Portland City Council Approves $15 Million Settlement for Vacant Lots in Bayside

Strategic Insights -

The Portland City Council approved a $15 million settlement agreement to buy three vacant lots in Bayside that were promised to be developed into housing nearly 15 years ago. The "Midtown Project," proposed by Federated Companies, a Florida-based developer, was supposed to include 800 market-rate apartments, 100,000 square feet of retail, and ample parking. However, after resistance from residents and a legal challenge, the project was scaled back and never got off the ground. The settlement closes a costly, years-long legal battle and reopens the land to potential development.

Key Takeaways:

  • The settlement agreement is valued at $15 million and buys three vacant lots in Bayside from Federated Companies.
  • The "Midtown Project" was originally proposed in 2013 to include 800 market-rate apartments, 100,000 square feet of retail, and ample parking.
  • The project was scaled back after resistance from residents and a legal challenge in 2014.
  • The city spent roughly $25,000 a month in legal fees over the seven-year period of the litigation.
  • The settlement also prevents Federated from further legal action against the city.
  • Development of the lots is expected to include mixed-use development, including housing and a parking garage.
  • Councilor Sarah Michniewicz expressed sadness at the state of the property, which has been neglected for nearly two decades.
  • City Manager Danielle West was the city's lawyer when the ordeal began and expressed hope that the settlement will lead to upliftment in the area.

Statistics:

  • $15 million: the settlement agreement to buy the three vacant lots in Bayside.
  • $2.3 million: the original purchase price of the lots by Federated in 2016.
  • $85 million: the estimated cost of the original "Midtown Project".
  • $8.1 million: federal loans received by Portland to help finance a parking garage.
  • $1 million: the amount of federal funds disbursed to Federated for permitting and design costs.
  • $10: the amount the city paid for the condemnation of Lot 6 due to deed restrictions.
  • $13 million: the appraised value of the other two lots.
  • 2013: the year Federated Companies formally presented plans for the Midtown Project.
  • 2014: the year the project was scaled back after a legal challenge.
  • 2016: the year Federated purchased the lots.
  • 2018: the year Federated failed to pull necessary permits and its site plan approvals expired.

Sources:

  • The Portland Press Herald (Portland, Maine) - July 14, 2023
  • Tribune Content Agency, LLC - July 14, 2023