PRESQUE ISLE, Maine — After reconsidering the costs associated with buying and renovating the nearly 100-year-old City Hall property, the local developers who planned to convert the structure into an apartment complex have decided not to go through with the project.
“When the numbers came back to renovate the building, they were a lot higher than what we felt would make this project work. It just wasn’t feasible,” said Amy Collins, who together with her brother Gary Nelson, as partners in C&N Rentals, had offered to buy the Second Street property for $150,000. “After city officials started talking that it would cost upward of $400,000 to bring the building up to standards, we began to question if this was a worthwhile investment.”
In January, by a split vote of 4-3, councilors had authorized City Manager Jim Bennett to sign a purchase and sale agreement with C&N Rentals, with the contract to be final in 90 days.
But after more careful examination of the costs, Collins and Nelson decided not to pursue the purchase.
“The time and money it would take to bring the property up to code — it wasn’t going to make it feasible for our plans,” Collins said.
She said that with a number of other projects they’re working on, the timing just wasn’t right to take on something of this magnitude.
“We have other projects to focus on at this time that are more cost-effective,” she said.
City officials are now back to square one, with the proposed moving of City Hall to Parsons Street on hold until the fate of the Second Street property is determined. The move to Parsons was to be funded using the proceeds of the sale.
Bennett advised councilors at their goal-setting workshop at the Northeastland Hotel on Monday that the purchase and sale agreement had been withdrawn.
“I do know there are a couple other people interested in the property. At some point I’ll have you go into executive session on the people interested in buying the site,” said Bennett.
He said this has “set off a whole set of situations now,” leaving the future of City Hall a bit uncertain at the moment.
“We didn’t sign a lease agreement (for the Parsons Street property), so that’s up in the air,” said Bennett.
Bennett told councilors that since the sale of City Hall didn’t go through, they’d be facing decisions regarding the building.
“Those will include whether to stay in the building — which will require some serious investment — or leave. If the decision is to leave, the Council will have to make a decision regarding the existing building and how to deal with it,” said Bennett.
The Council’s next regular monthly meeting will begin at 6 p.m. on Monday, April 6, at City Hall.