EASTPORT, Maine — Two residents trying to overturn the city’s sale of the former Eastport Boat School property had their case heard by the state supreme court Wednesday.
Phyllis Bradbury and David Gholson, filed suit against the city in 2011, claiming the city did not properly advertise the sale of the 17-acre oceanfront property before selling it for $300,000 to First Perry Realty and CPM Constructors on Dec. 1, 2011.
As part of the transaction, the buyers gave 8 acres to the Friends of the Boat School Marine Trades Development Corporation and donated $75,000 to the city to relocate the public boat access.
Reached separately by phone Thursday, Bradbury and Gholson said they were suing on behalf of the local taxpayers and to hold the city accountable for its actions.
“We have not a dollar to gain,” Gholson said. “Legal fees are over $30,000 at this time. [Bradbury] and I are standing up for the citizens of Eastport, and the average citizen doesn’t even realize it.”
During oral arguments, which were available via live streaming on the supreme court’s website Wednesday, attorney Kristin Collins of Belfast, representing Bradbury and Gholson, said her clients are seeking to have the sale rescinded.
One of the justices pointed out during the proceeding, however, that much discussion about the proposed sale of the property had occurred during public meetings and that the public was “well aware” of what was going on.
“Why don’t all of those things meet the very general requirement of advertisement?” the justice asked Collins.
Collins said, “It’s that word ‘advertised’ that’s the entire subject of this appeal.”
Newspaper articles don’t come from the city, so they cannot be considered advertisements, she said. Everything the city does has to be done at a publicly advertised meeting, so discussions at council meetings don’t meet the requirement for advertising either, she said.
Collins said the city ran a newspaper advertisement about the sale after it already had a contract in place.
“An advertisement after something has been accomplished accomplishes nothing,” she said. “This case is challenging the sale.”
Attorney Dennis Mahar of Calais, representing the city, said the advertisement after the contract was in place was enough to meet the letter of the law.
“[The city charter] doesn’t say an offer has to be advertised or that a listing has to be advertised,” he said. “I’m here to argue to the court that the City Council didn’t have to do anything.”
“So you’re just going through the motions with the advertisement. It didn’t mean anything?” asked one of the justices.
Maher said the city could have put the property out to bid or run more advertisements but it didn’t have to.
He said “everybody” was happy about this deal except the plaintiffs.
Attorney Paul Koziell of Portland, representing the buyers, said he believes the case has been “exhaustively reviewed” and that it’s time for it to be resolved.
“Enough’s enough,” he said. “The button has popped on this turkey and it’s done. It’s time to move on.”
He acknowledged the case would be a lot clearer if the newspaper advertisement had been made before the agreement was signed. However, he said, the city still met its legal requirements.
When the property was first purchased, CPM Constructors had expected to build an underwater turbine manufacturing facility at the site.
When reached by phone Thursday, Koziell said that plan had been put on hold, in large part, because of the lawsuit.
He said some construction equipment and some materials are being stored on the property but that “it doesn’t make any sense to do anything” more until the issue is resolved.
Similarly, Dean Pike, a representative of the Friends of the Boat School, said this week that no development has taken place at the property that organization acquired pending a resolution to the suit. Some work has been done, such as cleaning out the premises, he said. The group also has run some apprenticeships and short-term programs out of the facility but has not been able to pursue any long-term plans, according to Pike.
“Because of the lawsuit, the Friends of the Boat School has not been able to borrow money [or] get grants,” he said.
There is no timetable under which the justices must issue their decisions.