PowerPay submits reuse plan for Public Market
The Portland Planning Board will tonight hold a public hearing and consider an application from PowerPay for the redevelopment of the Portland Public Market, a project which may include a tax break from the city.
PowerPay and its CEO, Stephen Goodrich, purchased the building in December with plans to renovate the building into office space for its more than 200 employees. The application calls for adding second floor office space and an open atrium, increasing the size of the public market building from 33,333 square feet. to 46,451 square feet. The entrance on Cumberland and Preble streets will be closed, while entrances on upper Preble and Elm streets will be retained. The plans call for a first-floor cafe at the Preble Street entrance.
PowerPay expects to finance the project through its own funds, a commercial loan, a significant subsidy through the federal New Market Tax Credit program and a possible tax increment financing deal from the city of Portland. The application said the City Council could consider a potential TIF as early as its March 16 meeting, but so far the City Council has not been told about any TIF deal, according to City Councilor Kevin Donoghue, who represents the 1st District, where the Portland Public Market building is located. Donoghue said he has heard that Goodrich may approach the city about some sort of aid. "But more than that, I'm not aware of any TIF agreement in the works."
CEI Capital Management has agreed to provide a New Market Tax Credit allocation that could provide around $2.9 million in upfront capital subsidies to the project. The application says several banks are interested in being the commercial lender on the project, in part because of the Community Reinvestment Act credits they would receive.
The city does not expect any major disruptions from the project and Eric Giles, a city planner, told Mainebiz he is confident the Planning Board will approve the application.
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