Portland Development Corporation

PORTLAND DEVELOPMENT CORPORATION Board Meeting DATE: Thursday, February 19, 2026 TIME: 4:00 PM LOCATION: This meeting will take place remotely. Please click below to join the webinar: https://portlandmaine- gov.zoom.us/j/85883360174?pwd=gcCQpIZK7dS5Vlpeirx6VphGVLcq3c.1 Passcode:131579 Phone one-tap: +16469313860,,85883360174# US +19292056099,,85883360174# US (New York) Webinar ID: 858 8336 0174 International numbers available: https://portlandmaine-gov.zoom.us/u/kejx7Z2mBN 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 Minutes of December 18, 2025 Meeting a. See attached Meeting Minutes from December 18, 2025. Page 1  Review and vote on commercial loan request for $75,000 from Bad 3. Neighbors, 511 Congress 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. Review and vote on recommendation to the City Council regarding 4. Weathering Winter Loan Guidelines. a. See attached Memorandum and Program Guidelines. 5. Treasurer's Report - January 2026 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. Other Items to be discussed/brought up by Board Directors 7. Next Regular Meeting Date: March 19, 2026 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 Meeting Remote Zoom Meeting Held on December 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, December 18, 2025. Present from the Board of Directors were Board President Kierston Van Soest and Directors Jon Berg, Matthew Buonopane, Sam Dargan, Eamonn Dundon, Scott Kleiman, and Beverly Werber. Board Directors Councilor Ben Grant, Nathan Henry, Assistant City Manager Dena Libner, and Nikki Yanok could not be present. Present from City staff were Associate Corporation Counsel Avery Novak, Program Coordinator Kaela Gonzalez, Business Programs Manager Nancy Martin, Principal Administrative Officer Lori Paulette, and Housing and Economic Development Director Greg Watson. City underwriters Liam Benson and David McLaughlin were also present. Item #1: President’s comments. Board President Van Soest opened the meeting at approximately 4:00 p.m. and thanked everyone for their role in the Business Award Event held at Ocean Gateway in November. Item #2: Review and accept Minutes of November 19, 2025. ​ On a motion made by Ms. Werber and seconded by Mr. Dundon, the Board voted 4-0-3 (Mr. Buonopane, Mr. Dargan, and Mr. Kleiman abstained) to approve the meeting minutes for November 19, 2025. Item #3: Review and vote on Brownfields Grant Request of $285,750 from Youth and Family Outreach, 331 Cumberland Avenue. Ms. Martin introduced the grant request for $285,750 from Youth and Family Outreach to support environmental remediation for the redevelopment of 331-337 Cumberland Avenue. The funds will enable the construction of 60 units of family housing and a new building to expand Page 3  DRAFT childcare, tripling infant capacity and doubling toddler capacity. Camelia Babson-Haley and Laura Reading spoke to the Board regarding the history of Youth Family Outreach, the current project, and answered questions from the Board. On a motion made by Mr. Dargan and seconded by Ms. Werber, the Board voted 7-0 to approve the $285,750 Brownfields Grant to Youth and Family Outreach. Item #4: Update from Loan Criteria Evaluation and backup materials. This item was taken up after Item #5 and Item #6. Ms. Martin presented the proposed criteria for loan evaluation and sought feedback from the Board, which included removing quantification and scoring, serving as a discussion tool at this time, and removing specific language regarding City Council priorities. Item #5: Review and vote on Storefront Interest-free Loan Request for $20,000 from Bad Neighbors, 511 Congress Street. Ms. Martin introduced Dennis Gaines, owner of Bad Neighbors, who is seeking $20,000 for storefront improvements for a new vinyl listening bar opening across the street from Arcadia. Funds will be used primarily for exterior signage and painting the storefront area. The business anticipates creating between 18 and 20 new full-time positions, with bartenders and servers starting at $10-12/hour plus tips and kitchen staff starting at $20/hour plus tips. Benefits include paid time off and an IRA retirement plan. The Board heard from Ms. Martin and James Nash regarding Item #6 before moving into executive session. On a motion made by Mr. Dundon and seconded by Mr. Kleiman, the Board voted 7-0 to enter into executive session pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119-A, to Page 4  DRAFT review proprietary confidential information associated with this loan application and the loan request highlighted in Item #6 at approximately 4:33 p.m. The Board returned to public session at approximately 4:46 p.m. On a motion made by Mr. Dundon and seconded by Ms. Werber the Board voted 6-0-1 (Mr. Berg abstained) to approve the $20,000 Interest-free Storefront Loan to Bad Neighbors. Item #6: Review and vote on a new loan request for $35,000 from Nash & Co., 417 Congress Street. Ms. Martin introduced James Nash, owner of Nash & Co., who is seeking a $35,000 commercial loan for working capital to carry the business through the challenging winter months. Nash & Co. is a creative general store in the Arts District offering retail, workshops, and creative services. Mr. Nash answered questions regarding marketing efforts, use of funds, rent, and business background. On a motion by Ms. Werber and seconded by Mr. Berg, the Board voted 7-0 to approve the loan of $35,000 to Nash and Co., as recommended by staff, with an interest rate of 7.75%. Board President Van Soest left the meeting at approximately 4:50 p.m. and Ms. Werber facilitated the remainder of the meeting. Item #7: Treasurer’s Report- November 2025. ​ Ms. Paulette gave a brief overview of the Treasurer’s Report that was included in the meeting materials. Item #8: Staff verbal update. ​ Ms. Martin provided a verbal update to the Board. City staff will be seeking $500,000 in Brownfields Assessment funds to recapitalize the program. There are 5 applicants being Page 5  DRAFT reviewed by the Legislative and Nominating Committee for the open spot on the Board. The loan closed on Tony’s Donuts today, and the grand reopening is slated for January 3, 2026. Item #9: Other Items to be discussed/brought up by Board Directors. No further items were discussed. Item #10: Next regular meeting date: January 15, 2025. ​ There being no further business, on a motion made by Mr. Kleiman and seconded by Mr. Dargan, the Board voted 6-0 to adjourn at approximately 5:03 p.m. Respectfully, Kaela Gonzalez Page 6  2.19.2026 Meeting Materials Item #4 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:​ February 13, 2026 RE:​ Financial support for business continuity during economic disruptions Overview: To support Portland business as they navigate the economic uncertainties of late 2025 and early 2026—challenges such as tariffs, the Custom House fire, enhanced ICE operations, frigid temperatures and decreased tourism– staff recommend the creation of a small, flexible, interest- free loan of $10,000 from revolved FAME funds to support business operations, called Weathering Winter. Recommendation: Staff (Nancy Martin) proposes adopting an interest-free loan program similar to the downtown storefront program to support business continuity during economic downtowns caused by the various economic disruptions that have occurred in late 2025 and early 2026. Attachments: ● Draft Loan Guidelines ● Economic Disruption Worksheet Page 7  Draft Program Guidelines: Portland Business Continuity No-Interest Loans: “WEATHERING WINTER” Business Assistance Program Program Description The City of Portland’s Weathering Winter loan program provides financial incentives to Portland businesses for the purposes of addressing specific economic disruptions. The program goals include supporting businesses located in the City of Portland with expenses like rent, payroll, and utilities to ensure operational continuity during economic disruptions. The City has budgeted funds to support these loans for eligible businesses city-wide in Portland, Maine. The maximum loan amount is $10,000. Businesses must apply by April 15, 2026 to be considered. Loan Administration & Terms Applications will be reviewed and approved by the Portland Development Corporation. Determination of funding will be based on the strength of the application, alignment with program goals, community benefit, and overall need due to specific disruptions. ●​ Loan terms: Up to $10,000 at zero percent interest for a five-year term. ●​ Collateral will be required to secure the loans. ●​ An origination fee of 1% of the loan amount applies. The program can be utilized by businesses in conjunction with the City’s Revolving Commercial Loan Fund (RLF) program. Active commercial loan recipients are eligible to apply, provided they remain current with their loan payments. Eligibility Requirements: The project applicant must be current on all property taxes, fees, judgments, or liens. The business must have ten (10) or fewer employees. Documentation of Disruption: Applicants must provide documentation of the specific business disruption that necessitated the need for continuity funds. This may include financial statements showing losses, profit and loss statements, or cash flow statements detailing the impact of the disruption, along with a completed worksheet provided with the application. Eligible funding activities: Page 8  ●​ General operating expenses; ie: working capital, inventory purchases, salaries, rent, and utilities. Ineligible funding activities: ●​ Anything not included in the list of eligible activities. Application Process Applications will be reviewed and approved by the Portland Development Corporation, and may require additional information from applicants as part of the review process. A determination of funding award will be based on the overall strength of the application, including the documented economic disruption, the community benefit of the loan, and the overall need of the applicant for funding the project. Loan terms: Up to $10,000 at zero percent interest for a five-year term. Collateral such as a lien on business assets will be required to secure the loans. Origination fee of 1% of loan amount applies. Application Process Online application using Google Forms on a rolling basis. Page 9  Estimated Economic Disruption Worksheet Required for application to Weathering Winter loan Details Name of Business:______________​​ Type of Business:_____________ Owner Last Name: _______________​ First Name:__________________ Work Phone: __________________​​ Email:_____________________ Business Street Address (must be in Portland)________________________________ Estimated Adverse Economic Impact When did the economic disruption start and end? From___________ To: ______________ What were your businesses' revenues during the affected damage period?_________________ What were your businesses' revenues during that SAME period of the prior year?____________ Amount of business interruption insurance received or anticipated, if any:__________________ Please provide a brief explanation of what adverse economic effects the disaster had on your business: ___________________________________________________________________________ ___________________________________________________________________________ How many people did you employ prior to the disruption? ______________ How many did you employ after? _________________________ If your business also suffered property damage, please complete: Estimated dollar loss to: Real Property (Building), if owned:__________________________ Contents:________________________________(include machinery and equipment, furniture and fixtures, inventory, leasehold improvements, etc.) Insurance recovery expected or received for property damages:_________________________ Form Completed By:___________________ Title:_____________________________ Date:_________________________________________________________________ Page 10  Portland Development Corporation Preliminary Draft Operating Report FY2026 For Month Ending 1/31/2026 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 $47 10,505 91.3% 1,000 Postage $200 171 85.5% 29 Travel, Training, Meetings $9,000 $141 8,294 92.2% 706 Contractual Services $8,000 $650 4,778 59.7% 3,222 Operating Transfer to Fin. $9,647 0 0.0% 9,647 Advertising $2,500 0 0.0% 2,500 Auto Expense Reimb. $100 0 0.0% 100 Printing & Binding $650 490 75.4% 160 Office Supplies $750 102 13.6% 648 Total FY2026 Expenditures $42,352 $838 24,340 57.5% 18,012 Page 11  FY2026 PDC CASH MANAGEMENT REPORT/Non-Brownfield Program (Preliminary and Subject to Change) UDAG CIP CIP FAME FAME SSBCI TOTAL Period Ending: 01/31/2026 271 272 274 277 279 Unrestricted Loans/Grants Restricted Unrestricted REDLP Beginning Balance 207,996 383,683 189,246 688,588 16,273 1,485,784 Additions th Date No Updated MTD YTD MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received 6,704 87,122 3,347 54,277 0 42,008 12,087 196,028 124 TBA Interest payments received from loans 2,690 61,312 56 1,465 0 8,001 11,876 122,295 507 TBA Interest Income 10,577 14,897 7,861 24,864 TBA Other Income/Adjustments - - - - - Pass Through From FAME/SSCBI - - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements - Expenses (41,960) Disbursements - Loans/Grants Ending Cash Balance (Munis) 217,390 387,086 189,246 670,591 16,904 1,481,215 Less Reserves for: Loans Beautification Program (EC0301) Transfers not yet recorded (UDAG Int) Adjusted Ending Cash Balance 217,390 387,086 189,246 670,591 16,904 1,481,215 Page 12  FY2025 PDC CASH MANAGEMENT REPORT - BROWNFIELD PROGRAM (Preliminary and Subject to Change) Brownfield 1 Brownfield 2 Brownfield 10/1/2022 TOTAL Period Ending: 01/31/2026 278 281 280 RLF Unrestricted Loans/Grants Restricted/Assessments Restricted/Cleanup Beginning Balance 571,392 48,407 4,392,497 5,040,281 Additions MTD YTD MTD YTD MTD YTD Principal payments received 1,827 27,645 - - Interest payments received from loans 1,263 9,795 - - Interest Income 18,960 - - Other Income/Adjustments (12,173) - Pass Through From FAME/SSCBI/EPA - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements -Other (34,949) (4,195) Ending Cash Balance (Munis) 574,481 13,458 4,388,302 5,010,573 Less Reserves for: Reserve For Commitments (10,340) (4,022,174) Fund 280 Reserve for Administration Adjusted Ending Cash Balance 564,141 13,458 366,128 978,059 Page 13  Portland Development Corporation Schedule of Loans Receivable For Month Ending January 31, 2026 ----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 $49,428 30179 Forefront Brick South, LLC 11/18/2016 12/1/2026 $100,000 $0 $100,000 $16,008 30400 Friends and Family 3/10/2023 4/1/2027 $50,000 $0 $50,000 $19,117 30423 Longfellow Property, LLC 6/26/2023 7/1/2030 $200,000 $0 $200,000 $192,424 30514 Longfellow Property, LLC 5/6/2024 7/1/2031 $182,688 $0 $182,688 $175,363 30681 Health Resonates 11/13/2025 11/1/2030 $125,000 $0 $125,000 $119,012 Sub-Total PBF (UDAG) $571,351 Portland Business Fund 272 (Restricted - CIP): 30568 Cultivating Community 10/17/2024 11/1/2026 $80,000 $0 $80,000 $27,022 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 $2,497 $2,497 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 $1,607 30400 AAA Rue Marchie, d/b/a Timber 3/28/2023 4/1/2028 $40,000 $0 $40,000 $32,650 30606 Luna, LLC 3/19/2025 11/1/2032 $69,000 $0 $69,000 $69,000 Sub-Total PBF (Bonds/CIP Unrestricted) $119,018 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 $41,560 30127 Gallery Acquisition Co. Inc. 5/16/2019 6/1/2026 $75,000 $0 $75,000 $9,442 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 $161,573 30530 Biodiversity Research Institute 8/22/2024 10/1/3031 $250,000 $0 $250,000 $243,494 30536 Blackbird Baking, d/b/a Two Fat Cats 10/1/2024 11/1/2031 $40,000 $0 $40,000 $35,253 30591 Salud Studios 11/19/2024 12/1/2030 $137,500 $0 $137,500 $116,694 30605 Lebel Holdings, LLC 3/20/2025 5/1/2035 $200,000 $0 $200,000 $196,707 30107 Biodiversity Research Institute 3/26/2021 4/1/2026 $200,000 $0 $200,000 $165,161 30086 Driscoll Child Dev. Center 5/5/2021 6/1/2026 $60,000 $0 $60,000 $25,578 30085 Flores Restaurant LLC 6/9/2021 7/1/2026 $38,000 $0 $38,000 $9,363 30071 Wynsum, LLC 11/5/2021 12/1/2026 $131,250 $0 $131,250 $118,101 30068 688 Forest Ave., LLC 12/21/2021 1/1/2027 $168,000 $0 $168,000 $148,617 30527 Another Round 6/5/2024 8/1/2029 $225,000 $0 $225,000 $220,878 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 $75,982 30655 Reo Miyake LLC 9/18/2025 11/1/2030 $100,000 $0 $100,000 $99,355 30654 Coco Miyake LLC 9/18/2025 11/1/2030 $100,000 $0 $100,000 $99,355 30658 Eduardos Brazillian Grill One 9/25/2025 11/1/2030 $22,500 $0 $22,500 $22,376 30686 Nash & Co. 1/30/2026 3/1/2031 $35,000 $0 $35,000 $35,000 30656 Maine Foot and Ankle 9/25/2025 11/1/2035 $49,999 $0 $49,999 $49,999 30683 Bachelder Holdings, LLC 12/18/2025 2/1/2033 $85,000 $0 $85,000 $84,535 Sub-Total FAME $0 $2,137,909 FAME GROW ME SSBCI 279 30647 Eduardos Brazilian Grill One 9/25/2025 11/1/2030 $22,500 $0 $22,500 $22,376 30649 Maine Foot and Ankle 9/25/2025 11/1/2035 $50,000 $0 $50,000 $50,000 $72,376 DOWNTOWN FUND 263: 30636 Another Round 8/22/2025 10/1/3030 $8,000 $0 $8,000 $6,733 Brownfields Loan Fund 278 and 280 30515 Forefront Partners I, LP/Fund 280 5/31/2023 4/30/2033 $200,000 $0 $200,000 $187,390 30072 Forefront Partners I, LP/Fund 280 4/12/2018 1/1/2032 $350,000 $0 $350,000 $295,735 Sub-Total Brownfields $483,125 Grand Total Loans $4,346,937 $0 $4,346,937 $3,420,032 Allowance for uncollectable loans at 15% $513,005 Total with Allowance for uncollectable loans: $2,907,027 Page 14