Report: Waterfront a development goldmine
Photo/Rebecca Goldfine
Penny St. Louis Littell, Portland's city planner
A Boston company has released a new report that touts the development potential of Portland's waterfront. But, at the same time, the report warns of the risks posed by a federal agency's attempts to remake the city harbor's flood maps and restrict waterfront construction.
The Concord Group, a real estate consultancy, says Portland's waterfront "represents significant investment and development opportunity," with more than 20 acres of developable land on the water or close by. It highlights the seven-acre Maine State Pier, the 10-acre Sprague property on Fore Street, and the 1.7-acre site on India Street previously approved for a Westin Hotel and condos. The Concord Group created the report for its clients, which tend to be mainly private equity funds and banks.
"Our initiative was to focus on lesser-known markets in New England," the report's author Francis Yuen says, "and shed some light on the goings-on in Portland, Providence, and other markets for our clients."
The report projects that future employment levels in Portland will create a demand for 200,000 square feet of new office space a year starting in 2011. It adds, however, that the local economy is driven by small business and securing large tenants for big office developments is not easy.
The report also observes that the growing cruise ship industry in Portland could drive up demand for more retail shops. And the study points out that there are opportunities for new hotels with ocean views since "the city currently has no true waterfront hotels."
While mostly optimistic, the report comes at a distressing time for those who want to see the Portland waterfront become more commercially viable. Last August, the Federal Emergency Management Agency released a preliminary plan to rezone the city's waterfront on updated flood maps, which would restrict development on Portland's wharves and piers. The preliminary plan was part of a FEMA initiative to update flood maps in much of the populated areas of the country to better regulate development and insurance rates in flood plains.
The Concord Group did not, however, undergo its study in response to the flood map controversy, Yuen says.
But others have reacted strongly to FEMA's plans. Portland officials and Maine's congressional delegation have cried out against what some say are maps based on inaccurate data.
"Fundamentally we don't think the V-zone designation is appropriate," Portland City Planner Penny St. Louis Littell says, referring to the zone FEMA recommended for Portland's waterfront, and which would basically forbid everything "but lobster and fishing shacks." The city's waterfront is currently an A-zone, which allows elevated construction on piers and wharves.
Municipalities must accept FEMA flood maps to enable those who buy or build in flood zones to obtain flood insurance, which all federally backed banks making mortgages require from borrowers.
Littell says that FEMA's data on wind speed was not accurate, and that historical information indicates storm winds in Portland - which would whip up waves - are closer to 50 miles per hour or so, not 71 miles per hour as FEMA indicated.
Littell says that several meetings and conference calls with FEMA officials have left her optimistic that the issue will be resolved "favorably for Portland." She adds that she is not troubled by The Concord Group's identification of the new FEMA maps as a "risk factor." "We're hoping to take it off the table shortly," she says.
FEMA spokesman David Mendelsohn says FEMA issues its draft maps to identify risk as best it can, but also encourages feedback from officials and the public. "We always welcome better information," he says. "We are working collaboratively with the city to resolve their concerns and gather more information."
FEMA did not redraft the maps in response to future predictions around climate change, Mendelsohn adds.
Littell says the city is relatively safe from flooding with the exception of a couple of low-lying areas - like the Portland Pier - that could be repaired when the city has more money.
Yuen says so far The Concord Group's report has elicited neither overwhelmingly negative nor positive feedback from his clients. "What we're trying to do is basically enlighten our clients," he says. And they've responded with a "thanks for the heads-up, this is something we'll keep our eye on," he says.
Littell, for one, is buoyed by the report. "I am encouraged Portland has such a great reputation outside of Maine, and the forecasting they've done for Portland is encouraging," she says.
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