call support, Portland Tugboat, and Ready Seafood, provide a solid basis for growth; however, the building’s age, condition, location within a Federal security area, and lack of 1 supporting infrastructure (parking, loading, sidewalks …) severely limit the potential reuse of the building as currently configured. See sections entitled “Eastern Waterfront Public Infrastructure Investment” and “Establishing New Policy Direction” for more information and inter-relationship with approaches to improving utilization of the POT. At the September 5, 2017 EDC meeting, City Waterfront Coordinator Bill Needelman provided the Committee with an overview and process to go forward, including conducting an inventory of uses, understanding current conditions, and coordination with existing operations. In the short-term, provide basic circulation and utilities changes and moving utilities into the main building. The second floor provides the most opportunity for increased development; the main floor is used by the City, storage in the winter for cruise ship activities, as well as Ready Seafood’s use and other marine dependent uses. On October 2, 2017, the City Council held a workshop on suggested plans for the future of the POT, which was then followed by an EDC meeting on November 28, 2017, with staff providing illustrative redevelopment concepts for feedback from the Committee, including a draft updated Policy Statement for the POT. This was favorably received by the Committee, noting that work on this would continue with the 2018 EDC. Since that time, staff has been working on public outreach and will report back to the Committee on its findings when appropriate. Tax Increment Financing Employment Disparity Study and Workforce Job Training Program The 2017 EDC recommended that the City Manager and/or his/her designee undertake an analysis of the costs associated with the City undertaking an Employment Disparity Study and report back to the EDC in January 2018, and to explore the establishment of a City workforce job training program, utilizing funds from area-wide TIF Districts to fund the program. Next Steps: Staff is researching the scope and cost of conducting an employment disparity study. Results of that research are expected to be presented to the EDC in March. Also, staff will look at other municipal TIF programs regarding utilizing TIF revenue for adult education and workforce job training programs and report back to the Committee on its findings. FYE2017 Annual TIF Report to City Council: Annually the Economic Development Department issues a City Fiscal Year Report related to Portland TIF District activity. This report is available on the City web page at: http://www.portlandmaine.gov/529/Tax-Increment-Financing. The 2017 Annual Report will be presented to the EDC at its February 20, 2018 meeting. Possible Amendments to Waterfront TIF District: One recommended TIF District amendment to discuss, in 2018, is the possible geographic expansion of the Waterfront TIF District. The areas to consider including in the Waterfront TIF District are East and West Commercial Street properties due to planned private sector investment projects and supporting public infrastructure needs. 2 Next Steps: Presenting any private TIF District requests to the EDC for direction, along with revisiting the Waterfront TIF District boundaries for possible expansion. Payment In Lieu of Taxes (PILOT) New City Policy Staff prepared a draft policy for 2017 EDC consideration for non-profit tax exempt organizations to contribute annually to cover the cost of municipal services. At the September 5, 2017 EDC meeting, City Finance Director Brendan O’Connell provided a general overview of a proposed policy, and at the November 28 EDC meeting, provided a draft policy for review, discussion, and feedback. It is expected that the 2018 EDC will continue its review and make a recommendation to the City Council. Establish Development Impact Fees Staff will work with the EDC to create a formula that standardizes fees - providing certainty to the development community and City resources. At the September 5, 2017 EDC meeting, Planning and Urban Development Director Jeff Levine provided a general overview of the current City current impact fees, determined through development review. Next step is to bring a proposed overall impact fee policy to the EDC so that both the City and developers know formulas for impact fees and can insert them into pro formas. Eastern Waterfront Public Infrastructure Investment Investing in public infrastructure is an important municipal government responsibility to attract private sector investment. Locations which require public infrastructure planning include both implementation of existing policies and creating new policy direction for investment: Implementing Existing Policy: Private Development Integration. The Economic Development Department is leading a Planning, Public Works, and Parks & Recreation Department discussion to plan road, parking garage, and utility extensions in Portland’s Eastern Waterfront, facilitating planned and future development consistent with the Eastern Waterfront Master Plan (EWMP.) Next Steps. Public/private partnerships to develop public infrastructure improvements and revenues to finance the investments. Amethyst Lot Open Space Development. Implementing recommendations from the EWMP and conditions of approval from Ocean Gateway, to define program and design elements for signature waterfront open space promoting recreation and active use of the water. The 2017 EDC was provided a concept of redevelopment at its August 22, 2017, meeting, with overall consensus of agreement with the concept, which has been informally called “Portland Landing”. The EDC will be kept updated on the continued public process. 3  Establishing New Policy Direction: Ocean Gateway to discuss reconfiguration of the “queuing area” located behind the fence to free up property for more diversified marine activity, support for the Portland Ocean Terminal, and expanded access to the water for commercial and public uses. The City Manager met with Custom Border Protection (CBP) personnel to discuss relocating U.S. Customs pre-clearance to Yarmouth, Nova Scotia. Staff is researching options; update forthcoming. Possible new Pier development between Ocean Gateway and the Maine State Pier to support increased commercial use of the waterfront and support for the marine passenger industry. Staff is exploring Federal funding opportunities and updates will be provided when appropriate. Portland Ocean Terminal (POT). Evaluate supporting infrastructure to attract increased commercial and marine tenant use of available 25,000 +/- square feet of vacant second floor office space and 70,000 square feet of vacant ground floor marine industrial space, coupled with waterfront concerts use and Compass Park use. On October 2, 2017, the City Council held a workshop on suggested plans for the future of the POT, which was then followed by an EDC meeting on November 28, 2017, with staff providing illustrative redevelopment concepts for feedback from the Committee, including a draft updated Policy Statement for the POT. Under direction of the EDC, public outreach is planned for March. Staff will update the EDC after completing public outreach. Portland Transportation Center (PTC) In partnership with the MDOT, NNEPRA, and private sector property owners, work to develop an expanded intermodal passenger station in the Thompson Point area. Next Steps. Staff to work with the transportation agencies and private partners to establish timeline and work plan for PTC improvements. Present briefing to the EDC when appropriate. Lease of City Properties Leasing City owned properties requires City Council approval. Policy discussion regarding the leasing of City owned properties needs to be discussed. Examples of commercial leases requiring EDC (in the form of a recommendation to the City Council) and City Council action include: Ocean Gateway to support ferry operator lease. An amendment to the Bay Ferries Lease is under negotiation to extend ferry service in 2018 subject to conditions. Portland Ocean Terminal tenant lease for Ready Seafood Companies. Amendments to this Lease will be proposed in 2018. Spring Street Parking Garage Commercial tenant leases including the former Pirates space, with 2,400 square feet. At the February 6, 2018 EDC meeting, it reviewed proposed Lease and Parking Revenue Sharing Agreement with Portland Hockey, LLC. The EDC voted 4  unanimously to forward this to the City Council for approval, which is expected at the February 21, 2018 Council Meeting. Casco Bay Island Transit District (CBITD) Lease: Staff is beginning its review of the existing Lease to recommend, at the appropriate time, amendments. This current 30-year lease expires June 2018. Next Steps include presenting commercial leases to the EDC when ready. City Properties (Sales and Acquisitions) Sales Bayside former Public Works property at 44 Hanover Street. City staff discussed this in executive session at the February 6, 2018 EDC meeting and continues negotiations for a Purchase and Sale Agreement for EDC review and recommendation to the City Council. Portland Technology Park. Three available sites. Riverside Street Seven (7) Acre Industrial Property. City staff will continue its marketing this property for sale. At the February 20, 2018 EDC meeting, staff will discuss in executive session for direction related to buyer interest. Thames Street Gravel Parking Lot. It is anticipated that during 2018, the EDC will consider options for the possible sale of the remaining portion of the Thames Street gravel parking lot. Acquisitions Redlon Woods: The Land Bank Commission is interested in accepting donations and acquiring privately-owned vacant land in this area of the City to be placed into the Land Bank. Because of the property acquisition, this will come before the EDC, as well as the Land Bank Commission (LBC) for recommendations to the City Council. Outdoor Seating for Food Service Establishments: Review current permitting process/ordinance and any barriers, particularly for older buildings. Staff is working on this topic. Updates will be provided when appropriate. Open Forum for Restauranteurs: Forum for restaurant owners to talk about what is going well, what is not, and any other issues or comments they may have. 5