Developers say collaboration, flexibility have kept things moving during pandemic

Photo / Maureen Milliken Hobson's Landing, 383 Commercial St. in Portland, is on schedule despite the COVID-19 pandemic.

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By Maureen Milliken

Successful real estate development during a pandemic relies heavily on collaboration among partners and being flexible, those on a Maine Real Estate and Development Association panel agreed Tuesday.

The panel included Nathan Szanton, president of Szanton Co.; Joe Dasco, principal of Reger Dasco Properties; Greg Mitchell, Portland economic development director; and Patrick Coughlin, principal and director of engineering, St. Germain. All four said that while there have been minor delays, everyone, from government agencies to construction managers to subcontractors have worked together to keep development moving forward.

Szanton compared construction during the pandemic to a boxer “who took some glancing blows, but stayed in the ring.”

The Portland Planning Board has approved about 150,000 square feet of construction since city virtual meetings began in April, Mitchell said. He said new projects range from residential, to medical office, to utility projects and more.

“At the beginning of the pandemic we established a goal here in the city to support the continuation of city development approvals, and to support ongoing construction activity while protecting the public health," he said.

There was no interruption of current Portland construction projects as pandemic shutdowns hit.

“We observed what was going on in the country, where construction was shut down, with the local economies, and we made the decision that if developers and their took on the responsibility of public safety and the public health crisis then we would support a continuance of those projects," Mitchell said. "So, we pivoted very quickly to remote services.”

Photo / Maureen Milliken

The groundbreaking for redevelopment of 385 Congress St. in Portland, formerly the Press Herald's printing press, will be delayed until next spring.

‘Couldn’t have come at a worse time’

The pandemic “couldn’t have come at a worse time,” for his projects, Dasco said.

The company, which develops high-end residential property, is nearing completion of the first phase of mixed-use Hobson’s Landing, at 383 Commercial St., and planned to break ground on the second phase in the fall.

The 85-condominium building, part of the redevelopment of the former Rufus Deering Lumber Yard, is “the one we were really worried about.” The building also has 6,000 square feet of commercial space. The second phase, which is on the same lot, would be similar. The project also includes an Aloft Hotel, being developed by Norwich Partners LLC of New Hamsphire.

“We have a hard deadline with our buyers,” Dasco said, of he condo portion of the first phase. Those condominiums are about 70% sold. “They are expecting to move in on a certain date, and keeping on schedule is of paramount importance to us, not only for the buyers, but also to manage costs on the job,” he said.

About 150 subcontractors are working on the site, with Consigli as construction manager. Dasco said that when Boston shut down construction in March, he was concerned Portland would do the same.

He said he was relieved when the city held a Zoom meeting with city developers to discuss safety measures, and allowed construction to continue. He said that Consigli is putting safety first, with a hot-water handwashing station, an outside elevator for subcontractors, and more.

Dasco, with two other developers, is also in the process of submitting a master plan application for 385 Congress St., the former Press Herald printing press next to City Hall.

“That has been a little easier to deal with remotely, working with architects, working with engineers,” he said. “The technology is there were we can review the plans and have effective meetings, moving the process forward.”

The first phase of that plan is for a 15,830-square-foot valet parking garage at the back of the site, with an entrance on Pearl Street, part of a phased development of the site. The full plan would be for mixed use, including up to 100,000 square feet of Class A office space on the 2.2 acres, which also has a former auto detailing building and a parking lot.

Photo / Maureen Milliken

A ribbon-cutting was held last week at Szanton Co.'s 48 Hampshire in Auburn, which was only delayed a month by the COVID-19 pandemic.

Common sense workarounds

Szanton said that two of the company’s projects that were underway when the pandemic hit – 48 Hampshire in Auburn and 178 Kennebec St. in Portland – were delayed by about a month. Tenants are moving into the Auburn project, which had a ribbon-cutting last week.

The 51-unit Portland project, the Furman Block, in West Bayside, was mostly delayed because of a postponed shipment from Quebec, Szanton said. But plans are for it to open later this year.

Benchmark was the construction manager in Auburn, and Hebert Construction in Portland, and both have been on top of health and safety precautions, he said. The ability to work with the cities involved, as well as the contractors, has been key to things going smoothly.

For instance, when the state halted new elevator inspections, the company, along with MaineHousing, asked the state to allow an inspection for a temporary certificate from a third party that inspects elevators already in use. The state agreed to the plan.

Szanton said the state government’s willingness to be flexible and allow “a common sense work-around,” was key to moving that part of the project forward.

Gary Vogel, MEREDA president and moderator of the forum, said, “That’s one of the great things about living and working in a small state, municipal and state officials are accessible.”

He said the government entities recognize the key part development plays, and welcome businesses that are “willing to come up with things that make sense.

Image / MEREDA

Panelists on MEREDA's webiner June 30 on development during the pandemic agreed virtual meetings have made things easier.

Focusing on substance

The panel members said that virtual meetings have benefits that may last beyond the current crisis.

“Although I enjoy the company and sitting around a conference table, as far as functionality goes, (Zoom meetings) didn’t miss a beat,” Dasco said.

Mitchell, the Portland economic development director, said permit inspections “continued without a hitch” remotely when the pandemic shutdowns began. He said there was about a 30-day pause in development approvals to allow the city to set up systems to work remotely. Once the Zoom platforms for city committees were set up, those approvals began.

The developers said being able to work with municipal staff remotely has been key to projects staying on track. The panelists also said that they’ve held in-person on-site public meetings without much success, but virtual informational meetings are a hit.

The virtual meetings — Zoom is the preferred platform — provide a written and recorded format of questions, which must be submitted beforehand.

“A big advantage is we’re able to focus on substantive issues,” Coughlin, the engineer, said, rather than the emotions surrounding a project.

Szanton Co. has held neighborhood meetings on residential plans in Bath and Old Orchard Beach that are just getting underway. Szanton said sharing information and plans on the screen helps, and security measures, including asking people to register before they get the link, cuts down on security issues.

“More people have come to these meetings than would come to an in-person meeting,” he said. He said the company will likely continue to hold virtual meetings in some form post-pandemic.

With projects underway, and some moving forward in the planning stations, they’re keeping their fingers crossed as far as the future goes.

While they predicted a slowdown in the Portland area’s red-hot pre-pandemic development, they are optimistic things will be steady.
Dasco also speculated on a change in how buildings are designed, with more attention to public safety. And also whether Maine would become more of a destination for people looking to escape big-city towers.

“Does that bring a positive impact to Portland, Maine, or a neutral one or a negative one?” he said. “We don’t have answers, just thoughts that are up in the air, and trying to give the best guess at this point.”