Portland Development Corporation

PORTLAND DEVELOPMENT CORPORATION Board Meeting DATE: Wednesday, November 19, 2025 TIME: 12:00 PM LOCATION: This meeting will take place remotely via Zoom. Please click below to https://portlandmaine- gov.zoom.us/j/82018437796?pwd=2yXPwXy8bV2wah4XqIW3ACIoLDgAgu.1join the webinar. https://portlandmaine- gov.zoom.us/j/82018437796?pwd=2yXPwXy8bV2wah4XqIW3ACIoLDgAgu.1 Passcode:434795 Phone one-tap: +13092053325,,82018437796# US +13126266799,,82018437796# US (Chicago) Webinar ID: 820 1843 7796 International numbers available: https://portlandmaine-gov.zoom.us/u/kbL3gtMPr3 To submit written public comment on an agenda item, email edd@portlandmaine.gov. Submissions must be received by 12:00 pm the day before the Portland Development Corporation meeting to guarantee their inclusion in the agenda packet. All submissions must include the commenter's name and legal address. To help ensure your comment is submitted for the correct item, please include the name of the agenda item (see below). AGENDA 1. President's comments 2. Review and accept Meeting Minutes Page 1  a. See attached Meeting Minutes from September 18, 2025 b. See attached Meeting Minutes from October 16, 2025 Review and vote on Brownfields Subgrant Request of $400,000 from Roux 3. Institute, 1 Beanpot Circle. a. See attached Memorandum b. See attached Backup Document for Memorandum Review and vote on loan request for $85,000 from Bachelder Holdings, 4. LLC, 9 Bolton 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 this loan application. 5. Treasurer's Report - October 2025 a. Monthly Administrative Budget Report b. Cash Management Report c. Schedule of Loans Receivable d. Confidential - Loan Delinquency Report 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. 6. Staff verbal update 7. Other Items to be discussed/brought up by Board Directors Next Regular Meeting Date: December 18, 2025 (Business Award Event on 8. November 20, 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 Remote Zoom Meeting Held on September 18, 2025 ​ A remote meeting, via Zoom, of the Portland Development Corporation (PDC) Board of Directors was held at 4:00 p.m. on Thursday, September 18, 2025. Present from the Board of Directors were Board President Kierston Van Soest and Directors Eamonn Dundon, Councilor Ben Grant, Nathan Henry, Assistant City Manager Dena Libner, and Scott Kleiman. Board Directors Jonathan Berg, Matthew Buonopane, Sam Dargan, Beverly Werber, and Nikki Yanok could not be present. Present from City staff were Associate Corporation Counsel Avery Dandreta, Program Coordinator Kaela Gonzalez, Business Programs Manager Nancy Martin, and Housing and Economic Development Director Greg Watson. Also present was City Underwriter David McLaughlin. Item #1: President’s comments. Board President Van Soest opened the meeting at approximately 4:08 p.m. and provided a short overview of the meeting. Item #2: Review and vote on Meeting Minutes of August 21, 2025. ​ On a motion made by Mr. Dundon and seconded by Mr. Henry, the Board voted 4-2-0 (Ms. Van Soest and Ms. Libner abstained) to approve the August 21, 2025 Meeting Minutes with an amendment to add “t” to the Board President’s name. Item #3: Review and vote on Brownfields Loan Request for $750,000 for Fathom Companies. Ms. Martin introduced a Brownfields loan request from Fathom Companies (Monument Hotel LLC). The funds will be used for the redevelopment of the M&T Bank building into a 92-room hotel with full food and beverage service. The City received $2 million in supplemental Page 3  DRAFT EPA funding for Brownfields which will be used to fund this loan, and GPCOG will split the remediation cost with the city. The total project cost is $60 million, with $1.5 million allocated equally for remediation between GOCPG and the City. The hotel is expected to open in April 2027. Ms. Martin introduced Marieke Thormann, the Vice President of Development who provided further information on the project and answered questions posed by Board members. On a motion made by Mr. Klieman and seconded by Councilor Grant, the Board voted 5-0 (Mrs. Libner abstained due to a technical issue) to enter into executive session pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119-A, to discuss proprietary information regarding this loan at approximately 4:20 p.m. The Board returned to the public session at approximately 4:31 p.m. On a motion made by Councilor Grant and seconded by Mr. Dundon, the Board voted 6-0 to approve a $750,000 Brownfields loan request to Fathom Companies with the conditions noted in the confidential memorandum provided to the Board. Item #4: Annual Meeting of the Board. Ms. Martin informed the Board that if approved, the Annual Meeting of the Corporator will be held at the October 6, 2025 City Council meeting. In preparation for the meeting, staff have drafted an annual report for the Board’s consideration. The Board also typically selects officers for the year. Councilor Grant offered to speak on behalf of the Board at the City Council meeting and present the Annual Report. On a motion made by Mr. Dundon and seconded by Councilor Grant, the Board voted 6-0 to accept and forward the Draft Annual Report, as amended with edits provided to staff, and to set the date for the Annual Meeting of the Corporator as October 6, 2025. Page 4  DRAFT On a motion made by Mr. Dundon and seconded by Councilor Grant, the Board voted 6-0 to elect Kierston Van Soest as President, Beverly Werber as Treasurer, and Sam Dargan as Secretary. Item#5: Review and vote on recommendations for PDC Award event nominations. On a motion made by Mr. Dundon and seconded by Councilor Grant, the Board voted 6-0 to approve the recommendations for the PDC Award event nominations. Item #6: Treasurer’s Report. Mr. Dundon inquired when the new Brownfields money would appear on the cash report. Ms. Martin explained that the City was awarded $2 million (out of a $4 million request) in August, and the City Council needs to accept and appropriate it over two meetings (October 6th and 20th). Ms. Martin also noted it was a competitive award and that GPCOG also received $2 million out of a $4 million request. Item #6: Other Items to be discussed/brought up by Board Directors. Mr. Dundon will continue to serve until a replacement is named. Item #14: Next regular meeting date: October 16, 2025. ​ There being no further business, on a motion made by Mr. Dundon and seconded by Councilor Grant, the Board voted 5-0 (Mr. Henry left prior to the vote) to adjourn at approximately 4:47 p.m. Respectfully, Kaela Gonzalez Page 5  DRAFT Minutes Portland Development Corporation Remote Zoom Meeting Held on October 16, 2025 ​ A remote meeting, via Zoom, of the Portland Development Corporation (PDC) Board of Directors was held at 4:00 p.m. on Thursday, October 16, 2025. Present from the Board of Directors were Board President Kierston Van Soest and Directors Jon Berg, Sam Dargan, Eamonn Dundon, Nathan Henry, Assistant City Manager Dena Libner, Scott Kleiman, and Beverly Werber. Board Directors Matthew Buonopane, Councilor Ben Grant, and Nikki Yanok could not be present. Present from City staff were Associate Corporation Counsel Avery Dandreta, Business Programs Manager Nancy Martin, Principal Administrative Officer Lori Paulette, and Housing and Economic Development Director Greg Watson. Item #1: President’s comments. Board President Van Soest opened the meeting at approximately 4:00 p.m. and offered congratulations to Director Nathan Henry on being named one of MaineBiz’s 40 Under 40 honorees. Item #2: Review and vote on a Brownfield Subgrant Request from Portland Housing Authority for 70 E Oxford Street - COMB Block. ​ Ms. Martin introduced Sarah Tatarczuk, a Development Officer, who presented the request from the Portland Housing Authority (PHA) for a $450,000 subgrant from the City's Brownfield funds for their COMB Block project. This project involves the demolition of four existing public housing buildings and the construction of 173 new affordable housing units across three phases. The cleanup primarily involves removing urban fill (up to 7 feet deep) contaminated with lead, arsenic, and PAHs (polycyclic aromatic hydrocarbons), and implementing a cover system across the site. PHA has already received funding from GPCOG Page 6  DRAFT and an EPA grant, but additional funding is needed due to the unexpectedly high cost of soil removal. On a motion made by Mr. Dundon and seconded by Mr. Berg, the Board voted 8-0 to approve the $450,000 Brownfield subgrant to Portland Housing Authority. Item #3: Review and vote on loan request for $125,000 for Health Resonates, LLC, 773 Congress Street. Ms. Martin introduced a loan request for $125,000 from Health Resonates LLC, a health and wellness spa in Portland. Anna Flaherty, the owner, explained that the loan is crucial to buy out her business partner. Ms. Flaherty plans to expand staff (hire 5 more team members) and further develop training programs. There are currently 11 employees. The current lease is ending, and a new 3-year lease is being drafted to start in December, with an option to renew. Ms. Flaherty is also looking at a potential expansion into a City Center location in the future. On a motion made by Mr. Kleiman and seconded by Mr. Dargan, the Board voted 8-0 to enter into executive session pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119-A, to review proprietary confidential information associated with this loan application, and to discuss the Loan Delinquency Report, at approximately 4:28 p.m. The Board returned to public session at approximately 4:53 p.m. On a motion by Ms. Werber and seconded by Mr. Henry, the Board voted 8-0 to approve the loan of $125,000 to Health Resonates LLC for a 5-year term at a 7.75% interest rate. (Directors Dundon and Libner left the meeting at this time.) Item #4: Treasurer’s Report- September 2025. The delinquency report was discussed in executive session. Page 7  DRAFT Item #5: Other Items to be discussed/brought up by Board Directors. Ms. Werber inquired about the no-interest loan offered to businesses in the Arts District. Ms. Martin stated there have been no new takers since Another Round. Mr. Watson added that while there's continued interest, applicants often struggle with the paperwork, and he believes the opportunity needs more forceful marketing. Mr. Dundon suggested reaching out to a commercial real estate broker to promote the PDC loan programs for tenants looking to move downtown. Item #6: Next regular meeting date: December 18, 2025 (Business Award Event on November 20, 2025). ​ There being no further business, on a motion made by Mr. Dargan and seconded by Mr. Berg, the Board voted 8-0 to adjourn at approximately 5:05 p.m. Respectfully, Kaela Gonzalez Page 8 City of Portland | Housing and Economic Development Department Gregory P. Watson, Director ​ ​ MEMORANDUM 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:​​ November 19, 2025 RE:​ ​ Brownfields Subgrant Request of $400,000 from Roux Institute PROJECT OVERVIEW: The Portland Development Corporation is being presented with a $400,000 Brownfields subgrant request from the Roux Institute of Northeastern University for support with environmental remediation as part of their redevelopment project. BUDGET AND BACKGROUND: This funding request is to support environmental cleanup of the massive redevelopment project at Bean Pot Circle. The project includes redeveloping the former B&M Factory with a higher education campus, including mixed-use buildings, public greenspace, and waterfront access. The project incorporates resilient and sustainable development approaches by reducing paved surfaces, improving coastal and upland ecology, and considering sustainable building practices. The $400,000 in subgrant funding will be allocated to the following tasks, the majority of which will fund offsite soil transport and disposal: Voluntary Response Action Program (VRAP) Enrollment Fee: $15,000 Brownfields documentation (ie, Community Involvement Plan, Analysis of Brownfields Cleanup Alternatives, Remedial Action Plan): $15,000 QEP Oversight of remediation: $10,000 VRAP Completion Report: $5,000 SoilTransport to Permitted Receiving Facility: $355,000 Consulting underwriter David McLaughlin reviewed the 2022 - 2024 audited financial statements of Northeastern University to confirm they are in a financial position to effect the Rioux Institute project. While he did not review the specific project, the key financial ratios of Northeastern University are very strong with a net asset position of $4.1 billion, not leveraged with only $2.3 billion in debt (debt/worth ratio of .56), $2.9 billion in working capital (6.0 current ratio) and debt service coverage of 16.8. They are in a very strong financial position to complete this project, especially given its size relative to their $4.1 billion net asset position. 389 Congress Street, Portland, ME 04101 – www.portlandmaine.gov – (207) 874-8683 Page 9 RECOMMENDATION: PDC staff (Nancy Martin) and underwriter (David McLaughlin) propose approving a Brownfields subgrant of $400,000 to the Roux Institute to support environmental remediation at Beanpot Circle. ATTACHMENT: Email from underwriter 389 Congress Street, Portland, ME 04101 – www.portlandmaine.gov – (207) 874-8683 Page 10  Nancy Martin <nmartin@portlandmaine.gov> Rioux Institute 1 message David McLaughlin <davido891@yahoo.com> Fri, Nov 7, 2025 at 10:25 AM Reply-To: David McLaughlin <davido891@yahoo.com> To: Nancy Martin <nmartin@portlandmaine.gov> Nancy I reviewed the 22 - 24 audited financial statements of Northeastern University to confirm they are in a financial position to effect the Rioux Institute project. While I did not review the project, the key financial ratios of Northeastern University are very strong with a net asset position of $4.1 billion, not leveraged with only $2.3 billion in debt (debt/worth ratio of .56), $2.9 billion in working capital (6.0 current ratio) and debt service coverage of 16.8. They are in a very strong financial position to complete this project, especially given its size relative to their $4.1 billion net asset position. The leverage of this grant to total capital investment and resulting public benefit has to be off the chart. David Yahoo Mail: Search, Organize, Conquer Page 11  Portland Development Corporation Preliminary Draft Operating Report FY2026 For Month Ending 10/31/2025 Operating transfer from EDF 42,352 ------------ Total Funds Available 42,352 Current Year to Percent FY2026 Expenditures Budget Month Date of Budget Balance Administrative Services $11,505 $75 10,395 90.4% 1,110 Postage $200 $100 100 50.0% 100 Travel, Training, Meetings $9,000 $0 0 0.0% 9,000 Contractual Services $8,000 $0 2,178 27.2% 5,822 Operating Transfer to Fin. $9,647 $0 0 0.0% 9,647 Advertising $2,500 $0 0 0.0% 2,500 Auto Expense Reimb. $100 $0 0 0.0% 100 Printing & Binding $650 $260 385 59.2% 266 Office Supplies $750 $0 0 0.0% 750 Total FY2026 Expenditures $42,352 $434 13,057 30.8% 29,295 Page 12  FY2026 PDC CASH MANAGEMENT REPORT/Non-Brownfield Program (Preliminary and Subject to Change) UDAG CIP CIP FAME FAME SSBCI TOTAL Period Ending: 10/31/2025 271 272 274 277 279 Unrestricted Loans/Grants Restricted Unrestricted REDLP SSBCI-Grow Maine Beginning Balance 304,951 370,220 184,981 704,665 -24,198 1,540,618 Additions th Date No Updated MTD YTD MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received 4,203 4,203 3,258 3,258 0 - 18,491 18,491 - - Interest payments received from loans 3,362 3,362 146 146 0 - 11,906 11,906 - - Interest Income - - - - - Other Income/Adjustments 600 4 597 17 9 Pass Through From FAME/SSCBI - - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements - Expenses 2,507 22,500 Disbursements - Loans/Grants Ending Cash Balance (Munis) 312,516 373,623 184,981 737,568 -1,698 1,606,990 Less Reserves for: Loans Transfers not yet recorded (UDAG Int) (3,362) Adjusted Ending Cash Balance 309,154 373,623 184,981 737,568 -1,698 1,603,628 Page 13  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: 10/31/2025 278 280 281 280 RLF Unrestricted Loans/Grants Restricted/Cleanup Restricted/Assessments Restricted/Cleanup Beginning Balance 591,617 11,363 48,407 4,391,597 5,042,984 Additions MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received 1,813 22,178 0 24,954 - - Interest payments received from loans 1,277 5,994 0 15,307 - - Interest Income 15,619 4,682 - - Other Income/Adjustments - 11,332 27,592 - Pass Through From FAME/SSCBI/EPA - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements -Other (2,507) (599) Ending Cash Balance (Munis) 592,200 10,764 48,407 4,391,597 5,042,967 Less Reserves for: Reserve For Commitments (111,088) 0 (2,886,424) Fund 280 Reserve for Administration Adjusted Ending Cash Balance 481,112 10,764 48,407 1,505,173 2,045,455 Page 14  Portland Development Corporation Schedule of Loans Receivable For Month Ending October 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 0 $150,000 $53,790 30179 Forefront Brick South, LLC 11/18/2016 12/1/2026 $100,000 $0 $100,000 $20,167 30400 Friends and Family 3/10/2023 4/1/2027 $50,000 $0 $50,000 $21,952 30423 Longfellow Property, LLC 6/26/2023 7/1/2030 $200,000 $0 $200,000 $192,849 30514 Longfellow Property, LLC 5/6/2024 7/1/2031 $182,688 $0 $182,688 $175,998 Sub-Total PBF (UDAG) $464,756 Portland Business Fund 272 (Restricted - CIP): 30568 Cultivating Community 10/17/2024 11/1/2026 $80,000 $0 $80,000 $37,063 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 $2,969 $2,969 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 $762 30070 Emerson, James (C19RR[Brick Trust]) 5/21/2021 6/1/2023 $10,000 $0 $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 $0 $5,000 $1,884 30400 AAA Rue Marchie, d/b/a Timber 3/28/2023 4/1/2028 $40,000 $0 $40,000 $33,085 30606 Luna, LLC 3/19/2025 11/1/2032 $69,000 $0 $69,000 $69,000 Sub-Total PBF (Bonds/CIP Unrestricted) $119,731 FAME Fund 277: 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 $49,186 30127 Gallery Acquisition Co. Inc. 5/16/2019 6/1/2026 $75,000 $0 $75,000 $11,558 30125 Zootility Co. 8/7/2019 9/1/2024 $150,000 $0 $150,000 $122,197 30416 Forefront Partners I, LP 5/31/2023 5/31/2033 $200,000 $0 $200,000 $166,079 30530 Biodiversity Research Institute 8/22/2024 10/1/3031 $250,000 $0 $250,000 $244,710 30536 Blackbird Baking, d/b/a Two Fat Cats 10/1/2024 11/1/2031 $40,000 $0 $40,000 $36,364 30591 Salud Studios 11/19/2024 12/1/2030 $137,500 $0 $137,500 $124,480 30605 Lebel Holdings, LLC 3/20/2025 5/1/2035 $200,000 $0 $200,000 $198,052 30107 Biodiversity Research Institute 3/26/2021 4/1/2026 $200,000 $0 $200,000 $167,033 30086 Driscoll Child Dev. Center 5/5/2021 6/1/2026 $60,000 $0 $60,000 $27,499 30085 Flores Restaurant LLC 6/9/2021 7/1/2026 $38,000 $0 $38,000 $9,369 30071 Wynsum, LLC 11/5/2021 12/1/2026 $131,250 $0 $131,250 $119,214 30068 688 Forest Ave., LLC 12/21/2021 1/1/2027 $168,000 $0 $168,000 $150,493 30527 Another Round 6/5/2024 8/1/2029 $225,000 $0 $225,000 $222,246 30592 Yardie Ting 11/14/2024 12/1/2029 $45,000 $0 $45,000 $38,122 30624 Kehben Grier 5/1/2025 1/1/2033 $80,000 $0 $80,000 $76,762 30655 Reo Miyake LLC 9/18/2025 11/1/2030 $100,000 $0 $100,000 $100,000 30654 Coco Miyake LLC 9/18/2025 11/1/2030 $100,000 $0 $100,000 $100,000 30658 Eduardos Brazillian Grill One 9/25/2025 11/1/2030 $22,500 $0 $22,500 $22,500 30656 Maine Foot and Ankle 9/25/2025 11/1/2035 $49,999 $0 $49,999 $49,999 Sub-Total FAME $0 $2,054,431 FAME GROW ME SSBCI 279 30647 Eduardos Brazilian Grill One 9/25/2025 11/1/2030 $22,500 $0 $22,500 $22,500 30649 Maine Foot and Ankle 9/25/2025 11/1/2035 $50,000 $0 $50,000 $50,000 $72,500 DOWNTOWN FUND 263: 30636 Another Round 8/22/2025 10/1/3030 $8,000 $0 $8,000 $8,000 Brownfields Loan Fund 278 and 280 30515 Forefront Partners I, LP/Fund 280 5/31/2023 4/30/2033 $200,000 $0 $200,000 $189,390 30072 Forefront Partners I, LP/Fund 280 4/12/2018 1/1/2032 $350,000 $0 $350,000 $299,216 Sub-Total Brownfields $488,606 Grand Total Loans $4,101,937 $0 $4,101,937 $3,248,056 Allowance for uncollectable loans at 15% $487,208 Total with Allowance for uncollectable loans: $2,760,848 Page 15