LEWISTON — A developer has pulled out of a proposed condominium project near Central Maine Medical Center, but could return in the future with revised plans.

Earlier this month, Portland-based Hardypond Development was under contract to purchase the historic property at 3 Middle St. with plans to build 74 market-rate units, but has since backed away from the plan.

Despite the news this week, the Planning Board asked city staff to review the zoning and potential issues in the area in hopes of spurring future development. The neighborhood is expecting a large housing complex on Avon Street, and officials said the area is in need of significant infrastructure improvements.

In response to a request from Hardypond in early May, the City Council initiated a zone change request that would have allowed a higher density on the property. However, this week, the Planning Board was asked to consider a different proposal after Hardypond put the brakes on its plan.

City staff initially looked at moving the property from the urban enterprise district to centreville district, but after the request was removed from the table, planning staff will look at making an amendment to the urban enterprise district that could permanently allow for a higher density.

According to Doug Greene, deputy director of Planning and Code Enforcement, the urban enterprise district is more flexible in the business uses it allows, and developers believe it could be a better fit as long as the density requirements are changed.

Greene said if approved, the density — one unit per 1,250 square feet — would be the same as the downtown residential zone. He said the Planning Board decision Monday also means staff will do a more “thorough evaluation” of the urban enterprise zone.

“We think it’s a well-founded request,” he told the Planning Board. “We think there are opportunities in the density, but also to look at the uses in the (zone) and see if there are any amendments that might be a positive impact to redevelopment and also to the neighborhood itself.”

If the lot size density standard was increased, the Middle Street property would be allowed up to 81 units. The current zoning would allow 67.

In an earlier letter to city officials, Bob Gaudreau of Hardypond Development said based on financial projections and the current cost of construction, the company would not be able to move forward with the project due to the current zoning.

According to Kevin Sutherland of Hardypond, who spoke to the Planning Board this week, Gaudreau “has backed out for now.” Sutherland said the building’s owner, Dan Henry, of GWD Properties, wasn’t “comfortable” with the previous request to rezone the property to centreville.

Greene said he believes Hardypond is still weighing options for the property, and could be looking for development partners.

Sutherland told the Planning Board that the company is “still exploring every option with that property.”

“A lot of it has to do with deferred maintenance that never occurred and the costs associated with it,” he said. “A lot of the development that could or would occur is going to have to be much greater density to make the numbers work. The more the Planning Board advocates for density in your downtown where the infrastructure already exists, the more likely you’re going to see developers show up at your door.”

The property at 3 Middle St., considered historic in Lewiston, was listed for $995,000 in August 2020. The 97,850-square-foot building has most recently been home to Ferguson Plumbing Supplies, which according to city staff, left the site in 2020.

The original building dates back to the mid-1800s, when it was built for the Lewiston Machine Co.

According to a document by the Lewiston Historic Preservation Review Board, the building served as a foundry to supply castings and machine parts to the cotton industry, and was later converted to a woolen mill. More recently it was used by plumbing businesses. Prior to Ferguson, it was home to Redlon & Johnson.

Several Planning Board members said they’d like city staff to be “thoughtful” about how the change could impact the entire zone. Several said the city has long overlooked the neighborhood, referred to as “Sunnyside,” and that basic infrastructure upgrades should be prioritized.

Planning Board Chairman Pauline Gudas said she walks the neighborhood often.

“The roads are terrible,” she said. “If you have false teeth you’re probably going to lose them. The holes on Whipple Street in the road are absolutely insane. If I lived there I would be banging on my city councilor’s door every day. It just seems that economic development and our City Council is fixated on one section of the city.”

Member Linda Scott added, “This neighborhood needs a lot of work.”

But, she said she was excited by the potential condo project.

“To see we weren’t able to come through with that, I’m hoping we can have something else come through really soon,” she said. “I think there’s so much for potential for growth down there, and it could be a real game changer for our community.”

Some infrastructure upgrades in Sunnyside are tied to the planned 245-unit apartment complex on Avon Street, which was given initial approvals for a contract zone in 2019.

It’s developer, Saxon Partners, closed on the former Pineland Lumber Co. property this spring after some delays, and has not established a timeline for construction.

Greene said Thursday that when construction occurs, new sidewalks and related improvements will take place.

He said despite the recent development setback, officials are excited to see the recent investment interest in the Sunnyside neighborhood.

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