MANAGER’S REPORT
For Council Meeting
Tuesday, January 15, 2008  

      TO:  MAYOR & HONORABLE CITY COUNCILORS
FROM:  Joseph J. Slocum, City Manager
 DATE:  Friday, January 11, 2008 

Non-Agenda Items: 

We now have the six-months financial reports and I will spend a few moments reviewing them with Council at the meeting.  I will bring extra copies. 

Agenda Items: 

11.B   Presentation by Superintendent Bruce Mailloux on M.S.A.D. #34 2008-09 budget and school consolidation.  Superintendent Bruce Mailloux will attend the meeting and update the City Council on their 2008-2009 budget and school consolidation plans.  

11.C  Resolution for support for the Hutchinson Center Expansion Capital Campaign:  In your packet you will see a resolution of support for the Capital Campaign supporting the expansion of the Hutchinson Center-Belfast. The resolution does not commit the Council to any action and is merely a present statement of intention about a potential future action. As such, it is not a budgetary approval, which of course must be preceded by public hearing and comment.    (Pink) 

The Hutchinson Center is clearly one of the major economic development assets of the City and the entire region.  When I first met the CEO of athenahealth at the Hutchinson Center to discuss the possibility of their coming to Belfast, it took him only a few moments to look around and say that they could use a facility like it in their future plans. A skilled labor force is crucial to business growth.  Reasonably priced post secondary education close to home is a great economic opportunity for our citizens.  Local employers with special needs can work with the University to design classes and training to uplift their capability and better compete in the regional and global market. It also serves as a significant “community building” enterprise and offers health and welfare opportunities to our citizens who wish to advance their life knowledge and experience.  Given the pending Audit and the early stage of our next budget it is premature for me to discuss finances. 

11.D (#1) Council discussion and action regarding Retail Development in the Route 3 Commercial District:  I will leave comment here to the capable hands of Wayne Marshall, Director of Planning and Development.   (Gray) 

(#2)  Discussion and possible action on a “policy statement” regarding how the City should approach development of the “Les Hills” Property. Last night the City Council met in joint session with the Belfast Planning Board and the Belfast Comprehensive Planning Committee.  This morning a Council Member requested this initiative.  While the Planning Department will facilitate the text as they always do, I defer to the Council body for their own insights and perspective on this proposal. 

11.E  Discussion and consideration of a proposal by the City Manager to discharge a promissory note and mortgage to the owners of record for Map 9 Lot 34, effectively releasing a nominal lien covering septic service improvements.  Local Attorney Lee Woodward has contacted the City regarding a small loan the City made in 1998 to a local property owner under a Community Development Block Grant that was available at that time. This program is not in effect today.  I am attaching Lee’s letter but I have taken the liberty of removing the owners name because the issue I come to you on has nothing to do who the owner is.  (Green) 

Essentially we used $3,825 of Block Grant funds to help rebuild a septic system. Under the terms of the Promissory Note-if the owner stayed on the property for 10 years there would be no repayment of the grant funds to the City.  In fact the longer the owner stayed the less they would have to pay back.  At 10 years they would not have to pay a thing ($0). The owner has now been there 9 years and if they sold the house in this year then the most they would owe the City would be $385.  Currently the same owner is refinancing so I think there is no likelihood of a sale this year. The Bank has asked that we allow them to take a first position with their new mortgage and I certainly agree that we should do that.  However the amount of our potential lien ranges from $0 to $385 and it is really not likely to have any value at all.  Hence, instead of doing all the paper work to put the City in a second position behind the Bank, I recommend we discharge this note and this mortgage all-together.  These legal attachments have in my view literally no value and we should wash them away from our thoughts and our books.