LEWISTON — City councilors abandoned a proposal Tuesday evening that would have had the city backing a $1.4 million guarantee for Milltown Sports and Entertainment to purchase The Colisée.

Instead, the council committed to a newly structured deal toward the $4.9 million sale by approving a $250,000 loan to Milltown Sports.

After rejecting the original proposal in a 6-1 vote, councilors approved the loan 5-2, with Ward 3 Councilor Scott Harriman and Ward 7 Councilor Bret Martel dissenting. Martel also voted no on the first vote. 

Under the original proposal, seller Darryl Antonacci agreed to defer $1.4 million of the $4.9 million purchase price and allow Milltown to pay that $1.4 million over time, with the city guaranteeing Antonacci would be paid.

Under the revised plan, Antonacci will defer $2 million of the total and allow Milltown to repay that over time, without a city guarantee. 

For the remaining $2.9 million, T&M Investments will loan Milltown $2.65 million, with the city’s $250,000 making up the difference.

The city loan will come from its economic reserve account with a 14-year term and no interest.

Despite the smaller upfront commitment of $250,000, councilors were hesitant to move forward, citing a lack of financial guarantee should Milltown Sports fail to make payments on its loans.

Several councilors said the loan puts the city at risk without a clear path of a return on investment. They were also concerned that $10,000 in overdue utility bills on The Colisée, which must be paid in full per the loan agreement, have still not been paid. 

Economic and Community Development interim Director John Blais noted that Milltown Sports has a payment plan it has been fulfilling.

Ward 1 Councilor Joshua Nagine and Council President David Chittim of Ward 6 said that despite the financial questions, they would vote in favor of the loan by “factoring in intangible” benefits to the city and its youth and due to their trust in Blais’ and City Administrator Bryan Kaenrath’s recommendations for its passage.

Councilors Harriman and Martel would not commit to the loan due to too many unanswered questions about financial details, return on investment and assurances the city would be able to secure its money should Milltown Sports’ venture fail. 

The reworked deal came after several weeks of councilors expressing concerns over the city’s financial exposure in the original proposal, which would have potentially saddled the city with a $1.4 million debt should Milltown Sports be unable to make its payments. 

The council gave its approval of the sale in a vote March 3, but did not go so far as to approve backing the guarantee. 

Asked to provide more information, Milltown Sports owner Nate Bostic brought forth more financial details and project scope at the March 17 meeting. However, concerns only grew among councilors, who were all but ready to vote down the proposal due to a lack of information, including gaps in budgeting, project viability and uncertainty around the property’s value.

Rather than outright rejecting the proposal, councilors voted again to table the project to give Bostic the opportunity to provide more information.

Bostic has argued that keeping The Colisée operational is critical to stabilizing the future of the arena with local sports and off-season events. Milltown Sports plans to maintain youth and high school hockey while adding year-round programming such as concerts, wrestling, boxing and indoor soccer. 

Delays tied to the city’s approval process jeopardizes the viability of early season commitments, Bostic explained over several meetings. Over the past month, Milltown Sports has been attempting to hold tryouts for youth hockey, while explaining to parents investing in the league that ownership of the facility is not yet guaranteed.

In anticipation of the sale, Milltown Sports, which assumed management and control of The Colisée last year, has invested around $1.3 million in improvements to the property including a new roof and parking lot.

Bostic and city officials have framed the sale as a way to preserve a regional sports and entertainment hub that adds millions of dollars annually to the local economy.