Five bidders vie for city waterfront site

The sound of building demolition soon may be ringing across Prince's Cove in Eastport at the site of the derelict factory known as the Consea property. The city council is expected to decide among five bids on the 3.4-acre city-owned waterfront parcel in South End at its April 13 meeting. Bidders were given the option to lease, lease with an option to purchase or purchase the property, which is zoned for Commercial Fisheries/Maritime Activities use. Preference is being given to bidders who will contribute to the Eastport economy and create six or more jobs.
Before the five bids were opened at the special council meeting held on March 15, council President Bob Peacock said he would recuse himself from the discussion. Although he said he has no financial connection with the bidders, Peacock noted that there could be the appearance of a conflict of interest, since he has worked with one of the bidders, Gerald Morrison.
City Manager Jon Southern explained that a brownfields assessment indicates that the land is probably not heavily contaminated from the property's former use as a fish processing facility. The city is liable if any accidents occur around the derelict buildings, and the city's bid guidelines require the demolition of the buildings, along with riprap stabilization of the shoreline and payment of some $38,000 in back taxes. Southern also said the city would require the winning bidder to obtain liability insurance, at least until the buildings are torn down.
The first bid opened was from Eastport resident David Gholson for a cash amount of $72,500, payable within 10 days of bid acceptance. Gholson would secure and fence off the buildings and allow a public access to the beach. He would not remove all the buildings as he feels that some are salvageable.
The second bid was from Perry Marine & Construction LLC for a five‐year renewable lease for $4,000 per year with an additional initial payment of $14,700. Improvements made over two years would include building removal and the installation of port‐provided riprap materials. The company proposes a purchase option within the lease term at a price of $100,000. However, costs incurred by the company to install riprap would be used as a credit against the purchase price. The company expects to have the right to transfer the option of both lease and purchase to another entity. The company is willing to consider public water access.
A bid from David Pottle of Lighthouse Lobster Company of Perry was opened third. A payment of $43,000 was offered, and site improvement would include removing the buildings, cleaning the site and installing riprap. Pottle would build a 3,000-square-foot facility for the company's wholesale and retail fisheries business. The agreement would be conditional on the city's completion of all Department of Environmental Protection assessments and approval of brownfields information.
Eastport resident Will Bradbury offered one dollar for a six‐month option to explore financing to establish a public park, with an agreed upon price to include past due taxes and a future yearly payment equivalent to property tax.
The fifth bid was from Fred Moore III of Native Harvest LLC of Pleasant Point for a five‐year lease‐to‐purchase plan with an initial payment of $39,001 and $650 per month for 60 months. The company would meet all requirements outlined in the city's request for proposals, which includes the removal of the buildings and installation of riprap. The company expects to build facilities for commercial fish processing.
During the March 15 meeting, Eastport resident Sally Erickson asked whether the council could include a requirement for the purchaser to provide public access to the beach at Prince's Cove. Including such a requirement would mean that the property would have to be rebid, according to city attorney Dennis Mahar. However, the council still might be able to negotiate an arrangement for public access.
Councillor David Morang commented, "We've got to do what fits Eastport," with the creation of jobs and the preserving of the waterfront.
Because of the complexity of the bids, the council decided to hold a workshop on March 22 to review them.
Review at workshop
At the workshop four out of the five bidders were on hand to discuss their projects with the council and members of the public. Fred Moore of Native Harvest was not present. Peacock chaired the meeting but explained that he would not be asking any questions of the bidders because of the possibility of a perceived conflict of interest.
The bidders present reviewed their proposals. David Gholson explained that since submitting his bid he had spoken with the city manager about how he might partner with others to create jobs. He noted that he would tear down all the buildings rather than try to salvage some. Gholson said that he had talked to two of the other bidders to see if they would be interested in leasing or partnering with him. He also said that he would advertise to attract a business to the site.
Will Bradbury told the council, "The city has a one‐time opportunity." He added, "I do believe there are a lot of good proposals and it's nice that some have continued access to that beach." He pointed out that a high percentage of businesses fail within the first five years of their start‐up. "You're going to have to pick wisely," he told the council. "Because if there's no bond, no back‐up, the city is not being a good steward."
Gerald Morrison and Paul Koziell, who is counsel and chief operating officer with PMC partner CPM Constructors, noted that the figure of back taxes of $14,700 in their bid was incorrect. Koziell stated that PMC "would propose to pay some of the back taxes." However, in answer to a question from Councillor David Morang, "Would you pay the full tax amount right up front?" Koziell answered, "Taxes would be paid up front." Morang was also concerned about the riprap installation credit that would be used to offset a purchase agreement price. "We could owe you money," Morang said. Koziell replied that terms "are by mutual agreement."
PMC is also planning to purchase property on Staniels Road adjacent to the BASF property on Broad Cove. Koziell and Morrison stated that either property purchase or lease was not dependent upon the other. At the moment PMC plans to use the Staniels Road parcel as the primary location for manufacturing the base units for Ocean Renewable Power Company's tidal power system. The Consea parcel would be secondary and primarily for storage of materials. If the Staniels Road property deal were to fall through then the Consea parcel would become the primary site.
Connie Knight, an abutting landowner with three small children, asked both PMC and David Pottle of Lighthouse Lobster Company about the type and extent of road traffic that would take place to and from the property. Morrison said, "It won't be any worse than trucks taking pulp to the port." He explained that raw materials would be brought in about once a week by trucks of standard width "for what the road can handle." Koziell reiterated that the company would work with neighbors.
David Pottle told Knight, "Tractor trailers might be every day during the fall season." Another area neighbor, Linda Sisson, asked Pottle to discuss his position on possible access to the beach area. Pottle explained that he hadn't discussed it in his proposal because it was not a part of the RFP. "We could probably work something out," he said and noted that he had talked to Knight's husband, Chris Bartlett, about the access question. Pottle also noted that since his bid proposal was opened, he has been approached by two businesses that would like to work with him if he expands to the Consea site.