The Southern Gateway and Western Gateway are the focus of the agreement.
LEWISTON – Two new downtown development districts untie the city’s hands, according to City Administrator Jim Bennett.
Bennett said the two districts, one along lower Lisbon Street and a second on either side of the Longley Bridge, make the city more competitive in its dealings with developers.
“There are people who have made a profit finding out what the city plans to do,” Bennett said. “They buy property the city is interested in just to jack up the price. The end result is that the average person pays more. These districts essentially put those people on notice that they won’t be able to flip real estate like that.”
The lower Lisbon Street district, called the Southern Gateway Development District, is tied to the economic deal with Oxford Networks and Franklin Property Trust councilors passed Tuesday. That district is bounded by Knox, Spruce, Lisbon, Cedar and Canal streets and Adams Avenue.
The Western Gateway Development District runs southwest and north from the intersection of Ash and Canal streets. It includes Bates Mill No. 5, and the Libbey Mill.
Councilors passed both districts. Councilor Marc Mason, who owns the Acme Social Club at 255 Park St., abstained from the vote on the Southern Gateway District. Mason’s club is in the district. Councilor Norm Rousseau, who owns properties in both districts, abstained from both votes.
A second reading on the districts is scheduled for June 17. If the council agrees, the city will create a master plan for each district that explains just how individual properties should be developed. Development Director Greg Mitchell said those master plans should come before councilors and the city Planning Board in about 30 days.
Eminent domain proceedings are a key feature of the districts, Bennett said. Eminent domain allows a city to take over private property and pay a set price. The property owner can take the city to court if the price is too low.
Eminent domains protect the city, Bennett said.
“There are people seeking to make a profit speculating on a piece of land just because the city is interested in purchasing it,” Bennett said. “You have to level the playing field. Otherwise, the poor taxpayer ends up paying the difference. And they pay because either a worthy project never happens or the city buys the property at an artificially high price.”
But Bennett said eminent domain is a tool of last resort. The city will work with land and business owners in both districts to reach an agreement short of eminent domain. That could involve the city helping business owners relocate, he said. It could also involve the city helping them reinvest in their business.
“The entire point of these districts is to get people to invest in them,” Bennett said. “If people want to invest, to redevelop, we are here for them. If they are savvy businesspeople, I think they’ll be pretty happy with what’s happening. But if they are content to sit back and not invest in the community, I think they are pretty unhappy right now.”
Bennett said the city had contacted representatives of five properties along lower Lisbon Street that would be asked to move as part of the redevelopment deal. Negotiations had not begun, however.
Councilor Marc Mason asked why the city negotiated with Franklin Property Trust for the land under a proposed lower Lisbon Street parking garage rather than taking it by eminent domain. Bennett said the city needed Franklin to make the lower Lisbon Street project happen.
“We needed somebody with the wherewithal to come in and do this. Don’t forget. The Franklin Company is sinking $5 million into this. They are the ones that are building the buildings. They are willing to take an asset that’s generating money for them and close it down and start over.”
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