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Concern is mounting in Biddeford that the sale of the Pepperell Mill Campus may result in dramatic hire will increase within the complicated and impression market charges all through downtown.
Whereas the builders who’re shopping for the campus say they haven’t selected across-the-board hire will increase, they’ve spoken publicly about their perception that the residential and business rents are 25 to 50 p.c beneath market charges. These feedback stoked concern amongst tenants and group members that the 152 households and 150 small- and medium-sized companies within the redeveloped historic textile mills may see important will increase of their hire at a time when affordable housing is in short supply and companies are coping with stress from the pandemic.
“There may be undoubtedly a frenzy of concern from of us who’re going to be impacted by these hire hikes,” mentioned Maine Home Speaker Ryan Fecteau of Biddeford, who famous that hire on the Pepperell Mill Campus is “a driver of what’s thought of market hire all through downtown.”
After news of the pending sale of the sprawling downtown complicated broke this week, native and state leaders started receiving calls and emails from folks involved in regards to the impression of great hire will increase. The town’s legislative delegation and mayor requested to fulfill with patrons Chris Rhoades and Andrew Preston to raised perceive what could occur after the sale is finalized later this 12 months. That assembly is predicted to happen as early as subsequent week.
Rhoades and Preston, companions within the Maine tasks of Texas-based funding group Presidium, had been behind the conversion of hundreds of military housing units to personal housing on the former Naval Air Station Brunswick, now referred to as Brunswick Touchdown. Additionally they have purchased Portland’s iconic Time & Temperature Building and plan to transform it right into a resort and retail area.
“I feel individuals are extraordinarily involved,” Mayor Alan Casavant mentioned. “It doesn’t simply heart on the will increase within the mill complicated itself, however the ripple impact it may have all through the group.”
The redevelopment of the previous textile mills has lengthy been touted by metropolis officers as a key a part of the downtown revitalization that Biddeford has loved lately. The mill buildings are being bought by Doug Sanford, who purchased a number of the complicated in 2004 and the remainder in 2010 and transformed a number of the buildings into flats and business areas.
Rhoades and Preston count on the sale to shut by mid-December. They are saying they hope to construct on the conversion into flats, places of work and retail area that has been underway for the previous 15 years.
The patrons highlighted the success of the Pepperell Mill Campus in a video posted on the online real estate investment platform CrowdStreet.
INVESTMENT VIDEO DISCONCERTING
“We’re going to make use of greatest practices from Presidium and their established group to return in right here and lift rents, do some capital enhancements on the situation,” Preston mentioned. “We really feel rents are 35 to 50 p.c beneath market on the business and roughly 30 to 35 p.c beneath market on the residential.”
Month-to-month hire on residential items on campus at the moment vary from $1,200 for a studio to $2,400 for a luxurious two-bedroom.
Rhoades mentioned this week that he and Preston commissioned a market research and decided that the present rents, each residential and business, are about 20 to 25 p.c beneath the market charges. He mentioned they may in all probability elevate rents as tenants transfer out however haven’t decided on across-the-board hire hikes.
Matt Meza, home counsel for Presidium, mentioned in an announcement Friday that Presidium “is dedicated to persevering with the exceptional legacy of Doug Sanford and his necessary work to revitalize downtown Biddeford.
“Whereas we’re unable to debate specifics right now, we sit up for assembly with native leaders within the close to future to debate our plans for the mill and the way we are able to greatest positively contribute to downtown Biddeford’s renaissance,” he mentioned.
Casavant mentioned the statements within the builders’ video pitch to potential traders had been “disconcerting” and raised questions on their intentions.
“Biddeford has come a good distance and we’ve performed so by nurturing small companies and attracting individuals who see Biddeford as a fascinating place,” he mentioned. “I don’t need that jeopardized as a result of folks see it as an opportunity for revenue. That’s not what Biddeford is about.”
Metropolis Councilor Amy Clearwater, whose ward consists of the Pepperell Mill Campus, mentioned she “couldn’t consider what I used to be seeing” when she watched the video for traders.
“Reasonably priced housing is likely one of the largest challenges going through our state and it’s outrageous that traders may assist our downtown worth out over 150 renting households and 150 small companies,” she mentioned in an announcement. “The pitch to hedge funds they’re promoting is that they will elevate the rents in a considerable strategy to get a return on funding on the backs of our neighbors. I see that as tragically shortsighted for what our group wants and deserves.”
‘A PUNCH IN THE GUT’
Anna and Bowman Brown moved to the mill in early 2020 as they ready to open their eating places, Elda and Jackrabbit Café, in one other constructing within the complicated. They signed a 10-year lease for his or her business area, however residential leases have to be renewed yearly. Each had been shocked after they heard in regards to the potential for big hire will increase.
“It felt like a punch within the intestine,” Anna Brown mentioned.
Due to their 10-year business lease, the Browns are unlikely to see a rise on that entrance within the close to future. However they fear {that a} huge enhance in the price of their housing may make it unaffordable to proceed to reside and work in the identical place. Past that, they’re involved that rising rents may negatively impression current progress within the metropolis.
“I don’t need the momentum to be squashed and halted for revenue,” Anna Brown mentioned. “I concern what such a drastic hire hike would do to that momentum.”
Bowman Brown mentioned he already has heard from longtime residents and different enterprise house owners who plan to maneuver out.
“If that’s their plan, to drive everybody out, it’s already working,” he mentioned of the mill patrons.
Joe McKenney, co-owner of McKenney Pictures, moved his studio out of the Pepperell Mill Campus initially of the pandemic and is subleasing his area to a bookseller. He was contemplating shifting again, however modified his thoughts due to the prospect of recent house owners and better rents.
Now McKenney is worried about what the sale may imply for different small-business house owners.
“It’s a variety of overhead to soak up whenever you’re nonetheless within the throes of a world pandemic and gross sales aren’t what they was,” he mentioned.
Metropolis Supervisor James Bennett mentioned Friday that he’s conscious of the group concern. Metropolis employees has simply began to search for methods to objectively measure potential modifications on the mill complicated and their doable impacts downtown.
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