MaineHealth, United Way pull out of Bayside deal
MaineHealth and the United Way of Greater Portland have scrapped their plans to build an eight-story office building and parking garage in the Bayside neighborhood.
Last year, a need for more office space prompted the Portland-based health organization -- parent organization of Maine Medical Center -- and the United Way chapter to jointly plan the $40 million office building and 700-space parking garage, according to a press release from MaineHealth. But current national and local economic conditions and increased financing costs made the project too financially risky, MaineHealth President Bill Caron said in the statement. The project received financing with new market tax credits and reduced interest rates through Key Bank and TD Banknorth, as well as a $9 million U.S. Department of Housing and Urban Development grant.
The announcement throws a temporary wrench into the city's ongoing plans to revitalize the Bayside neighborhood. "Clearly it's a setback," Greg Mitchell, the city's economic development director, told Mainebiz. "We always hoped that project would proceed, but I don't see it stopping our redevelopment." Mitchell said the economic conditions make it tougher to attract investors for the several city-owned parcels along Somerset Street, but that "there has been some investor interest" that could move forward this year. The city has put the two-acre parcel MaineHealth and United Way would have bought for $1.7 million back on the market, he said.
The city is still "aggressively" pursuing redevelopment of the Bayside neighborhood, Mitchell said, citing $2 million in investments this year for the Bayside Trail project that will begin construction this year. Other infrastructure improvements, like sidewalk construction, are also planned, Nicole Clegg, Portland's director of communications, told Mainebiz.
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