Developer pauses storm-damaged Spinning Mill project in Skowhegan
File Photo / Courtesy of John Swett
At the Spinning Mill redevelopment in Skowhegan, floodwaters jostled massive shipping containers after a major storm in December.
Six weeks after floodwaters extensively damaged the historic Spinning Mill now undergoing transformation in Skowhegan, the developer said he’s putting work on hold until he can cover the financial setback.
“We have paused the project till we can figure out how to fund the current financing gap caused by the flood damage,” developer Dash Davidson told Mainebiz.
The building, which sits on an island in the Kennebec River near downtown, has been vacant since 2005. Davidson and Max Patinkin, a fellow partner in Bangor-based High Tide Capital, are aiming to convert the property into 45 apartments and a boutique hotel.
In December, after the powerful rainstorm caused the river to flood, Davidson had assessed the damage to his project at $3 million.
He now estimates the total price tag at around $3.5 million for the materials and labor needed to fully repair and restore the building, plus $1 million in carrying costs related to a six-month delay in its planned opening.
The original plan had been to open the hotel this spring and the apartments over the summer, Davidson said.
Asked about the next milestone following the storm damage, Davidson said the team is working through the insurance claim process and seeking new grants and loans from local and state sources “to help get the project back on its feet.”
He added that Skowhegan town officials “have been very supportive of the project at this difficult time and have been great working partners throughout this recovery process.”
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