On the east bank of the Kennebec River in downtown Augusta are the grounds of the former Augusta Mental Health Institute. The most imposing structure is the spooky, silent Stone building, carved from sturdy Hallowell granite, which has weathered some 175-odd years in the shadow of Maine’s State House across the river.

The placement of the old AMHI campus was intentional. Putting the asylum across from the State House was done to ensure governors and legislators would forget neither the hospital nor those inside it.

In recent years, though, the old AMHI grounds have seemed forgotten. Near the Stone building, a developer of the stately granite buildings of the Kennebec Arsenal has done little for Augusta’s benighted east side riverfront. The buildings are often described as blight.

A new wrinkle is emerging with a paragraph buried deep within the state budget that’s only now garnering attention, and poses a quandary for Maine’s capital.

Here’s what’s happening: The Kennebec Journal reported that Gov. Paul LePage has put a $112 million bond proposal in the state budget for redeveloping state-owned property, with an eye toward moving state offices away from leased spaces around the city of Augusta.

The Stone building is eyed for rebirth under this plan, which could be the catalyst needed for the adjacent Kennebec Arsenal structures to follow suit, either by its reluctant developer or the state, which is suing to get them back.

Leasing state offices has been pro forma around the capital for decades. On the city’s north side, for example, the Central Maine Commerce Center — once a computer chip manufacturerstands as a testament to this system, housing several state agencies, nonprofits and for-profit businesses.

LePage’s proposal wants to change this game. In support of his bond proposal — which coming through the Maine Governmental Facilities Authority means it would not go before voters — the state says this investment will save taxpayers $46 million over the next 35 years.

Developers and the city of Augusta — which says it would lose $1 million annually if the leased space around the city goes vacant — are concerned. Bill Bridgeo, the city manager in Augusta, told the KJ that the city is going to pursue this issue vigorously. Republican Sen. Roger Katz from Augusta, a powerful moderate and recurring foil for LePage, should also have sway from his perch on the Appropriations Committee.

Other governors have tried this. Angus King attempted to execute this switch during his tenure, but was derailed. That some developers of Augusta properties are also Democratic supporters and fundraisers is context for why this system exists and, perhaps, why the governor is keen on changing it.

It’s not often that one paragraph could change the face of a capital, but this proposal could do for Augusta. How the city proceeds against an uncompromising, business-minded administration will be interesting to watch — from either side of the Kennebec.

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