Portland Development Corporation

PORTLAND DEVELOPMENT CORPORATION Board Meeting DATE: Wednesday, June 25, 2025 TIME: 12:00 PM LOCATION: This meeting will take place remotely via Zoom. Please click below to join the webinar. https://portlandmaine- gov.zoom.us/j/83913563974?pwd=KTrttnts1DcaSOUAvOwvVAp9TGlTuZ.1 Passcode:226552 Phone one-tap: +13092053325,,83913563974# US +13126266799,,83913563974# US (Chicago) Webinar ID: 839 1356 3974 International numbers available: https://portlandmaine-gov.zoom.us/u/kQS1G2rqD AGENDA 1. President's comments 2. Review and accept Meeting Minutes a. March 5, 2025 Meeting Minutes b. May 15, 2025 Meeting Minutes Review and vote on approval and recommendation to the City Council of 3. the proposed Business Assistance Program (BAP) for Job Creation Grant Guidelines. a. Memorandum for 2025 Business Assistance Program for Job Creation Program Page 1  b. HUD Adjusted CDBG Allocation c. Redlined 2025 Draft BAP Guidelines d. Clean 2025 Draft BAP Guidelines Review and vote on a recommendation for a loan application by Cognitive 4. Community Care LLC, 415 Congress Street, Suite 418. a. NOTE: Pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119-A, the Board may go into executive session to discuss proprietary information regarding this loan. After the executive session, the Board will vote in public session. Review and vote on ARPA Microenterprise Grant Application from Babb's 5. Ceramics, 62 Mellen Street. a. Note: Pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119—A, the Board may go into executive session to review proprietary confidential information associated with these applications): 6. Treasurer's Report - May 2025 a. Monthly Administrative Budget Report b. Cash Management Report c. Schedule of Loans Receivable d. Confidential Delinquency Report; update on loan modifications, if any. Note: Pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119—A, the Board may go into executive session to discuss/monitor any of the loans listed on the Report. 7. Staff verbal update 8. Other Items to be discussed/brought up by Board Directors 9. Next Regular Meeting Date: July 17, 2025 City of Portland Commissions are not required to take public comment under FOAA and our Ordinance is silent regarding the duties of the Commission. The Commission has the discretion to not allow or allow public comment during its meetings, including the authority to limit the duration of comments. Since the Commission makes recommendations to the City Council, public comment is available at that level. Page 2  DRAFT Minutes Portland Development Corporation Special Remote Zoom Meeting Held on March 5, 2025 ​ A special remote meeting, via Zoom, of the Portland Development Corporation (PDC) Board of Directors was held at 12:00 p.m. on Wednesday, March 5, 2025. Present from the Board of Directors were Board President Kierston Van Soest, Directors Jonathan Berg, Matthew Buonopane, Nathan Henry, Dena Libner, and Nikki Yanok. Board Directors Sam Dargan, Eamonn Dundon, Councilor Ben Grant, Scott Kleiman, and Beverly Werber could not be present. Present from City staff were Associate Corporation Counsel Avery Dandreta, ARPA Project Coordinator Kaela Gonzalez, Business Programs Manager Nancy Martin, Associate Corporation Counsel Amy McNally, Principal Administrative Officer Lori Paulette, and Housing and Economic Development Director Greg Watson. The City of Portland’s Qualified Environmental Professional on this project, Jedd Steinglass of Woodard and Curran, was also in attendance. Item #1: President’s comments. President Van Soest thanked the Directors for their attendance at this special meeting. Item #2: Review and vote on a waiver request from Avesta Housing Development Corporation for 89 Elm Street. Ms. Martin gave an overview of the history of the subgrant and loan to Avesta Housing Development Corporation for 89 Elm Street, approved on July 18, 2024. Avesta requests a waiver asking the City to reimburse Avesta once they incur costs with both the subgrant and loan. The staff recommends approving Avesta’s request to provide reimbursement based on incurred costs for the $500,000 Brownfields remediation subgrant and table the request for the 1 Page 3  DRAFT loan, with the requirement that Avesta provide proof of payment within 30 days from receipt of grant funds. Nate Howes with Avesta Housing Development Corporation further explained the reason for the request and reiterated that this request is due to the uncertainty of funding at the Federal level. Mr. Howes and staff answered a few questions posed by the Directors. On a motion made by Mr. Buonopane and seconded by Mr. Henry, the Board voted 5-0-1 (Mr. Berg abstained) to approve the waiver request by Avesta Housing Development Corporation as recommended by the memorandum included in the backup materials to the PDC by staff. Item #3: Other Items to be discussed/brought up by Board Directors No other items were discussed. Item #4: Next Regular Meeting Date: March 20, 2025. ​ There being no further business, on a motion by Mr. Berg and seconded by Ms. Yanok, the Board voted 6-0 to adjourn the meeting at 12:21 p.m. ​ ​ ​ Respectfully, Kaela Gonzalez 2 Page 4  DRAFT Minutes Portland Development Corporation Remote Zoom Meeting Held on May 15, 2025 ​ A remote meeting, via Zoom, of the Portland Development Corporation (PDC) Board of Directors was held at 4:00 p.m. on Thursday, May 15, 2025. Present from the Board of Directors were Board President Kierston Van Soest and Directors Jonathan Berg, Matthew Buonopane, Sam Dargan, Eamonn Dundon, Councilor Ben Grant, Beverly Werber, and Nikki Yanok. Board Directors Nathan Henry, Scott Kleiman, and Assistant City Manager Dena Libner could not be present. Present from City staff were Associate Corporation Counsel Avery Dandreta, ARPA Project Coordinator Kaela Gonzalez, Business Programs Manager Nancy Martin, Principal Administrative Officer Lori Paulette, and Housing and Economic Development Director Greg Watson. Item #1: President’s comments. President Ms. Van Soest opened the meeting and informed the Board that after 5:15 pm the meeting will no longer have a quorum. Item #2: Review and vote to accept Minutes of March 20, 2025 meeting. ​ On a motion made by Mr. Berg and seconded by Mr. Dargan, the Board voted 4-0-4 (Mr. Dundon, Ms. Van Soest, Ms. Werber, and Ms. Yanok abstained) to approve the March 20, 2025 Meeting Minutes. Item #3: Review and vote on recommendation to the City Council regarding TIF- funded Downtown Improvement Loan Guidelines. ​ Ms. Martin provided a recap of the proposed program and discussion from the February 20, 2025 and March 20, 2025 meetings, which resulted in a few changes to the proposed guidelines. These changes included an increase in the loan amount to $20,000 from $10,000, and Page 5  DRAFT eligible activities were expanded to include security cameras, interior lighting, exterior lighting, and outdoor furniture. Discussions highlighted concerns about the challenges facing downtown, including security issues, cleanup costs, and a lack of foot traffic. Ms. Martin reports that businesses have expressed support for the loan program as a way to improve storefronts. Mr. Dundon, Councilor Grant, and Mr. Watson discussed how the loan program is considered one part of a larger, multi-faceted strategy to revitalize the downtown area. Other initiatives include a forthcoming vacancy ordinance, increasing police presence, relocating food distribution, and activating public spaces. Long-term projects aimed at increasing foot traffic were also mentioned. Board members discussed the need for multiple strategies, the importance of addressing both short-term and long-term issues, and the flexibility to revisit and reprogram the loan funds as needed. On a motion made by Mr. Dundon and seconded by Mr. Buonopane the Board voted 8-0 to recommend to the City Council the proposed TIF-funded Downtown Improvement Loan Guidelines. Item #4: Review and recommendation to the City Council approval of proposed Bylaws amendment. Ms. Martin reviewed the proposed change to Section 5.6 of the Bylaws to clarify voting procedures. Currently, the wording states "at least 4 votes carry the motion," and the proposed change is to replace "at least 4" with "a majority." On a motion made by Mr. Dargan and seconded by Mr. Berg, the Board voted 7-0 (Councilor Grant left the meeting at approximately 4:12 pm) to approve the proposed Bylaws amendment. Page 6  DRAFT Item #5: Discussion and possible vote regarding Brownfields program flexibility in light of fully expended EPA grants. City staff requests the Board's approval for two actions related to Brownfields remediation and assessment programs: 1) authorization to issue commitment letters for remediation funding to approved applicants before receiving supplemental EPA funds expected in late summer 2025, and 2) requests permission for staff to administratively manage up to $5,000 of program income per site per year for activities like Phase I Environmental Site Assessments or soil sampling, without requiring prior Board approval. Concerns were raised about the risk of pre-committing more funds than received and the potential for funding disruptions from the federal government. Ms. Martin clarified that if the EPA funds are not received, the City will not be held to the commitment. On a motion made by Mr. Dundon and seconded by Mr. Dargan, the Board voted 7-0 to approve the issuance of commitment letters to approved Brownfields remediation funding applicants, at their own risk, before funding is received by the EPA later in 2025, as well as Board support allowing staff the administrative authority to use program income of up to $5,000 per site per year without requesting Board approval. Item #6: Review and vote on the Microenterprise Grant Applications presented on the meeting materials. Ms. Martin reports that $15,000 remains in American Rescue Plan Act (ARPA) funding and that there are currently three applications under consideration. She recommends funding Felina, LLC, an art business owned and operated by Laura Bramley, as a new applicant. Martin suggests not funding Maine Surfers Union and Al Badoo Community Association of Maine, since they received grants from the same fund last year. Page 7  DRAFT Ms. Martin invited Ms. Bramley to join the meeting, who then proceeded to introduce her business, Felina Design Company. She described her work, which included providing graphic design services and painting murals for local businesses in Portland, including work for Bom Dia Cafe and Dok Mali Noodle Bar. She mentioned her studio in the State Theater building and how economic uncertainty has affected her client requests. She said the grant would help her maintain her business and continue bringing art to Portland. On a motion made by Ms. Werber and seconded by Mr. Dargan, the Board voted 6-0-1 (Mr. Berg abstained) to approve a $5,000 ARPA Microenterprise Grant to Felina Design Company (recently renamed to Four West Studio LLC), and not to approve the applications by Maine Surfers Union and Al Badoo Community Association of Maine. Item #7: Treasurer's Report - April 2025 Ms. Paulette provided an overview of the administrative budget, cash management report, and the schedule of loans receivable. Ms. Werber requested more information regarding the advertising budget and the staff’s strategy to market the new zero-interest loan program and suggested that funds may be used for that purpose. Item #8: Staff verbal update. Ms. Martin invited the Board to attend the Build Maine conference being held June 3 and June 4, 2025 in Skowhegan and shared the news of the successful Job Creation Grant application for Community Development Block Grant funds for $205,000. Item #9: Other Items to be discussed/brought up by Board Directors. No other items were discussed. Item #7: Next Regular Meeting Date: June 19, 2025 falls on the Juneteenth Holiday - either to be rescheduled or canceled. Page 8  DRAFT The Board will be notified if there is a need to reschedule the June meeting, otherwise it will be canceled. ​ There being no further business, on a motion made by Mr. Dargan and seconded by Mr. Berg the Board voted ​7-0 to adjourn at approximately 4:51 pm. ​ ​ Respectfully, Kaela Gonzalez Page 9 City of Portland | Housing and Economic Development Department Gregory P. Watson, Director ​ ​ TO:​ ​ President Kierston Van Soest and PDC Board Members FROM:​ Nancy L. Martin, Business Programs Manager CC:​ ​ Greg Watson, Director, Housing and Economic Development Department DATE:​​ June 25, 2025 RE:​ ​ 2025 Business Assistance Program for Job Creation Program (funded by CDBG) OVERVIEW: The Business Assistance Program (BAP) for Job Creation offers grants to for-profit Portland businesses for projects that result in the creation of net new jobs for low/moderate income individuals. A private match is required in an amount that is at least equal to the grant requested. The most recent round of grants was oversubscribed, so to increase the program’s reach the maximum grant amount per recipient is $10,000. This program was originally capitalized with $100,000 from the Community Development Block Grant (CDBG) and launched in May of 2012. It was re-capitalized by the CDBG program in FY14 and FY16 with an additional $100,000 each of those years, an additional $108,543 for FY18, $145,000 for FY19, $200,000 for FY2020, and $205,000 for FY2022. Combined with leftover BAP funds from previous allocations, funding for FY2022 totaled $330,000. Since inception, grants were made to 80 recipients resulting in the creation of 160 jobs. In July of 2024 the program was recapitalized with $100,000 that was awarded to ten businesses. Staff was told in May 2025 that the program would receive another $205,000 based on a successful application. Staff plan to allocate $100,000 to grants in late summer of 2025, and another $100,000 in 2026, with the remainder reserved for underwriting services. MODIFICATIONS TO PREVIOUS PROGRAM: The substantive modifications to this latest program iteration are: 1.​ Grantees will receive grant funding incrementally to accompany quarterly reporting, 2.​ Employers must maintain the job for six months (as opposed to a year), 3.​ Clarification of full time and part time hours, 4.​ Eligible uses have been limited to just commercial rent (to streamline process and address commercial vacancies). 389 Congress Street, Portland, ME 04101 – www.portlandmaine.gov – (207) 874-8683 Page 10 RECOMMENDATION: Staff recommends approval and recommendation to the City Council of the proposed Business Assistance Program for Job Creation grant guidelines. ATTACHMENTS: 1.​ HUD CDBG allocation chart 2.​ BAP for Job Creation Draft Guidelines – Redlined format 3.​ BAP for Job Creation Draft Guidelines – Clean format ​ ​ ​ 389 Congress Street, Portland, ME 04101 – www.portlandmaine.gov – (207) 874-8683 Page 11 CDBG Allocation 2025-26 HUD Allocation $1,807,636.00 Projected Program Income $74,924.00 Total HUD Funding (Actual)* $1,882,560.00 HUD Administrative Cap (20%) $376,512.00 City Admin TIF $30,000.00 Actual Administrative $406,512.00 HUD Social Service Cap (33%) $604,768.38 Cotton St Funds $20,000.00 Remaining COVID Response Waiver Funds $68,000.00 Actual Social Service $692,768.38 HUD Development Activities $901,279.62 Downtown TIF $90,000.00 Adjusted Contingency $86,720.38 Actual Development Activities $1,078,000.00 Total Actual Funding $2,177,280.38 Administration and Planning Avg App Funding Point Committee City Manager Final City Council Adjusted for Final Case Id Priority Organization Project Name Committee Final Score * Type Requested Deductions Recommendation Recommendation Allocation HUD Allocation Score Housing and Economic Development N/A Admin N/A CDBG Admin and Planning $377,706.00 $377,706.00 $411,693.00 * $411,693.00 $406,512 Department *Indicates allocation of TIF Funding ($30,000) Development Activities Applications Avg App Funding Point Committee City Manager Final City Council Adjusted for Final Case Id Priority Organization Project Name Committee Final Score * Type Requested Deductions Recommendation Recommendation Allocation HUD Allocation Score City of Portland Department of Parks, Tyng Tate Playground and Age 30585 Cons. NI $248,000.00 90.43 0.00 90.43 $248,000.00 $248,000.00 $248,000.00 $248,000 Recreation, and Facilities Inclusive Courts City of Portland Department of Public Cumberland Ave Sidewalk 30589 Cons. NI $200,000.00 82.43 0.00 82.43 $200,000.00 $200,000.00 * $200,000.00 $200,000 Works Improvement City of Portland's Housing and Economic Business Assistance for Job Creation 30555 ED EO Development Department (HEDD) and $205,000.00 82.57 0.25 82.32 $205,000.00 $205,000.00 $205,000.00 $205,000 Program Portland Development Corporation (PDC) 30564 Cons. EO Youth and Family Outreach Resource Hub $250,000.00 81.57 0.00 81.57 $242,592.94 $250,000.00 $250,000.00 $250,000 City of Portland Department of Public 30544 Cons. NI Tate Street Sidewalk Improvement $175,000.00 81.43 0.00 81.43 $17,862.03 $175,000.00 $175,000.00 $175,000 Works City of Portland's Housing and Economic Microenterprise Grant and Training 30540 ED EO Development Department (HEDD) and $212,500.00 81.14 0.00 81.14 $0.00 $0.00 $0.00 $0 Program Portland Development Corporation (PDC) 30546 Cons. NI Alpha One Critical Access Ramp Program $50,000.00 71.00 0.00 71.00 $0.00 $0.00 $0.00 $0 Microenterprise Childcare Boost 30571 ED EO Upwards $80,000.00 70.71 1.00 69.71 $0.00 $0.00 $0.00 $0 Program 30548 Cons. EO Catherine Morrill Day Nursery Playground Ramp Replacement $155,000.00 66.29 0.00 66.29 $0.00 $0.00 $0.00 $0 30563 Cons. NI Port Resources Group Home Repaving Projects $30,000.00 65.43 0.00 65.43 $0.00 $0.00 $0.00 $0 Total Cost of Project Requests $1,605,500.00 Total: $913,454.97 $1,078,000.00 $1,078,000.00 $1,078,000.00 Total Estimated HUD Funds Available $913,454.97 Contingency Funds $74,545.03 Total Estimated Funds Available $1,078,000.00 Estimated City Project Cap (85%) $776,436.72 Estimated Public Infrastructure Set *Indicates TIF $465,862.03 Aside (60% of City Cap) Funding ($90,000) Page 12 Social Service Applications Avg App Priority Funding Point Committee City Manager Final City Council Adjusted for Final Case Id Organization Program Name Committee Final Score * Type /Goal Requested Deductions Recommendation Recommendation Allocation HUD Allocation Score Housing for Systems-Involved Youth 30538 SS ANGHP Quality Housing Coalition $150,000.00 93.000 0.000 93.00 $150,000.00 $150,000.00 $123,194.12 $121,693.00 and Families 30566 SS ANGHP Wayside Services Program Direct Services Program $40,000.00 91.143 0.000 91.14 $40,000.00 $40,000.00 $32,851.76 $32,452.00 30554 SS ANGHP Hope Acts Asylum Seeker Assistance $150,000.00 91.000 0.000 91.00 $150,000.00 $150,000.00 $123,194.12 $121,693.00 30545 SS ANGHP Portland Fire Department Mobile Medical Outreach $50,000.00 90.000 0.000 90.00 $50,000.00 $50,000.00 $0.00 $0.00 Homeless Prevention and Housing 30556 SS ANGHP Greater Portland Family Promise $131,419.00 88.714 0.000 88.71 $100,653.62 $100,653.62 $82,666.23 $81,659.00 Stabilization 30552 SS ANGHP Milestone Recovery HOME Team $107,000.00 88.857 0.250 88.61 $0.00 $51,000.00 $41,886.00 $41,375.00 30550 SS ANGHP Preble Street Joe Kreisler Teen Shelter $35,000.00 88.571 0.000 88.57 $0.00 $17,000.00 $13,962.00 $13,792.00 30570 SS ANGHP Preble Street Emergency Food Programs $55,000.00 88.286 0.000 88.29 $0.00 $0.00 $0.00 $0.00 Community Based Domestic Violence 30576 SS ANGHP Through These Doors $59,968.00 88.286 0.000 88.29 $0.00 $0.00 $49,251.37 $48,650.00 Services 30543 SS ANGHP Spurwink Ashlea's Place $144,419.00 87.143 0.000 87.14 $0.00 $0.00 $0.00 $0.00 30541 SS EO Catholic Charities Maine Immigrant Legal Services $135,072.00 86.667 0.250 86.42 $0.00 $0.00 $0.00 $0.00 30575 SS ANGHP Commonspace Brackett Street Housing $68,000.00 84.714 0.000 84.71 $0.00 $0.00 $0.00 $0.00 30553 SS ANGHP Maine Needs Maine Needs $119,641.50 84.667 0.000 84.67 $119,641.50 $119,641.50 $98,260.86 $97,063.00 30558 SS ANGHP MaineHealth MaineHealth Food Pantry $68,105.00 84.286 0.000 84.29 $3,021.91 $23,021.91 $18,907.76 $18,677.00 30551 SS EO Youth and Family Outreach Relocation for Expansion $60,000.00 83.714 0.000 83.71 $0.00 $0.00 $0.00 $0.00 Emergency Services & Food 30584 SS ANGHP Presente! Maine $142,632.20 82.286 0.250 82.04 $0.00 $0.00 * $117,142.83 $115,714.38 Assistance Portland Health and Human Services 30577 SS ANGHP Immediate Nutritional Support $56,566.00 81.286 0.000 81.29 $0.00 $0.00 $0.00 $0.00 Department Boys and Girls Club Transportation 30574 SS EO Boys and Girls Clubs of Southern Maine $149,947.35 80.571 0.250 80.32 $0.00 $0.00 $0.00 $0.00 Program Youth Mentorship Program and 30583 SS NI Our Place $57,993.60 76.286 0.250 76.04 $0.00 $0.00 $0.00 $0.00 Family Advocacy Services Extracurricular Youth Development 30565 SS NI Maine Academy of Modern Music $45,000.00 71.143 0.000 71.14 $0.00 $0.00 $0.00 $0.00 through Music Total Cost of Project Requests $1,825,763.65 Total: $613,317.03 $701,317.03 $701,317.03 $692,768.38 Total Estimated HUD funds Available $613,317.03 Remaining COVID Response Waiver $68,000.00 Funds Total Estimated Funds Available $701,317.03 Estimated New Project Set Aside *Indicates allocation New Applicants Highlighted in Green (New applicants must score above 75 $122,663.41 of Cotton St Funding points to be eligible for funds) ($20,000) Actual HUD Funding represents a 1.2% decrease from estimated. All totals have been proportionally adjusted. Page 13  DRAFT GUIDELINES FOR PDC APPROVAL June 25, 2025AUGUST 18, 2024 Portland Business Assistance Program for Job Creation Program Description The City of Portland's Business Assistance Program for Job Creation (BAP) provides grants up to $210,000 to for-profit Portland businesses for the creation of new full-time jobs or part-time jobs for low/moderate income individuals. Program Objectives ■ Job creation for low/moderate income individuals working in Portland; ■ New business formation and existing business expansion; ■ Help new and expanding businesses establish credit; ■ Create economic opportunity through investing in Portland businesses to enable them to expand to create jobs; ■ Enhance the health and vitality of Portland's neighborhoods and the City's economy as a whole. Program Requirements/Eligibility ► Business must be for-profit and must be located within the City of Portland; ► Business will create one (1) part-time job (at least 875 hours/year* which is at least 17 hours/week) for a $5,000 grant, or one (1) full-time job (at least 1,750 hours/year* which is at least 4034 hours/week*) or two (2) part-time jobs (at least 875 hours/year* which is at least 2017 hours/week*) for every $10,000 of approved grant funding; ► Applicant business location fits any of the following: in a low income area of the City; within walking distance to one or more of these low income areas; easily accessible from these low income areas via public transportation; ► New jobs created with the help of the grant are marketed and provided to low/moderate income** individuals; ► Wages paid to new hires meet or exceed Portland's minimum wage; ► Applicant cannot owe outstanding property taxes, fees, or judgments to the City and property must be free of all City liens and encumbrances Grant Terms ■ Grant of $10,000 per full-time job, or two $5,000 per part-time jobs, that business agrees to create, up to $20,000 per business; ■ Job(s) must be created after the grant is approved in order to be counted as meeting the job creation requirement of this grant; ■ Job(s) must be created within nine (9) months after signing a grant agreement; ■ Once approved by the Portland Development Corporation for a grant, grantees will not receive reimbursement until after the new position has been created, on a quarterly incremental basis no more than half the grant amount may be requested prior to job creation; ■ Grants are provided through reimbursement of paid receipts (for eligible expenses) for twice the amount requested. For example, a request for a $5,000 grant drawdown must be accompanied by $10,000 worth of paid receipts for eligible expenses (see Eligible Page 14  DRAFT GUIDELINES FOR PDC APPROVAL June 25, 2025AUGUST 18, 2024 Funding Activities below). Eligible Funding Activities 1. Commercial rentWorking capital (e.g., rent, utilities, salaries, insurance); 2. Permanent working capital under $1,000, (e.g., inventory, furniture and fixtures, equipment); 3. Equipment and machinery over $1,000*; *Three price comparisons are required as part of the application if the equipment exceeds the $1,000 threshold. The price comparisons may be formal quotes, screenshots, or pictures of the product and the price from different suppliers. Property: The City will retain an interest in property improved or equipment purchased (worth $5,000 or more) with grant funds for up to five (5) years. If such property improvements or equipment are transferred, or otherwise disposed of within the five (5) year period from the date the improvements are completed or equipment is purchased, respectively, the City may require partial repayment of the grant funds (on a pro rata basis). Ineligible Activities a. Salaries, inventory, utilities, insurance, equipment, machinery; B. Refinance of existing debt; b. Down payment for other financing; c. Use of grant funds for activities commenced or completed prior to program funding approval and prior to signing a grant agreement ( e.g., purchases of equipment and supplies). Application Review Criteria/Preferences (listed in no particular order) • Career Potential o Job training for new hire(s) in a marketable skill; o Potential for job advancement within the company or elsewhere. • Employer o Demonstrated need for grant funds to create job(s); o Number of net new jobs exceeds one ( 1) per $10,000 of grant funding. • Compensation and Benefits o Quality of compensation and benefits package (for example, wages, health coverage, vacation, sick leave); o Wages paid to new hire(s) exceeds Portland's minimum wage. Application and Approval Process The City's Housing and Economic Development Department is responsible for administration of the Business Assistance Program for Job Creation. Eligible applications are analyzed by an underwriter and then presented to the Portland Development Corporation (PDC) for its review. Page 15  DRAFT GUIDELINES FOR PDC APPROVAL June 25, 2025AUGUST 18, 2024 The PDC has final decision-making authority in approving applicants for grant awards. Post Grant Requirements ● Jobs must be created within nine (9) months of signing a grant agreement after being approved for a grant; ● Job must be retained for six months one year after its creation; ● Job description(s) must be posted where low/moderate income people are likely to see it, and grantees must provide a photo to the City showing that posting; ● Baseline payroll must be provided prior to job creation; ● Quarterly report (listing new hire) until all required hires are made, then a summary report (list of all new hires) and a final report six monthsan annual report one year beyond that; ● Income certification for each new hire(s). Program Actions if Grantee Business is Unable to Meet Job(s) Requirements Nine (9) months from the date of signing the grant agreement, if a grantee business has been unable to create and maintain the required number of jobs, the PDC Board, at its discretion, may require that the grantee return all grant funds that it has drawn down. In the case of a grantee business that has been unable to retain the required job(s) for six monthsone year from the time the job(s) was initially created, the PDC Board, at its discretion, may require the partial repayment of grant funds (on a pro-rata basis). Definitions * The Program Manager may allow for alternative full-time or part-time weekly hours on a case-by-case basis. Definition of a full-time job, per the Maine Department of Economic and Community Development; **For the purposes of this Program, low/moderate income is defined by the U.S. Department of Housing and Urban Development as 80% of median household income. A chart showing qualified income levels can be found here. ***Definition of a part-time job, per the Maine Department of Economic and Community Development. Page 16  DRAFT GUIDELINES FOR PDC APPROVAL June 25, 2025 Portland Business Assistance Program for Job Creation Program Description The City of Portland's Business Assistance Program for Job Creation (BAP) provides grants up to $10,000 to for-profit Portland businesses for the creation of new full-time jobs or part-time jobs for low/moderate income individuals. Program Objectives ■ Job creation for low/moderate income individuals working in Portland; ■ New business formation and existing business expansion; ■ Help new and expanding businesses establish credit; ■ Create economic opportunity through investing in Portland businesses to enable them to expand to create jobs; ■ Enhance the health and vitality of Portland's neighborhoods and the City's economy as a whole. Program Requirements/Eligibility ► Business must be for-profit and must be located within the City of Portland; ► Business will create one (1) full-time job ( at least 40hours/week*) or two (2) part-time jobs ( least 20 hours/week*) for every $10,000 of approved grant funding; ► Applicant business location fits any of the following: in a low income area of the City; within walking distance to one or more of these low income areas; easily accessible from these low income areas via public transportation; ► New jobs created with the help of the grant are marketed and provided to low/moderate income** individuals; ► Wages paid to new hires meet or exceed Portland's minimum wage; ► Applicant cannot owe outstanding property taxes, fees, or judgments to the City and property must be free of all City liens and encumbrances Grant Terms ■ Grant of $10,000 per full-time job, or two part-time jobs, that business agrees to create; ■ Job(s) must be created after the grant is approved in order to be counted as meeting the job creation requirement of this grant; ■ Job(s) must be created within nine (9) months after signing a grant agreement; ■ Once approved by the Portland Development Corporation , grantees will not receive reimbursement until after the new position has been created, on a quarterly incremental basis ; ■ Grants are provided through reimbursement of paid receipts (for eligible expenses) for twice the amount requested. For example, a request for a $5,000 grant drawdown must be accompanied by $10,000 worth of paid receipts for eligible expenses (see Eligible Funding Activities below). Page 17  DRAFT GUIDELINES FOR PDC APPROVAL June 25, 2025 Eligible Funding Activities 1. Commercial rent Ineligible Activities a. Salaries, inventory, utilities, insurance, equipment, machinery; B. Refinance of existing debt; b. Down payment for other financing; c. Use of grant funds for activities commenced or completed prior to program funding approval and prior to signing a grant agreement ( e.g., purchases of equipment and supplies). Application Review Criteria/Preferences (listed in no particular order) • Career Potential o Job training for new hire(s) in a marketable skill; o Potential for job advancement within the company or elsewhere. • Employer o Demonstrated need for grant funds to create job(s); o Number of net new jobs exceeds one ( 1) per $10,000 of grant funding. • Compensation and Benefits o Quality of compensation and benefits package (for example, wages, health coverage, vacation, sick leave); o Wages paid to new hire(s) exceeds Portland's minimum wage. Application and Approval Process The City's Housing and Economic Development Department is responsible for administration of the Business Assistance Program for Job Creation. Eligible applications are analyzed by an underwriter and then presented to the Portland Development Corporation (PDC) for its review. The PDC has final decision-making authority in approving applicants for grant awards. Post Grant Requirements ●​ Jobs must be created within nine (9) months of signing a grant agreement after being approved for a grant; ●​ Job must be retained for six months after its creation; ●​ Job description(s) must be posted where low/moderate income people are likely to see it, and grantees must provide a photo to the City showing that posting; ●​ Baseline payroll must be provided prior to job creation; ●​ Quarterly report (listing new hire) until all required hires are made, then a summary report (list of all new hires) and a final report six months beyond that; ●​ Income certification for each new hire(s). Page 18  DRAFT GUIDELINES FOR PDC APPROVAL June 25, 2025 Program Actions if Grantee Business is Unable to Meet Job(s) Requirements Nine (9) months from the date of signing the grant agreement, if a grantee business has been unable to create and maintain the required number of jobs, the PDC Board, at its discretion, may require that the grantee return all grant funds that it has drawn down. In the case of a grantee business that has been unable to retain the required job(s) for six months from the time the job(s) was initially created, the PDC Board, at its discretion, may require the partial repayment of grant funds (on a pro-rata basis). Definitions * The Program Manager may allow for alternative full-time or part-time weekly hours on a case-by-case basis. **For the purposes of this Program, low/moderate income is defined by the U.S. Department of Housing and Urban Development as 80% of median household income. A chart showing qualified income levels can be found here. ***Definition of a part-time job, per the Maine Department of Economic and Community Development. Page 19  Portland Development Corporation Preliminary Draft Operating Report FY2025 For Month Ending 5/31/2025 Operating transfer from EDF 40,122 ------------ Total Funds Available 40,122 Current Year to Percent FY2025 Expenditures Budget Month Date of Budget Balance Administrative Services 11,175 $0 11,233 100.5% (58) Postage 300 $0 128 42.7% 172 Travel, Training, Meetings 9,000 $0 8,790 97.7% 210 Contractual Services 6,000 $0 5,830 97.2% 170 Operating Transfer to Fin. 9,647 $0 0 0.0% 9,647 Advertising 2,500 $0 364 14.6% 2,136 Auto Expense Reimb. 100 $0 0 0.0% 100 Printing & Binding 650 $0 436 67.1% 214 Office Supplies 750 $0 330 44.0% 420 Total FY2025 Expenditures 40,122 $0 27,111 67.6% 13,011 Page 20  FY2025 PDC CASH MANAGEMENT REPORT/Non-Brownfield Program (Preliminary and Subject to Change) UDAG CIP CIP FAME FAME SSBCI TOTAL Period Ending: 05/31/2025 271 272 274 277 279 Unrestricted Loans/Grants Restricted Unrestricted REDLP Beginning Balance 297,815 353,656 158,542 387,400 542,304 1,739,717 AdditionsMonth Date No Updated MTD YTD MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received 9,931 47,611 3,303 30,992 2,038 18,737 7,658 110,376 4,758 34,751 Interest payments received from loans 3,456 37,012 101 927 239 3,892 6,966 44,419 4,599 41,313 Interest Income 708 6,641 850 9,137 382 5,148 928 17,540 1,299 13,112 Other Income/Adjustments - - - - - Pass Through From FAME/SSCBI - - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements - Expenses Disbursements - Loans/Grants (78,771) Ending Cash Balance (Munis) 311,910 357,909 161,201 402,951 474,190 1,708,162 Less Reserves for: Loans Beautification Program (EC0301) (72,000) Transfers not yet recorded (UDAG Int) (37,012) Adjusted Ending Cash Balance 202,898 357,909 161,201 402,951 474,190 1,599,150 Page 21  FY2025 PDC CASH MANAGEMENT REPORT - BROWNFIELD PROGRAM (Preliminary and Subject to Change) Brownfield 1 Brownfield 2 (2016) Brownfield 3 Brownfield 10/1/2022 TOTAL Period Ending: 5/31/2025 278 280 281 280 RLF Unrestricted Loans/Grants Restricted/Cleanup Restricted/Assessments Restricted/Cleanup Beginning Balance 484,971 112,992 104,106 2,912,643 3,614,713 Additions MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received - 15,613 3,642 20,899 - - Interest payments received from loans - 200 1,704 14,016 - - Interest Income 1,265 11,099 374 2,717 - - Other Income/Adjustments - 11,332 - - Pass Through From FAME/SSCBI/EPA - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements -Other (502,514) Ending Cash Balance (Munis) 486,236 118,712 104,106 2,410,129 3,119,183 Less Reserves for: Reserve For Commitments (12,054) 0 (2,136,424) Fund 280 Reserve for Administration Adjusted Ending Cash Balance 474,182 118,712 104,106 273,705 970,705 Page 22  Portland Development Corporation Schedule of Loans Receivable For Month Ending May 31, 2025 ----Committed/Disbursed Funds---- Date Maturity Original Not Yet Total Outstanding Case ID Account No. & Name of Loan Date Loan Disb. Disb. Princ. Bal. Portland Business Fund 271 (UDAG/Unrestricted): 30124 Rosemont Market, Inc. 8/8/2019 9/1/2029 $150,000 이 $150,000 $64,055 30179 Forefront Brick South, LLC 11/18/2016 12/1/2026 $100,000 $0 $100,000 $24,045 30400 Friends and Family 3/10/2023 4/1/2027 $50,000 $0 $50,000 $27,070 30423 Longfellow Property, LLC 6/26/2023 7/1/2030 $200,000 $0 $200,000 $196,484 30514 Longfellow Property, LLC 5/6/2024 7/1/2031 $182,688 $0 $182,688 $177,545 Sub-Total PBF (UDAG) $489,198 Portland Business Fund 272 (Restricted - CIP): 30568 Cultivating Community 10/17/2024 11/1/2026 $80,000 $0 $80,000 $63,693 Sub-Total PBF (Bonds/CIP Restricted) Portland Micro Capital Fund 271 (UDAG/Unrestricted): 30250 Portland Trading Co. LLC 4/26/2013 8/1/2018 $15,000 $0 $15,000 $3,829 $3,829 Sub-Total Micro Capital Fund Portland Business Fund Fund 274 (CIP/Unrestricted): 30062 On Time Transportation 3/26/2018 4/1/2023 $10,000 $0 $10,000 $916 30070 Emerson, James (C19RR[Brick Trust]) 5/21/2021 6/1/2023 $10,000 $O $10,000 $10,000 30075 Dos Naciones LLC 3/3/2021 3/1/2023 $5,000 $0 $5.000 $5,000 30316 Rankin WA, LLC 2/28/2022 2/1/2024 $5,000 $O $5,000 $2,438 30119 Quattrucci & Rouda, LLC 3/19/2019 4/1/2029 $100,000 $0 $100,000 $17,170 30400 AAA Rue Marchie, d/b/a Timber 3/28/2023 4/1/2028 $40,000 $0 $40,000 $33,300 30606 Luna, LLC 3/19/2025 11/1/2032 $69,000 $0 $69,000 $69,000 Sub-Total PBF (Bonds/CIP Unrestricted) $137,824 FAME Fund 277: Page 23 30198 Auto-Care, LLC 2/5/2016 3/1/2021 $32,500 $0 $32,500 $18,567 30061 Forefront Brick South, LLC 11/18/2016 12/1/2026 $250,000 $0 $250,000 $61,647 30127 Gallery Acquisition Co. Inc. 5/16/2019 6/1/2026 $75,000 $0 $75,000 $16,664 30125 Zootility Co. 8/7/2019 9/1/2024 $150,000 $0 $150,000 $122,197 30378 Gulf of Sashimi 10/19/2022 11/1/2027 $65,000 $0 $65,000 $23,260 30416 Forefront Partners I, LP 5/31/2023 5/31/2033 $200,000 $0 $200,000 $175,543 30530 Biodiversity Research Institute 8/22/2024 10/1/3031 $250,000 $0 $250,000 $246,672 30536 Blackbird Baking, d/b/a Two Fat Cats 10/1/2024 11/1/2031 $40,000 $0 $40,000 $38,164 30591 Salud Studios 11/19/2024 12/1/2030 $137,500 $O $137,500 $136,053 30605 Lebel Holdings, LLC 3/20/2025 5/1/2035 $200,000 $0 $200,000 $199,360 Sub-Total FAME Fund $1,038,125 FAME SSBCI 279: 30107 Biodiversity Research Institute 3/26/2021 4/1/2026 $200,000 $0 $200,000 $171,397 30086 Driscoll Child Dev. Center 5/5/2021 6/1/2026 $60,000 $0 $60,000 $29,728 30085 Flores Restaurant LLC 6/9/2021 7/1/2026 $38,000 $O $38,000 $14,733 30071 Wynsum, LLC 11/5/2021 12/1/2026 $131,250 $0 $131,250 $121,039 30068 688 Forest Ave.. LLC 12/21/2021 1/1/2027 $168,000 $0 $168,000 $152,791 30527 Another Round 6/5/2024 8/1/2029 $225,000 $0 $225,000 $223,571 30592 Yardie Ting 11/14/2024 12/1/2029 $45,000 $0 $45,000 $42,298 30624 Kehben Grier 5/1/2025 1/1/2033 $80,000 $0 $80,000 $80,000 Sub-Total FAME SSBCI $835,557 Brownfields Loan Fund 278 and 280 30515 Forefront Partners I, LP/Fund 280 5/31/2023 4/30/2033 $200,000 $0 $200,000 $191,110 30072 Forefront Partners I, LP/Fund 280 4/12/2018 1/1/2032 $350,000 $0 $350,000 $304,952 Sub-Total Brownfields $496,062 Grand Total Loans $3,913,938 $0 $3,913,938 $3,064,288 Allowance for uncollectable loans at 15% $459,643 Total with Allowance for uncollectable loans: $2,604,645