Maine Medical Center is expected to purchase the old Cumberland Mills police station to use it for medical offices.
In a Nov. 29 letter to Mayor Bruce Chuluda, Paul Gore, one of the building’s owners, asked the city to release his company from the deed restrictions placed on the building by the city to allow them to sell it to Maine Medical Center, which has the building under contract.
In the letter, Gore said the hospital is planning to build a 16,000-square-foot medical/professional office building employing about 25 to 50 people. If the development were approved, Gore said Maine Medical Center anticipated investing more than $2 million in the property, removing the existing buildings on the site and replacing them with a new building and parking.
Maine Medical Center officials did not return a call seeking comment for this story.
On Monday night, the City Council went into executive session to discuss the deal, and when councilors emerged after about a half-hour, they voted, 6-0, to give initial approval to an agreement releasing the owners from their obligations to the city, clearing the way for the sale to proceed. Councilor Drew Gattine was absent from the meeting.
Last year, Gore and Joe Mazzone, the owners of Port City Graphics, purchased the building from the city for $450,000, which was $100,000 below the established value of the building, with the stipulation that they invest an additional $250,000 in the building or add at least 5,000 square feet of new construction in the next three years. If those conditions were not met, Gore and Mazzone agreed to pay the city an additional $100,000.
In addition, Gore and Mazzone told the city they planned to move their Port City Graphics business to part of the property while using the rest as a small business “incubator,” renting space to small start-up businesses.
In a previous interview, Gore said he planned to go forward with the original proposal until he and Mazzone received a significant offer for the building shortly after closing on the sale. That offer led them to market the building even after the first proposed sale fell through.
In his letter to Chuluda, Gore said he believed the new proposal was a good one for both his business and the city. “Since the scale of this development will require an investment far exceeding that envisioned by the city and our partnership in structuring the existing deed restrictions, we anticipate the City Council will welcome the opportunity to assist Maine Medical Center by releasing the restrictions,” said Gore.
Chuluda said on Tuesday that the city is still working on the details of an agreement with Gore and Mazzone, and he said he expects to have a deal in place before the council holds a second vote on the matter. He said he wanted to bring the issue before the council to see if the council would support the agreement.
“We’re trying to make sure we’ve got all the bases covered,” he said.
Chuluda said he was glad the council supported the plan. “This is a great thing for the city,” he said.
The agreement approved by the council Monday night authorizes the administration to release Gore and Mazzone from the restrictions placed on them when they purchased the building. The council’s order specified the new owner of the building would be required to pay property taxes on the building, and if it were sold to a non-profit entity, the new owner would be required to pay an undetermined amount in lieu of property taxes until 2016.
After the vote on Monday night, City Council President Jim Violette said he thought the agreement was a good solution to a problem that has been facing the city.
On Tuesday, Mazzone said he was glad the council supported the plan. “I think it’s going to be a great addition to Westbrook,” he said. “It’s exactly what everyone’s been looking for.”
The building hasn’t been sold yet, according to Mazzone. He said it is under contract to the hospital and would not close until the project gets all the necessary approvals from the city, which he expects will be sometime this spring. Mazzone declined to disclose the purchase price.
Mazzone said while he wishes it hadn’t taken as long as it did, he is pleased with the outcome. “We tried very hard to get what the city wanted for that space,” he said. “I’m happy that it’s come around to being a medical facility. It’s going to be good for the city and good for that space.”
Chuluda said he was hoping the council would hold a second vote on the matter at its next regular meeting on Jan. 9. However, he said since that is also inauguration day, and traditionally not much business is on the agenda for that meeting, he is not sure if it will be on the agenda.
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