A land swap could be the key to making a $4.1 million development in South Gorham a reality.

Gorham resident Hans Hansen is proposing building six homes, three greenhouses and a childcare center on land he owns near the intersection of South Street and County Road.

The project was held up in March because of concerns over how the project would affect traffic at the intersection. However, Hansen has revised his plans and could be on the planning board agenda June 5, according to Town Planner Deborah Fossum.

The town is requiring Hansen to pay for improvements to the intersection, which he estimates could cost $200,000, to get approval for the project. However, the town is considering offering to pay some of the cost of the improvements in exchange for a right-of-way through Hansen’s property.

If it’s ultimately approved, the project, which has the support of the Gorham Economic Development Corp., could help ease traffic congestion and gain land to expand a cemetery.

Fossum said Hansen’s updated plans for the project, which included additional, requested traffic information, were submitted on Friday.

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Hansen, who will be 65 in June, hopes to start construction this summer for a combined housing and commercial development adjacent to his farm market. But the Planning Board postponed the proposal two months ago.

The development would be on 23 acres at Hansen’s Farm Market on County Road where it intersects with the end of South Street. The intersection is a short distance from where the Gorham bypass would connect to South Street, and County Road is heavily traveled by rush hour commuters.

For planning board approval of his proposed project, the town is demanding that he improve the highway at the intersection. “Our major concern here is safety,” Fossum said.

Fossum said the town is asking Hansen to create two center left turn lanes at the intersection with the traffic signal. One of the turn lanes would allow westbound traffic on County Road to turn into his development and the other lane would allow eastbound traffic to turn left onto South Street.

Hansen said he has agreed to install the turning lanes and upgrade the traffic signal at the intersection of South Street and County Road. He said the current traffic signal is antiquated and should have been replaced years ago.

“If we don’t agree, it’s dead in the water,” Hansen said recently about his proposal.

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In a potential land swap, Hansen would give the town a right of way through his property. It would allow Burnham Road to connect with County Road at the existing traffic signal, eliminating one intersection.

A town offer to swap could be on the council agenda next month. “It’s the only way to help the traffic there as I see it,” said Town Councilor Cal Hamblen.

If the town traded with Hansen, the land would also provide needed space for the South Gorham Cemetery. Hansen indicated that a swap could be worked out and seemed to favor the town’s proposal.

“I’m stepping to the plate,” Hansen said. “It’s a win-win situation for the town of Gorham if we can work a deal.”

Hansen said a swap would eliminate one of his proposed house lots and devalue another lot. He said he would be willing to shelf development plans if the town wanted to buy his land to preserve it as open space.

“If they want to pay me $1 million, it could be left this way forever,” he said looking across his garden land, which he has plowed and harrowed, readying it for spring planting. “If they want it to stay open, it’s a golden opportunity.”

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Hansen’s proposal includes six homes (valued at $450,000 each), a child care center (costing $700,000), three greenhouses ($100,000 each), one storage barn ($100,000), and a road into the development ($100,000).

Tom Ellsworth, president of Gorham Economic Development Corporation, supports the project because it would add to the town’s tax base and the childcare would provide a “much needed” service.

“The whole project has a lot of merit,” Ellsworth said.

The single-family homes would be “old style” with porches. Hansen said each house lot would be “extensively landscaped.”

He said two of the houses would overlook an existing farm pond stocked with trout. For trout caught in the pond by fishermen, the farm market charges $5 a pound.

The three greenhouses would be used to grow produce like tomatoes for the farm market. Hansen currently raises vegetables in gardens for the farm market. This year, he’ll raise peas, beans, pumpkins, beets and an acre of herbs.

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The market also buys corn, strawberries, blueberries and other produce from local farmers. “We’re pumping money back into the economy not California,” he said.

He said the childcare center for 49 children would be 60 by 100 feet. He said it would add customers to the farm market. “We’re hoping to gain business,” he said.

“We’re doing it for survival,” Hansen said about the development. “I think this property is a great asset to the community,” he said.

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