GORHAM – A Gorham businessman who converted a historic church to commercial use now hopes a bank-ordered auction of the real estate next week can be averted.

Michel Salvaggio Jr., 36, owner and chef at Bella Chiesa Banquet Center, 29 School St., in Gorham, saw potential in the former School Street United Methodist Church and renovated it, preserving many architectural details. Besides Bella Chiesa, the property houses two restaurants.

But now, Tranzon Auction Properties of Portland has a public sale scheduled for 10 a.m. on Thursday, May 24, in a bank sale of real estate.

“I’m rattled by it,” Salvaggio said Tuesday about the pending sale. “It’s so stressful.”

A lender, Home Loan Investment Bank, formerly known as Ocean Bank, ordered the sale. According to an advertised public notice, it is the present holder of a mortgage and security agreement given by Bedford Falls Associates.

Bedford Falls Associates of Falmouth owns the property, according to Gorham tax records. Salvaggio said his dad, Michel Salvaggio Sr., is the only office holder in Bedford Falls Associates.

Bella Chiesa, which Salvaggio said means beautiful church in Italian, is not for sale. Salvaggio said he is a tenant of his father and has a lease for the next three years.

He said negotiations are under way in an effort to halt the sale of the property.

“We are still trying to work out a deal,” with the bank, Salvaggio said Tuesday. “We’re looking to hold onto the property.” He said he’s “very confident” there won’t be an ownership change.

Two tenants at 29 School St. are listed on the Tranzon website as St. Joe’s Coffee, which has a lease ending May 31, 2020, and Thatcher’s of Gorham, with a lease running to Dec. 31, 2018.

Bruce Hodgkin, co-owner of Thatcher’s Restaurant in Gorham, said about the pending sale, “It’s bad fortune for the Salvaggios.”

But, Hodgkin said, a sale wouldn’t impact him because Thatcher’s still has several years left on its lease. Hodgkin said Tuesday he might make a bid for the property.

“We may buy it,” Hodgkin said, but added he had “no clue” what would happen to the building.

Jason Miller of St. Joe’s Coffee could not be reached for comment by the American Journal’s deadline.

Salvaggio said the Sons of Italy Lodge also is a tenant in the converted church. He is lodge president.

The lodge acquired permits from the town for poker and games of chance.

When Bedford Falls Associates acquired the property on May 2, 2007, the sale price was $330,000, according to town records. Now the total assessed value for tax purposes is $688,300.

Laurie Nordfors, assistant Gorham tax collector, said Tuesday that $10,791.38 is owed on 29 School St. for the 2012 tax bill.

The former church building, a downtown Gorham landmark, was built in 1880. After selling it, the church relocated to a new building and became Cressey Road United Methodist Church.

Renovation of the church initially involved Salvaggio, who previously owned a deli in Denver, Colo., and three brothers. Their father owned the former Michel’s Restaurant in Westbrook for more than 20 years.

Under a company called Four Brothers, Salvaggio received Planning Board approval in March 2007 to convert the church to commercial use. In the extensive work, many of the special features, like the tin ceiling, altar rail and woodwork in the sanctuary, have been preserved.

He and two brothers opened the Tree House Cafe? in March 2008, in the space where St. Joe’s Coffee is now located.

The Bella Chiesa Banquet Center space first operated as The Church Performing Arts Center and included nightlife. Salvaggio said some in Gorham thought the Church Performing Arts Center concept for the renovated church was blasphemous and the building was repeatedly targeted by graffiti.

“You dishonor Christ,” he said one defacement read.

Now, he said, the Bella Chiesa concept is only special events and banquets. He has booked banquets from June to November.

“We’re pouring everything we’ve got into this place,” he said.

In late November, Salvaggio was accused of threatening a town official on Facebook. He was charged with a misdemeanor, but he said this week that the case was dismissed from court. He said he is considering filing a lawsuit for false arrest.

He claims the arrest affected his business and it has taken time to recover.

“They plastered me all over the news,” he said.

The former School Street United Methodist Church in Gorham is scheduled for a bank-ordered auction May 24. The renovated building houses a banquet center, coffee shop and restaurant. (Staff photo by Robert Lowell)