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Development moratorium irritates real-estate brokers

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Friday, October 10, 2008

LEWISTON - A City Council decision to prohibit more than 30 types of businesses from the downtown is irking some real estate agents who see the 90-day ban as unwelcome and unnecessary.

"Why would they want to chase out business, especially in tough economic times?" asked Tripp Corson, a broker with NAI/The Dunham Group. "This makes no sense to me."

Corson had a prospective client for a 6,000-square-foot warehouse at 75 Lincoln St. But the moratorium passed by the City Council Tuesday prohibits that use in the downtown district that runs from Bleachery Hill to Central Maine Medical Center, and from Kennedy Park to the Androscoggin River.

"I'm all for a more vital downtown, but this is taking value away from your property," Corson said. "It's like having a beautiful house lot and being told you can't build a house on it. I think this is very short-sighted."

The moratorium applies to all existing buildings within the district, as well as any new construction, expansions or relocations. City councilors endorsed the moratorium to give themselves some breathing room while they, city staff and Planning Board members focus on a downtown development plan. The issue came to a head this summer over potential new uses for the mill building at the corner of Canal and Main streets and the vacant lot on Lisbon Street created by a 2006 fire.

The exclusions are broad - so broad that planning chief Gil Arsenault said he was surprised there was little reaction or opposition from the public.

"These are pretty far-ranging," he said of the banned uses. "It does add another layer or barrier to development in the short term. But I do think the City Council was clear in saying that the city is still open for business, that someone with a good proposal can bring it to us and we won't let it go by the wayside."

Under the moratorium, several newcomers to the downtown would have either been excluded or would have needed an exception to open for business. Among them are Innovex Technologies, a light industrial tenant that moved into the Hill Mill a month ago that makes building control systems, and Western Maine Community Action Health Services, which moved its medical clinic and offices from downtown Auburn to Lisbon Street this summer.

"The fundamentals (of the moratorium) make sense to me because there is no clear vision for the downtown," said Kevin Fletcher, a broker with Coldwell Banker/Millett Realty who recently brokered a deal for a new day-care center on Canal Street. "But as a businessperson, I'm fearful that the city couldn't come up with a clear vision in the last three years, so I'm not optimistic it will happen in three months."

He said he feels for property managers like Bob Gladu, who owns the Pepperell Mill, which is home to several light industrial tenants and has available space.

"If I were Bob Gladu, and I've been paying my taxes and I had a chance to bring in a new business and I couldn't, I'd be angry," Fletcher said.

Brad Knowles, a broker with Keller Williams Mid Maine Realty, said the moratorium prolongs what is already a waiting game for anyone interested in acquiring property. Although the 90-day timeline isn't extensive, he worries that it could be extended - state law caps municipal moratoriums at one year - and that it will discourage potential clients.

"Waiting is what is hurting our economy right now," he said of the downturn in investment activity. Currently he has an offer on a property on Lincoln Street. "Depending on what the proposed use is, this could put the kibosh on the deal."

Steve Morgan said he sees the issue from both sides, as chairman of the Planning Board and as a real estate broker with 20 years in the business.

"I like to think I'm taking a balanced approach," said Morgan, a broker with Keller Williams. "Three months won't make or break anyone in this industry. The city doesn't want to stop development, but to proceed with caution. If someone approached us with a great idea, we could be back in a meeting (to consider an exception) within 48 hours."

CLICK HERE To Show/Hide Discussion Thread - (10 Comments)
Comments
Posted By:gil at October 10, 2008 7:46 AM (Suggest Removal)
This is what happens when government meddles in business. See Freddie Mac/Fannie Mae.

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Posted By:ROCKO at October 10, 2008 8:05 AM (Suggest Removal)
In away I see the cities concerns dont tell me the three mnoth wait will kill any deal thats well thought through. All the brokers and Agents want is more money flowing to their pockets !!! Now on the other hand I can not believe the city has not had a solid plan for growth in this section of town, The city of Lewiston...Its not happening here,hype will get them NO WARE!!!! ALL sides should proceed with GREAT CAUTION!!!!

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Posted By:L-Town at October 10, 2008 8:25 AM (Suggest Removal)
Come on everyone lets remember Lewiston is an “All-America City” every business in the state wants to move here. They can move right into the downtown and put benches out front for all the vagrants to use. The city should welcome any new business willing to move to Lewiston. Don’t stand in their way, Lewiston needs the tax revenue.

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Posted By:ojhuig at October 10, 2008 8:34 AM (Suggest Removal)
How stupid. Why not just give themselves a 3-month deadline to finally come up with a plan, and in the meantime, let taxpaying owners use the buildings for the purpose they were told they could?

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Posted By:bb at October 10, 2008 11:12 AM (Suggest Removal)
Bill to your comment- "Now on the other hand I can not believe the city has not had a solid plan for growth in this section of town" they killed the committee this week that was suppose to come up with a plan for downtown in Lewiston and Auburn. There is no structured plan now for that area. So the moratorium will just continue to be extended and extended much like the one that is still in place on Park St at Oak Park. It has been in place since the last council was there. If businesses want to develop downtown I know Auburn's side of the river doesn't have a moratorium. They are developing their own separate plan for downtown from that of Lewiston.

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Posted By:Chad at October 10, 2008 12:33 PM (Suggest Removal)
bb..that committee that was closed was a major waste of time. There are fourth graders who can come up with the same, if not better, ideas. I can see why Kevin Fletcher is mad because the new development plan will eliminate people like Kevin from creating crappy renovations. The old People's bank on the corner of Ash and Lisbon looks like it was a victim of Design on a Dime. The City of Lewiston has long needed a plan that forces quality renovation and development versus cheap flips and poor upkeep.

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Posted By:John in Auburn at October 10, 2008 1:31 PM (Suggest Removal)
Quote "The exclusions are broad - so broad that planning chief Gil Arsenault said he was surprised there was little reaction or opposition from the public." Unquote. Maybe I have had my head in the dirt but this article was the first I had heard of any moratorium.

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Posted By:Don at October 10, 2008 1:32 PM (Suggest Removal)
What do they plan to do with all of the closed up buildings on Lisbon Street? This looks worst than some of the areas in NYCity and the old Pittsburgh!

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Posted By:bb at October 10, 2008 1:45 PM (Suggest Removal)
Was it the committee that was the waste of time? It's seems to me like every report I have seen from committees (of which citizens serve on because they care) offer concrete plans and real savings. Facts if you will. The councils on both sides of the river don't have the fortitude to implement them. That's the problem. If they did you would already see saving in your tax bill and a downtown of which people are excited about.

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Posted By:HAROLD at October 10, 2008 7:19 PM (Suggest Removal)
Does this mean the Island project is on hold now as well as the empty buildings on lisbon street. It sounds like Lewiston is telling the owners of these buildings who or what they can rent/lease to instead of letting the the owners decide who is going to rent/lease of the buildings. Well, if the building are to remain empty, they should board up the windows so they are not busted which can happen at times.

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