Economic Development Committee — Portland, ME
Date: 2017-11-28

1. Agenda - November 28, 2017 Economic Development Committee

 Documents:

 00 11-28-2017 EDC FINAL AGENDA.PDF

2. Public Hearing On Proposed Payment In Lieu Of Services Policy For Non-Profit
 Organizations And Vote To Recommend To The City Council

 Documents:

 01 PROPOSED PAYMENT IN LIEU OF SERVICES POLICY.PDF

3. Public Hearing And Vote To Recommend To The City Council The Purchase And Sale
 Agreement For Sale Of City Owned 55 Portland Street

 Documents:

 02 11-21-2017 FINAL MEMO TO EDC-55 PORTLAND ST.PDF

4. Staff Presentation On Maine State Pier And Portland Ocean Terminal Redevelopment
 Concept Plans. No Public Comment Will Be Taken, At This Time, On This Item.

 Documents:

 03 EDC MATERIAL, 11-28-17, AGENDA ITEM 3, MAINE STATE PIER.PDF

1. Agenda - November 28, 2017 Economic Development Committee

 Documents:

 00 11-28-2017 EDC FINAL AGENDA.PDF

2. Public Hearing On Proposed Payment In Lieu Of Services Policy For Non-Profit
 Organizations And Vote To Recommend To The City Council

 Documents:

 01 PROPOSED PAYMENT IN LIEU OF SERVICES POLICY.PDF

3. Public Hearing And Vote To Recommend To The City Council The Purchase And Sale
 Agreement For Sale Of City Owned 55 Portland Street

 Documents:

 02 11-21-2017 FINAL MEMO TO EDC-55 PORTLAND ST.PDF

4. Staff Presentation On Maine State Pier And Portland Ocean Terminal Redevelopment
 Concept Plans. No Public Comment Will Be Taken, At This Time, On This Item.

 Documents:

 03 EDC MATERIAL, 11-28-17, AGENDA ITEM 3, MAINE STATE PIER.PDF
 ECONOMIC DEVELOPMENT COMMITTEE
 DATE: Nov. 28, 2017 (Tuesday)
 TIME: 5:30 – 7:30 p.m.
 LOCATION: Room 209
 Portland City Hall

1. Public Hearing on Proposed Payment in Lieu of Services Policy for Non-Profit Organizations
 and vote to recommend to the City Council.
 a. See enclosed memorandum and presentation from Brendan O’Connell, City Finance
 Director.

2. Public Hearing and vote to recommend to the City Council the purchase and sale agreement
 for sale of city owned 55 Portland Street.
 a. See enclosed memorandum from Greg Mitchell with proposed purchase and sale
 agreement.
 NOTE: Pursuant to 1 M.R.S.A. 405(6)(C), the Committee may go into executive session to
 discuss real estate negotiations for the proposed sale of City property and provide guidance
 to staff.

3. Staff Presentation on Maine State Pier and Portland Ocean Terminal Redevelopment Concept
 Plans. No public comment will be taken, at this time, on this item.
 a. See enclosed memorandum and presentation from Bill Needelman, City Waterfront
 Coordinator.

 No EDC meeting will occur this December.




 CITY OF PORTLAND/ECONOMIC DEVELOPMENT DEPT./389 CONGRESS ST./PORTLAND, ME 04101/(207) 874-8683
 Finance Department
 Brendan T O’Connell, Director



 MEMORANDUM

TO: Members of the Economic Development Committee

FROM: Brendan T O’Connell, CPA – Finance Director

DATE: November 14, 2017

SUBJECT: Introduction to Payment in-lieu of Taxes (PILOT) Policy



(A) Summary

One of the Economic Development Committee Goals for 2017 was to study a new payment in-
lieu of taxes (“PILOT”) policy for the City of Portland. Staff researched PILOT policy types and
alternatives and presented them to the Economic Development Committee on September 5.
After taking Committee input at the September meeting a draft policy has been developed for
presentation at the November 14th meeting. The proposed policy takes into account the
community benefits provided by each exempt organization and includes guidance for City staff
on opportunities to solicit participation in the PILOT.



(B) Background: Currently Exempt Property in Portland and Current PILOT Practice

According to the City Tax Assessor, the amount of tax exempt real estate within the City of
Portland has risen to approximately $2 billion dollars as of June 30, 2017 and this amount may
be understated. This represents nearly 21% of the total City valuation. Even after deducting the
total valuation related to City owned property (approximately 4% of overall total) the remaining
exempt property represents a very high percentage when compared to other municipalities
nationwide (see Exhibit A). The rise in exempt valuation has put increasing pressure on the
remaining property owners (referred to hereafter as “non-exempt property” owners) to fully fund
the broad spectrum of services offered to residents and visitors to Portland.

The City currently has no formal PILOT policy. Agreements are negotiated with exempt
property owners on very limited case by case basis, with little to no solicitation of new or
extended PILOT agreements. The PILOT agreements and payments are typically negotiated to
offset the cost of “basic” services in the City, loosely defined as public safety services and core

 Page 1

 1
public works services. Currently 10 formal PILOT request letters are sent to nonprofit
organizations annually, with a very limited number of other agreements in place with other non-
exempt property owners. In total $570,000 of revenue was estimated within the FY18 budget
from PILOT payments. Actual collections in FY17 were slightly higher than budgeted, due in
part to certain PILOT agreements based on profits.

It is important to note that nationwide there are no laws which require PILOT payments. The
current City PILOT payments are voluntary and any future PILOT payments or agreements
would remain voluntary.



(C) Goals of the PILOT Policy

As noted by the Lincoln Institute of Land Policy, PILOTs are a tool to address two problems
with the property tax exemption provided to nonprofits. First, the exemption is poorly targeted,
since it mainly benefits nonprofits with the most valuable property holdings, rather than those
providing the greatest public benefits. Second, a geographic mismatch often exists between the
costs and benefits of the property tax exemption, since the cost of the exemption in terms of
forgone tax revenue is borne by the municipality in which a nonprofit is located, but the public
benefits provided by the nonprofit often extend to the rest of the state or even the whole nation. 1
PILOT policies are becoming an increasingly common way to solicit contributions from
nonprofits to help offset the cost of services they consume. See Exhibit A on page 4 for a
nationwide comparison of charitable nonprofit organizations registered with the IRS by type as
well as their assets and liabilities.

The PILOT policy will have several goals and objectives. Above all, a uniform policy must be
developed to be applied to the exempt properties within the City. A PILOT policy would
provide clarity to exempt organizations who wish to locate in Portland and create a more even
playing field within exempt property owners. An added benefit will be a more equitable
distribution of cost of services between exempt and non-exempt property owners, although
actual increases in property tax revenues from formal PILOT policies vary significantly from
municipality to municipality.

As part of this uniform policy, guidelines for City staff may be included. For example, when a
nonprofit expands holdings within the City, there should be protocol for initiation of a
conversation around PILOT payments to offset the cost of conversion of non-exempt property to
exempt property. This was recently done by the Planning Department when approving a recent
development which included exempt property.

A secondary goal of the PILOT will be to review the population of exempt properties in more
detail, to fully understand the organizations receiving the most value from their exemptions. It is
best practice to review the benefits provided by exempt organizations during PILOT policy
development.


1
 Kenyon and Langley - Payments in Lieu of Taxes - Balancing Municipal and Nonprofit Interests, 2010

 Page 2

 2
(D) Arguments for Strong PILOT Policy

 • With an increasing percentage of exempt property within City, nonprofits should share in
 the cost of basic services which benefit them. Police and fire protection and road
 maintenance are the costs most frequently allocated to exempt property owners in other
 municipalities.

 • A strong PILOT policy has the potential to help ease the tax burden on non-exempt
 property owners, and create a more equitable distribution of the tax levy across those who
 consume core City services.


 • PILOT policies can help address inequities created by the charitable tax exemption (i.e.
 the greatest tax savings goes to organizations who have the most valuable property
 holdings).

 • PILOT policies can reduce inefficient location decisions made by nonprofits (i.e. exempt
 status creates an incentive for nonprofits to locate in cities where the tax savings are
 higher).




(E) Components of the Draft PILOT Policy

During the meeting on November 14th the draft PILOT policy (attached) will be reviewed with the
Economic Development Committee and Public Comment will be taken. Committee members will have
the opportunity to vote on the current draft or suggest revisions to the policy for presentation at the
November 28th meeting.




 Page 3

 3
Exhibit A




 Page 4

 4
 CITY OF PORTLAND, MAINE
 PAYMENT IN LIEU OF TAXES POLICY (PILOT)




Revised: October 31, 2017 Effective: January 1, 2019




 5
Table of Contents

1. PURPOSE ................................................................................................................................................... 1
2. THE NEED FOR A FORMAL PILOT POLICY ................................................................................................. 1
3. FIVE BASIC PRINCIPLES OF THE PILOT POLICY ......................................................................................... 3
4. IS THE PILOT POLICY APPLICABLE TO MY ORGANIZATION? ................................................................... 5
5. CALCULATION OF PILOT PAYMENT DUE .................................................................................................. 5
6. SERVICES IN LIEU OF TAXES (SILOT) CREDIT ............................................................................................ 6
7. ANNUAL BILLING AND FIVE-YEAR PHASE IN (FY20-FY24) ....................................................................... 7
8. GUIDANCE FOR CITY STAFF – ENCOURAGING PARTICIPATION IN THE PILOT PROGRAM ..................... 8




 6
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

1. PURPOSE
In order to maintain the high standard of municipal services that Portland has historically
provided, the City Council has established a policy for PILOT (Payment In Lieu of Tax)
contributions from tax-exempt property owners (referred to hereafter as “exempt property”
owners). The purpose of this PILOT policy document is to summarize the uniform policy to be
applied to the exempt properties within the City. The policy is intended to provide clarity to
exempt organizations who wish to locate in Portland. The policy includes monetary payments
and consideration of other services provided by exempt organizations. The policy also provides
guidance for City staff when approached with questions about PILOT policy requirements.




2. THE NEED FOR A FORMAL PILOT POLICY
According to the City Tax Assessor, the amount of tax exempt real estate within the City of
Portland has risen to approximately $2 billion dollars as of June 30, 2017 and this amount may
be understated. This represents nearly 21% of the total City valuation, a very high percentage
when compared to other municipalities. The rise in exempt valuation has put increasing
pressure on the remaining property owners in Portland (referred to hereafter as “non-exempt
property” owners) to fully fund the broad spectrum of services offered to residents and visitors
to Portland.


The City recognizes that non-profit organizations contribute directly to the quality of life within
the community and welcomes these organizations. Portland has historically been recognized as
leader in Maine the area of higher education, arts and culture, public health and religious
freedom, and have encouraged non-profits to organize in the City to enrich the quality of life of
its residents. The City’s location, status as the economic engine of Northern New England,
located just under 2 hours north of Boston, with easy access via major highway, bus, rail, and
jetport, makes it attractive for non-profit institutions. This demand for land and buildings to
operate non-profit organizations has absorbed significant amounts of taxable property within



Revised: October 31, 2017 Page 1


 7
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

the City in recent years. A continuing shift in tax burden to a diminishing tax base will have a
negative impact on residents, local businesses and the overall Greater Portland community. In
order to maintain the financial health of the community as a whole and to as to continue to
provide a range of quality services, the City must set an objective to maintain its existing tax
base and expand it where reasonably possible. Strong PILOT policies have been used in
municipalities nationwide to achieve this objective. Several key reasons noted for adoption of
strong PILOT policies are listed below.

 • With an increasing percentage of exempt property within a City, nonprofits should share
 in the cost of basic services which benefit them. Police and fire protection and road
 maintenance are the costs most frequently allocated to exempt property owners in
 other municipalities.


 • A strong PILOT policy has the potential to help ease the tax burden on non-exempt
 property owners, and create a more equitable distribution of the tax levy across those
 who consume core City services.


 • PILOT policies can help address inequities created by the charitable tax exemption (i.e.
 the greatest tax savings goes to organizations who have the most valuable property
 holdings).


 • PILOT policies can reduce inefficient location decisions made by nonprofits (i.e. exempt
 status creates an incentive for nonprofits to locate in cities where the tax savings are
 higher).




Revised: October 31, 2017 Page 2


 8
City of Portland
Payment in Lieu of Taxes Policy (PILOT)


3. FIVE BASIC PRINCIPLES OF THE PILOT POLICY

 I. Participation in the PILOT Program is voluntary


 Consideration was given to seeking an ordinance change to require PILOT payments and
 ensure more uniform participation. However any attempt to impose a legal or statutory
 requirement would face significant opposition and runs counter to the spirit of
 partnership between the City and its local institutions that a successful PILOT program
 would provide.


  II. PILOT should be applied equally to all current and future non-profit groups in Portland


 All non-profit institutions should participate in the PILOT program. While significant
 focus has been placed on the City’s medical and educational institutions, the City’s
 museums, cultural facilities, and other significant non-profits share a similar interest in
 the City.


 However, while broad participation is essential to the program’s success, the City has
 determined that an exception should be made for smaller nonprofits which may lack the
 resources to fully engage in the PILOT process. Normally, a threshold of $2 million in
 assessed value would meet this goal. An exemption of this amount will be applied to all
 organizations under this policy, eliminating the PILOT completely for the smaller
 institutions, while mitigating the financial impact of PILOT payments on institutions just
 beyond this threshold.


 III. PILOT contributions should offset cost of basic City services: 25% of full tax levy




Revised: October 31, 2017 Page 3


 9
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

 PILOT contributions should be based on the value of real estate owned by an institution.
 This approach both reflects the size and quality of the institution’s real estate holdings
 and is consistent with the approach taken for taxable properties. PILOT policies
 nationwide set contribution levels at an amount designed to cover the portion of the tax
 levy related to basic and core City services. For purposed of this PILOT, those services
 have been designated as public safety services (police and fire) and basic public works
 services including snow removal. This amount has remained at approximately 25% of
 the City’s tax levy over many years and this level has been deemed to be appropriate for
 the current policy.


 IV. PILOT policy includes a SILOT (Services In Lieu of Taxes) deduction up to 50%


 Community benefits are an important aspect of an institution’s contribution to the City.
 Institutions should receive up to a 50% PILOT deduction for qualifying community
 programs and services that uniquely benefit Portland residents. In the case of
 exceptional opportunities for partnership, the 50% cap may be exceeded. Institutions
 should also receive a credit on their PILOT in the amount of real estate taxes paid on
 properties that would ordinarily qualify for a tax exemption based on use and a credit
 for costs paid which would otherwise be paid. Section X of this document contains
 more detail on criteria for the SILOT deduction.


 V. The new PILOT formula should be phased in over a 5-year period starting in FY 2019


 While the payments currently made by some institutions approach the levels indicated
 by the program levels recommended above, most institutions fall below the
 recommended amounts. Institutions will require time to make the necessary
 adjustments in their budget and financial plans to accommodate increased PILOT




Revised: October 31, 2017 Page 4


 10
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

 amounts. To ensure a smooth transition, the Task Force recommends that the new
 formula be phased in over a time period of not less than 5 years.




4. IS THE PILOT POLICY APPLICABLE TO MY ORGANIZATION?


All tax exempt organizations are encouraged to participate in the PILOT policy. As noted
previously an exemption amount of $2M will be applied to all organizations under this policy,
eliminating the PILOT completely for the smaller institutions, while mitigating the financial
impact of PILOT payments on institutions just beyond this threshold.




5. CALCULATION OF PILOT PAYMENT DUE


PILOT contributions are based on the value of real estate owned by an institution. The initial
PILOT payment calculation is determined by multiplying the property assessed value less the
exemption amount of $2M, times the tax rate times 25%, and then subtracting any available
SILOT credit applicable to the exempt organization.




The assessor’s office determines your assessed value and the City Council sets the tax rate each
spring with the passage of the city budget. The assessed valuation is reduced by the $2M
exemption, and PILOT payments due are then reduced to only 25% of the amount which would



Revised: October 31, 2017 Page 5


 11
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

have normally been due from a similarly valued non-exempt property. The 25% represents the
cost of the City’s “core” services which are public safety (Police and Fire Department) and basic
street maintenance / winter operations. The PILOT payment due is subtracted by any available
SILOT (Services-in-lieu-of-taxes) credit which has been applied to the exempt organization by
the City. SILOT credits are not guaranteed to every organization and are calculated on a case
by case basis by the City. The SILOT credit may not exceed 50% of the total amount of the
PILOT due. See the SERVICES IN LIEU OF TAXES (SILOT) CREDIT section for complete details on
SILOT criteria and calculation.




6. SERVICES IN LIEU OF TAXES (SILOT) CREDIT

In consideration of the community benefits of the exempt organization within the City, the
PILOT policy includes a deduction for services provided. A list of items which WOULD qualify
for SILOT credit are listed below. An exempt entity will have an opportunity on an annual basis
to outline their SILOT contributions via a standard form distributed with the estimated PILOT
bill.



Participation in City Initiatives
 • Targeted scholarships for Portland residents
 • Summer Job Creation / Youth Employment
 • Set Up Initiative Health Disparities Initiative


Policy Based Collaborations
 • Public/Community Health Initiatives
 • Partnerships with Local Schools
 • Job Training Initiatives
 • Direct support on City Council Goals / participation on Task Forces


Other Direct Contributions
 • Real Estate Taxes on Property Used for Institutional Purposes


Revised: October 31, 2017 Page 6


 12
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

 • Donations to City capital projects or initiatives
 • Donations in kind (i.e. real estate, personal property)
 • Provision of services otherwise provided by the City (i.e. snow removal on public right of
 way, maintenance of a public facility, security services provided in public areas)


Good Neighbor Activities
 • Volunteer Efforts of Students/Employees
 • Sponsorships of local organizations


A non-comprehensive listing of items which would NOT qualify for SILOT credit is below:
• Real Estate Taxes on Property used for Non-institutional Purposes
• Linkage Payments
• Permits Inspection Fees
• Student Spending
• Salaries Paid to Employees
• Construction Costs
• Purchase of Goods, Services
• Grants Received / Outside Money
• Operating Support for Community Health Clinics
• Free Care (Safety Net Care)
• Unreimbursed Medicare or Medicaid




7. ANNUAL BILLING AND FIVE-YEAR PHASE IN (FY20-FY24)

Annual Billing

The annual billing for the PILOT will be performed by City staff. PILOT bills will be sent on a
semiannual basis on a schedule similar to regular property tax billing – typically PILOT bills will
be sent in July of each fiscal year. A SILOT credit application will also be enclosed with the
PILOT bill and each exempt organization will have 30 days to complete and return form. The
City will review the forms and notify each organization of SILOT credits received – including a




Revised: October 31, 2017 Page 7


 13
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

revised PILOT bill for the current fiscal year. PILOT payments will be due on the regular
property tax payment dates – typically the second Friday in September and March of each year.




Five Year Phase In – New PILOT Agreements

For any exempt organizations impacted by this policy, who currently exist in the City and are
remaining in their existing locations, a five year phase in is permitted. The amounts due in the
first five tax years of the new program are as follows:


FY20 – 10% of the normal PILOT amount

FY21 – 20% of the normal PILOT amount

FY22 – 30% of the normal PILOT amount

FY23 – 40% of the normal PILOT amount

FY23 – 50% of the normal PILOT amount



For any NEW exempt organizations seeking to locate within the City or Portland the full PILOT
amount is due in FY20. For exempt organizations who currently exist within the City and are
seeking to expand their footprint within the City, the full PILOT policy would be due on any new
property acquired.



8. GUIDANCE FOR CITY STAFF – ENCOURAGING PARTICIPATION IN THE PILOT PROGRAM

Several common transactions should be used as opportunities for City staff to inform exempt
organizations about the PILOT policy and in some cases strongly encourage participation.

Property Sale – Where conversion Strongly encourage signing of a new PILOT agreement,
to exempt property present policy along with standard agreement.


Revised: October 31, 2017 Page 8


 14
City of Portland
Payment in Lieu of Taxes Policy (PILOT)

Building Permit – Where Strongly encourage signing of a new PILOT agreement,
conversion to exempt property present policy along with standard agreement.
Zoning Amendment Request Strongly encourage signing of a new PILOT agreement,
 present policy along with standard agreement.
Site Plan Review Inform of PILOT policy – present copy of document
Passage of Formal Pilot Policy / Notify all potentially impacted exempt organizations
Amendments to PILOT Policy




Revised: October 31, 2017 Page 9


 15
 Fiscal Year 2016 Payment in Lieu of Tax (PILOT) Program Results
 1st Half 2nd Half FY16
 FY11 Total FY16 PILOT Less Community PILOT PILOT Total PILOT
 Educational Institutions PILOT Exempt Value If Taxable (Year 5) Benefits Credit Cash PILOT Contribution  Contribution  Contribution
Berklee College $ 151,331 $ 149,334,523 $ 4,635,344 $ 904,351 $ (452,175) $ 452,175 $ 113,911 $ 113,911 $ 227,822
Boston Architectural College $ ‐ $ 19,056,500 $ 591,514 $ 31,478 $ (15,739) $ 15,739 $ 7,870 $ 7,870 $ 15,739
Boston College $ 297,571 $ 526,217,533 $ 16,333,792 $ 3,447,088 $ (1,723,544) $ 1,723,544 $ 331,479 $ ‐ $ 331,479
Boston College High School $ ‐ $ 27,176,500 $ 843,559 $ 94,490 $ (47,245) $ 47,245 $ ‐ $ ‐ $ ‐
Boston Conservatory $ ‐ $ 29,053,500 $ 901,821 $ 109,055 $ (54,528) $ 54,528 $ ‐ $ ‐ $ ‐
Boston University $ 5,082,079 $ 1,999,421,324 $ 62,062,038 $ 15,165,223 $ (7,582,612) $ 7,582,612 $ 3,050,000 $ 3,050,000 $ 6,100,000
Catholic Memorial $ ‐ $ 16,753,071 $ 520,015 $ 13,604 $ (6,802) $ 6,802 $ ‐ $ ‐ $ ‐
Emerson College $ 141,591 $ 240,541,000 $ 7,466,393 $ 1,750,198 $ (875,099) $ 875,099 $ 70,796 $ 70,796 $ 141,592
Emmanuel College $ ‐ $ 194,556,700 $ 6,039,040 $ 1,393,360 $ (696,680) $ 696,680 $ 75,000 $ 75,000 $ 150,000
Fisher College $ ‐ $ 44,638,499 $ 1,385,579 $ 229,995 $ (114,997) $ 114,997 $ ‐ $ ‐ $ ‐
Harvard University $ 2,109,293 $ 1,512,947,591 $ 46,961,893 $ 11,607,145 $ (5,803,573) $ 5,803,573 $ 1,378,009 $ 1,845,457 $ 3,223,466
Mass College of Pharmacy $ 242,252 $ 109,297,000 $ 3,392,579 $ 731,745 $ (365,872) $ 365,872 $ 182,936 $ 182,936 $ 365,872
NE College of Optometry $ ‐ $ 25,065,500 $ 778,033 $ 78,108 $ (39,054) $ 39,054 $ 19,527 $ 19,527 $ 39,054
New England Conservatory $ ‐ $ 31,627,000 $ 981,702 $ 129,026 $ (64,513) $ 64,513 $ ‐ $ ‐ $ ‐
Northeastern University $ 30,571 $ 1,338,469,314 $ 41,546,088 $ 9,592,952 $ (4,796,476) $ 4,796,476 $ 550,000 $ 550,000 $ 1,100,000
Roxbury Latin School $ ‐ $ 52,829,300 $ 1,639,821 $ 293,555 $ (146,778) $ 146,778 $ ‐ $ ‐ $ ‐
Showa Institute $ 123,084 $ 42,694,600 $ 1,325,240 $ 214,910 $ (107,455) $ 107,455 $ 53,728 $ 53,728 $ 107,455
Simmons College $ 15,000 $ 139,730,000 $ 4,337,219 $ 967,905 $ (483,952) $ 483,952 $ ‐ $ ‐ $ ‐
Suffolk University $ 378,979 $ 194,390,200 $ 6,033,872 $ 1,392,068 $ (696,034) $ 696,034 $ 219,475 $ 219,475 $ 438,950
Tufts University $ 232,975 $ 158,300,662 $ 4,913,653 $ 1,112,013 $ (556,007) $ 556,007 $ 278,003 $ 278,003 $ 556,007
Wentworth Institute of Tech.1 $ 31,504 $ 208,240,568 $ 6,463,787 $ 1,499,547 $ (749,773) $ 749,773 $ 299,403 $ ‐ $ 299,403
Wheelock College $ ‐ $ 54,656,000 $ 1,696,522 $ 307,731 $ (153,865) $ 153,865 $ ‐ $ ‐ $ ‐
Winsor School $ ‐ $ 41,283,900 $ 1,281,452 $ 203,963 $ (101,982) $ 101,982 $ ‐ $ ‐ $ ‐
TOTAL $ 8,836,231 $ 7,156,280,785 $ 222,130,956 $ 51,269,510 $ (25,634,755) $ 25,634,755 $ 6,630,136 $ 6,466,702 $ 13,096,838

1
 Wentworth Institute of Technology received a $50,000 exceptional opportunity credit for the donation of land for the construction of housing for seniors in Mission Hill

 = Institution contributed a cash PILOT and qualifying community benefits in the amount requested by the City




 162016
 Updated July 18,
 Fiscal Year 2016 Payment in Lieu of Tax (PILOT) Results
 1st Half FY16
 FY11 Total FY16 PILOT Less Community PILOT 2nd Half PILOT Total PILOT
 Medical Institutions PILOT Exempt Value If Taxable (Year 5) Benefits Credit Cash PILOT Contribution Contribution Contribution
Beth Israel Deaconess $ 167,000 $ 813,129,901 $ 25,239,552 $ 6,193,488 $ (3,096,744) $ 3,096,744 $ 1,548,372 $ 1,548,372 $ 3,096,744
 2
Boston Children's Hospital $ 111,921 $ 660,688,500 $ 20,507,771 $ 3,248,521 $ (2,436,391) $ 812,130 $ 420,318 $ 391,812 $ 812,130
Boston Medical Center $ 137,625 $ 279,568,600 $ 8,677,809.34 $ 2,024,379 $ (1,518,284) $ 506,094.76 $ 254,375 $ 251,720 $ 506,095
Brigham and Women's Hosp. $ 1,538,506 $ 794,517,135 $ 24,661,812 $ 6,049,053 $ (3,024,526) $ 3,024,526 $ 1,512,263 $ 1,512,263 $ 3,024,526
Dana Farber Cancer Institute $ 99,972 $ 248,137,603 $ 7,702,191 $ 1,809,148 $ (904,574) $ 904,574 $ 452,287 $ 452,287 $ 904,574
Faulkner Hospital $ ‐ $ 161,926,400 $ 5,026,195 $ 1,140,149 $ (570,074) $ 570,074 $ 285,037 $ 285,037 $ 570,074
Franciscan Hospital $ ‐ $ 50,402,000 $ 1,564,478 $ 274,720 $ (137,360) $ 137,360 $ ‐ $ ‐ $ ‐
Harvard Vanguard $ 294,886 $ 109,848,200 $ 3,409,688 $ 736,022 $ (368,011) $ 368,011 $ 184,006 $ 184,005 $ 368,011
Hebrew Rehabilitation Ctr $ ‐ $ 42,544,000 $ 1,320,566 $ 213,741 $ (160,306) $ 53,435 $ ‐ $ ‐ $ ‐
Joslin Diabetes Center $ ‐ $ 86,293,700 $ 2,678,556 $ 553,239 $ (276,620) $ 276,620 $ ‐ $ ‐ $ ‐
Mass Eye & Ear Infirmary $ ‐ $ 116,908,100 $ 3,628,827 $ 790,807 $ (395,403) $ 395,403 $ 197,702 $ 197,702 $ 395,403
Mass General Hospital $ 2,668,355 $ 1,786,908,729 $ 55,465,647 $ 13,750,012 $ (6,875,006) $ 6,875,006 $ 3,437,503 $ 3,437,503 $ 6,875,006
New England Baptist Hosp. $ ‐ $ 134,481,973 $ 4,174,320 $ 927,180 $ (463,590) $ 463,590 $ 185,436 $ 185,436 $ 370,872
Shriners Hospital $ ‐ $ 106,097,400 $ 3,293,263 $ 706,916 $ (353,458) $ 353,458 $ ‐ $ ‐ $ ‐
Spaulding Rehab Hospital $ 78,919 $ 153,933,900 $ 4,778,108 $ 1,078,127 $ (539,064) $ 539,064 $ 269,532 $ 269,532 $ 539,064
Tufts Medical Center $ 910,720 $ 401,044,500 $ 12,448,421 $ 2,995,705 $ (1,497,853) $ 1,497,853 $ 424,396 $ 641,286 $ 1,065,682
TOTAL $ 6,007,904 $ 5,946,430,641 $ 184,577,207 $ 42,491,207 $ (22,617,264) $ 19,873,943 $ 9,171,227 $ 9,356,954 $ 18,528,181
2
 Half of the hospital's cash PILOT was a direct cash contribution to the Boston Public Schools and Boston Public Health Commission as an exceptional opportunity credit according to program guidelines

 1st Half FY16
 FY11 Total FY16 PILOT Less Community PILOT 2nd Half PILOT Total PILOT
 Cultural Institutions PILOT Exempt Value If Taxable (Year 5) Benefits Credit Cash PILOT  Contribution Contribution Contribution
Bayridge Center $ 17,884 $ 29,788,000 $ 924,620 $ 114,755 $ (57,377) $ 57,377 $ 9,526 $ 9,526 $ 19,051
Boston Symphony Orchestra $ 84,976 $ 29,178,062 $ 905,687 $ 110,022 $ (55,011) $ 55,011 $ 27,505 $ 27,505 $ 55,011
Children's Museum $ ‐ $ 31,029,000 $ 963,140 $ 124,385 $ (62,193) $ 62,193 $ ‐ $ ‐ $ ‐
Gardner Museum $ ‐ $ 27,868,501 $ 865,038 $ 79,888 $ (39,944) $ 39,944 $ 19,972 $ 19,972 $ 39,944
Inst. of Contemporary Art $ ‐ $ 37,162,500 $ 1,153,524 $ 171,981 $ (85,991) $ 85,991 $ ‐ $ ‐ $ ‐
MASCO $ 133,778 $ 50,947,000 $ 1,581,395 $ 278,949 $ (139,474) $ 139,474 $ 69,737 $ 69,737 $ 139,474
Museum of Fine Arts $ 66,220 $ 282,450,999 $ 8,767,279 $ 2,062,784 $ (1,031,392) $ 1,031,392 $ 32,133 $ 36,787 $ 68,920
Museum of Science $ ‐ $ 34,903,500 $ 1,083,405 $ 154,451 $ (77,226) $ 77,226 $ ‐ $ ‐ $ ‐
New England Aquarium $ ‐ $ 70,176,100 $ 2,178,266 $ 428,167 $ (214,083) $ 214,083 $ ‐ $ ‐ $ ‐
WGBH $ ‐ $ 49,902,500 $ 1,548,974 $ 270,843 $ (135,422) $ 135,422 $ 67,711 $ 67,711 $ 135,422
TOTAL $ 302,858 $ 643,406,162 $ 19,971,327 $ 3,796,224 $ (1,898,112) $ 1,898,112 $ 226,584 $ 231,238 $ 457,822

GRAND TOTAL $ 15,146,992 $ 13,746,117,588 $ 426,679,490 $ 97,556,941 $ (50,150,131) $ 47,406,810 $ 16,027,947 $ 16,054,894 $ 32,082,841


 = Institution contributed a cash PILOT and qualifying community benefits in the amount requested by the City


 17 2016
 Updated July 18,
 Economic Development Department
 Gregory A. Mitchell, Director



 MEMORANDUM


TO: Economic Development Committee

FROM: Greg Mitchell, Economic Development Director

DATE: November 21, 2017

SUBJECT: Review and vote to recommend to the City Council Authorizing
 the City Manager to Enter into a Purchase and Sale Agreement for
 Sale of City Property at 55 Portland Street

I. Summary

This is for the Economic Development Committee (EDC) to review and vote to recommend to the
City Council to authorize the City Manager to enter a Purchase and Sale Agreement to sell City
property located at 55 Portland Street to Ford Reiche for $1,400,000 with a delayed property closing
on or before December 31, 2018.

II. Background

It has been the long-term goal to sell this and other Public Works Bayside properties per the Year
2000 Bayside Vision. To support these property sales, the City Council approved the acquisition of
property along Canco Road which has been and continues to be redeveloped to support the relocation
of Public Works operations from Bayside and other City Departments.

The subject property is being used for Public Works administration. See attached property location
map.

Public EDC meetings to discuss the sale of Bayside former Public Works Properties have been held
on 1/3/2017, 1/31/2017, 2/27/2017, 3/7/2017, 6/272017, 7/19/2017, and 9/19/2017, with the
additional meeting to be held on 11/15/2017.

Under the direction of the EDC, staff negotiated this Purchase and Sale Agreement with Ford Reiche.
Mr. Reiche’s proposal is to retain the building as office space with renovations for daylighting,
various sized collaboration spaces, open work space environments, and energy efficient lights. Other
necessary improvements would include:

 - Separating mechanical services and vehicle circulation shared with
 the building at 44 Hanover Street;
 - Updating parts of the façade and grounds;
 1

 1
 - Modifying room configurations to the intended new use;
 - Major renovation of flooring, ceilings, lighting; and
 - Upgrades to restrooms.

These improvements, estimated at $500,000-$750,000, are intended to create modern Class B office
space, which is a need on the peninsula. Tenants, one or two, are expected to be small or mid-sized
commercial operations. Estimated employee capacity would be 48.

III. Intended Result and/or Council Goal Addressed

The intended result would be the sale of this property to support office space development in Bayside.
It also supports the Council’s long-term goal to sell Public Works Bayside properties to support
Public Works relocation out of Bayside.

IV. Financial Impact and Purchase and Sale Agreement Highlights

If sold, the City would realize property sale proceeds in the amount of $1,400,000 and future new
taxes from the proposed development.

Also, provisions are included to ensure future payment of property taxes in the event of non-profit
ownership.

The appraised value of this property in an “as is, where is” condition is $1,620,000. Buyer will
provide the City with environmental indemnification and be responsible for any site environmental
remediation costs.

Proceeds from the sale of this and other Bayside property will be utilized to fund the relocation of
remaining Public Works operations out of Bayside.

Also, Developer performance requirements are included in the Purchase and Sale Agreement.

V. Staff Analysis

For the reasons stated previously, staff supports the approval of the Proposed Purchase and Sale
Agreement as attached.

VII. Recommendation

Staff recommends that the EDC review and vote to recommend to the City Council that it authorize
the City Manager to enter into the proposed Purchase and Sale Agreement in substantial conformance
as attached.

Attachments:
>Bayside Property Map
>Proposed Purchase and Sale Agreement and its Exhibits:
 a. Property Offer with Bayside Parcel Map
 b. Developer’s Project Proposal




 2

 2
Map produced by the City of Portland
Economic Development Department.
Lot lines are approximate. For visualization
only. Not intended for conveyance of
property. November 2017




 Hanover Street

 eet




 !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!! !!
 nd Str

 Portla



 Proposed Lot Division
 55 Portland Street




 Parris Street
 Bayside Parcel: 55 Portland Street
 100 50 0 100 Feet
 [ 3
 .


 Parcel 1
 PURCHASE AND SALE AGREEMENT

 THIS PURCHASE AND SALE AGREEMENT IS made this ______ day of ______,
2017 by and between the City OF PORTLAND, a body politic and corporate located in
Cumberland County, Maine, (hereinafter referred to as “Seller” or “City”), and 55 Portland
Street, LLC, a Maine limited liability company to be formed by Ford S. Reiche, or its nominee
(hereinafter referred to as “Buyer” ).

 RECITALS

 WHEREAS, the CITY is the owner certain land at 55 Portland Street, Portland, Maine as
generally depicted on the plan attached hereto as Exhibit A 1 as depicted on illustration appended
to Purchaser’s Offer Dated June 22, 2017 (the “Premises”); and

 WHEREAS, Buyer desires to purchase the Premises, and the City desires to convey the
Premises to Buyer, subject to all easements of record and any other existing easements burdening
the Premises.

 NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties,
intending to be legally bound, hereby agree as follows:

 1. SALE. City agrees to sell the Premises to Buyer, and Buyer agrees to purchase the
 Premises in accordance with the terms and conditions set forth in this Agreement.

 2. CONSIDERATION. The purchase price for the Premises shall be One Million,
 Four Hundred Thousand Dollars ($1,400,000) (the “Purchase Price”), subject to the
 following cost adjustments and conditions:

 a. Buyer shall deposit in the sum of One Hundred Thousand Dollars
 ($100,000.00) (the “Deposit”) within 3 business days after the full execution
 of this Agreement that the parties agree will be held in escrow as of the date
 of this Agreement, in a non-interest bearing account with CBRE | The Boulos
 Company; the Deposit shall be fully refundable until the end of the Due
 Diligence Period as described herein; after such Period the Deposit shall be
 non-refundable (except as otherwise provided in Sections 3c, 3e, 6, 7 and 10
 of this Agreement); and



1
  Note is made that the back boundary line of the Premises will be at the rear of the
approximately nine parking spaces adjacent to the building on the Premises, with a to-be-created
access easement from Hanover Street to these parking spaces; and further, that the entire parking
lot accessed from Portland Street is part of the Premises. This new to-be-created boundary will
reduce the acreage of the Premises stated herein. The Premises shall be as depicted on illustration
appended to Purchaser’s Offer Dated June 22, 2017.

 1
 4
 .


 b. The Buyer shall pay the remainder of the Purchase Price to the City by wire
 transfer (or as otherwise reasonably requested by the City) at closing.

3. TITLE AND DUE DILIGENCE.
 a. Due Diligence Period. Buyer will have from the date of this Agreement
 until 4:00 PM Eastern Daylight Savings Time on the day that is sixty (60) days
 after the date of this Agreement (the “Due Diligence Period”) to complete any
 survey, environmental review and title examinations.

 b. Property Description. The property description contained in the deed will be a
 survey description based upon a survey plan (the “Premises”), to be provided by
 the City, that will more specifically describe the property shown on Exhibit A
 hereto together with an easement over the adjoining property for access to and
 from Hanover Street to the parking located on the Premises. The Premises will be
 distributed to the parties hereto prior to expiration of the Due Diligence Period
 and the parties will agree on the property and easement description prior to
 closing. The Due Diligence Period shall be extended in the event that the survey
 plan is not completed by the end of the Due Diligence Period and Buyer is
 afforded reasonable time to review the plan and make any title objections as
 provided below.

 c. Financing Contingency. Buyer shall have fifteen (15) days after the end of the
 Due Diligence Period (the “Financing Period”) to obtain commercially reasonable
 financing, and shall take timely and commercially reasonable steps to secure such
 financing. If Buyer fails to obtain a commitment for such financing within such
 period or if such financing is not provided at Closing, then, Buyer may serve
 written notice on the Seller of its election to terminate this Agreement. If Buyer
 gives such notice to the Seller, terminating this Agreement, this Agreement shall
 be deemed terminated, the Deposit shall be returned to Buyer and neither party
 shall have any further rights, claims or obligations, except as otherwise expressly
 provided herein.

 d. Title and Survey Objections. Buyer will have until the end of the Due
 Diligence Period to deliver to City any written objections to title, environmental,
 or survey matters (other than the permitted exceptions identified herein) that
 materially affect marketability or use. Objections not made prior to the end of the
 Due Diligence Period will be deemed waived; provided, however, that objections
 pertaining to matters of record first appearing after the end of the Due Diligence
 Period may be made at any time prior to the closing. City shall provide a copy of
 a Phase II environmental study completed on the Property and should the results
 of any such study be provided on or after the Due Diligence Period, Buyer shall
 be afforded reasonable time to review the results and make any objections as
 provided for herein.

 e. Option to Cure. In the event of a title or survey objection, City will have the
 option, but not the obligation, to cure the objection and will notify Buyer of its
 election within ten (10) business days after receipt of the objection. In the event
 that the City elects to cure the objection, it will have sixty (60) days from the date
 2
 5
 .


 of the notice of election, or such other reasonable time as the parties may agree, to
 cure the objection. In the event that the City does not elect to cure the objection,
 or, having elected to cure the objection fails to timely do so to Buyer’s reasonable
 satisfaction, Buyer will have the option to (1) terminate this Agreement and
 obtain a refund of the Deposit (after which neither party will have any further
 obligation or liability to the other under this Agreement), (2) waive the objection
 and close, or (3) undertake the cure of such objection at its own expense (in which
 case it shall have 60 days to do so).

 f. Deed. City shall convey the Premises to Buyer at the closing in fee simple by a
 municipal quitclaim deed without covenant. The deed shall include easement
 rights satisfactory to Buyer. Title shall be good, insurable and insurable title, free
 and clear of all encumbrances except (i) the easements described herein; (ii)
 easements for utilities servicing the property, (ii) City ordinances, and (iii) real
 estate taxes not yet due and payable. Further, Buyer acknowledges that the deed
 shall contain a restriction stating that in the event that the Premises or any portion
 thereof shall be exempt from real and personal property taxes, by transfer,
 conversion, or otherwise, then the then-owner of the exempt portion shall make
 annual payments to the City in lieu of taxes in the amount equal to the amount of
 property taxes that would have been assessed on the exempt portion of the real
 and personal property situated on the Premises had such property remained
 taxable. Such restriction shall also confirm that Buyer and its successors and
 assigns shall possess and be vested with all rights and privileges as to abatement
 and appeal of valuations, rates, and the like as are accorded owners of real and
 personal property in Maine. Further, Buyer acknowledges that the deed shall
 contain a restriction stating that in the event that the Premises or any portion
 thereof shall be exempt from real and personal property taxes, by transfer,
 conversion, or otherwise, then the then-owner of the exempt portion shall make
 annual payments to the City in lieu of taxes in the amount equal to the amount of
 property taxes that would have been assessed on the exempt portion of the real
 and personal property situated on the Premises had such property remained
 taxable. Such restriction shall also confirm that Buyer and its successors and
 assigns shall possess and be vested with all rights and privileges as to abatement
 and appeal of valuations, rates, and the like as are accorded owners of real and
 personal property in Maine.

4. INSPECTIONS.

 a. During the Due Diligence Period, Buyer and its employees, consultants,
 contractors and agents shall have the right, at Buyer’s expense, to enter on
 the Premises at reasonable times in order to (i) inspect the same, (ii) conduct
 engineering studies, percolation tests, geotechnical exams, environmental
 assessments, and other such studies, tests, exams, and assessments, and (iii)
 do such other things as Buyer determines, it is sole discretion, to be required
 to determine the suitability of the Premises for Buyer's intended use
 (collectively, the “Inspections”). The City acknowledges that such
 Inspections may include the digging of test pits, which the City hereby
 approves.
 3
 6
 .




 b. Buyer agrees to defend, indemnify and hold harmless the City against any
 mechanics liens that may arise from the activities of Buyer and its
 employees, consultants, contractors and agents on the Premises.

 c. Buyer shall exercise the access and inspection rights granted hereunder at
 its sole risk and expense, and Buyer hereby releases the City from, and
 agrees to indemnify, defend, and hold the City harmless against, any and all
 losses, costs, claims, expenses and liabilities (including without limitation
 reasonable attorney fees and costs) (collectively, "Damages") suffered by
 the City on account of any injury to person or damage to property arising
 out of the exercise by Buyer of its rights hereunder, except to the extent
 that such Damages result from the act or omission of the City.

 d. Buyer shall cause any contractors, consultants or any other party conducting
 the Inspections to procure automobile insurance, if applicable, and general
 public liability insurance coverage in amounts of not less than Four Hundred
 Thousand Dollars ($400,000.00) per occurrence for bodily injury, death and
 property damage, listing the City as an additional insured thereon, and also
 Workers’ Compensation Insurance coverage to the extent required by law;
 the forms of all such insurance to be subject to City’s Corporation Counsel’s
 reasonable satisfaction.

 e. In the event that Buyer does not purchase the Premises, Buyer agrees to
 either return the Premises as nearly as possible to its original condition after
 conducting the Inspections, or, at the City’s option, reimburse the City for
 any physical damage caused to the Premises in connection with the
 Inspections; provided, however, the City hereby acknowledges and agrees
 that the term "physical damage" does not include any disturbance of any
 pre-existing environmental contamination on the Premises caused by such
 inspections, studies, tests, exams, and assessments, and that Buyer shall
 have no obligation to clean-up, remove or take any other action with respect
 to any pre-existing environmental contamination disturbed thereby.

 f. The parties hereto acknowledge and agree that it is a condition to Buyer's
 obligations under this Agreement that the results of the Inspections be
 acceptable to Buyer in its sole discretion. If the results of such due diligence
 are not acceptable to Buyer in its sole discretion, and if Buyer exercises its
 right to terminate this Agreement, then the City shall refund to Buyer the
 Deposit, if previously paid, without interest, within thirty (30) days after
 receipt of Buyer's termination notice, and neither party shall have any
 further obligations or liabilities under this Agreement except as expressly set
 forth in this Agreement.

5. REAL ESTATE TAXES, PRORATIONS AND TRANSFER TAX. Buyer shall
 be liable for all real estate taxes beginning as of the start of fiscal year following the
 closing and continuing thereafter. Because the Property is currently owned by the
 City of Portland, which is exempt from real estate taxes, no taxes were assessed or
 4
 7
 .


 will be due for any portion of the current fiscal year, and no taxes will be prorated at
 the closing. Any utilities for the Property shall be prorated as of the closing. The
 Maine real estate transfer tax shall be paid for by Buyer in accordance with 36
 M.R.S.A. § 4641-A. City is exempt from paying the transfer tax pursuant to 36
 M.R.S.A. § 4641-C. The recording fee for the deed of conveyance and any expenses
 relating to Buyer’s financing or closing shall be paid for by Buyer.

6. DEFAULT AND REMEDIES. In the event that Buyer defaults hereunder for a
 reason other than the default of the City, City shall retain the deposit as its sole
 remedy. In the event City defaults under this Agreement, and if Buyer is not then in
 default hereunder, Buyer shall have the right to pursue specific performance, but at all
 times may elect in substitution therefor, as its sole remedy, the right to a return of its
 deposit.

7. RISK OF LOSS. The risk of loss or damage to the Premises by fire, eminent
 domain, condemnation, or otherwise, until transfer of title hereunder, is assumed by
 the City. The Premises is to be delivered in substantially the same condition as of the
 date of this Agreement unless otherwise stated. In the event City is not able to deliver
 the Premises as stated, Buyer may terminate this Agreement and receive a refund of
 the Deposit without interest, and neither party shall have any further obligations or
 liabilities under this Agreement except as expressly set forth in this Agreement.

8. PROPERTY SOLD “AS IS, WHERE IS.” Buyer acknowledges that Buyer has had
 an opportunity to inspect the Premises, and to hire professionals to do so, and that
 Premises will be sold “as is, where is” and “with all faults.” City, and its agents,
 make no representations or warranties with respect to the accuracy of any statement
 as to boundaries or acreage, or as to any other matters contained in any description of
 the Premises, or as to the fitness of the Premises for a particular purpose, or as to
 development rights, merchantability, habitability, or as to any other matter, including
 without limitation, land use, zoning and subdivision issues or the environmental,
 mechanical, or structural condition of the Premises. Acceptance by Buyer of the
 Deed at closing and payment of the purchase price shall be deemed to be full
 performance and discharge by the City of every agreement and obligation contained
 herein.

9. ENVIRONMENTAL INDEMNIFICATION. Buyer covenants and agrees to
 indemnify, defend, and hold the City harmless from and against any and all claims,
 damages, losses, liabilities, obligations, settlement payments, penalties, assessments,
 citations, directives, claims, litigation, demands, defenses, judgments, costs, or
 expenses of any kind, including, without limitation, reasonable attorneys’,
 consultants’, and experts’ fees incurred in investigating, defending, settling, or
 prosecuting any claim, litigation or proceeding, that may at any time be imposed
 upon, incurred by or asserted or awarded against Buyer or the City and relating
 directly or indirectly to the violation of or compliance with any federal, state, or local
 environmental laws, rules, or regulations governing the release, handling or storage of
 hazardous wastes or hazardous materials and affecting all or any portion of the
 Premises, except to the extent that such a claim results directly from the City’s
 release, handling or storage of hazardous wastes or hazardous materials on the
 5
 8
 .


 Premises. This duty to indemnify, defend, and hold harmless shall be included in a
 covenant in the deed and shall run with the land conveyed and be binding upon
 Buyer’s successors, assigns, and transferees.

10. CONDITIONS PRECEDENT TO CLOSING. The City shall pursue Subdivision
 approval by the City of Portland Planning Board, in order to obtain approval for the
 creation of the parcel which constitutes the Premises, unless the Buyer and City as
 Seller, determine such Subdivision approval is not required. In the event the City is
 unable to obtain such approval prior to the Closing Date, as defined below, then the
 Closing date shall be extended for one year and if after the end of such extension
 period, the City is unable to obtain such approval, then the City shall refund the
 Deposit, if previously paid, without interest, and this Agreement shall be terminated
 and neither party shall have any further obligations or liabilities under this
 Agreement, unless the parties mutually agree to extend this agreement. Buyer
 acknowledges and agrees that the City is acting as Seller, and not in its regulatory
 capacity, in connection with this Agreement. The acceptance or recording of a deed to
 the Buyer of the Premises will evidence conclusive and final consent by the Buyer to
 the waiver or completion of all this condition.

11. CLOSING. Time is of the essence in the performance of this agreement. The
 closing shall be held at the offices of Buyer’s counsel or lender at a time agreeable to
 the parties on or before December 31, 2018 (the “Closing Date”). At the Closing:

 a. the City shall execute, acknowledge and deliver to Buyer a municipal
 quitclaim deed conveying to Buyer good and insurable title to the Premises,
 free and clear of all encumbrances except as otherwise set forth herein. Full
 possession of the Premises shall be given to Buyer at Closing and the City
 shall have removed all of its personal property and left the Premises in a
 clean and orderly condition.

 b. Buyer shall deliver the balance of the Purchase Price to the City by wire
 transfer (or as otherwise reasonably requested by the City);

 c. Each party shall deliver to the other such other documents, certificates and
 the like as may be required herein or as may be necessary to carry out the
 obligations under this Agreement.

 d. Buyer shall deliver evidence, reasonably satisfactory to City’s Corporation
 Counsel, that the entity receiving title to the Premises is in good standing
 under Maine law, and that the individuals acting to Closing and executing
 documents on behalf of Buyer are authorized to do so.

12. BUYER’S POST CLOSING OBLIGATIONS. To the extent described in this
 paragraph, Buyer agrees to substantially commence development of the project
 substantially as depicted on the attached Plan (Exhibit B), substantially as presented
 in the Memo dated August, 2017 to Nate Stevens and Vince Ciampi (copy to Greg
 Mitchell) from Ford Reiche and Jeff Zachau (the “Project”) within twelve (12)
 months after the Closing, provided, however, that Buyer may expend less on building
 6
 9
 .


 rehabilitation if the result is to secure tenants at a rental of at least $10/per square
 foot. If Buyer, its successors, assigns, or transferees fails to submit to the City of
 Portland Planning Board a substantially complete site plan review application for the
 Project on the Property within 12 months after the Closing, and to substantially
 complete construction of the buildings which are part of the Project within thirty (30)
 months after the Closing, the City shall have the right to draw on the $200,000 letter
 of credit that Buyer’s lender will provide to the City at Closing. Said 12 month and
 30 month periods shall be automatically extended if Buyer fails to perform any of its
 obligations hereunder by reason of strikes, boycotts, labor disputes, acts of God, war,
 acts of superior governmental authority, failure to obtain land use approvals, or other
 reason over which it has no control; provided, however, that the suspension of
 performance shall be no longer than that required by the force majeure. The
 provisions of this paragraph will survive closing. Buyer shall have the right to make
 changes to the Project that are not material and such immaterial changes shall not
 entitle the City to draw on said letter of credit. The City agrees that it shall be
 reasonable in all aspects of application of the provisions of this paragraph.

13. ENTIRE AGREEMENT. This Agreement represents the entire and complete
 Agreement and understanding between the parties and supersedes any prior
 agreement or understanding, written or oral, between the parties with respect to the
 acquisition or exchange of the Property hereunder. This Agreement cannot be
 amended except by written instrument executed by City and Buyer.

14. NON-WAIVER. No waiver of any breach of any one or more of the conditions of
 this Agreement by either party shall be deemed to imply or constitute a waiver of any
 succeeding or other breach hereunder.

15. HEADINGS AND CAPTIONS. The headings and captions appearing herein are for
 the convenience of reference only and shall not in any way affect the substantive
 provisions hereof.
16. BINDING EFFECT. This Agreement shall be binding upon and inure to the benefit
 of the parties hereto and their respective heirs, administrators, successors and assigns.
17. TIME. The City and Buyer each confirm and agree that each of the time periods set
 forth herein are essential provisions of the terms of this Agreement.

18. GOVERNING LAW. This Agreement shall be construed in all respects in
 accordance with, and governed by, the laws of the State of Maine. All parties hereto
 hereby consent to the exclusive jurisdiction of the Superior Court for the County of
 Cumberland in the State of Maine, for all actions, proceedings and litigation arising
 from or relating directly or indirectly to this Agreement or any of the obligations
 hereunder, and any dispute not otherwise resolved as provided herein shall be
 litigated solely in said Court. If any provision of this Agreement is determined to be
 invalid or unenforceable, it shall not affect the validity or enforcement of the
 remaining provisions hereof.



 7
 10
 .


 19. NOTICE. All notices, demands and other communications hereunder shall be in
 writing and shall be deemed to have been duly given on the date of service if served
 personally on the party to whom notice is to be given, or on the first business day
 after mailing if mailed to the party to whom notice is to be given by first class mail,
 postage prepaid, certified, return receipt requested, addressed to the recipient at the
 addresses set forth below. Either party may change addresses for purposes of this
 paragraph by giving the other party notice of the new address in the manner described
 herein.

 FOR THE City: City of Portland
 ATTN: City MANAGER
 389 Congress Street
 Portland, ME 04101

 With a copy to : The Office of the Corporation Counsel at the
 same address.

 FOR Buyer: 55 Portland Street, LLC
 c/o Ford S. Reiche,
 54 Bartol Island Road, Freeport, Maine 04032


 With a copy to: Ronald Epstein, Esq.
 Jensen Baird Gardner & Henry
 10 Free Street, Portland, ME

 20. SIGNATURES; MULTIPLE COUNTERPARTS. This Agreement may be
 executed in any number of counterparts and by different parties in separate
 counterparts. Each counterpart when so executed shall be deemed to be an original
 and all of which together shall constitute one and the same agreement.
 21. BROKERS. City shall pay CBRE | The Boulos Company at closing a brokerage
 commission equal to five percent (5%) of the Purchase Price at closing and any other
 brokerage fees due to it in connection with this transaction. The CITY and Buyer each
 represent and warrant that they have not dealt with a real estate broker in connection
 with this transaction other than CBRE | The Boulos Company. Buyer agrees to
 indemnify and hold harmless City from any claims made by any broker should Buyer's
 representation in this paragraph be false. Subject to the limitations of liability set forth
 in the Maine Tort Claims Act, City agrees to indemnify and hold harmless Buyer from
 any claims made by any broker should City's representation in this paragraph be false.
 The foregoing indemnities shall include all legal fees and costs incurred in defense
 against any such claim, and shall survive closing.

 22. RECITALS INCORPORATED BY REFERENCE. The recitals set forth above
 are incorporated herein by reference and made a part of this Agreement.

 IN WITNESS WHEREOF, the parties hereto have caused this instrument to be
executed by their duly authorized officers or representatives, as of the day and year first written
 8
 11
 .


above.


 CITY OF PORTLAND


WITNESS Jon P. Jennings
 Its City Manager




 55 Portland Street, LLC

 _
WITNESS Printed Name: Ford S. Reiche
 Its Manager



Approved as to Form:


Corporation Counsel’s Office




 9
 12
13
14
15
16
GM rec'd via email from Ford Reiche on 8/29/2017.




 17
18
19
 Economic Development Department
 Gregory A. Mitchell, Director


TO: Chair Brennerman and Members of the Economic Development Committee

FROM: Bill Needelman, Waterfront Coordinator

DATE: November 21, 2017

SUBJECT: November 28, 2017 Workshop: Portland Ocean Terminal at the Maine State
 Pier – Concept for increased utilization

CC: Jon Jennings, City Manager
 Greg Mitchell, Economic Development Director
 Sally Deluca, Parks, Recreation and Facilities Director
 Kathy Alves, Facilities Director

  __________________________________________________________________________

Introduction:

Economic Development and Facilities staff request a workshop with the Economic Development
Committee on the Portland Ocean Terminal (POT) at the Maine State Pier. This workshop follows and
expands on ideas presented at an October 2 City Council workshop and the September 5 discussion by
the Economic Development Committee on this same subject.

During the weeks following the October Council workshop, Economic Development and Facilities staff
have been working with background documents and architectural consultants to elaborate and illustrate
redevelopment concepts previously discussed. The workshop is an opportunity for staff to describe
background and past policies, present draft material, receive feedback on program and design direction,
and to outline next steps.

Public and Stakeholder Outreach:

At the meeting staff will discuss with the Committee options for public input and stakeholder
involvement in the refinement and development of the concepts for increased utilization of the POT
building.




 1
Material for Presentation

At the workshop, staff will present the material included with this memo including the following
documents:
1. 2006 Policy Statement for the Maine State Pier
2. Draft revised Policy Statement for the Maine State Pier
3. Redevelopment program narratives: Market, Incubator Space, Event Space
4. Presentation with rendered concept images and illustrations




 2
 Att. #1, 2006 Policy Statement

 Final Version, As Passed on September 18, 2006
JAMES I. COHEN (MAYOR)(5) CITY OF PORTLAND WILLIAM R. GORHAM (1)
JILL C. DUSON (A/L) KAREN A. GERAGHTY (2)
JAMES F. CLOUTIER(A/L) IN THE CITY COUNCIL DONNA J. CARR (3)
NICHOLAS M. MAVODONES (A/L) CHERYL A. LEEMAN (4)
EDWARD J. SUSLOVIC (A/L)




 ORDER AMENDING CITY OF PORTLAND’S
 COMPREHENSIVE LAND USE PLAN

 BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PORTLAND,
 MAINE IN CITY COUNCIL ASSEMBLED AS FOLLOWS:

 1. That the Eastern Waterfront Master Plan, a component of the City of Portland’s
 Comprehensive Land Use Plan, on file in the Department of Planning and Urban
 Development, be and hereby is amended by adopting the policy change below:

 Policy Statement for Maine State Pier
 Maine State Pier is a City owned deep water marine facility located on the Portland
 waterfront at the intersection of Commercial Street with Franklin Street Arterial within
 the Eastern Waterfront planning district. While over the years several piers with various
 names have existed on this site, for the purposes of the following Policy Statement, the
 “Maine State Pier” includes all of the land, piers, and structures located south of
 Commercial Street and east of Maine Wharf (at 68-72 Commercial Street) extending to
 and including “Berth #1” along the easterly edge of the transit shed of the Portland Ocean
 Terminal. (Please see the attached map)

 As stated above, the Maine State Pier is located within Portland’s Eastern Waterfront
 planning district. The following policy statement is intended to inform and amend the
 Eastern Waterfront Master Plan. One should look to the Eastern Waterfront Master Plan
 and other elements of the City’s Comprehensive Plan for policy and land use issues not
 otherwise addressed herein.

 Statements of Fact for the Maine State Pier

  The Maine State Pier is a regionally significant asset for the City of Portland.
 Throughout its long history, the Pier has served the harbor, the City, the State of
 Maine, and the region as a transportation hub and economic development
 generator.

  The Maine State Pier provides deep water and recreational connections between
 the sea and the City’s people – connections that exist nowhere else and that can
 exist nowhere else in Portland Harbor. The Pier’s long-term use and vitality as a
 marine passenger facility are primary goals for the City of Portland.


 1
 3
 Att. #1, 2006 Policy Statement

  Maine State Pier is, however, an aging facility in need of significant structural
 investment – specifically pertaining to the 1922 transit shed and the 1000 foot
 berth along the easterly pier edge. The City’s recent experience with marine
 industry has not provided the revenues needed to either maintain or rebuild the
 facility in a manner that ensures its long-term viability.

  The Portland Waterfront has developed over the centuries as an interface between
 marine and land-based commerce. While transportation technologies and
 economies have changed through time, the waterfront has always supported both
 marine and non-marine uses in a mutually beneficial relationship. The City’s
 extensive experiences with planning and zoning within the Eastern Waterfront
 Master Planning district and adjacent Waterfront Central Zone have demonstrated
 the wisdom of supporting mutually compatible uses to provide adequate revenue
 streams dedicated to stabilizing marine infrastructure.

Policy Goals for the Maine State Pier
1. Preserve Deep Water Access and Marine Utility:

The Maine State Pier is an anchor of the Portland Waterfront. Functionally, the 1000
foot berth on the easterly pier edge provides an irreplaceable landing for ocean going
vessels to access the City of Portland, the State of Maine, and the New England region.
In addition to the easterly 1000 foot berth, the pier provides other deep-water berthing
facilities that must be reserved for the support of deep-draft vessels. The preservation of
the deep water berthing utility and full use of these unique resources are the highest
priorities for future re-use or re-development of the Maine State Pier.

2. Create Economic and Structural Stability for the Pier through Appropriate
 Mixed Use Development

The extraordinarily high cost of marine infrastructure maintenance requires that the City
promote the development of uses on the pier that generate revenues to support the
facility. As an historic facility that will be needed for generations to come, the City must
work to realize stability and longevity for this critical infrastructure. The City should
explore finding an appropriate mix of mutually compatible uses to foster sufficient
economic activity on the pier to pay for ongoing maintenance and redevelopment costs.

3. Respect and Enhance Other Vital Water Dependent Uses of the Pier:

The Maine State Pier is home to many uses that exist nowhere else in the City and require
primary consideration as part of any re-use or re-development planning for the pier.

  The Casco Bay Islands
 The island ferry service provided by the Casco Bay Island Transit District
 (CBITD) facility is a crucial community asset to the City, the Islands, and the


2
 4
 Att. #1, 2006 Policy Statement

 Casco Bay regional community. Six island communities within three
 municipalities depend on the pier for their daily needs. For five of these
 communities, Maine State Pier is the only public mainland facility serving their
 transportation requirements. Any re-use or re-development of Maine State Pier
 shall integrate the needs of CBITD regarding pedestrian and vehicular circulation,
 parking, water-side navigation, freight handling, and future expansion potential.
 (Note: Plans have been developed to improve the freight handling capabilities of
 CBITD, but this function remains deficient in the current facility.)

  The Portland Ocean Terminal and Ocean Gateway
 The Portland Ocean Terminal, which includes Ocean Gateway and Maine State
 Pier “Berth #1,” is designed for international ferry and “port of call” cruise ship
 operations. As such, Ocean Gateway, currently under construction, has been
 designed to function as an integrated whole with the Maine State Pier and the
 entire facility is operated by the City under the regulation and control of United
 States Customs and Border Patrol Service and the United States Coast Guard.
 The re-use and re-development planning for the Maine State Pier must respect the
 unique needs of the international ferry service and integrate with the circulation
 and security needs of the Ocean Gateway facility and cruise ship passenger
 operations.

  Open Space and Public Access to the Water
 Maine State Pier is home to two public parks, Compass Park and Buoy Park, and
 two public boat landings serving recreational, commercial, and water taxi vessels.
 For many visitors and citizens alike, Maine State Pier is their only point of
 vantage and access to experience the heart of the working harbor. The
 accessibility, size, and functionality of these public assets shall be protected to
 ensure the public’s visual and physical connection to the harbor and the bay. Any
 re-use or re-development of Maine State Pier must improve the public’s access to
 the water and reinforce the City of Portland as a city of mariners.

  Emergency Response Vessel Support
 The berthing of emergency vessels at Maine State Pier provides a critical security
 service for the harbor and the City of Portland islands. The existing emergency
 boat berthing is constrained and potentially conflicts with the existing public
 landing, water taxi, and CBITD ferry function. Any re-use or re-development
 planning for Maine State Pier should consider the crucial role emergency vessels
 play and must promote, and potentially improve, their continued existence and
 function on the pier.

  Tug Boat Berthing and Support
 Tug boats provide a critical harbor support service for the Port of Portland and
 currently berth at the Maine State Pier under a long-term arrangement with the
 City. The tug fleet additionally needs offices, warehousing and facilities in close
 proximity to berthing. The re-use and re-development of the Maine State Pier



3
 5
 Att. #1, 2006 Policy Statement

 must include a suitable home for the Harbor’s tug boat vessels within a reasonable
 distance to supporting facilities.

The Future of the Maine State Pier
The City will approach the future of the pier by encouraging a mix of appropriate uses
that both promote deep water berthing options and provide the revenues needed to
maintain the infrastructure for future generations. The development of new uses is
primarily anticipated for the site of the transit shed and Berth #1, though the City
encourages new ideas and imaginative visions for consideration.

Given the magnitude of financial investment anticipated, and given the low expectation
that sufficient State and Federal support will be available in the foreseeable future, the
City will engage with the private development community to create a new development
plan for the pier. Leveraging the resources and vision of a selected development partner,
the future development plan for the pier shall promote the policy goals stated above for
the benefit of Portland citizens, taxpayers and the local economy.

1. Minimum Requirements for a Development Plan for the Maine State Pier

The expectation for the transit shed and easterly side of Maine State Pier is to allow
private investment to develop compatible marine and non-marine uses according to a
specific development plan that achieves the objectives listed below.

The re-development plan for the Maine State Pier will:

  Construct, maintain and utilize berthing infrastructure for ocean-going vessels
 including supporting infrastructure for marine operations and appropriate access,
 use, and control of the pier edge by the City.

  Provide signature architecture that will promote the City of Portland as a world-
 class seaport.

  Protect and, where possible, enhance the other vital pier uses listed in section 3
 above including but not limited to:
  Coordinated design with CBITD terminal including planned traffic
 enhancements and freight shed expansion.
  Coordinated design with anticipated and future needs of the Ocean Gateway
 marine passenger facility.

  Meet all applicable Federal, State and local regulations for security,
 environmental protection, traffic movement and site development.

  Provide a permanent location for Tug Boat Fleet




4
 6
 Att. #1, 2006 Policy Statement

2. Specific Considerations for a Development Plan for the Maine State Pier

When evaluating and selecting a development partner, the City will look for a proposal
that provides as many of the following opportunities as possible:

  Provides enhanced opportunities for public access to the water through:
  Expanded and/or improved facilities for public landings.
  Expanded and/or improved open space.

  Provides supporting facilities for both public and private water-dependent uses.
  Expanded and/or improved facilities for emergency vessel berthing.
  Preserved or expanded deep water berthing for oceangoing vessels.
  Contribution toward or direct construction of expanded deep-water berthing
 facilities both on or off-site, including but not limited to Ocean Gateway,
 “Pier #2, Berth 2.” (Also known as the “megaberth.”)

  Creates linkages with sectors of the marine economy and facilities located both on
 and off Maine State Pier.

 Note: The successful redevelopment of Maine State Pier provides opportunities for
 expanded facilities, visibility, and market for the broader harbor needs and economy.
 Examples of uses and activities located both on and off the Maine State Pier that
 could benefit the City’s marine economy and social interests:

  New facilities for the promotion and distribution of local seafood (including
 day boat landings, product from the Fish Exchange…)
  New facilities for marketing and promotion of off-site harbor uses including
 excursion boats, CBITD, seafood retailers, yacht brokerages, boat yards.
  New facilities for visitor information
  Access for the public, small business, and not-for-profit communities to utilize
 and benefit from the facility, and to the extent compatible with large vessel
 use of the pier, promotes actual access to the water’s edge (through leased
 space, shared infrastructure, advertising opportunities…)
  Shared parking, both on and off site, to allow the most flexible approach to
 parking in the area.
  Contribution to the City Waterfront Investment Fund.
  Contribution toward or direct construction of expanded public open space
 both on or off-site, including but not limited to the planned “Fisherman’s
 Monument”.

3. Spatial Relationships between Marine and Non-Marine uses

The use of Maine State Pier in support of commercial marine enterprise requires ground
floor space for vehicular and pedestrian circulation areas, pier space dedicated to the
handling and supplying of vessels, and security areas. Compatible non-marine uses must
be scaled and located around the functional marine necessities of transferring of


5
 7
 Att. #1, 2006 Policy Statement


passengers, goods and materials between the pier and berthed ships. The large size and
width of Maine State Pier allows for adequate space to accommodate both marine and
non-marine interests, but the following issues should be considered in the design and
selection of re-development scenarios for the pier:

  The pier edge and deck adjacent to the pier edges must remain available for
 anticipated and future marine uses. Non-marine uses should step back from
 the pier edge as much as needed to retain the functional utility of the berthing
 resources.

  Non-marine uses should be concentrated on upper floors wherever possible.

  Circulation areas, for both vehicles and pedestrians, in support of non-marine
 uses should focus activity to the interior of the pier, away from the seaward
 edges.

  Where non-marine uses are proposed for the first floor, lobby areas,
 pedestrian entrances, vehicle drop off areas, and the like should respect the
 interior of the pier as an urban pedestrian space and crate a welcoming, safe,
 and attractive extension of the city fabric onto the pier.

  In general, non-marine activity should concentrate toward the northerly end of
 the pier, leaving the southerly harbor-side end of the pier available for marine
 and open space uses.

4. View Protection and Creation

Development in the area of Maine State Pier will be highly visible both to and from the
water. Furthermore, changes such as the removal of old structures and the construction
of new buildings create opportunities to enhance and protect public views to and from the
harbor. The redevelopment of Maine State Pier and the surrounding area should be
designed to strengthen the public’s connection to the water through protection of critical
view corridors and creation of new view opportunities. At a minimum, the following
public view opportunities and corridors in the area of Maine State Pier must be
considered and protected:

  The Hancock Street right of way, as extended and shown in the Eastern
 Waterfront Height Study.

  The India Street right of way, extended to the water from its terminus at
 Commercial Street.

  The southerly end of Maine State Pier. If the existing transit shed is to be
 removed in this area, public access to this portion of the pier and the public’s
 views to the mouth of the harbor must be enhanced.



6
 8
 Att. #1, 2006 Policy Statement

  Other views, as created by a revised architectural program for the pier and
 surrounding area. As an example, the existing transit shed creates a 1000 foot
 long un-interrupted view barrier between the interior of Maine State Pier and
 the water. New views of the water could be created between and through
 architectural elements of a new development program for the pier. Additional
 public view opportunities should be considered within new development
 through reasonable public access to interior spaces, observation decks, and the
 like.




7
 9
 Att. #2
 Draft Amendments to Policy Statement

IX. POLICY STATEMENT FOR MAINE STATE PIER
Am ended Draft for Consideration by the
Econom ic Developm ent Com m ittee
Novem ber 2017

Maine State Pier is a City owned deep water marine facility located on the Portland
waterfront at the intersection of Commercial Street with Franklin Street Arterial within
the Eastern Waterfront planning district. While over the years several piers with various
names have existed on this site, for the purposes of the following Policy Statement, the
“Maine State Pier” includes all of the land, piers, and structures located south of
Commercial Street and east of Maine Wharf (at 68-72 Commercial Street) extending to
and including “Berth #1” along the easterly edge of the transit shed of the Portland Ocean
Terminal.

Introduction
The following policy statement is intended to inform and amend the Eastern Waterfront
Master Plan, Section IX, as was amended by the City Council in September of 2006. At
the time of the 2006 amendments, the City contemplated significant redevelopment of the
Maine State Pier to address poor revenue performance, deteriorating conditions, and
development interest in the pier and the transit shed (herein referred to as the POT.)

During the years following the 2006 amendments, the City and Maine State Pier have
weathered a contentious requested for proposals process, the Great Recession, and
resurgence of activity and interest on the Pier. Notable changes since 2006 include:

 • The arrival and success of Ready Seafood in the southerly end of the POT: A
 young, innovative, and growing lobster distribution center, Ready Seafood has
 proved a valuable tenant for the City, a source of needed revenue for the POT,
 and demonstrates the value of the infrastructure for marine commerce. Ready
 Seafood currently leases nearly one third of available space on the first floor of
 the POT.
 • Growth of Marine Passenger Transportation: Cruise ship landings in Portland
 totaled 48,000 passengers in 2008 and have grown to over 100,000 in 2016.
 Continued growth is expected with over 200,000 passengers likely within the next
 few years. International ferry operations, which ended in 2009 and resumed in
 2014, appear to have stabilized at around 40,000 passengers. Local ferry service
 to the Casco Bay Islands from the CBITD terminal on the Maine State Pier has
 grown in all categories, including passengers, vehicles, and freight. The
 necessary infrastructure supporting passenger operations has increased
 proportional to increased volumes, as has associated revenues.
 • Growth of Hotel and Tourism Development: With the rapid and continuing of
 growth of hospitality and tourism related development located near the
 waterfront, the perceived need for additional larger scale non-marine development
 on the Maine State Pier has diminished.

 1

 10
 Att. #2
 Draft Amendments to Policy Statement

One should look to the Eastern Waterfront Master Plan and other elements of the City’s
Comprehensive Plan for policy and land use issues not otherwise addressed herein.

Statements of Fact for the Maine State Pier

 • The Maine State Pier is a regionally significant asset for the City of Portland.
 Throughout its long history, the Pier has served the harbor, the City, the State of
 Maine, and the region as a transportation hub and economic development
 generator.

 • The Maine State Pier provides deep water and recreational connections between
 the sea and the City’s people – connections that exist nowhere else and that can
 exist nowhere else in Portland Harbor. The Pier’s long-term use and vitality as a
 marine passenger facility are primary goals for the City of Portland.

 • Maine State Pier is, however, an aging facility in need of significant continual
 investment – specifically pertaining to the 1922 POT and the 1000 foot berth
 along the easterly pier edge. The City needs to develop an appropriate mix of
 uses and revenue streams to ensure the pier’s long-term viability.

Policy Goals for the Maine State Pier

The City’s extensive experiences with planning and zoning within the Eastern Waterfront
Master Planning district and adjacent Waterfront Central Zone have demonstrated the
wisdom of supporting mutually compatible uses to provide adequate revenue streams
dedicated to stabilizing marine infrastructure. However, as consistent with the
Comprehensive Plan, water dependent uses need operational and locational priority
according to their particular needs.

1. Preserve Deep Water Access and Marine Utility:

The Maine State Pier is an anchor of the Portland Waterfront. Functionally, the 1000
foot berth on the easterly pier edge provides an irreplaceable landing for ocean going
vessels to access the City of Portland, the State of Maine, and the New England region.
In addition to the easterly 1000 foot berth, the pier provides other deep-water berthing
facilities that must be reserved for the support of deep-draft vessels. The preservation of
the deep water berthing utility and full use of these unique resources are the highest
priorities for future re-use or re-development of any portions of the Maine State Pier.

2. Create Economic and Structural Stability for the Pier through Appropriate
 Mixed Use Development

The extraordinarily high cost of marine infrastructure maintenance requires that the City
promote the development of uses on the pier that generate revenues to support the

 2

 11
 Att. #2
 Draft Amendments to Policy Statement
facility. As an historic facility that will be needed for generations to come, the City must
work to realize stability and longevity for this critical infrastructure. The City should
explore finding an appropriate mix of mutually compatible uses to foster sufficient
economic activity on the pier to pay for ongoing maintenance and redevelopment costs.

3. Prioritize Water-dependent Use of the Pier

Consistent with long-standing planning principles for the Portland waterfront, water
dependent uses should be provided locations, space, and circulation needed to facilitate
their operational needs and reasonable growth. Marine-support uses are encouraged, but
should not interfere with higher priority water-dependent uses. Compatible non-marine
uses are encouraged to the extent that they can locate and operate without compromising
higher priority marine uses.

Certain uses are actively discouraged. Residential, hotel, casino, and any non-marine use
that demands significant on-pier parking or vehicle traffic should be avoided.

4. Respect and Enhance Other Vital Water Dependent Uses of the Pier:

The Maine State Pier is home to many uses that exist nowhere else in the City and require
primary consideration as part of any re-use or re-development planning for the pier.

 • The Casco Bay Islands
 The island ferry service provided by the Casco Bay Island Transit District
 (CBITD) facility is a crucial community asset to the City, the Islands, and the
 Casco Bay regional community. Six island communities within three
 municipalities depend on the pier for their daily needs. For five of these
 communities, Maine State Pier is the only public mainland facility serving their
 daily transportation requirements. Any re-use or re-development of Maine State
 Pier shall integrate the needs of CBITD regarding pedestrian and vehicular
 circulation, parking, water-side navigation, freight handling, and future expansion
 potential. (Note: Plans are being developed to improve circulation and freight
 handling capabilities of CBITD, but these functions remains deficient in the
 current facility.)

 • The Portland Ocean Terminal and Ocean Gateway Operations and Security
 The City of Portland’s marine passenger assets in the Eastern Waterfront include
 the Portland Ocean Terminal on the Maine State Pier and Ocean Gateway
 terminal to the east. The two terminals have been designed to function as an
 integrated whole with the entire facility under a coordinated facility security plan.
 The re-use and re-development planning for the POT must respect the unique
 needs of diverse marine passenger industries including international ferry and
 cruise ship operations. Passenger, vessel, and terminal security are paramount.

 • Open Space and Public Access to the Water


 3

 12
 Att. #2
 Draft Amendments to Policy Statement
 Maine State Pier is home to two public parks, Compass Park and Buoy Park, and
 two public boat landings serving recreational, commercial, and water taxi vessels.
 For many visitors and citizens alike, Maine State Pier is their only point of
 vantage and access to experience the heart of the working harbor. The
 accessibility, size, and functionality of these public assets shall be protected to
 ensure the public’s visual and physical connection to the harbor and the bay. Any
 re-use or re-development of Maine State Pier must improve the public’s
 connection to the water and reinforce the City of Portland as a city of mariners.

 • Emergency Response Vessel Support
 The berthing of emergency vessels at Maine State Pier provides a critical security
 service for the harbor and the City of Portland islands. Any re-use or re-
 development planning for Maine State Pier should consider the crucial role
 emergency vessels play and must promote, and potentially improve, their
 continued existence and function on the pier.

 • Tug Boat Berthing and Support
 Tug boats provide a critical harbor support service for the Port of Portland and
 currently berth at the Maine State Pier under a long-term arrangement with the
 City. The tug fleet additionally needs offices, warehousing and facilities in close
 proximity to berthing. The re-use and re-development of the Maine State Pier
 must include a suitable home for the Harbor’s tug boat vessels within a reasonable
 distance to supporting facilities.

 • Private Pier Tenants
 In addition to the tugs mentioned above, private tenants lease space from the City
 on the Maine State Pier. Charter schooners, seafood distribution, and stevedoring
 firms currently lease space on the Maine State Pier and the POT first floor. The
 functional needs of these and or future private marine tenants should be
 maintained and enhanced through pier redevelopment.


5. Spatial Relationships between Marine and Non-Marine uses

The use of Maine State Pier in support of commercial marine enterprise requires ground
floor space for vehicular and pedestrian circulation areas, pier space dedicated to the
handling and supplying of vessels, and security areas. Compatible non-marine uses must
be scaled and located around the functional necessities of transferring of passengers,
goods and materials between the pier and berthed ships. Likewise, truck circulation and
loading must remain safe and efficient for all pier users. The large size and width of
Maine State Pier allows for adequate space to accommodate both marine and non-marine
interests, but the following issues should be considered in the design and selection of re-
development scenarios for the pier:




 4

 13
 Att. #2
 Draft Amendments to Policy Statement

• The pier edge and deck adjacent to the pier edges must remain available for
 anticipated and future marine uses. Non-marine uses should step back from
 the pier edge as much as needed to retain the functional utility of the berthing
 resources.

• Non-marine uses should be concentrated on upper floors wherever possible.

• Circulation areas, for both vehicles and pedestrians, in support of non-marine
 uses should focus activity to the interior of the pier, away from the seaward
 edges.

• Where non-marine uses are proposed for the first floor, lobby areas,
 pedestrian entrances, vehicle drop off areas, retail storefronts, and the like
 should respect the interior of the pier as an urban pedestrian space and create a
 welcoming, safe, and attractive extension of the city fabric onto the pier.

• In general, non-marine activity should concentrate toward the northerly end of
 the pier, leaving the southerly harbor-side end of the pier available for marine
 and open space uses.




 5

 14
 Att. 3a
 Market Program Narrative


The Market at Maine State Pier:

Market Fundamentals DR AFT 11-17

The Market at Maine State Pier will be a unique retail environment that
contributes to and gains value from Portland’s premier marine passenger
transportation facility. Between Casco Bay Lines, cruise ship visits, and
international ferry operations, nearly 1.5 million passenger trips a year pass
through the Maine State Pier and Ocean Gateway complex. The Market
will serve these passengers, visitors to Portland, Casco Bay Islanders, and
the residents of Portland by providing goods and services that meet every
day needs and occasional indulgences. Additionally, the Market will
showcase the best of Portland’s extraordinary food scene in an informal
environment that complements established retail venues in the Old Port
and Downtown.

The Market seeks to:
  • Serve the needs of travelers - specifically Casco Bay Islanders
  • Showcase world class seafood
  • Promote “Trawl to Table” harvester-to-consumer connections
  • Provide a venue for emerging seafood products
  • Reduce the cost of entry for new ventures
  • Expand exposure for established food and beverage entities through
 satellite operations

The mix of goods and services offered at the Market will:
  • Focus on seafood
  • Support local ventures
  • Promote the highest quality local products
  • Provide affordable options
  • Demonstrate authenticity - Nothing fake
  • Strive for diversity
  • Serve year-round Portland residents and Islanders - All the fixings of
 a good meal at a reasonable price




 15
 Att. 3a
 Market Program Narrative


The design of the Market will reinforce its mission:

  • Design functional spaces from timeless materials –stainless steel,
 stone, wood, tile, concrete…
  • Expand pedestrian circulation for all pier users
  • Foster social interaction between travelers, ferry passengers and
 locals

Through sound management and rigorous standards, the Market
will be:

  • Unreasonably clean
  • Ruthlessly functional

First thoughts on uses:

Optimal Mix – 11 to 13 “stalls” measuring 20’x20’ each holding 1-2 vendors
 50% or more of retail area
 • Fish mongers
 • Seafood take out
 • Seafood specialty foods (smoked, canned, salted,
 accessories…)
 50% or less or retail area
 • Bakery
 • Butcher
 • Deli, cheese monger, specialty foods
 • Green grocer
 • Wine merchant
 Including at least one each of
 • 1 off-site brewery tasting room (Portland brewed only)
 • 1 Coffee roaster
 • “Satellite” restaurant, lunch counter




 16
 Att. 3a
 Market Program Narrative


Other Thoughts and Questions on Theme and Mission
  • Celebration of Trade – stalls dedicated to foster and promote trade
 relationships. Reykjavic, Iceland; Tromso, Norway; Irish Counties,
 Port Au Prince, Haiti; Archangel, Russia; Shinagawa, Japan……
  • Promotional link to the Portland Fish Exchange – labeling option,
 “Landed in Portland, Maine”
  • What products and services do Islander’s need and want?
  • What products/services will survive the winter, providing 356 activity?
  • Goals for Retail Development: Profit /sq ft or “Mission Driven”
 If mission is key, What is the Mission?
  • Development: public or private? RFP?
  • Single developer/manager or City-Managed with individual tenants?

Further Research:
  • Comparable examples to follow
  • Development models
  • Management models

Why the Mackerel?

For many Portlanders, the Atlantic Mackerel is synonymous with the Maine
State Pier. Immigrant families, retirees, young people, homeless, and
sportsmen from here and away come to the Maine State Pier in pursuit of
mackerel. Some are looking for bait for more glamorous quarry. Most
come in search of quality food at the right price. All can find a pleasing
view, companionship, and connection to Portland Harbor. The Market at
Maine State Pier seeks to accomplish many of these same goals.




 17
 Att. 3b
 Incubator Space Narrative




Start-Up Space at Maine State Pier:

Fundamentals DR AFT 10-18-17

Start-Up Space at Maine State Pier will be a business incubator environment that
occupies approximately 18,000 square feet in the upper floor of the Portland Ocean
Terminal building. The Start-Up Space will revitalize a longstanding vacancy with
entrepreneurial energy and exciting opportunities while minimizing parking demands on
site and in the Eastern Waterfront area. Utilizing a new lobby and circulation core
located on the ground floor of the building, the entry lobby will share space with the
northerly entry to the Market at Maine State Pier creating an active and attractive public
face to the 1922 structure. Offering space for business start-ups, satellite offices, small
firms and not-for-profits, the Start-Up Space will provide shared meeting, conference,
and amenities fostering collaboration across industries and traditional boundaries. Up to
15 to 20 distinct six to seven hundred square foot incubator spaces will be available.
Existing car share and public transit is currently located immediately adjacent to the
building. This opportunity will be particularly attractive to downtown and island resident
entrepreneurs looking to simplify and minimize transportation and parking costs.

Start-Up Space seeks to:
 • Revitalize the upper floor of the 1922 Portland Ocean Terminal Building
 • Provide opportunities for new and existing business and not-for-profit ventures
 • Minimize parking and transportation demands
 • Reduce the cost of entry for new ventures

Other Thoughts and Questions on Theme and Mission
  • Promotion of Trade – Provide preference to ventures engaged in international
 trade?
  • Marine Focus – Preference to marine ventures?
  • Single developer/manager or City-Managed with individual tenants?

Further Research:
 • Market research and
 • Management models




 18
 Att. 3c
 Event Space




Event Space at Maine State Pier:

Fundamentals DR AFT 11-17

Event Space at Maine State Pier will be a high end meeting, conference, and special
occasion venue occupying approximately 9000 square feet in the upper floor of the
Portland Ocean Terminal building. The Event Space will revitalize a longstanding
vacancy with signature happenings for private and public entities. Utilizing pedestrian
access, shuttled transport, and public transit, the Event Space will minimize parking
demands on site and in the Eastern Waterfront area. Utilizing a new lobby and
circulation core located on the ground floor of the building, the entry lobby will share
space with the southerly entry to the Market at Maine State Pier creating an active and
attractive public face to the 1922 structure. Offering flexible space for both small
meetings and large gatherings, the Event Space will have kitchen facilities, ADA
accessibility, and modern restrooms. The industrial past of the building will be
expressed in the design of the facility while highlighting unparalleled views of the
harbor. A roof-top deck and pavilion complete the offerings.

Event Space seeks to:
 • Revitalize the upper floor of the 1922 Portland Ocean Terminal Building
 • Provide opportunities for local and destination events
 • Minimize parking and transportation demands
 • Generate significant revenues in support of pier maintenance and to subsidize
 marine and public use of the Maine State Pier complex

Other Thoughts and Questions on Theme and Mission
  • Promotion of Trade – Provide preference to events engaged in international
 trade?
  • Marine Focus – Preference to marine events?
  • Private developer/manager or City-Managed?

Further Research:
 • Market research and
 • Management models




 19
 Redevelopment Options
 for the

  MAINE STATE PIER

Economic Development Committee Workshop
on the Future of the Portland Ocean Terminal
at the Maine State Pier 2November8,November
 2017 28, 2017 20
21
Project Area 4
Portland Ocean Terminal
Building Re-use Planning
and
Supporting infrastructure


4. Portland Evaluate increased
Ocean commercial and marine
Terminal tenant use of available
 vacant second floor office
(POT)
 space and vacant ground
Building Re- floor marine industrial
use space.

4.a. POT Identify and design
support supporting infrastructure
infrastructure to facilitate 4. POT Re-
 use.
 22
Concentrating efforts on the
“Northerly End of the Pier”
 23
2006 Policy Statement, Summarized
The Maine State Pier:
• Is a regionally significant asset
• Is needed for the Marine Passenger industry
• Needs investment and revenues
• Mixed Use has a role on the Pier

Policies:
• Preserve Deep Water Access and Marine Utility:
• Create Economic and Structural Stability for the Pier through
  Appropriate Mixed Use Development
• Respect and Enhance Other Vital Water Dependent Uses of the Pier:

Development Strategies:
“The City will approach the future of the pier by encouraging a mix of
appropriate uses that both promote deep water berthing options and
provide the revenues needed to maintain the infrastructure for future
generations….”

 24
2006 Continued:
Spatial Relationships for Non-marine Use
• The pier edge and deck adjacent to the pier edges must remain
 available for anticipated and future marine uses.

• Non-marine uses should be concentrated on upper floors

• Circulation areas, should focus activity to the interior of the pier, away
 from the seaward edges.

• Where non-marine uses are proposed, respect the interior of the pier as
 an urban pedestrian space and create a welcoming, safe, and
 attractive extension of the city fabric onto the pier.

• In general, non-marine activity should concentrate toward the northerly
 end of the pier, leaving the southerly harbor-side end of the pier available
 for marine and open space uses.

Protect and Create Views

 25
2009 Public Process: 3 public forums,
Community Design Workshop
Extensive Council Review

 Maine State Pier Concept Visualization, View 2
 Prepared for the Community Development Committee
 Prepared by the City of Portland Planning Division
 For discussion purposes only
 July 2009




 26
Team #10 – Board 27
2009 Public Process Results




 28
29
2009 Process Results, Northerly End of the Pier

Transit Shed First Floor – 47,500 sq ft:
• Marine storage and warehouse – City, Tugs,
  Bay Ferries
• Cruise ship visitor support and screening
• Multi-modal transport ticket office
• Bike and scooter rental
• Mixed use – café, museum, retail…
• Covered gathering space (adjacent to open
  space at the southerly end of pier)

Second Floor – 28,000 sq ft:
• Marine and non-marine use office, mixed use
 30
31
Proposed Policy

 Recognize changes since 2006
 • The arrival and success of Ready Seafood in the
 southerly end of the POT
 • Growth of Marine Passenger Transportation
 • Growth of Hotel and Tourism Development

 Remove expectations for wholesale
 redevelopment of the pier from the policies




 32
Ongoing Process
1. Inventory existing uses, assets, and current opportunities
 – including physical space, circulation, and parking
 requirements.
2. Assess existing conditions and maintenance needs of pier
 and building structure and systems.
3. Coordinate with existing operations including future
 CBITD and CAT ferries, Ready Seafood, Portland Tug,
 cruise operations, charters, US Customs and Border
 Protection, and City Events.
4. Generate concepts for short-term improvements
 facilitating greater use of the POT.

Results of a staff process would be reported to the EDC prior
to taking further steps toward implementation.
 33
Potential Process
Longer-term Consultant Process:
  Following and building from the internal process described
  above:
  • Secure funding, draft scope, and release RFP for
 consulting services to refine development concepts and
 potentially provide for a more comprehensive rethinking
 of the POT structure for both use and physical
 improvements.
  • Establish clarity on the future footprint and operations of
 international ferry
  • Gather input from pier stakeholders and the public.
  • Confirm ability to amend security plans
  • Generate development alternative to be presented for
 review and approval by the EDC and the City Council
 prior to implementation. 34
Over 20 public and
private operations share the
Maine State Pier

Integration and coordination
is crucial

Current policies informing
Future pier changes were
Adopted in 2006




 35
Portland Ocean Terminal: Immediate Context
 36
Portland Ocean Terminal: Current Uses
Cruise Ship Support
City Shop/Maintenance
Private Leases
Mechanical Core

Tenant Storage Variable
City Storage Seasonal
Vehicles Variable 37
  Concepts for higher utilization of the
  Upper floor and Northerly End of the POT




• Consolidate and organize City and tenant marine
  operations and storage
• Retain Existing Marine Tenants – Charter, Tugs, Ready

Over 80% of the first floor would
  be retained for Marine Use
 38
Concepts for higher utilization of the
Upper floor and Northerly End of the POT




 Remove Utility Room

 39
Remove Elevator and Mechanical Core
 40
New Primary and Secondary Lobbies for Second Floor
New Mechanical Core
 41
 Concepts for higher utilization of the
 Upper floor and Northerly End of the POT




• Create a new security plan, protecting current marine
  operations, including: Tugs, Cruise Ships, others…


1st Floor Areas Proposed to Remain
within the “105” secure zone


 42
Create covered pedestrian way
within westerly edge of the POT




 43
Concepts for higher utilization of the
Upper floor and Northerly End of the POT




 Improved entrance, pick up – drop off
 Coordinated with Casco Bay Lines 44
Concepts for higher utilization of the
Upper floor and Northerly End of the POT




  Introduce Market Style Retail
  Oriented to the interior of the pier

 45
Concepts for higher utilization of the
Upper floor and Northerly End of the POT




Prepare entire second floor for reuse
Potential Uses
• Office incubator complex
• Event and meeting space
 46
47
48
  THE MARKET
 at
MAINE STATE PIER




 49
50
51
52
53
54
55
56
57
58
1924 Tax Photo
 59
60
61
Questions?

 62