SOUTH PORTLAND – The South Portland City Council on Monday declined to sell city-owned property on Noyes Street to the nearby Super 8 Motel, opting instead to sell the land to abutters as a buffer against the motel, which the city says has been plagued in the past by poor management.

“There are numerous issues that staff has with the operation of Motel 8 at this point,” said City Manager Jim Gailey. “They have not been a good neighbor to date. We are constantly over in that area for all kids of different calls, whether they are rescue or police orientated.”

Last summer, the council endorsed a Planning Board recommendation for the dispensation of 46 lots taken for back taxes between 1923 and 2009. Among them were three lots on an undeveloped section of Noyes Street totaling 2.26 acres. At the time the Planning Board advised that the city hold on to the lots to help maintain a buffer between homes on Noyes Street and the motel, located on Main Street.

But then in January, shortly after MaineLy Property Management was hired to run the Super 8 for its owner, East Coast Hospitality, the company expressed interest in buying one of the lots. That was followed in February by a purchase request by Wallace Avenue manufacturing company American Steel and Aluminum, and in March by a flurry of offers by residents of Noyes Street.

Asked to again review the properties, the Planning Board voted on March 26 to support the sale of the lots, suggesting a division among all interested parties, with certain deed restrictions for maintenance, storm water easements and conservation.

However, the City Council saw things differently and on Monday rebuffed MaineLy Property Management, based largely on issues at the Super 8, including 37 police calls to the motel since the beginning of the year, and 68 visits in 2012.

Gailey said that just hours before the meeting, rescue workers had transported a person from one of the Super 8 units. The issue, he noted, is that the person was staying in a building on the property that “does not have occupancy permits to operate as units of living.”

“That was a little concerning, hearing from the fire chief that they are having people stay in a building that is not up to snuff, code wise,” said Gailey. “Although code enforcement and the fire department are working with them to bring all of their buildings up to code, that one should not have had anyone living in it.”

Tim Ly, president of MaineLy Property Management, said his 12-year-old company, which managers more than 340 residential units in the greater Portland area, has recently moved its corporate offices to the Super 8, which it is working to rehabilitate.

“We’re obviously sympathetic to issues going on,” he said. “We’ve done a lot in four months. It’s not perfect still, but we’ve invested $20,000 on remodeling and upgrades. We think the situation is a lot better.

“It was not managed correctly before,” said Ly, noting, “not one person is there who was there four months ago.”

The issues with people living in unsafe buildings, he said, was simply an issue of trying to work out arrangements to move people between buildings, while also navigating the legal system to evict others who created their own special problems.

According to Gailey, MaineLy wants the 80,150-square-foot lot designated 40 Noyes St. in order to meet the residential density rules in city ordinances that would allow the company to convert some of the un-rented units at the motel into 18 apartments.

“That would allow us to bring in the revenue to make the place even better,” said Ly, adding that the sale would return the property to the tax rolls.

“We’re just trying to make the best situation of a bad situation there,” he said.

However, three abutters got up on quick succession to say their lives living next to the Super 8 have been a bad situation for years.

“No amount of money in real estate taxes collected can compensate for delivering blight to this area of the city,” said Elliott Randall.

Randall said the building owner “is not local and has no stake in the neighborhood,” while claiming that MaineLy “has failed to keep promises” to make things better.

“They’ve changed management I don’t know how many times, but it’s always the same owner with the same results,” said Leigh Silver, a resident of Noyes Street.

Fights, loud noises, drug abuse, trash littering the area, fences left unrepaired, even an infestation of raccoons, all were listed as issues with the motel or its residents.

“I have constantly since I’ve lived there had a variety of people coming into my yard. I’ve had people coming into my home, and long-term livers in the motel several nights in a row on my deck,” Silver said.

“There have been times when I’ve been uncomfortable being in my own back yard,” said abutter Margaret Michaud.

“Why give them more land when they can’t take care of what they have there now?” asked Sarah Randall.

Following testimony by the abutters, Councilor Patti Smith said, “This is the easiest decision for me I’ve ever made. Personally, I would be in favor of giving the residents some relief.”

While he called the situation “very emotional,” Councilor Gerard Jalbert urged his peers to make a decision based on law and code enforcement issues, over which they have no purview, but on questions of policy. To inform that decision, Jalbert pointed to the population density and development impact goals set is South Portland’s new comprehensive plan.

“Selling three small buffer lots to the neighboring residents would be almost no impact at all as far as to any city services, or to the neighborhood, except for perhaps some improvement in value,” he said.

The council agreed unanimously to have Gailey negotiate with Michaud, Randall and Silver to buy thin strips of city-owned property, ranging from 2,264 to 5,290 square feet, between their homes and the motel.

“I know you’re very sincere in what you’ve been trying to do these past four months,” Councilor Alan Livingston told Ly. “Unfortunately, it seems like you are coming in on the heels of other situations that were never taken care of over many, many years.”

The council also agreed to sell a larger, 29,611-square-foot parcel to American Steel. Branch manager Peter Brisette said most of the property will remain undeveloped, which a section directly behind the company building will become an extension of the parking lot.

With new bay doors on the back of the company, Brisette said, large trucks would be able to “drive right through the building” and around the side, keeping them from tying up traffic backing in and out from Wallace Avenue.

Those plans will eventually go before the Planning Board, while all of the property sales will get public hearings before final council action.

The council backed Gailey’s recommendation that they city retain a 77,664-square-foot section at the end of Noyes Street “to protect our interests” and block future development. The city also will retain a 30-foot easement for stormwater and sewer lines that runs the length between that section and the one to be conveyed to American Steel.

“I hate to see the city give up any open space,” said Blake, “But I support these sales and hopefully we can work out four different agreements here.”

Once a price is negotiated, 60 percent of the sales will go directly into South Portland’s Land Bank – a requirement whenever the city sells unimproved lots. That money can only be used to buy additional open space.

“So, we’re pretty much transferring this property for additional open space somewhere in the city that can be even more valuable,” said Blake.