Council pauses on major development project

Several members of the Biddeford City Council expressed significant and pointed concerns during Tuesday’s council meeting about a proposed affordable housing project near the corner of Lincoln and Pearl streets.

Westbrook Development Corp. is hoping to construct approximately 90 units of affordable housing for residents over the age of 55. The developers say the monthly rent would range between $1,100 and $1,300, including all utilities.

Mayor Marty Grohman described the two-phase project as a “large and complex” deal that will finally culminate the end of an era when that site was the home of the MERC waste incinerator, which was closed in 2012.

Another proposed development project that would offer market-rate apartments, retail and other commercial spaces is being proposed in the same area. The two projects would essentially wrap around the Pearl Street parking garage.

The developer is proposing to give the city roughly $680,000 to secure needed parking spaces in the parking garage and is required to make an $840,000 contribution to help fund sewer upgrades throughout the city,

George Gervais, the city’s economic development director, told the council that the project would bring more than $30 million in direct and indirect benefits to the city, including a $200,000 contribution to the city’s Affordable Housing Trust fund.

Despite those benefits, several councilors said they are not yet ready to pull the trigger.

Because the city currently owns the 1.6-acre parcel, councilors expressed concerns about parking, the project’s timing and what might happen if the project falls through.

Tyler Norod of Westbrook Development told the council that his company is facing a tight timeline because they are hoping to secure project funding from the Maine State Housing Authority (MSHA) in order to make the project viable.

“I hate to have a gun held to my head,” said Councilor Marc Lessard. “That type of approach never leaves us in a good position.”

Though Lessard said he supports the need for more affordable housing, he says taxpayers expected the city to replace the former MERC site with commercial development that would create jobs and tax revenue.

Lessard said the city “cannot afford any more credit enhancement agreements. “We need to be more focused on generating more money on the tax rolls to ease pressure on taxpayers,” he said.

Councilor Norman Belanger, however, said the development landscape has changed significantly since MERC was closed 13 years ago.

“This project would be a tremendous win
for the city. There’s so much benefit if
this passes, and so much to lose if it fails.”

— George Gervais, economic development director

“We had a plan and a vision for that space,” Belanger said. “But then COVID hit, and the world as we know it changed.”

Belanger expressed frustration about a mixed message coming from the city council, saying he feels bad for city staff who put a lot of time and effort in bringing projects forward.

“This council is acting in a schizophrenic manner,” Belanger said. “We say we want affordable housing here, but not there. We’re sending a mixed message.”

Councilor Doris Ortiz said she supports the development of more affordable housing, but also expressed some concerns about the proposal. “The parking garage has been a thorn in the city’s side for a very long time,” she said. “Overall, I think it’s a good project, but there is a lot to work through. It’s not an easy lift for us.”

Citing the need for more information, the council voted 8-1 to table the proposal until the next council meeting on June 17.

Following the meeting, Norod said he appreciated the council’s diligence and its commitment to develop more affordable housing.

“We feel as if we are partners with the city,” Norod said. “It’s clear that the council really wants more affordable housing. We have some homework to do before the next meeting, but we are happy to do it.”

For his part, Gervais said he was feeling a bit disappointed about the delay, pointing out that he and other city staffers have been working on this project for more than a year. He also said he has repeatedly offered to meet with individual councilors to answer any questions about the proposal.

“This project would be a tremendous win for the city,” Gervais said. “There’s so much benefit if this passes. and so much to lose if it fails.”

RELATED: Click here to view or download the project’s executive summary:

Randy Seaver is the editor and founder of the Biddeford Gazette. He may be contacted by email: randy@randyseaver.com

Never miss another update! Subscribe for free today!