SACO — City officials have expressed frustration with unresolved easement and property issues related to Unit 91 that are prohibiting the city from selling the property, and an abutting owner said negotiations are moving forward and running their coarse.

In January 2016, the city acquired the first floor of the Saco Island Terrace portion of a former mill building on Saco Island, known as Unit 91, due to unpaid taxes from the Saco Island Terrace Association. 

Unlike the rest of the Saco Island Terrace space, which is residential, Unit 91 is a commercial space which includes businesses and offices.

In a 2016 interview, a representative of DIRIGO Management, which manages Saco Island Terrace, said the condo association had acquired the property the previous year from its former owner in lieu of delinquent association fees but was not interested in managing the commercial property.

In August, the City Council authorized the city administrator to go out to bid for a buyer for the property. The city received four responses December 2016, which were reviewed by a committee, according to city documents. Unresolved property and easement issues held up the sale of the property.

City officials say that since acquiring the property, the city has paid $207,000 in maintenance, repairs and condo fees and earned about $50,000 in revenue.

At a City Council workshop on Monday night, Economic Development Director William Mann said the city has met with the various parties regarding easement and property issues with Unit 91. He said about 1 1/2 months ago, the parties involved were in agreement regarding easements and the next step was to sign related paperwork, which was to take place in the upcoming weeks. He said since that meeting, Saco Island West, which is an abutter to Unit 91, came back with new requests that have yet to be resolved.

Mann said uncertainty about easements has “hampered dramatically” the sale of Unit 91.

There is a mezzanine that needs a transfer of easement before a sale of Unit 91 can go through, and Mann said there are concerns and unanswered questions regarding the structural integrity of the mezzanine.

Mann said the mezzanine may not be up to code, and if it’s not the city could pursue legal remedies that would impact Saco Island West’s other real estate ventures in the city until a remedy is agreed upon.

“It’s not what we prefer to do, but it may be what we are forced to do,” said Mann.
Saco Island West has proposed micro-unit apartments in another former mill building on Saco Island.

Councilor Alan Minthorn said there is a pattern of a few developers who have left projects unfinished in the city. Minthorn said, and Councilor William Doyle concurred, that developers who leave projects incomplete should not be able to get building permits or be able to go through the Planning Board process until they complete unfinished business. 

“At some point, we’ve got to quit being the nice guy and draw the line in the sand,” said Minthorn.

Saco Island West spokesman Sam Zaitlin said in a phone interview on Thursday that all parties involved in the discussions have been operating in good faith. Zaitlin said there are some complicated issues, with a number of parties involved, that take time to be resolved.

“I’m sure all these issues will be worked out,” he said.

Zaitlin said when the city took ownership of Unit 91, it took over something it didn’t have to. He said Saco West cautioned the city of the expenses and complications related to Unit 91, and the city should have done its homework before acquiring it.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.