With financing settled, Lewiston greenlights two housing developments

LEWISTON — City officials approved the final details for two housing developments this week, with the former Martel School redevelopment and Auburn Mayor Jason Levesque’s downtown housing development both slated for construction in 2024.

On Tuesday, the City Council approved an amended option agreement with Lewiston Housing for the eventual demolition and redevelopment of the former school on Lisbon Street, and also finalized a tax increment financing district and credit enhancement agreement with Levesque.

Lewiston Housing plans to turn the former Martel School into affordable senior housing over several phases, starting with 36 units in 2024, and 33 more constructed in 2025-26.

Officials agreed on city financial support for the project Tuesday after initial balking at the proposal during what has been a lengthy process to redevelop the school. The city will provide $200,000 toward the building demolition after a bid came in higher than expected due to required asbestos remediation.

The bid from St. Laurent & Son was $798,376, while the initial estimate was in the $400,000 range.

Last month, the council agreed on an amended timeline for the development, which requires Lewiston Housing to begin the demolition work by Feb. 1, 2024, and finish by June 1.

Chris Kilmurry, executive director of Lewiston Housing, told the council this week that the project may be eligible for federal Brownfields funding for the remediation, and if it receives funds, they would be used to reimburse the city.

The council ultimately voted unanimously to approve the amended agreement Tuesday, despite continued questions from some councilors over the deal.

Councilor Rick LaChapelle said his concern is for the timeline and the possibility of Lewiston Housing “pulling out of the project.”

“I don’t want to wait another two years to get something going,” he said.

Councilor Lee Clement initially said he planned to abstain from the vote due to his distrust of Kilmurry, but eventually voted in favor.

“I appreciate the city and (Lewiston Housing) working together to get this done,” Mayor Carl Sheline said.

Earlier in the meeting, the council voted unanimously to approve an omnibus tax increment financing district and credit enhancement agreement for Jason Levesque’s portion of what is planned to be a multiphase development.

Levesque plans the development of 150 units of new market rate housing at 55 Middle St., which is currently a parking lot. The units are planned to be mostly studio and one-bedroom apartments, with a few two-bedroom apartments, and it will include commercial development at the ground level. The Planning Board approved the project in September.

A memo from city staff said, “His vision is bold, and when implemented, will transform an area near Main Street and the river that currently is surface parking, into a new market rate mixed use neighborhood.”

The approved credit enhancement agreement will reimburse the developer 52% of the new taxes paid on the project over the first 10 years. In year 11, 50% of the taxes paid will be reimbursed, and then the reimbursement level will be reduced 5% annually in years 12 through 20.

According to the memo, the first phase of development is estimated to cost $32 million.

Later this month, the Planning Board will conduct a development review for JLM Enterprises, which is partnering with Levesque on the broader development to redevelop 200 Main St. into a 172-unit market rate apartment building.

The City Council will be asked to approve a credit enhancement agreement for the development that is similar to the one approved for Levesque on Tuesday.