GORHAM – No matter who ends up buying property seized this summer by Gorham for delinquent taxes, it will never again house a fraternity or sorority.

“There’s a 20-year history of outrageous behavior of fraternity members on Preble Street. They’ve tormented, intimidated and threatened residents in that neighborhood,” Town Councilor Burleigh Loveitt said Wednesday. “We’re sick of it. I’m sick of it.

The Gorham Town Council voted unanimously 6-0 (Loveitt absent) Tuesday to authorize the sale of the tax-acquired property at 27 Preble St. with the restriction that it not be owned or used by a sorority or fraternity. It had been home to Gamma Omega of Phi Kappa Sigma, an off-campus fraternity at the University of Southern Maine.

Holding foreclosed tax liens, the town took possession of the fraternity property in June, when fraternity members were ordered to vacate.

The council set a minimum bid requirement at $35,000 to recoup back taxes and legal fees. The amount of taxes owed on June 22 was $26,937.21, according to the town. The town will likely advertise by the first of September for bids on the property.

The town reserves the right to accept or reject any bid. To the successful bidder, the town will issue a quit-claim deed with restrictions that prohibit the property from being owned or used by a fraternity or sorority. The town had previously attributed 149 police calls in the past five years to activities at 27 Preble St.

“My goal would be to give the council an opportunity to dispose of the property before winter,” Town Manager David Cole said in Tuesday’s meeting.

Town tax records online list the total property valuation at $258,900 including the land value at $71,000. The town records indicate the two-story house, built in 1880, has 15 rooms with 2,656 square feet of living space.

A report of a town inspection in June revealed multiple code violations and concerns. The town will sell the property “as is” and the winning bidder would be responsible for “any clean-up and improvements,” according to the bid specifications.

The order passed by the Town Council said, “This building has identified code violations that must be corrected before the building can be occupied.”

Peter Mason of PoGo Realty in Gorham said Wednesday he hasn’t seen the inside of the former fraternity house and didn’t offer an estimate of what the market value might be. He understood it was in rough shape.

“I could see someone spending $150,000 rehabbing it inside and out,” Mason said.

“I hope it goes to a good owner,” Mason said.

A Gorham resident, Dan Foley, asked during the Town Council meeting whether the property would be free and clear of liens.

Cole believed the deed would be free and clear but “strongly” recommended interested bidders consult with an attorney.

In June, a lawyer for a mortgage holder on the property told the Town Council his client, Marie-Noelle Ces, was owed $160,000. Ces couldn’t be reached for comment Wednesday.

The Gorham Town Council has not discussed whether Ces would receive any compensation from the town. Cole said after Tuesday’s meeting that the town is not legally obligated to the mortgage holder, but he said the council could address what to do with any excess funds after bids are received.

After seizing the fraternity property, the town proposed regulating the two remaining off-campus fraternities and banning any new ones. For some time, behavior at fraternities has been an ongoing issue in Gorham. Fraternities were also among topics discussed last week when town leaders met with Selma Botman, university president.

Judie O’Malley, a spokeswoman for the university, said this week that Botman has committed to meeting with fraternities and sororities again this year. But O’Malley said no date had been set yet.

Prior to Tuesday’s meeting, Mike Phinney, chairman of the Gorham Town Council, said, referring to the meeting with Botman, “They said they’re trying hard to work with fraternities and have them work with the town to be good neighbors.”

In response to rowdy student behavior in Gorham’s downtown neighborhood, university officials have sponsored a series of past meetings involving students, fraternity representatives, residents and police. Last fall, the university also issued behavior guidelines, governing conduct of student organizations living in off-campus housing.

Tuesday morning, Gorham’s Ordinance Committee discussed regulating two remaining off-campus fraternity houses in Gorham’s downtown.

“We bounced off ideas,” Matt Robinson, the town councilor who is chairman of the Ordinance Committee, said about Tuesday’s committee confab.

Brenda Caldwell, vice chairwoman of the Town Council, said the town is considering a measure to license fraternities. A member of the Ordinance Committee, Town Councilor Matt Mattingly, called Tuesday’s discussion “exploratory” and he said details would have to be worked out.

Cole said after Tuesday’s Town Council meeting that he is drafting a proposal to regulate the fraternities. Cole said it could be on the agenda at the Tuesday, Sept. 7, council meeting.

The Town Council has also sent a proposal to its Planning Board that would strike fraternities from permitted uses under zoning for a review. But a Planning Board public hearing date has not been scheduled.

The tax-acquired house at 27 Preble St. in Gorham will be for sale by sealed bid. The former home of Gamma Omega of Phi Kappa Sigma has 15 rooms with 2,656 square feet of living space. (Staff photo by Robert Lowell)