BANGOR, Maine — The former Pine Tree Inn, once part of Dow Air Force Base, will be redeveloped as “extended stay suites” roughly three years after the city took possession of the property.
The Bangor City Council approved Monday an order authorizing City Manager Cathy Conlow to execute an agreement for the sale of the property at 22 Cleveland St. to local developer John Karnes.
Under the agreement, Karnes has until June 30 to exercise his purchase option, until Oct. 1 to begin construction and until March 31, 2016, to complete construction.
The agreement states Karnes will pay $10,000 for the property and invest at least $900,000 in the project.
In return, the city will use federal Community Development Block Grant funds to repave Cleveland Street, install street lights and fund $25,000 to improve wheelchair accessibility at the 25,000-square-foot building.
Karnes said Monday he anticipates spending a total of $1.2 million on the facility, which, once opened, will be managed by R&K Property Management, where he serves as president.
He also said the facility will create between two and four full-time jobs and between four and five part-time jobs, not including construction jobs.
Economic Development Officer Steve Bolduc said the project adds another housing option for the city — “one that doesn’t really exist right now.”
Karnes said the facility will cater to professionals, such as traveling doctors and executives.
“We manage between 400 and 450 units, and we get calls every day from people looking for a short-term apartment. … They want something for a month or two months, and we can’t serve them,” Karnes said.
The facility was on base property in the 1950s as living quarters for military personnel. When the base was decommissioned in 1969, it was passed on to the Maine Army National Guard and Army Reserve.
More recently, the building housed military retirees, guard and reserve personnel, according to city officials. The city acquired the property in 2012 from the University of Maine System, which had taken over the deed from the federal government.
City officials considered demolishing the structure before calling for rehab proposals in October 2014.
“The council had the option to consider whether we should tear it down,” Bolduc said. “We decided it was worthy of rehab, and we finally found someone who was will to undertake that investment.”
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