BIDDEFORD — Although the national economic crisis may be to blame for slowing development in the city’s mill district, some projects are moving forward.
A plan to build a 66-unit residential complex at one of the Riverdam Mill buildings received final approval from the Planning Board earlier this month, with construction projected to begin in August. In addition, a conceptual plan for phase III of Doug Sanford’s North Dam Mill was reviewed.
Mill developers are taking different approaches to their properties.
Maine Workforce Housing, LLC, the Portland-based company planning the Riverdam Mill housing project, will be relying heavily on state and federal historic tax credits and grants and loans from state and federal housing departments for financing. Others are doing little while waiting for the economy to improve before proceeding with their plans.
But Doug Sanford has a different business model.
To a large degree, he is letting the market dictate his growth, renovating his buildings when the demand calls for it. Although he is using some supplemental government financing, most of the funding comes from private sources.
“We’ve been growing incrementally,” said Sanford.
This approach appears to be working for Sanford, who is recognized by many as the most successful developer in the district. Although he only acquired his three-building mill complex in 2004, city officials say that Sanford seems to have mastered the right mix of office and retail, light manufacturing and residential development that they would like to see throughout the district.
“North Dam Mill has been very successful,” said City Planner Greg Tansley, when the board was reviewing Sanford’s expansion plan on July 15.
“I think Doug has done a marvelous job with this,” said Planning Board member Roch Angers.
“I agree,” said board member Larry Patoine. “Doug’s done a great job.”
At present, said Sanford, there are approximately 50 residential units, all full ”“ with a waiting list for any vacancies if and when they occur ”“ and 58 businesses located in North Dam.
While some businesses have closed, often because of economic factors, said Sanford, others are surviving and even growing. For instance, the Union House Pub & Pizza, which started as more of a coffee house, has changed its menu since new owners took over in 2008. The husband-and-wife team Jack and Vassie Fowler added pizza and other choices, which have been such a hit that they are expanding their dining space.
Because of changes made by those proprietors, a new coffee establishment has set up shop, visitors’ first welcome in the newly remodeled entrance. Another business, the specialty food company Vervacious, is leasing additional space for food packaging in the mill building.
One company that hasn’t grown in the current economy is My Ostrich Golf, but instead of closing his doors as the demand for golf clubs slows, business owner Tim Hewitt is trying to adapt. Although he’s only in the research stage, Hewitt has been trying his hand at something which the dark, damp space of the lower levels of the mill buildings may be ideally suited for: Growing mushrooms.
Sanford doesn’t mince words and notes that cheap space is the main reason that many tenants have moved into his mill. He said many who might otherwise lease space in Portland are moving into mill district space in Biddeford because people can get much more space for less money.
In addition to lower prices, Sanford is hoping to attract more business tenants with a high-powered Internet fiber-optic cable. Many of the businesses he is attracting rely on their Web site for their customer base, he said.
Sanford has some grander plans for Phase III. For this phase, he plans to use state and federal historic tax credits to supplement private financing. On the top two floors of what’s known as building 17, Sanford plans to add 40 new residential units. He also plans on developing a performance arts space and a food court.
One issue that has been identified as a possible problem for phase III development is that no new parking spaces are planned.
“The parking issue is obviously a big one,” said Scott Joslin of West Branch Construction in Portsmouth, who is Sanford’s construction manager. He said for plans to proceed, a parking waiver from the Planning Board will be needed.
There has been no parking problem so far, said Sanford.
Business tenants and their customers use up most of the parking spots during the day, but residential tenants don’t usually arrive home until the businesses empty out.
“We, as a philosophy, are trying to discourage parking,” said Joslin.
He noted that University of New England students, who make up a substantial portion of the residential tenants, are encouraged to use the bus shuttle that traverses between the school and the mill district.
— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.
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