Portland Development Corporation

PORTLAND DEVELOPMENT CORPORATION Board Meeting DATE: Thursday, August 21, 2025 TIME: 4:00 PM LOCATION: This meeting will take place remotely via Zoom. Please click below to join the webinar. https://portlandmaine- gov.zoom.us/j/85229414013?pwd=N2tESU9mMmUzZ000T1F4cVErZTRnQT09 Passcode:272505 Phone one-tap: +13126266799,,85229414013# US (Chicago) +16469313860,,85229414013# US Webinar ID: 852 2941 4013 International numbers available: https://portlandmaine-gov.zoom.us/u/kiIXpoqU0 AGENDA 1. President's comments 2. Review and accept Minutes of July 17, 2025 meeting a. See attached July 17, 2025 Meeting Minutes Review and vote on loan application from Maine Foot and Ankle 3. Specialists, 619 Brighton Ave, Suite 103. a. NOTE: Pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119-A, the Board may go into executive session to discuss proprietary information regarding this loan. After the executive session, the Board will vote in public session. 4. Treasurer's Report - July 2025 Page 1  a. Monthly Administrative Report b. Cash Management Report c. Schedule of Loans Receivable d. Confidential Delinquency Report; update on loan modifications, if any. Note: Pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119—A, the Board may go into executive session to discuss/monitor any of the loans listed on the Report. 5. Staff verbal update 6. Other Items to be discussed/brought up by Board Directors 7. Next Regular Meeting Date: September 18, 2025 City of Portland Commissions are not required to take public comment under FOAA and our Ordinance is silent regarding the duties of the Commission. The Commission has the discretion to not allow or allow public comment during its meetings, including the authority to limit the duration of comments. Since the Commission makes recommendations to the City Council, public comment is available at that level. Page 2  DRAFT Minutes Portland Development Corporation Special Remote Zoom Meeting Held on July 17, 2025 ​ A remote meeting, via Zoom, of the Portland Development Corporation (PDC) Board of Directors was held at 4:00 p.m. on Thursday, July 17, 2025. Present from the Board of Directors were Board President Kierston Van Soest and Directors Jonathan Berg, Eamonn Dundon, Nathan Henry, Scott Kleiman (arriving shortly after Item #3 was taken up), Assistant City Manager Dena Libner (arriving shortly after Item #3 was taken up), Beverly Werber, and Nikki Yanok. Directors Matthew Buonopane, Sam Dargan, and Councilor Ben Grant could not be present. Present from City staff were Associate Corporation Counsel Avery Dandreta, Program Coordinator Kaela Gonzalez, Business Programs Manager Nancy Martin, Associate Corporation Counsel Amy McNally, Principal Administrative Officer Lori Paulette, and Housing and Economic Development Director Greg Watson. Also present were City Underwriters Liam Benson and David McLaughlin. Item #1: President’s comments. Board President Van Soest opened the meeting at approximately 4:00 p.m. and provided an overview of the agenda and proposed flow of the meeting. Item #2: Review and vote to accept Meeting Minutes. a.​ March 5, 2025 Meeting Minutes On a motion made by Mr. Henry and seconded by Mr. Berg, the Board voted 4-2-0 (Mr. Dundon and Ms. Werber abstained) to approve the March 5, 2025 Meeting Minutes. b.​ June 25, 2025 Meeting Minutes ​ On a motion made by Ms. Werber and seconded by Mr. Dundon, the Board voted 4-2-0 (Mr. Henry and Ms. Van Soest abstained) to approve the June 25, 2025 Meeting Minutes. Page 3  DRAFT Item #3: Review and vote on 89 Elm Street Brownfields Loan Modification Request. Ms. Martin introduced Nate Howes with Avesta to provide a brief overview of their request to make a change to the Brownfield loan promissory note to make the City’s loan a non-recourse obligation secured solely by the property at 89 Elm Street. This action will ensure that Avesta’s LIHTC investor will make capital contributions. On a motion made by Mr. Dundon and seconded by Ms. Yanok, the Board voted 5-3-0 (Mr. Berg, Mr. Kleiman, and Ms. Libner abstained) to approve Avesta’s non-recourse request for the Brownfields loan and authorize its Assistant Secretary to sign all necessary documents to that effect. Item #4: Review and vote on request from Maine Community Bank to release lien on 580 Brighton Avenue (Rosemont Bakery). Ms. Martin referenced the confidential memorandum and noted that if there are questions regarding this item, they could be addressed in executive session. On a motion made by Ms. Werber and seconded by Mr. Henry, the Board voted 7-1-0 (Mr. Berg abstained) to approve the request from Maine Community Bank to release the lien on 580 Brighton Avenue. Item #5: Review and vote on the following ARPA Microenterprise Grant Applications: Ms. Martin introduced the three final Microenterprise Grant applicants which could be funded from the remaining balance of the ARPA-funded program, just under $5,000. The three applications are from Luna LLC doing business as Leda, Hope Home Care LLC, and Kaboss Market. Ms. Martin introduced Meta and Chris Simmons, with Kaboss Market, who provided information on the use of funds if awarded. They have a 3-year lease and plan to provide bulk Page 4  DRAFT meats and prepared food, and would use the funding to help install equipment for a preparation license and for restocking. On a motion made by Ms. Werber and seconded by Mr. Dundon, the Board voted 7-0 to approve all remaining ARPA Microenterprise Grant funding (up to $5,000) to Kaboss Market, with Luna LLC dba Leda and Hope Home Care LLC as second and third alternatives, respectively. Item #6: Review and vote on loan request from Another Round, 545 Congress Street, Unit 1A. This loan request is the first application for the new storefront loan program for downtown businesses. Funds would be utilized for lighting and security cameras. Ms. Martin answered questions regarding the application process and program monitoring. On a motion made by Mr. Dundon and seconded by Mr. Henry, the Board voted 6-1-0 (Mr. Berg abstained) to approve an $8,000 loan at 0% interest rate for a 5-year term subject to the applicant providing an updated business financial statement. Item #7: Review and vote on a loan request by Cognitive Care LLC, 415 Congress Street, Suite 418. Ms. Martin has provided the Board with a revised loan structure based on feedback from the previous meeting, which is available in the confidential loan materials. On a motion made by Mr. Dundon and seconded by Mr. Berg, the Board voted 0-7 on a $100,000 loan subject to the drawdown procedure outlined in the confidential materials to Cognitive Care LLC. This request was not approved. Item #8: Review and vote on a new loan request by Eduardo’s Brazilian Grill One, 11 W Presumpscott Street. Page 5  DRAFT Paulo and Cristiana Eduardo have been operating out of the Fork Food Lab in South Portland and are looking to purchase a food trailer to expand their Brazilian food business. On a motion made by Mr. Berg and seconded by Ms. Werber, voted 6-1-0 (Mr. Henry abstained) to approve a $45,000 loan to Eduardo’s Brazilian Grill One as recommended by staff. Item #9: Review and vote on a new loan request by Aomori and Aomori Market, 52 Hanover Street. Reo and Helen, with Aomori, presented their request for a gap financing loan for both a new Japanese restaurant and a market in the Bayside Neighborhood. Funds would be utilized for working capital, an exhaust system, furniture, equipment, and a sound system. On a motion made by Mr. Dundon and seconded by Ms. Yanok, the Board voted 6-1-0 (Mr. Berg abstained) to approve two loans each for $100,000, as recommended by staff to Aomori and Aomori Market. Item #10: Review and vote on request by Gulf of Maine Sashmi dba True Fin loan, 305 Commercial Street. ​ On a motion made by Ms. Van Soest and seconded by Mr. Berg, the Board voted 7-0 to go into executive session at approximately 4:45 p.m. pursuant to 1 M.R.S.A. 405(6)(F) and 5 M.R.S.A. 13119-A, to discuss proprietary information regarding all grant and loan requests presented in the agenda. ​ At approximately 5:08 p.m. the Board returned to the public session to vote on items in the agenda. ​ Staff noted that it is expected to receive a last payment from Gulf of Maine Sashimi of approximately $4,464, after which when applied to the loan, there would be just over $20,000 left to write off. Page 6  DRAFT On a motion made by Mr. Dundon and seconded by Mr. Henry, the Board voted 6-1-0 (Ms. Yanok abstained) to approve the discharge of True Fin’s loan and write off the remaining balance, which is anticipated to be just over $20,000 Item #11: Treasurer’s Report - June 2025. This item was not discussed. Item #12: Staff verbal update. Staff did not present any verbal updates to the Board. Item #13: Other Items to be discussed/brought up by Board Directors. Ms. Werber requested that an update be provided at the next meeting on the Downtown Storefront Improvement Loan Program. Item #14: Next regular meeting date: August 21, 2025. ​ There being no further business, the Board agreed to adjourn by consensus at approximately​5:18 p.m. Respectfully, Kaela Gonzalez Page 7  Portland Development Corporation Preliminary Draft Operating Report FY2026 For Month Ending 7/31/2025 Operating transfer from EDF 42,352 ------------ Total Funds Available 42,352 Current Year to Percent FY2026 Expenditures Budget Month Date of Budget Balance Administrative Services $11,505 $0 0 0.0% 11,505 Postage $200 $0 0 0.0% 200 Travel, Training, Meetings $9,000 $0 0 0.0% 9,000 Contractual Services $8,000 $0 0 0.0% 8,000 Operating Transfer to Fin. $9,647 $0 0 0.0% 9,647 Advertising $2,500 $0 0 0.0% 2,500 Auto Expense Reimb. $100 $0 0 0.0% 100 Printing & Binding $650 $0 0 0.0% 650 Office Supplies $750 $0 0 0.0% 750 Total FY2026 Expenditures $42,352 $0 0 0.0% 42,352 Page 8  FY2025 PDC CASH MANAGEMENT REPORT/Non-Brownfield Program (Preliminary and Subject to Change) UDAG CIP CIP FAME FAME SSBCI TOTAL Period Ending: 06/30/2025 271 272 274 277 279 Unrestricted Loans/Grants Restricted Unrestricted REDLP Beginning Balance 311,910 357,909 161,201 402,951 474,190 1,708,162 Additions th Date No Updated MTD YTD MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received 6,632 54,243 3,308 34,301 7,381 26,118 5,607 115,983 2,395 37,146 Interest payments received from loans 3,045 40,057 95 1,022 1,440 5,332 7,504 51,923 3,943 45,256 Interest Income 778 7,418 922 10,060 414 5,562 1,011 18,551 1,210 14,322 Other Income/Adjustments - - - - - Pass Through From FAME/SSCBI - - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements - Expenses (410) (1,446) (3,010) (1,539) Disbursements - Loans/Grants Ending Cash Balance (Munis) 322,365 361,825 168,990 414,064 480,199 1,747,442 Less Reserves for: Loans Beautification Program (EC0301) (72,000) Transfers not yet recorded (UDAG Int) (40,057) Adjusted Ending Cash Balance 210,308 361,825 168,990 414,064 480,199 1,635,385 Page 9  FY2025 PDC CASH MANAGEMENT REPORT - BROWNFIELD PROGRAM (Preliminary and Subject to Change) Brownfield 1 Brownfield 2 (2016) Brownfield 3 Brownfield 10/1/2022 TOTAL Period Ending: 6/30/2025 278 280 281 280 RLF Unrestricted Loans/Grants Restricted/Cleanup Restricted/Assessments Restricted/Cleanup Beginning Balance 486,236 118,712 104,106 2,410,129 3,119,183 Additions MTD YTD MTD YTD MTD YTD MTD YTD Principal payments received - 15,613 4,055 24,954 - - Interest payments received from loans - 200 1,291 15,307 - - Interest Income 1,265 12,364 374 3,091 - - Other Income/Adjustments - 11,332 - - Pass Through From FAME/SSCBI/EPA - - - - Deductions FAME Annual Admin. Fee; Invoices Disbursements -Other (18,339) (2,817) (6,553) Ending Cash Balance (Munis) 469,161 124,431 101,289 2,403,576 3,098,458 Less Reserves for: Reserve For Commitments (12,054) 0 (2,136,424) Fund 280 Reserve for Administration Adjusted Ending Cash Balance 457,107 124,431 101,289 267,152 949,980 Page 10  Portland Development Corporation Schedule of Loans Receivable For Month Ending July 31, 2025 ----Committed/Disbursed Funds----- Date Maturity Original Not Yet Total Outstanding Case ID Account No. & Name of Loan Date Loan Disb. Disb . Princ. Bal. --------------------------- ---------- ---------- ----------- ------- -------- ------------ Portland Business Fund 271 (UDAG/Unrestricted): 30124 Rosemont Market, Inc. 8/8/2019 9/1/2029 $150,000 0 $150,000 $58,071 30179 Forefront Brick South, LLC 11/18/2016 12/1/2026 $100,000 $0 $100,000 $22,060 30400 Friends and Family 3/10/2023 4/1/2027 $50,000 $0 $50,000 $25,138 30423 Longfellow Property, LLC 6/26/2023 7/1/2030 $200,000 $0 $200,000 $194,112 30514 Longfellow Property, LLC 5/6/2024 7/1/2031 $182,688 $0 $182,688 $176,933 Sub-Total PBF (UDAG) $476,314 Portland Business Fund 272 (Restricted - CIP): 30568 Cultivating Community 10/17/2024 11/1/2026 $80,000 $0 $80,000 $47,060 Sub-Total PBF (Bonds/CIP Restricted) Portland Micro Capital Fund 271 (UDAG/Unrestricted): 30250 Portland Trading Co. LLC 4/26/2013 8/1/2018 $15,000 $0 $15,000 $3,636 $3,636 Sub-Total Micro Capital Fund Portland Business Fund Fund 274 (CIP/Unrestricted): 30062 On Time Transportation 3/26/2018 4/1/2023 $10,000 $0 $10,000 $762 30070 Emerson, James (C19RR[Brick Trust]) 5/21/2021 6/1/2023 $10,000 $0 $10,000 $10,000 30075 Dos Naciones LLC 3/3/2021 3/1/2023 $5,000 $0 $5,000 $5,000 30316 Rankin WA, LLC 2/28/2022 2/1/2024 $5,000 $0 $5,000 $2,161 30119 Quattrucci & Rouda, LLC 3/19/2019 4/1/2029 $100,000 $0 $100,000 $10,246 30400 AAA Rue Marchie, d/b/a Timber 3/28/2023 4/1/2028 $40,000 $0 $40,000 $33,085 30606 Luna, LLC 3/19/2025 11/1/2032 $69,000 $0 $69,000 $69,000 Sub-Total PBF (Bonds/CIP Unrestricted) $130,255 FAME Fund 277: 30198 Auto-Care, LLC 2/5/2016 3/1/2021 $32,500 $0 $32,500 $18,567 30061 Forefront Brick South, LLC 11/18/2016 12/1/2026 $250,000 $0 $250,000 $56,700 30127 Gallery Acquisition Co. Inc. 5/16/2019 6/1/2026 $75,000 $0 $75,000 $13,718 30125 Zootility Co. 8/7/2019 9/1/2024 $150,000 $0 $150,000 $122,197 30378 Gulf of Sashimi 10/19/2022 11/1/2027 $65,000 $0 $65,000 $20,032 30416 Forefront Partners I, LP 5/31/2023 5/31/2033 $200,000 $0 $200,000 $170,524 30530 Biodiversity Research Institute 8/22/2024 10/1/3031 $250,000 $0 $250,000 $245,893 30536 Blackbird Baking, d/b/a Two Fat Cats 10/1/2024 11/1/2031 $40,000 $0 $40,000 $37,452 30591 Salud Studios 11/19/2024 12/1/2030 $137,500 $0 $137,500 $132,094 30605 Lebel Holdings, LLC 3/20/2025 5/1/2035 $200,000 $0 $200,000 $198,710 Sub-Total FAME Fund $1,015,887 FAME SSBCI 279: 30107 Biodiversity Research Institute 3/26/2021 4/1/2026 $200,000 $0 $200,000 $170,184 30086 Driscoll Child Dev. Center 5/5/2021 6/1/2026 $60,000 $0 $60,000 $27,499 30085 Flores Restaurant LLC 6/9/2021 7/1/2026 $38,000 $0 $38,000 $14,733 30071 Wynsum, LLC 11/5/2021 12/1/2026 $131,250 $0 $131,250 $120,314 30068 688 Forest Ave., LLC 12/21/2021 1/1/2027 $168,000 $0 $168,000 $151,878 30527 Another Round 6/5/2024 8/1/2029 $225,000 $0 $225,000 $222,913 30592 Yardie Ting 11/14/2024 12/1/2029 $45,000 $0 $45,000 $42,590 30624 Kehben Grier 5/1/2025 1/1/2033 $80,000 $0 $80,000 $78,718 Sub-Total FAME SSBCI $828,831 Brownfields Loan Fund 278 and 280 30515 Forefront Partners I, LP/Fund 280 5/31/2023 4/30/2033 $200,000 $0 $200,000 $191,377 30072 Forefront Partners I, LP/Fund 280 4/12/2018 1/1/2032 $350,000 $0 $350,000 $302,668 Sub-Total Brownfields $494,045 Grand Total Loans $3,913,938 $0 $3,913,938 $2,996,028 Allowance for uncollectable loans at 15% $449,404 Total with Allowance for uncollectable loans: $2,546,624 Page 11