Insider Notebook: CMH cancer center gets final DHHS approval

RENDERING COURTESY / CENTRAL MAINE HEALTHCARE Central Maine Healthcare’s $38 million cancer center, planned for its Lewiston Central Maine Medical Center campus, has been approved by DHHS and construction is expected to start later this year.

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By Maureen Milliken

As Central Maine Healthcare focuses most of its efforts on COVID-19 care and preparation, the Lewiston-based health care system got some good news that has nothing to do with the pandemic.

The system’s planned $38 million Central Maine Cancer Center has been given final certificate-of-need approval from the state Department of Health and Human Services last week. DHHS gave conditional initial approval last month.

The cancer center was proposed last December by Central Maine Healthcare, and will provide convenient access to outpatient oncology services, along with needed facility and equipment updates, CMH officials said. Groundbreaking is planned for the fall, and the center is dssssdddexpected to open in spring 2022.

At least for now, those plans are still on track, despite the COVID-19 response.

“While our attention is urgently focused on the current public-health crisis, we look forward to breaking ground on this project before the end of the year,” Kate Carlisle, director of public relations and community affairs, told Mainebiz. “This is in line with our original plans.”

The certificate of need was filed in November and the cancer center plan was officially announced in December by Central Maine Healthcare. The center would combine a number of oncology functions that are spread across the CMMC campus into one place.

The 50,000, two-story building will be built by Bateman Partners LLC in an area of the downtown Lewiston campus now largely used for parking. Bateman, the developer on the health care system’s Topsham and Lewiston urgent care centers, would own the building and lease it to CMH.

As written in the certificate of need review, the health care system negotiated a ground lease for a minimum of 50 years, a medical office space lease including an initial term of 20 years with an option for CMH to buy, fixed rent in years one through five, and 2.5% annual increases beginning in year six.

The option factors in a construction cost of $300 a square foot and a lease rate of $26.62 a square foot, which is about $13 less per square foot than what had initially been offered by development consultant if the system were not to involve a third-party developer.

"Much of the savings between the two development options was rooted in the fact that the general contractor and multiple sub-contractors working with the selected developer are based locally, and the developer is not funded by a publicly traded [real estate investment trust], but rather by a mixture of private equity and conventional banking loans, which allow for more favorable financing terms to directly impact the operating finances of the project and sustainable viability of the entire program," the application said.

Photo / Maureen Milliken

The state Bureau of Parks and Lands is offering grants for recreational trail development and maintentance.

More trails on the way?

Maine may be spread out, with a lot of available trails to social-distance on, but people in some spots are finding it tough to find uncrowded trails.

Wednesday, the state Bureau of Parks and Lands Grants and Community Recreation Program announced the availability of Recreational Trails Program funding, which may spur some landowners to develop more trails this spring and summer. The grants are provide matching reimbursement money, and the application deadline is Sept. 25.

The money is available to develop and maintain recreational trails and trail-related facilities for motorized and nonmotorized recreational trails, and comes from the U.S. Department of Transportation's Federal Highway Administration assistance fund. Applicants can be nonprofits, municipalities, state or federal agencies, as well as private landowners who allow public use of their trails.

“The more quality local trails that are convenient for people to find and use, the more likely they will be to venture out and enjoy the benefits of physical activity and a connection to nature," said Maine State Trail Administrator Douglas Beck in a news release.

There is $938,000 available to the program, which funds administration as well as grants to local and state partners for eligible projects.

The money is split, with 30% for motorized trail recreation, 30% for nonmotorized and 40% for projects that facilitate diverse trail use. Grants range from up to $50,000 for smaller projects and $120,000 for large-scale ones The program can fund as much as 80% of a project.

Proposals that address landowner concerns as well as ones that support economic and community development are included among the 20 goals of the program.

Eligible projects include:

Maintenance and restoration of existing recreational trails.
Development and rehabilitation of trail side and trailhead facilities and trail linkages for recreational trails.
Construction of new recreational trails.
Acquisition of easements or fee simple title to property for recreational trails or recreational trail corridors.

NAR survey shows post-pandemic optimism

While there's an obvious expected slowdown in spring real estate business activity, many brokers remain hopeful for a post-pandemic market rebound, according to a survey of members by the National Association of Realtors.

NAR’s latest Economic Pulse Flash Survey – conducted April 5 and 6 – asked members questions about how the coronavirus outbreak has affected the residential and commercial real estate markets.

The majority of members believe buyers and sellers will return to the market as delayed transactions following the end of the health crisis, according to an NAR news release.

Nearly six out of 10 members – 59% – said buyers are delaying home purchases for a couple of months, while a similar share of members – 57% – said sellers are delaying home sales for a couple of months.

The survey also shows many landlords are able to accommodate tenants who are facing rent payment issues, with help from the federal CARES Act.

Nearly half of property managers nationally – 46% – reported being able to accommodate tenants who cannot pay rent and more than a quarter of individual landlords – 27% – said the same. The federal act includes provisions on eviction prevention and small business loans and grants that are critical to keeping the rental market steady, the NAR said.

Other highlights of the member survey include:

90% of members said buyer interest has declined and 80% of members cited a decline in the number of homes on the market.
Home prices, which were rising rapidly before the pandemic, look to hold steady. Almost three in four members – 72% – said sellers have not reduced prices to attract buyers.
Conversely, more than six in 10 members – 63% – said buyers are expecting a decline in home prices as buyers sense less competition in the current environment.
Technology plays a vital role as the real estate industry adapts to social distancing. Members said the most common technology tools used to interact with clients are e-signatures, social media, messaging apps and virtual tours.