Work bids to expand Austin’s Fine Wines
and Food came in higher than expected.
AUBURN – City officials will consider moving around block grant money to help finance a downtown redevelopment project.
The city could delay several projects, freeing up as much as $180,000 for the Court and Main streets development project. Economic Development Director Roland Miller said he hopes to present a plan to the City Council next week.
“This is just the first discussion,” Miller said. “We want to discuss all of the block grant projects with them and see what they feel can be delayed. Then we need to determine how large a loan package the city can put together.”
The project at the corner of Court and Main streets is not expected to continue before spring. Developers American Holdings Inc. want to renovate the three-story block of buildings at 66-72 Main St.
The original plan called for Austin’s Fine Wines and Foods to expand along the first floor of the property. The upper floors would be developed for office space. In all, the project should create 8,350 square feet of leasable space.
Work bids on the project came in higher than expected and the developer and the city began looking for more financing.
“The councilors need to determine if they are willing to defer some projects and what level of support they are willing to offer other projects, including this one,” Miller said.
Auburn, Lewiston, Portland and Bangor get Community Development Block Grants from the U.S. Department of Housing and Urban Development.
That money helps the cities pay for economic development, public improvements, public services and similar programs.
Last summer, the city delayed work on New Auburn sidewalks, an elevator in the Great Falls School and downtown parking purchases. Those projects were scheduled to be paid with block grant money.
Auburn was budgeted to receive about $772,000 in block grant funds in this fiscal year. The city budget indicates $490,000 is supposed to go to Court and Main street developers as a loan.
American Holdings signed a purchase and sale agreement with the city last spring, agreeing to buy the buildings for $145,000. The city agreed to tear down the wooden frame structure at 18 Court St. to make room for the expansion.
The city wrapped up its share of work – about $170,000 worth of interior demolition, asbestos cleaning and wall stabilization – this summer. The city also extended utility lines to the property.
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